ICRA Limited , a leading credit rating agency in India, has reported a strong financial performance for the second quarter and first half of fiscal year 2026, with significant growth in both revenue and profitability.

Key Financial Highlights

ICRA's consolidated net profit for Q2 FY2026 surged to ₹478.00 million, marking a substantial 30.2% increase from ₹367.00 million in the same period last year. This impressive bottom-line growth was supported by a healthy 8.7% year-over-year rise in revenue, which reached ₹1.37 billion.

Improved Operational Efficiency

The company's operational efficiency saw notable improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rising to ₹485.00 million, up 17.4% from ₹413.00 million in Q2 FY2025. This growth outpaced revenue expansion, resulting in an EBITDA margin enhancement of 281 basis points, from 32.72% to 35.53%.

Segment Performance

ICRA's solid financial performance was driven by strong growth across its business segments:

1. Ratings & Ancillary Services: This segment showed robust growth, reflecting the consistent quality and credibility of ICRA's ratings.

2. Research & Analytics: The segment demonstrated strong momentum led by marquee client wins and expanded offerings.

However, it's worth noting that bond issuances declined in Q2 FY2026 due to rising yields, while commercial papers remained elevated and securitization grew through NBFC-originated loans.

Strategic Acquisition

ICRA completed the acquisition of Fintellix India Private Limited, a Bengaluru-based regulatory technology and risk solutions provider, for ₹253.25 crore in an all-cash deal. The acquisition gives ICRA 98.75% shareholding in Fintellix, with the remaining 1.25% to be acquired upon completion of regulatory formalities.

Fintellix, incorporated in March 2006, serves banks, NBFCs, regulators, and global financial entities across India, UK, US, and South Africa. It generates revenue of approximately ₹91 crore with 20% EBIDA margins. This strategic acquisition aims to strengthen ICRA's position in risk analytics and expand its international presence.

Management Commentary

Ramnath Krishnan, MD & Group CEO of ICRA Limited, commented on the results: "ICRA's solid financial performance this quarter was driven by strong growth in our Ratings segment, reflecting the consistent quality and credibility of our ratings, alongside robust momentum in our Research & Analytics segment, led by marquee client wins and expanded offerings."

Market Outlook

ICRA projects India's GDP growth to reach 6.5% in FY2026, supported by potential upsides from the anticipated finalization of the India-US trade agreement and a stronger-than-expected festive season performance, driven by recent GST rate adjustments.

The company's performance in the coming quarters may be influenced by factors such as bond issuances, bank credit growth, and the evolving regulatory environment in the financial sector.

ICRA Limited , a leading credit rating agency in India, has successfully completed the acquisition of a majority stake in Fintellix India Private Limited, a Bengaluru-based RegTech company. This strategic move is set to bolster ICRA's position in the risk technology and analytics sector.

Acquisition Details

ICRA has acquired 98.75% shareholding in Fintellix for a consideration of INR 245.63 crores (approximately US$ 27.9 million). The remaining 1.25% stake is expected to be acquired pending regulatory approval. This acquisition makes Fintellix a subsidiary of ICRA, with Fintellix's subsidiaries becoming step-down subsidiaries of the company.

About Fintellix

Fintellix, incorporated on March 17, 2006, specializes in risk, supervisory, and data analytics solutions for financial institutions and regulators. The company's proprietary data platform serves over 30 institutions across India, UK, US, and other markets. Fintellix's expertise spans regulatory reporting, supervisory platforms, credit risk, and data analytics.

Financial Performance

Fintellix has demonstrated consistent financial performance over the past three years:

Strategic Implications

This acquisition aligns with ICRA's strategy to expand its risk technology portfolio and strengthen its position as a preferred partner for risk and investment analytics. By combining ICRA's domain leadership in credit risk with Fintellix's advanced product suite, the group aims to offer integrated solutions to help banks, NBFCs, and regulators navigate complex regulatory environments, manage risk, and leverage data-driven insights for strategic decision-making.

Management Perspectives

Ramnath Krishnan, MD & Group CEO of ICRA Ltd, commented on the acquisition: "This acquisition marks a pivotal step in our ambition to lead in risk analytics, enabling our clients to anticipate and address risks effectively. By combining ICRA's domain expertise with Fintellix's product innovation, we are uniquely positioned to help clients navigate the fast-evolving regulatory landscape and deliver enhanced value across markets."

Shailendra Mruthyunjayappa, CEO of Fintellix, added: "Joining ICRA opens up exciting new possibilities for Fintellix and our customers. With ICRA's broader capabilities and global reach, we will accelerate our mission to deliver impactful solutions to manage risk, compliance and strategic priorities with confidence."

Conclusion

The acquisition of Fintellix by ICRA represents a significant development in the financial technology sector, particularly in the areas of risk management and regulatory compliance. As financial institutions face increasingly complex regulatory environments, the combined expertise of ICRA and Fintellix is poised to deliver innovative solutions that address these challenges effectively.

This strategic move not only enhances ICRA's technological capabilities but also positions the company to better serve its clients in an evolving financial landscape. The integration of Fintellix's advanced product suite with ICRA's established market presence is expected to create synergies that will benefit a wide range of financial sector entities, from banks and NBFCs to regulators themselves.