ICRA Limited (NSE: ICRA | BSE: 532835)
Source: ICRA Limited Annual Report FY 2025-26
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | ICRA Limited |
| Corporate Identity Number (CIN) | L74999DL1991PLC042749 |
| NSE Symbol & BSE Scrip Code | NSE: ICRA | BSE: 532835 |
| Date of Incorporation / Founding Year | 1991 |
| Registered Office | B-710, Statesman House, 148, Barakhamba Road, New Delhi – 110001, India |
| Corporate Headquarters | Building No. 8, Tower A, 2nd Floor, DLF Cyber City, Phase II, Gurugram – 122002, Haryana, India |
| Branch Office (Mumbai) | Electric Mansion, 3rd Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India |
| Telephone & Investor Relations Contact | Tel: +91 124-4545300 / +91 11 23357940 | Email: investors@icraindia.com / info@icraindia.com |
| Chairman | Mr. Palamadai Sundararajan Jayakumar (Non-Executive Independent Chairman, DIN: 01173236) |
| Managing Director & Group CEO | Mr. Ramnath Krishnan (DIN: 09371341) |
| Group Chief Financial Officer | Mr. Venkatesh Viswanathan |
| Company Secretary & Compliance Officer | Mr. S. Shakeb Rahman |
| General Counsel | Mr. Amit Gupta |
| Promoter & Holding Group | Moody’s Corporation (Ultimate Holding Company); Moody’s Investment Company India Private Limited (31.66%) and Moody’s Singapore Pte. Ltd. (20.20%) |
| Industry / Sector Classification | Credit Rating, Financial Intelligence, Risk Solutions, Research & Analytics |
| Total Workforce / Headcount | 1,626 employees across Group ICRA; 1,212 employees across ICRA, IAL, and ICRA ESG (1,111 permanent, 101 other than permanent); 423 permanent employees in ICRA Limited standalone |
| Offices Count | 21 operating offices (18 domestic offices across India; 3 international offices in Nepal, South Africa, and the United States) |
| Geographic Reach Served | Pan-India coverage across 36 states and union territories; 3 international countries |
| Statutory Auditors | Deloitte Haskins & Sells, Chartered Accountants (Firm Registration No. 117365W) |
| Secretarial Auditors | M/s Chandrasekaran Associates, Company Secretaries |
| Registrar and Share Transfer Agent (RTA) | M/s. MUFG Intime India Private Limited (Formerly known as M/s Link Intime India Private Limited), Noble Heights, 1st Floor, Plot NH2, C-1 Block LSC, Near Savitri Market, Janakpuri, New Delhi – 110058 |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
ICRA Limited was established in 1991 as an independent and professional credit rating agency and investment information provider in India. Operating over three-and-a-half decades, the institution has expanded its scope from traditional credit ratings into a diversified platform encompassing credit risk opinions, research, advanced financial data analytics, supervisory technology, regulatory reporting, and ESG assessments. Today, Group ICRA operates as an integrated knowledge partner and risk navigator for domestic and international financial markets.
The company functions across two core operational pillars: Ratings and Ancillary Services, and Research and Analytics. Through its network of operating subsidiaries, the Group supports commercial banks, non-banking financial companies (NBFCs), asset management companies, insurance firms, infrastructure developers, and regulatory institutions. The institution processes complex financial data into actionable analytical intelligence, supporting informed capital allocation, credit risk appraisal, and regulatory compliance.
- Long-Standing Heritage: Established in 1991, celebrating 35 years of operations in Indian capital markets.
- Market Coverage: Live ratings covering debt of over ₹105 trillion across more than 48,000 rated entities and instruments.
- Analytical Output: Over 596 research reports published across more than 60 sectors, with 2,743 financial statements analyzed annually.
- Global Lineage: Moody’s Corporation acts as the ultimate parent company and largest indirect shareholder, providing technical alignment and global analytical methodologies.
The Founders, Promoters & Their Legacy
ICRA Limited was promoted in 1991 by leading public and private financial institutions, investment corporations, commercial banks, and financial services companies in India to build credit appraisal infrastructure for the domestic debt capital market. The foundational premise was establishing an autonomous, credible rating agency capable of evaluating issuer default probabilities with rigorous analytical discipline.
In 1999, global rating agency Moody’s acquired its initial equity stake in ICRA, initiating a multi-decade institutional association. Moody’s expanded its shareholding over subsequent years, securing a majority equity stake in 2014. As of March 31, 2026, Moody’s Corporation exercises control as the ultimate holding entity through its wholly-owned subsidiaries, Moody’s Investment Company India Private Limited (holding 31.66%) and Moody’s Singapore Pte. Ltd. (holding 20.20%), together aggregating to a 51.87% promoter holding. Under a long-term Technical Services Agreement, Moody’s provides specialized technical, analytical, and process methodologies, reinforcing ICRA’s rating frameworks while safeguarding its local operational independence.
The Journey: History & Evolution
ICRA’s corporate trajectory highlights the progressive expansion of India’s debt capital markets, from early industrial loan appraisals to technology-driven credit risk systems:
- 1991: Incorporation and formal launch of independent credit rating services in New Delhi.
- 1999: Strategic entry of Moody’s Investors Service through an initial equity stake.
- 2004: Setup of Knowledge Services operations to provide data outsourcing, financial modeling, and research support to global institutions.
- 2007: Public listing of equity shares on BSE Limited and the National Stock Exchange of India Limited following a successful initial public offering.
- 2011–2012: Incorporation and licensing of ICRA Nepal Limited as Nepal’s first credit rating agency.
- 2014: Moody’s Corporation acquires a majority controlling equity stake in ICRA Limited.
- 2019: Strategic corporate restructuring consolidating non-rating businesses, market data, and risk analytics under ICRA Analytics Limited.
- 2023: Acquisition of a 60% equity stake in D2K Technologies India Private Limited to integrate banking regulatory software and early warning solutions.
- 2024: Foray into ESG evaluations through the incorporation and licensing of ICRA ESG Ratings Limited as a Category-I ESG Rating Provider registered with SEBI.
- 2025: Strategic acquisition of a 98.75% equity stake in Fintellix India Private Limited on October 17, 2025, integrating proprietary data management, RegTech, and SupTech platforms.
The Corporate Umbrella
Group ICRA functions via a structured corporate architecture designed to preserve the regulatory ring-fencing mandated for credit rating agencies while scaling technology and analytics businesses:
At the apex sits ICRA Limited, a SEBI-registered Credit Rating Agency that exclusively conducts core rating, surveillance, and industry research activities. Non-rating activities are separated into specialized operating subsidiaries:
- ICRA Analytics Limited (IAL): Wholly-owned subsidiary providing data, risk analytics, bond valuations, mutual fund research, and financial knowledge services to BFSI clients and global entities.
- Fintellix India Private Limited: 98.75% owned subsidiary acquired in October 2025, operating product-led supervisory and regulatory reporting platforms with international delivery arms in South Africa and the US.
- D2K Technologies India Private Limited: 60% step-down subsidiary (owned via IAL) providing software solutions for loan asset classification, early warning signals, and supervisory data flows.
- ICRA ESG Ratings Limited: Wholly-owned subsidiary registered as a Category-I ESG Rating Provider with SEBI, delivering ESG ratings and Second-Party Opinions.
- ICRA Nepal Limited: 51% owned international credit rating subsidiary providing debt ratings and grading services in Nepal.
- ICRA Lanka Limited: Wholly-owned subsidiary, currently under liquidation.
- ICRA Employees Welfare Trust: Controlled special-purpose trust vehicle administering employee stock option schemes.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
In accordance with Ind AS 108 Operating Segments, ICRA organizes its business operations into two reportable business segments: Ratings and Ancillary Services, and Research and Analytics.
| Segment Performance Metric (₹ in Lakhs) | Ratings & Ancillary Services | Research & Analytics | Inter-Segment Eliminations / Unallocated | Total Consolidated |
|---|---|---|---|---|
| External Segment Revenue (FY26) | 33,560.73 | 26,390.28 | – | 59,951.01 |
| External Segment Revenue (FY25) | 29,398.36 | 20,403.76 | – | 49,802.12 |
| Segment Revenue Growth (%) (Calculated by IndianCompanies.in) | 14.16% | 29.34% | – | 20.38% |
| Inter-Segment Revenue (FY26) | 84.57 | 190.93 | (275.50) | – |
| Total Segment Revenue (FY26) | 33,645.30 | 26,581.21 | (275.50) | 59,951.01 |
| Segment Results / Operating Profit (FY26) | 12,640.13 | 6,446.89 | (410.20) | 18,676.82 |
| Segment Results / Operating Profit (FY25) | 10,038.67 | 6,099.74 | (2.18) | 16,136.23 |
| Segment Assets (As at March 31, 2026) | 11,196.92 | 37,139.84 | 100,273.06 | 148,609.82 |
| Segment Assets (As at March 31, 2025) | 7,471.21 | 10,186.38 | 111,759.62 | 129,417.21 |
| Segment Liabilities (As at March 31, 2026) | 15,561.90 | 6,226.54 | 8,307.67 | 30,096.11 |
| Segment Liabilities (As at March 31, 2025) | 15,550.37 | 2,869.11 | 5,232.70 | 23,652.18 |
| Capital Expenditure Incurred (FY26) | 857.68 | 639.62 | – | 1,497.30 |
| Depreciation & Amortisation (FY26) | 915.65 | 1,910.35 | – | 2,826.00 |
The Ratings & Ancillary Services segment delivered 14.16% external topline growth in FY 2025-26, driven by corporate credit expansion, infrastructure bond monitoring, and wholesale bank credit ratings. Research & Analytics expanded by 29.34%, aided by six months of consolidated financial contributions from the Fintellix acquisition, expanded product adoptions in Expected Credit Loss (ECL) engines, and sustained knowledge services workflows for global institutional affiliates.
The Product & Service Catalog
Group ICRA classifies its principal commercial revenue streams under the National Industrial Classification (NIC) framework as follows:
| Service Classification | NIC Code | Turnover Contribution (FY26) | Operational Scope & Deliverables |
|---|---|---|---|
| Ratings & Ancillary Services | 66190 | 55.98% | Credit ratings for bonds, debentures, commercial papers, bank facilities, securitised instruments, infrastructure trusts, and Category-I ESG assessments. |
| Research & Analytics | 63119 | 44.02% | Financial data processing, regulatory reporting platforms, software products, mutual fund analytics, bond valuations, risk consulting, and knowledge process services. |
Within Research & Analytics, the operational architecture is streamlined into three specialized client-facing divisions underpinned by a shared engineering backbone:
- BankTech Division: Focuses on credit risk architecture, regulatory compliance, and supervisory reporting for banks and NBFCs. Core software platforms include Internal Rating Solutions (IRS), Early Warning Systems (EWS), Expected Credit Loss (ECL Version 3) computation tools, and supervisory data management systems.
- CapTech Division: Caters to capital market participants, mutual funds, and wealth managers. Solutions include daily fixed-income bond and money market security valuations, benchmark bond indices, mutual fund performance analytics, REIT and InvIT analytics (InfRE360), and specialized fund compliance tools.
- KnowTech Division: Operates global data engineering, financial modeling, ratio analysis, credit research support, digital transformation, and outsourced data validation for multinational clients and group affiliates.
The Names You Know
Group ICRA has developed proprietary analytical tools and intellectual property recognized throughout the Indian financial sector:
- ECL Version 3: Proprietary computation platform engineered to calculate forward-looking expected credit loss provisions in line with Reserve Bank of India directions for commercial banks.
- InfRE360: Specialized analytics database and surveillance tool dedicated to Indian Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).
- MFI360 Explorer: Cloud-native intelligence platform tracking microfinance institution operational metrics, portfolio-at-risk, and regional exposure concentrations.
- D2K Early Warning Systems: Automated algorithmic loan surveillance tool deployed across commercial bank loan books to flag stressed accounts prior to default.
- Fintellix Data Platform: Product-led data management, RegTech, and SupTech engine facilitating automated multi-jurisdictional compliance and central bank supervisory data ingestion.
Mapping the Domestic & Global Reach
While ICRA’s credit rating operations are primarily domestic, its analytical and software offerings serve international clients, generating substantial foreign exchange revenue.
| Geographic Market | External Revenue (FY26) (₹ in Lakhs) | External Revenue (FY25) (₹ in Lakhs) | Share of Total Revenue (FY26) (Calculated by IndianCompanies.in) | Non-Current Assets (FY26) (₹ in Lakhs) | Revenue YoY (%) |
|---|---|---|---|---|---|
| Domestic (Within India) | 39,951.11 | 33,628.87 | 66.64% | 31,547.10 | +18.80% |
| International (Outside India / Exports) | 19,999.90 | 16,173.25 | 33.36% | 60.00 | +23.66% |
| Total Consolidated | 59,951.01 | 49,802.12 | 100.00% | 31,607.10 | +20.38% |
Export revenues represent 33.36% of total revenue from operations in FY 2025-26. The United States remains the single largest overseas geographic market, generating ₹17,227 lakhs in FY 2025-26 compared to ₹15,166 lakhs in FY 2024-25. Global delivery relationships extend across the United States, the United Kingdom, South Africa, Nepal, and South-East Asia. Furthermore, revenue from a single customer group accounted for ₹15,454.94 lakhs (25.78% of consolidated revenue) in FY 2025-26, compared to ₹15,049.38 lakhs in FY 2024-25.
The Brick & Mortar Footprint
Group ICRA operates from 21 offices worldwide, comprising 18 domestic locations and 3 international operating centers:
- Registered Office: Statesman House, Barakhamba Road, New Delhi.
- Corporate Headquarters: DLF Cyber City, Gurugram, Haryana.
- Domestic Branch Network: Strategic operating offices situated in Mumbai (Prabhadevi), Navi Mumbai (Airoli and CBD Belapur), Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, and Pune.
- International Operations: Kathmandu (ICRA Nepal Limited), Johannesburg (Fintellix South Africa Proprietary Ltd), and New Jersey/New York (Fintellix US LLC).
- Manufacturing Facilities: The company does not own or operate manufacturing plants, given the professional service-oriented nature of its business.
📊 The Financial Health: The Numbers Simplified
Earnings, Expenses, & Take-Home Profits
The following table reflects the audited Consolidated Statement of Profit and Loss of ICRA Limited for the fiscal years ended March 31, 2026 and March 31, 2025.
| Consolidated Statement of Profit and Loss (₹ in Lakhs) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Revenue from Operations | 59,951.01 | 49,802.12 | +20.38% |
| Other Income | 7,502.17 | 7,741.14 | -3.09% |
| Total Income | 67,453.18 | 57,543.26 | +17.22% |
| Employee Benefit Expenses | 31,011.53 | 26,112.82 | +18.76% |
| Finance Costs | 442.63 | 480.33 | -7.85% |
| Depreciation and Amortisation Expense | 2,826.00 | 1,639.47 | +72.37% |
| Other Expenses | 7,436.66 | 5,913.60 | +25.76% |
| Total Expenses | 41,716.82 | 34,146.22 | +22.17% |
| Profit Before Exceptional Items and Tax | 25,736.36 | 23,397.04 | +10.00% |
| Exceptional Items: One-Time Impact of New Labour Codes | 691.83 | – | – |
| Profit Before Tax | 25,044.53 | 23,397.04 | +7.04% |
| Current Tax Expense | 6,416.75 | 5,409.36 | +18.62% |
| Deferred Tax Expense | 374.56 | 867.26 | -56.81% |
| Total Tax Expense | 6,791.31 | 6,276.62 | +8.20% |
| Profit After Tax for the Year | 18,253.22 | 17,120.42 | +6.62% |
| Attributable to Owners of the Company | 18,151.55 | 17,000.93 | +6.77% |
| Attributable to Non-Controlling Interests | 101.67 | 119.49 | -14.91% |
| Other Comprehensive Income / (Loss), Net of Tax | (8.11) | (63.87) | -87.30% |
| Total Comprehensive Income for the Year | 18,245.11 | 17,056.55 | +6.97% |
| Earnings Per Equity Share (Basic) (₹) | 188.63 | 176.73 | +6.73% |
| Earnings Per Equity Share (Diluted) (₹) | 188.32 | 176.50 | +6.70% |
Revenue expansion of 20.38% was driven by credit rating volumes and the incorporation of Fintellix operations from October 17, 2025. Total expenses rose 22.17% to ₹41,716.82 lakhs, primarily influenced by salary increments, the addition of Fintellix headcount, and professional transaction fees of ₹408 lakhs associated with the acquisition. Depreciation and amortisation escalated by 72.37% due to the amortisation of newly recognized identifiable intangible assets, including acquired customer relationships (amortised by ₹439.56 lakhs) and software platforms. In November 2025, the Government of India notified the unified Labour Codes, necessitating a one-time exceptional charge of ₹691.83 lakhs (comprising ₹558.66 lakhs in past service gratuity liability and ₹133.17 lakhs in leave encashment provision). Consolidated Profit After Tax reached ₹18,253.22 lakhs, reflecting a 6.62% increase.
Assets, Borrowings, & Net Worth
The consolidated balance sheet reflects significant shifts following strategic inorganic acquisitions and reinvestment of operating cash flows.
| Consolidated Balance Sheet Line Items (₹ in Lakhs) | As at March 31, 2026 | As at March 31, 2025 | Latest YoY (%) |
|---|---|---|---|
| Non-Current Assets | |||
| Property, Plant and Equipment | 2,970.48 | 2,924.60 | +1.57% |
| Right-of-Use Assets (Leased Buildings) | 1,621.38 | 1,119.10 | +44.88% |
| Goodwill on Consolidation | 16,590.38 | 3,018.85 | +449.56% |
| Other Intangible Assets | 10,098.57 | 1,900.42 | +431.39% |
| Intangible Assets Under Development | 223.06 | 351.41 | -36.52% |
| Non-Current Financial Investments | 250.61 | 125.37 | +99.90% |
| Non-Current Loans | 0.63 | 1.14 | -44.74% |
| Other Non-Current Financial Assets (Fixed Deposits >12M) | 19,851.64 | 3,827.55 | +418.65% |
| Deferred Tax Assets (Net) | 531.94 | 236.77 | +124.67% |
| Non-Current Tax Assets (Net Advance Tax) | 3,499.64 | 2,816.42 | +24.26% |
| Other Non-Current Assets | 103.23 | 83.46 | +23.69% |
| Total Non-Current Assets | 55,741.56 | 16,405.09 | +239.78% |
| Current Assets | |||
| Current Investments (Mutual Funds) | 72,699.63 | 77,150.02 | -5.77% |
| Trade Receivables | 7,841.01 | 4,759.47 | +64.75% |
| Cash and Cash Equivalents | 2,971.68 | 3,512.09 | -15.39% |
| Other Bank Balances | 1,277.05 | 24,640.48 | -94.82% |
| Current Loans | 0.51 | 0.50 | +2.00% |
| Other Current Financial Assets | 5,056.42 | 533.50 | +847.78% |
| Current Tax Assets (Net) | 206.78 | 200.55 | +3.11% |
| Other Current Assets | 2,815.18 | 2,215.51 | +27.07% |
| Total Current Assets | 92,868.26 | 113,012.12 | -17.82% |
| Total Assets | 148,609.82 | 129,417.21 | +14.83% |
| Equity & Liabilities | |||
| Equity Share Capital | 965.12 | 965.12 | 0.00% |
| Other Equity (Reserves & Surplus) | 117,109.04 | 104,357.80 | +12.22% |
| Total Equity Attributable to Owners | 118,074.16 | 105,322.92 | +12.11% |
| Non-Controlling Interests | 439.55 | 442.11 | -0.58% |
| Total Equity | 118,513.71 | 105,765.03 | +12.05% |
| Non-Current Liabilities | |||
| Non-Current Borrowings | 37.58 | 62.58 | -39.95% |
| Non-Current Lease Liabilities | 1,010.51 | 761.29 | +32.74% |
| Other Non-Current Financial Liabilities | 368.40 | 3,429.17 | -89.26% |
| Non-Current Provisions (Gratuity & Leave) | 1,058.09 | 344.14 | +207.46% |
| Deferred Tax Liabilities (Net) | 3,187.97 | 1,285.92 | +147.91% |
| Total Non-Current Liabilities | 5,662.55 | 5,883.10 | -3.75% |
| Current Liabilities | |||
| Current Borrowings | 25.00 | 53.17 | -52.98% |
| Current Lease Liabilities | 767.03 | 436.51 | +75.72% |
| Trade Payables (MSME: ₹48.29 Lakhs | Others: ₹1,332.81 Lakhs) | 1,381.10 | 911.25 | +51.56% |
| Other Current Financial Liabilities (including Deferred Consideration) | 10,188.73 | 6,524.85 | +56.15% |
| Other Current Liabilities (Unearned Revenue & Advances) | 11,147.76 | 9,414.87 | +18.41% |
| Current Provisions | 401.76 | 264.45 | +51.92% |
| Current Tax Liabilities (Net) | 522.18 | 163.98 | +218.44% |
| Total Current Liabilities | 24,433.56 | 17,769.08 | +37.51% |
| Total Liabilities | 30,096.11 | 23,652.18 | +27.24% |
| Total Equity and Liabilities | 148,609.82 | 129,417.21 | +14.83% |
Goodwill increased from ₹3,018.85 lakhs to ₹16,590.38 lakhs due to provisional goodwill of ₹13,571.53 lakhs recognized on the acquisition of Fintellix. Other intangible assets rose to ₹10,098.57 lakhs from ₹1,900.42 lakhs, reflecting identified software platforms, proprietary technology, and customer relationships valued at ₹5,280.00 lakhs. Total debt remains nominal at ₹62.58 lakhs (a term loan borrowed by subsidiary D2K Technologies from Bank of Baroda), while cash, bank balances, and mutual fund treasury investments stood at ₹108,367 lakhs. Total equity attributable to owners grew to ₹118,074.16 lakhs, generating a book value of ₹1,229.40 per equity share as of March 31, 2026.
Cash Flow: Tracking the Money Movement
The Consolidated Statement of Cash Flows demonstrates strong underlying operating cash generation and the deployment of accumulated liquidity toward strategic investments and shareholder returns.
| Consolidated Cash Flow Activities (₹ in Lakhs) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Operating Profit Before Working Capital Changes | 21,357.99 | 18,243.29 | +17.07% |
| Cash Generated from Operations Before Tax | 22,080.36 | 20,007.12 | +10.36% |
| Direct Income Taxes Paid (Net of Refund) | (6,354.62) | (5,517.89) | +15.16% |
| Net Cash Flow Generated from Operating Activities (A) | 15,725.74 | 14,489.23 | +8.53% |
| Purchase of Property, Plant, Equipment & Intangibles | (1,249.26) | (1,241.24) | +0.65% |
| Proceeds from Sale of Fixed Assets | 36.79 | 18.32 | +100.82% |
| Net Redemption / (Purchase) of Mutual Fund Investments | 9,882.34 | 9,983.73 | -1.02% |
| Investment in Debentures | (137.77) | – | – |
| Net Movement in Bank Fixed Deposits | 3,008.70 | (11,870.41) | N/M |
| Interest Received on Fixed Deposits | 2,004.09 | 1,420.58 | +41.08% |
| Upfront Purchase Consideration for Fintellix Acquisition | (24,564.00) | – | – |
| Net Cash Flow Used in Investing Activities (B) | (11,019.11) | (1,689.02) | +552.40% |
| Payment of Lease Liabilities (Principal & Interest) | (766.33) | (500.01) | +53.26% |
| Repayment of Bank Borrowings & Financial Interest | (48.55) | (66.82) | -27.34% |
| Dividend Paid to Equity Shareholders | (5,876.61) | (9,745.88) | -39.70% |
| Net Cash Flow Used in Financing Activities (C) | (6,691.49) | (10,312.71) | -35.11% |
| Net Increase / (Decrease) in Cash & Cash Equivalents (A+B+C) | (1,984.86) | 2,487.50 | N/M |
| Cash and Cash Equivalents at Beginning of the Year | 3,485.93 | 998.38 | +249.16% |
| Cash & Cash Equivalents Acquired in Business Combination | 1,470.41 | – | – |
| Foreign Currency Translation Adjustments | 0.20 | 0.05 | +300.00% |
| Cash and Cash Equivalents at End of the Year | 2,971.68 | 3,485.93 | -14.75% |
Net cash from operations increased by 8.53% to ₹15,725.74 lakhs. The primary deployment of liquidity during FY 2025-26 consisted of ₹24,564.00 lakhs in cash paid for the 98.75% equity stake in Fintellix, offset by the redemption of mutual funds and interest yields. Financing cash outflows included ₹5,876.61 lakhs distributed as dividends to shareholders (representing a payout of ₹60 per share declared in the previous year).
Funding the Future: CapEx, CWIP & R&D Spending
As a service and technology-driven corporate network, ICRA directs capital expenditure toward digital modernization, analytical databases, server networks, and office facilities rather than manufacturing facilities:
- Capital Additions: Total tangible fixed asset additions in FY 2025-26 were ₹591.44 lakhs, alongside additions of ₹1,720.70 lakhs in internally generated intangible software platforms and ₹648.62 lakhs in intangible software developments.
- Intangible Assets Under Development (IAUD): Work-in-progress on proprietary analytical software stood at ