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PAT jumps 19% in Q1FY2026
ICRA
01-Aug-2025, 08:38
ICRA has recorded 19% surge in the net profit to Rs 42.44 crore in the quarter ended June 2025 (Q1FY2026). Net sales (including other operating income) increased 8.42% to Rs 124.49 crore. Sales of Ratings & Ancillary Services segment has gone up 14.20% to Rs 74.25 crore (accounting for 59.40% of total sales). Sales of Research & Analytics segment has gone up 1.48% to Rs 50.76 crore (accounting for 40.60% of total sales). Inter-segment sales rose to Rs 0.52 crore from Rs 0.22 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 20.47% to Rs 37.91 crore. PBIT of Ratings & Ancillary Services segment rose 26.91% to Rs 23.02 crore (accounting for 60.73% of total PBIT). PBIT of Research & Analytics segment rose 11.70% to Rs 14.89 crore (accounting for 39.27% of total PBIT). PBIT margin of Ratings & Ancillary Services segment rose to 31.01% from 27.90%. PBIT margin of Research & Analytics segment rose to 29.34% from 26.65%. Overall PBIT margin rose to 30.33% from 27.36%. Operating profit margin has jumped from 30.64% to 31.93%, leading to 12.99% rise in operating profit to Rs 39.75 crore. Employee cost decreased from 56.59% to 56.00%. Other expenses fell from 12.77% to 12.08%. Other income surged 36.17% to Rs 24.36 crore. PBIDT increased 20.80% to Rs 64.11 crore. Provision for interest fell 23.26% to Rs 1.65 crore. PBDT increased 22.66% to Rs 62.46 crore. Provision for depreciation rose 10.24% to Rs 4.09 crore. Profit before tax grew 23.64% to Rs 58.37 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 15.61 crore, compared to Rs 11.32 crore. Effective tax rate was 26.74% compared to 23.98%. Minority interest decreased 13.51% to Rs 0.32 crore. Net profit attributable to owners of the company increased 19.48% to Rs 42.44 crore. Commenting on the results, Ramnath Krishnan, MD and Group CEO, ICRA Limited, said: ICRA has begun FY2026 on a robust note, with solid financial performance and sustained momentum across its core segments. Our Ratings business continued to benefit from a supportive credit environment, marked by strong bond issuances and securitisation activity. The Research & Analytics segment remained stable, with growth in Risk Management and Market Data offset by the residual impact of ESG project discontinuation in the previous year.
ICRA has recorded 19% surge in the net profit to Rs 42.44 crore in the quarter ended June 2025 (Q1FY2026). Net sales (including other operating income) increased 8.42% to Rs 124.49 crore. Sales of Ratings & Ancillary Services segment has gone up 14.20% to Rs 74.25 crore (accounting for 59.40% of total sales). Sales of Research & Analytics segment has gone up 1.48% to Rs 50.76 crore (accounting for 40.60% of total sales). Inter-segment sales rose to Rs 0.52 crore from Rs 0.22 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped 20.47% to Rs 37.91 crore. PBIT of Ratings & Ancillary Services segment rose 26.91% to Rs 23.02 crore (accounting for 60.73% of total PBIT). PBIT of Research & Analytics segment rose 11.70% to Rs 14.89 crore (accounting for 39.27% of total PBIT). PBIT margin of Ratings & Ancillary Services segment rose to 31.01% from 27.90%. PBIT margin of Research & Analytics segment rose to 29.34% from 26.65%. Overall PBIT margin rose to 30.33% from 27.36%. Operating profit margin has jumped from 30.64% to 31.93%, leading to 12.99% rise in operating profit to Rs 39.75 crore. Employee cost decreased from 56.59% to 56.00%. Other expenses fell from 12.77% to 12.08%. Other income surged 36.17% to Rs 24.36 crore. PBIDT increased 20.80% to Rs 64.11 crore. Provision for interest fell 23.26% to Rs 1.65 crore. PBDT increased 22.66% to Rs 62.46 crore. Provision for depreciation rose 10.24% to Rs 4.09 crore. Profit before tax grew 23.64% to Rs 58.37 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 15.61 crore, compared to Rs 11.32 crore. Effective tax rate was 26.74% compared to 23.98%. Minority interest decreased 13.51% to Rs 0.32 crore. Net profit attributable to owners of the company increased 19.48% to Rs 42.44 crore. Commenting on the results, Ramnath Krishnan, MD and Group CEO, ICRA Limited, said: ICRA has begun FY2026 on a robust note, with solid financial performance and sustained momentum across its core segments. Our Ratings business continued to benefit from a supportive credit environment, marked by strong bond issuances and securitisation activity. The Research & Analytics segment remained stable, with growth in Risk Management and Market Data offset by the residual impact of ESG project discontinuation in the previous year.
