ICRA

Net profit rises 9% in Q2FY27

Net sales (including other operating income) of ICRA has increased 30.22% to Rs 177.86 crore in Q2FY2027 over Q2FY2026. Sales of Ratings & Ancillary Services segment has gone up 17.29% to Rs 98.67 crore (accounting for 55.08% of total sales). Sales of Research & Analytics segment has gone up 52.17% to Rs 80.47 crore (accounting for 44.92% of total sales). Inter-segment sales rose Rs 0.43 crore to Rs 1.29 crore.

PBIT has jumped 23.03% to Rs 54.99 crore. PBIT of Ratings & Ancillary Services segment rose 36.86% to Rs 40.30 crore (accounting for 73.28% of total PBIT). PBIT of Research & Analytics segment fell 3.67% to Rs 14.70 crore (accounting for 26.72% of total PBIT). PBIT margin of Ratings & Ancillary Services segment rose from 35.00% to 40.84%. PBIT margin of Research & Analytics segment fell from 28.85% to 18.26%. Overall PBIT margin fell from 32.63% to 30.70%.

Operating profit margin has jumped from 35.54% to 36.97%, leading to 35.48% rise in operating profit to Rs 65.76 crore. Employee cost decreased from 53.08% to 50.24%. Other expenses rose from 11.39% to 12.79%. Other income fell 16.83% to Rs 17.39 crore. PBIDT rose 19.73% to Rs 83.15 crore. Provision for interest fell 55.17% to Rs 0.39 crore. PBDT rose 20.68% to Rs 82.76 crore. Provision for depreciation rose 155.82% to Rs 10.77 crore. Profit before tax grew 11.84% to Rs 71.99 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 19.55 crore, compared to Rs 16.35 crore. Effective tax rate was 27.16% compared to 25.40%. Minority interest increased 28.57% to Rs 0.27 crore. Net profit attributable to owners of the company increased 9.12% to Rs 52.17 crore.

Commenting on the results, Ramnath Krishnan, MD & Group CEO, ICRA, said: Our Ratings business recorded broad-based growth during the quarter, supported by continued engagement with a growing client base. In Risk & Analytics, bringing our businesses onto a common operating platform is an important step, allowing us to serve clients` risk, data and regulatory needs in a more integrated manner. As the operating environment evolves, our priority is to pair analytical rigour with scale to build lasting value for stakeholders.

Ratings & ancillary services

The segment revenue increased 17.3% in Q2 and 15.2% in H1FY2027, supported by broad-based expansion across all segments, including bank credit, bonds, commercial paper and securitisation. Benefiting from a low base in the corresponding quarter of the previous year, overall bond issuances grew by 39.9% in Q2FY2027, while issuances in Hl FY2027 increased by 3.7% yoy. Bank credit growth was broad-based across the retail, industrial and services sectors. Commercial paper outstanding also rose sharply at the end of Q2FY2027, reflecting higher working-capital requirements amid rising prices and companies` preference for lower-cost short-term funding while bond yields remained elevated. NBFCs continued to rely on securitisation to reduce funding costs and diversify their funding sources. ICRA continues to strengthen its outreach and franchise-development initiatives, contributing to an expansion of its overall client base while maintaining a focused approach to growth segments of the economy.

Risk & Analytics

The segment revenue increased 52.2% in Q2 and 55.4% in H1FY27 reflecting the consolidation of Fintellix. BankTech benefited from continued demand for risk and regulatory solutions, particularly from existing clients, while Cap Tech was supported by renewals and new offerings, including solutions aligned with recent capital market regulations. Knowledge Tech remained resilient amid automation-led changes in client demand, aided by favourable currency movement. The segment also reached an important milestone, bringing its sales, customer support, product and delivery functions under a common framework. This positions Risk & Analytics to operate as a unified platform, offering clients integrated solutions across risk, data and regulatory needs.

Financial performance H1FY2027

Net sales (including other operating income) of ICRA has increased 30.70% to Rs 341.22 crore in H1FY2027. Sales of Ratings & Ancillary Services segment has gone up 15.21% to Rs 182.46 crore (accounting for 53.12% of total sales). Sales of Research & Analytics segment has gone up 55.38% to Rs 161.03 crore (accounting for 46.88% of total sales). Inter-segment sales rose Rs 0.94 crore to Rs 2.27 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 20.51% to Rs 99.56 crore. PBIT of Ratings & Ancillary Services segment rose 32.04% to Rs 69.28 crore (accounting for 69.59% of total PBIT). PBIT of Research & Analytics segment rose 0.44% to Rs 30.28 crore (accounting for 30.41% of total PBIT). PBIT margin of Ratings & Ancillary Services segment rose from 33.13% to 37.97%. PBIT margin of Research & Analytics segment fell from 29.09% to 18.80%. Overall PBIT margin fell from 31.53% to 28.98%.

