Strong Ratings masked by acquisition integration drag

Group revenue 30.2% YoY; Ratings subset implied ~15% growth consistent with H1 statement

Q2 group 177.9; if Ratings ~115 Cr, non-Ratings ~63 Cr, within range but soft vs claim

Group NPM 26.9% vs prior year implied ~25% (slight expansion), but QoQ PAT -7.1% shows sequential weakness

Management acknowledged 9-month integration ongoing, still in build-out phase; profitability path uncertain

Mentioned as strategic priority but no concrete deals/revenue contribution disclosed; vague

Prior calls (FY26) suggested margin expansion across group; Q2 shows 37.0% OPM (lower than FY26 guidance expectation), PAT growth decelerating YoY to 9.2% from higher prior-year comps

Originally 'imminent' and '9-month integration'; now acknowledged as ongoing, profitability path to 2027–28 or later (uncertain)

Prior optimism on expanding Moody's services; Q2 shows revenue flat, management exploring new verticals but no concrete expansion visible yet

New CTO hired, tech capex ramping, but management said 'ongoing journey'; no product launches or revenue impact expected near-term

Yes, factored in. KnowTech 60% of R&A (lower margin), BankTech/CapTech 40% (higher margins). Mix shift is deliberate strategy; margins will improve as newer verticals scale.

Bank credit growth buoyant (21.4% in H1). Timing of releases and rating issuances varies quarter-to-quarter. We have confidence in segments we want to play; market share tracking is nuanced.

We don't give guidance on non-Ratings organic growth. D2K recently became 100% subsidiary. Profitability is a key criterion; clear path by when we expect to get it, but we won't provide specific timing.

Moody's has shown good growth in recent quarters due to surveillance volumes. We're exploring new verticals and international. Multiple conversations underway; no specific targets, but we're pursuing opportunities.

Profitability is a key deliverable; we have a path. D2K acquired 3 years ago; we're 60% shareholder initially, just became 100% sub 4–5 months ago. Investments in these segments are strategic; expect return path, but timing is uncertain.

Yes, we see room for growth if we can maintain sales run rate. Investments are needed now; at scale, we'll have leverage to improve margins. Forex has been positive; we don't see major impact.

We're evaluating options. We have reasonable cash balance and are reviewing all options. Dividend perspective is under review at various points in time.

RBI has clarified the regulation. We believe we'll gain from this as a rating agency. Market has indicated preference for our ratings in recent quarters. Positive step for us.

Management cited ongoing conversations with Moody's and internal 5-year strategic plan, but declined to quantify FY27 revenue growth or segment-wise targets

Ratings OPM 37.6% in FY26, trajectory strong. R&A margin at 36% (down from 50%) expected to stabilize as BankTech/CapTech scale; depreciation/amortization drag acknowledged

No rupee amount disclosed; management said 'significantly increased' tech spending, with D2K/Fintellix requiring continued investment in build-out phase

D2K lost money for 3 years, just became 100% subsidiary 4–5 months ago. Fintellix lost INR 20 Cr in FY26. Management claims 'clear path' to profitability but won't quantify '3–5 years or more.'

Moody's contributes ~1/3 of group non-Ratings revenue (~₹20–25 Cr/quarter estimated). Revenue from this customer has been 'largely flat' for last few quarters. New vertical expansion (BankTech, CapTech) is still in early revenue phase.

R&A margin compressed from 50% (2022) to 36% (now) due to shift in mix: KnowTech (60%, higher margin) being weighted down by BankTech/CapTech/Fintellix (lower margins, loss-making early years).

Management claims Ratings growth is healthy and driven by credit cycles, but competitors may be growing faster in some segments. Market share tracking is acknowledged as 'nuanced.'

Management cited international expansion as strategic priority but provided no specific timelines, market entry models, or expected revenue contribution. Requires significant capex and local hiring.