Business highlights
ICRA has entered into a definitive agreement towards acquisition of 100% shareholding in Fintellix India for a consideration of USD 26 million (Rs 225.0 crore). ICRA research team published over 160 sectoral reports spanning 60 distinct sectors, delivering timely insights to market participants. Additionally, ICRA hosted six market-focused webinars and published 33 thematics to disseminate key sector insights and foster dialogue. On the outreach front, ICRA, alongside Moody`s, successfully organised its Flagship Annual Credit Conclave in Mumbai on 4 June 2025. Ratings & ancillary services revenue increased 14.2% for Q1FY2026. The Bond issuances in Q1FY2026 were the highest for any quarter as the expected swifter transmission of cut in repo rates helped corporates and NBFCs prefer market borrowings over bank credit which slowed down to 9.3% in terms of y-o-y outstanding at the end of Q1FY2026. The Commercial Paper (CP) outstanding surged 12% on y-o-y basis supported by steep fall in short-term money market rates amid policy rate cuts and surplus liquidity and revival of demand from stock broking companies to fund their working capital and margin trade financing book. In a quarter where overall credit slowed on a year-on-year basis, a focused approach on growth segments of the economy including infrastructure helped ICRA maintain its revenue growth trajectory Research & Analvtics segment revenue rose 1.5%. In Q1FY2026, the Research & Analytics segment saw strong growth in Risk Management and Market Data, driven by continued focus on new client additions, project implementations, and thrust on Customised Research services. The Knowledge Services vertical also witnessed broad-based growth, although the segment`s overall performance was moderated by the residual impact of the ESG project discontinuation in the latter part of the previous year.Financial Performance FY2025
Net sales (including other operating income) of ICRA has increased 11.64% to Rs 498.02 crore in FY2025. Operating profit margin has jumped from 33.35% to 35.69%, leading to 19.49% rise in operating profit to Rs 177.75 crore. Employee cost decreased from 53.88% to 52.43%. Other expenses fell from 12.77% to 11.88%. Other income rose 3.25% to Rs 77.41 crore. PBIDT rose 14.05% to Rs 255.16 crore. Provision for interest fell 53.89% to Rs 4.8 crore. PBDT rose 17.36% to Rs 250.36 crore. Provision for depreciation rose 21.77% to Rs 16.39 crore. Profit before tax grew 17.07% to Rs 233.97 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 62.77 crore, compared to Rs 47.62 crore. Effective tax rate was 26.83% compared to 23.83%. Minority interest increased 3.48% to Rs 1.19 crore. Net profit attributable to owners of the company increased 12.52% to Rs 170.01 crore.| ICRA: Consolidated Results | ||||||
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| 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Sales | 124.49 | 114.82 | 8 | 498.02 | 446.11 | 12 |
| OPM % | 31.9 | 30.6 | 35.7 | 33.3 | ||
| OP | 39.76 | 35.19 | 13 | 177.76 | 148.76 | 19 |
| Other Income | 24.36 | 17.89 | 36 | 77.41 | 74.97 | 3 |
| PBIDT | 64.12 | 53.08 | 21 | 255.17 | 223.73 | 14 |
| Interest | 1.65 | 2.15 | -23 | 4.80 | 10.41 | -54 |
| PBDT | 62.47 | 50.93 | 23 | 250.37 | 213.32 | 17 |
| Depreciation | 4.09 | 3.71 | 10 | 16.39 | 13.46 | 22 |
| PBT | 58.38 | 47.22 | 24 | 233.97 | 199.86 | 17 |
| Tax | 15.62 | 11.33 | 38 | 62.77 | 47.62 | 32 |
| PAT | 42.76 | 35.89 | 19 | 171.20 | 152.24 | 12 |
| Minority interest | 0.32 | 0.37 | -14 | 1.19 | 1.15 | 4 |
| Profit/Loss of Associate Company | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PAT | 42.44 | 35.52 | 19 | 170.01 | 151.09 | 13 |
| EPS (Rs)* | 175.9 | 147.2 | 176.2 | 156.6 | ||
| *EPS is annualized on latest equity of Rs 9.65 crore, face value of Rs 10 each, Source: Capitaline Corporate Database | ||||||
| ICRA : Consolidated Segment Results | ||||||||
| % of total | 2506 (3) | 2406 (3) | Var. (%) | % of total | 2503 (12) | 2403 (12) | Var. (%) | |
| Segment Revenue |
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| Ratings & Ancillary Services | 59.4 | 74.25 | 65.02 | 14 | 59.0 | 294.59 | 257.57 | 14 |
| Research & Analytics | 40.6 | 50.76 | 50.02 | 1 | 41.0 | 204.79 | 189.10 | 8 |
| Total Reported Sales | 100.0 | 125.00 | 115.04 | 9 | 100.0 | 499.38 | 446.67 | 12 |
| Less: Inter segment revenues | 0.52 | 0.22 | 1.36 | 0.55 | ||||
| Net Sales | 100.00 | 124.49 | 114.82 | 8 | 100.00 | 498.02 | 446.11 | 12 |
| PBIT | ||||||||
| Ratings & Ancillary Services | 60.7 | 23.02 | 18.14 | 27 | 62.2 | 100.39 | 67.94 | 48 |
| Research & Analytics | 39.3 | 14.89 | 13.33 | 12 | 37.8 | 61.00 | 69.64 | -12 |
| Total PBIT | 100.0 | 37.91 | 31.47 | 20 | 100.0 | 161.38 | 137.58 | 17 |
| Less : Interest | 1.65 | 2.15 | -23 | 4.80 | 10.41 | -54 | ||
| Add: Other un-allcoable | 22.10 | 17.88 | 24 | 77.39 | 72.69 | 6 | ||
| Profit Before Tax | 58.37 | 47.21 | 24 | 233.97 | 199.86 | 17 | ||
| Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit | ||||||||
| Source: Capitaline Corporate Database | ||||||||
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