ICRA Q1 FY26 Results (NSE: ICRA)
Signal: Margin expansion
The read
Q1FY26 consolidated PAT grew 32.3% YoY to ₹56.16 Cr on revenue growth of 31.2% YoY, but this includes an exceptional gain of ₹4.39 Cr from property sale and ₹6.76 Cr from D2K remeasurement in other income; excluding these, normalized PAT grew ~15% YoY, in line with 4th-quarter trend.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹163.37 Cr | 31.2% | -6.6% |
| EBIT | ₹44.72 Cr | 14.9% | |
| Net profit | ₹0.56 Cr | 32.3% | |
| EPS | ₹58.36 | 32.3% | |
| EBIT margin | 27.3% |
P&L walk
Revenue grew 31.2% YoY to ₹163.37 Cr driven by a 58.7% surge in Risk & Analytics (now 49% of revenue) partly from the Fintellix acquisition, while Ratings ancillary grew 12.9% YoY. EBITDA margin expanded 100bps YoY to 35% as employee cost % of revenue fell 260bps; however, higher depreciation (+157.6% YoY) absorbed part. Profit before exceptional items and tax rose 22.9% YoY to ₹71.73 Cr. Exceptional gain of ₹4.39 Cr from property sale and ₹6.76 Cr other income from D2K remeasurement boosted PBT to ₹76.12 Cr. PAT grew 32.3% YoY to ₹56.16 Cr, EPS ₹58.36 (+32.3% YoY).
Segments
Risk & Analytics segment revenue surged 58.7% YoY to ₹80.56 Cr (now 49% of total), lifted by Fintellix consolidation, but its PBIT grew only 4.7% YoY, indicating margin compression; Ratings ancillary grew 12.9% YoY with PBIT +44.9% YoY, showing strong operating leverage.
Key positives
- Risk & Analytics revenue up 58.7% YoY to ₹80.56 Cr, driven by Fintellix acquisition and organic growth.
- Consolidated OPM expanded 100bps YoY to 35.0% as employee cost % of revenue fell 260bps.
- Exceptional gain of ₹4.39 Cr from property sale and ₹6.76 Cr other income from D2K remeasurement boosted profit.
Key concerns
- Sequential revenue fell 6.6% QoQ and OPM dropped 800bps QoQ due to seasonal factors.
- Risk & Analytics PBIT margin compressed to 19.3% (vs 29.3% YoY) despite revenue surge, indicating integration costs.
- Depreciation jumped 157.6% YoY reflecting past capex and acquisition-related amortisation.
Research and educational content only. Not investment advice.