ICRA LTD. Q1 FY27 Results

ICRA reported consolidated Q1 FY27 (quarter ended June 30, 2026) revenue from operations of ₹163.37 Cr, up 31.2% YoY (₹124.49 Cr) though down 6.6% sequentially from a seasonally strong Q4, and net profit (incl. minority interest) of ₹56.46 Cr, up 32.0% YoY and 7.2% QoQ. Net margin on total income firmed to 29.6%, from 28.7% a year ago and 27.9% last quarter. The headline growth flatters the underlying picture: the print carries two one-offs — a ₹4.39 Cr exceptional gain on sale of property, plant & equipment, and a ₹6.76 Cr remeasurement gain booked in other income on finalising the D2K acquisition consideration. Stripping both (roughly ₹8.3 Cr post-tax at the 25.8% effective rate) leaves adjusted PAT near ₹48 Cr, an underlying YoY gain of about +13% — steady rather than the +32% reported.

The revenue jump is also substantially inorganic. Management flagged (Note 7) that the year-ago base excludes Fintellix, consolidated only from October 2025, so the two quarters are not directly comparable. That shows in the mix: the Risk & Analytics segment (formerly Research & Analytics) grew revenue 58.7% YoY to ₹80.56 Cr, while the core Ratings & ancillary services segment rose a healthier 12.9% YoY to ₹83.79 Cr on bank-credit-led demand — the two are now near-equal contributors. Segment profitability diverged: Ratings segment result (before exceptional) actually softened, and the analytics build-out weighs on blended segment margins, consistent with the last concall's caution that a shift toward analytics could compress segment-level margins even as scale improves.

The stock went into the print at ₹4,834, down 8.3% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.

This quarter squarely confirms the FY27 roadmap management set out on the Q4 call — steady Ratings growth plus Risk & Analytics as the swing driver, bolstered by Fintellix — with the acquisition machinery still running: ICRA Analytics moved to 100% of D2K for ₹32.02 Cr this quarter, and post-quarter the company mopped up the residual 1.25% of Fintellix for ₹3.17 Cr, making both wholly owned. There is no formal numeric revenue or margin guidance on record, so the print is best read against management's qualitative "steady Ratings, analytics-led growth, margin gains via operating leverage" framing — which it met. No brokerage consensus preview is published for ICRA, so a beat/miss versus street cannot be established. Standalone (the rated parent) tells a quieter story: revenue ₹81.79 Cr (+13.3% YoY) and PAT ₹35.09 Cr (+16.4% YoY), the divergence reflecting how much of the group's growth now sits in the analytics subsidiaries rather than the parent.