Transcript
ICRA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
ICRA reported strong FY26 performance with consolidated revenue up 20.4% YoY. The Ratings segment delivered steady 14.2% growth, while Research & Analytics grew 29.8% driven by Fintellix acquisition (consolidated from October 2025). Q4 revenue grew 28.4% YoY with consolidated PBT at INR 72.8 crores. Management flagged a business mix shift as Knowledge Services (KnowTech) growth moderates due to automation and discontinued engagements, while product-led businesses (BankTech, CapTech) are growing faster. These non-KS businesses have 20-35% EBITDA margin profiles, different from KnowTech. The company has INR 700+ crore cash on books and announced dividend of INR 105 per share (including INR 35 special dividend for 35-year milestone). Outlook for FY27: GDP growth estimated at 6.2% due to geopolitical uncertainties and commodity price pressures.
The ratings business is expected to maintain double-digit growth driven by bank credit. However, the shift in R&A revenue mix toward lower-margin product businesses versus moderating Knowledge Services could pressure overall margins. Shareholders raised concerns about capital allocation with INR 700+ crore cash.