ICRA (ICRA) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated operating revenue was ₹17,785.64 lakh and PAT was ₹5,243.53 lakh; H1 revenue was ₹34,122.24 lakh and PAT was ₹10,989.41 lakh.

• Revenue grew 30.2% YoY in Q2 and 30.7% in H1, driven by Ratings growth and Fintellix-led Risk & Analytics expansion.

• Strategic priorities include growing Ratings and R&A, diversifying revenue, developing people and technology, and selective inorganic growth; R&A is positioned as an intelligence-as-a-service provider.

Financial highlights

• Q2 consolidated revenue was ₹17,785.64 lakh versus ₹13,660 lakh; H1 revenue was ₹34,122.24 lakh versus ₹26,110 lakh.

• Consolidated Q2 PAT was ₹5,243.53 lakh; H1 PAT was ₹10,989.41 lakh. Acquisition-related depreciation and amortisation partly offset H1 profit growth.

• Consolidated basic EPS was ₹54.20 for Q2 and ₹112.56 for H1; diluted EPS was ₹54.07 and ₹112.34, respectively.

• Ratings revenue grew 15.2% in H1 FY2027; management cited credit growth and activity in target segments.

Outlook and guidance

• Management expects bank credit growth to remain buoyant in H2; R&A performance is expected to improve seasonally, with BankTech renewals concentrated in Q1.

• Ratings margin expansion remains possible if double-digit revenue growth continues; technology investment is largely complete.

• FY2027 real GDP growth is projected at 7.1%, with downside risks; CPI inflation is estimated at 5.2% and WPI inflation at 9.0%.

• FY2027 securitisation volumes are forecast at ₹2.6–2.7 lakh crore; bond issuance is expected to remain volatile amid elevated yields and macro uncertainty.

• No specific acquisition profitability timetable or revenue guidance was provided; RBI clarification remains pending on Basel III risk-weight calculations effective 1 April 2027.