ICRA (ICRA) Q4 25/26 earnings summary

Executive summary

• Consolidated revenue for FY26 grew 20.4% year-on-year to ₹599.5 crore, led by Research & Analytics (R&A) segment growth of 29.8% and Ratings segment growth of 14.2%.

• Q4 FY26 revenue increased 28.4% year-on-year, with R&A up 56.8% and Ratings up 10.6%.

• Board recommended a final dividend of ₹105 per share (including ₹35 special dividend) to mark 35 years of operations, subject to AGM approval.

• Acquisition of Fintellix completed in Q3 FY26, strengthening risk analytics and RegTech capabilities and contributing to consolidated results.

• Launch of AI-driven Research Assist and expansion into ESG ratings and new product-led divisions.

Financial highlights

• FY26 consolidated revenue from operations was ₹59,951.01 lakhs, up from ₹49,802.12 lakhs in FY25.

• Profit before tax (PBT) for FY26 increased 10% year-on-year to ₹257.4 crore, excluding a one-time Labour Codes charge.

• PAT rose 6.7% to ₹188.6 crore; basic EPS up 75% to ₹105.0, including a special dividend.

• Fintellix contributed ₹251.69 crore in revenue and ₹6.91 crore in net profit after tax for H2 FY26.

• One-time impact of new Labour Codes resulted in an exceptional expense of ₹691.83 lakhs (consolidated) in FY26.

Outlook and guidance

• FY27 GDP growth projected at 6.2% real and 12% nominal, with downside risks from West Asia conflict and weak monsoon.

• CPI inflation expected to rise to 4.7% in FY27; fiscal deficit/GDP ratio to widen to 4.7%.

• Regulatory changes (e.g., RBI's expected credit loss framework) to sustain demand for risk and compliance solutions.

• R&A growth to be driven by Fintellix integration and expansion into new geographies; knowledge services growth to remain moderate.