Operating profit margin has jumped from 33.81% to 35.42%, leading to 36.89% rise in operating profit to Rs 120.85 crore. Employee cost decreased from 54.47% to 51.76%. Other expenses rose from 11.71% to 12.82%. Other income fell 0.55% to Rs 45.02 crore. PBIDT rose 24.20% to Rs 165.87 crore. Provision for interest fell 66.53% to Rs 0.84 crore.

PBDT rose 25.94% to Rs 165.03 crore. Provision for depreciation rose 156.87% to Rs 21.32 crore. Profit before tax grew 17.08% to Rs 143.71 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 39.21 crore, compared to Rs 31.96 crore. Effective tax rate was 26.48% compared to 26.04%. Minority interest increased 5.66% to Rs 0.56 crore. Net profit attributable to owners of the company increased 20.03% to Rs 108.33 crore.

ICRA: Consolidated Results
	2609 (3)	2509 (3)	Var %	2609 (6)	2509 (6)	Var %	2603 (12)	2503 (12)	Var %
Sales	177.86	136.58	30	341.22	261.07	31	599.51	498.02	20
OPM %	37.0	35.5		35.4	33.8		35.9	35.7
OP	65.76	48.53	35	120.85	88.28	37	215.03	177.76	21
Other Income	17.39	20.91	-17	45.02	45.27	-1	75.02	77.41	-3
PBIDT	83.15	69.44	20	165.87	133.55	24	290.05	255.17	14
Interest	0.39	0.87	-54	0.84	2.51	-67	4.43	4.80	-8
PBDT	82.76	68.57	21	165.03	131.03	26	285.62	250.37	14
Depreciation	10.77	4.21	156	21.32	8.30	157	28.26	16.39	72
PBT	71.99	64.37	12	143.71	122.74	17	257.36	233.97	10
EO	0.00	0.00	-	4.39	0.00	-	-6.92	0.00	-
PBT after EO	71.99	64.37	12	148.10	122.74	21	250.45	233.97	7
Tax	19.55	16.35	20	39.21	31.96	23	67.91	62.77	8
PAT	52.44	48.02	9	108.89	90.78	20	182.53	171.20	7
Minority interest	0.27	0.21	24	0.56	0.53	5	1.02	1.19	-15
Profit/Loss of Associate Company	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
PAT	52.17	47.81	9	108.33	90.25	20	181.52	170.01	7
EPS (Rs)*	216.2	198.1		217.9	187.0		193.3	176.2
*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	2609 (3)	2509 (3)	Var. (%)	% of total	2609 (6)	2509 (6)	Var. (%)	% of total	2603 (12)	2503 (12)	Var. (%)
Segment Revenue
Ratings & Ancillary Services	55.1	98.67	84.12	17	53.1	182.46	158.37	15	55.9	336.45	294.59	14
Research & Analytics	44.9	80.47	52.88	52	46.9	161.03	103.64	55	44.1	265.81	204.79	30
Total Reported Sales	100.0	179.14	137.01	31	100.0	343.50	262.01	31	100.0	602.27	499.38	21
Less: Inter segment revenues		1.29	0.43			2.27	0.94			2.76	1.36
Net Sales	100.00	177.86	136.58	30	100.00	341.22	261.07	31	100.00	599.51	498.02	20
PBIT
Ratings & Ancillary Services	73.3	40.30	29.44	37	69.6	69.28	52.47	32	66.2	126.40	100.39	26
Research & Analytics	26.7	14.70	15.26	-4	30.4	30.28	30.15	0	33.8	64.47	61.00	6
Total PBIT	100.0	54.99	44.70	23	100.0	99.56	82.61	21	100.0	190.87	161.38	18
Less : Interest		0.39	0.87	-54		0.84	2.51	-67		4.43	4.80	-8
Add: Other un-allcoable		17.38	20.53	-15		45.00	42.64	6		64.00	77.39	-17
Profit Before Tax		71.99	64.37	12		148.10	122.74	21		250.45	233.97	7
Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

 

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