ICRA Limited , a leading credit rating agency in India, has reported strong financial results for the first quarter of fiscal year 2026, demonstrating resilience and growth across its core business segments. The company also announced a strategic acquisition to bolster its risk solutions portfolio.

Financial Highlights

For the quarter ended June 30, 2025, ICRA's consolidated revenue from operations increased by 8.40% to ₹124.50 crore, compared to ₹114.80 crore in the corresponding quarter of the previous year. The company's profit after tax (PAT) saw a significant jump of 19.22%, reaching ₹42.80 crore, up from ₹35.90 crore in Q1 FY2025.

Segment Performance

Ratings & Ancillary Services

The Ratings & ancillary services segment witnessed a robust growth of 14.20% in revenue for the quarter. This performance was driven by several factors:

• Bond issuances hit a quarterly high in Q1 FY2026, supported by rate cuts and a shift from bank credit.
• Commercial paper (CP) volumes rose sharply.
• Securitisation activity remained robust across key segments.

Despite slower overall credit growth, ICRA maintained its ratings momentum through focused coverage of growth sectors in the economy.

Research & Analytics

The Research & Analytics segment reported a modest growth of 1.50% for the quarter. Key highlights include:

• Strong growth in Risk Management and Market Data services.
• Continued focus on new client additions and project implementations.
• Thrust on Customised Research services.

The segment's overall performance was moderated by the residual impact of an ESG project discontinuation in the previous year.

Strategic Acquisition

In a significant move, ICRA has entered into a definitive agreement to acquire 100% shareholding in Fintellix India Private Limited for a consideration of USD 26 million (approximately ₹225.00 crore). This acquisition is subject to the completion of mutually agreed conditions as per the Share Purchase Agreement (SPA).

Ramnath Krishnan, MD and Group CEO of ICRA Limited, commented on the results: "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."

Market Outlook

ICRA has maintained its GDP growth projection for FY2026 at 6.20%, citing expectations of an upbeat outlook for domestic consumption and government capital expenditure. However, the company remains cautious about the outcomes for exports and private capital expenditure due to global uncertainties.

Conclusion

ICRA's strong Q1 FY2026 performance, coupled with its strategic acquisition of Fintellix, positions the company well for future growth. As the Indian economy navigates through global challenges, ICRA's diverse business segments and expansion strategies are likely to play a crucial role in its continued success in the financial services sector.

ICRA Limited , a leading credit rating agency in India, has announced its financial results for the first quarter, showcasing a strong performance across key metrics.

Profit Soars

ICRA reported a consolidated net profit of 424.00 million rupees for Q1, representing a significant year-over-year increase of 19% from 355.00 million rupees in the same period last year. This impressive growth in profitability underscores the company's resilience and effective business strategies.

Revenue Growth

The company's revenue also saw a healthy uptick, growing to 1.20 billion rupees compared to 1.14 billion rupees in the corresponding quarter of the previous year. This 5.3% increase in revenue reflects ICRA's ability to expand its business operations and capture market opportunities.

Consolidated Financial Highlights

A closer look at ICRA's consolidated financial results reveals:

Segment Performance

ICRA's business is divided into two main segments:

1. Ratings & Ancillary Services: This segment generated revenue of 7,424.77 lakhs in Q1, up from 6,501.75 lakhs in Q1 of the previous year, showing a growth of 14.2%.

2. Research & Analytics: The segment reported revenue of 5,075.69 lakhs in Q1, compared to 5,001.76 lakhs in Q1 of the previous year, indicating a modest growth of 1.5%.

Strategic Acquisition

In a significant development, ICRA has entered into a definitive agreement to acquire 100% shareholding in Fintellix India Private Limited for a consideration of approximately 225.00 crore rupees (equivalent to USD 26 million). This acquisition, subject to the completion of mutually agreed conditions, could potentially expand ICRA's capabilities and market reach in the future.

Conclusion

The company's robust Q1 performance, coupled with strategic initiatives like the Fintellix acquisition, positions ICRA well for continued growth. However, as with any financial services company, ICRA's performance may be influenced by broader economic conditions and regulatory developments in the financial sector.

Note: The financial figures mentioned in this article are based on the consolidated unaudited financial results for the quarter ended, as reported by ICRA Limited.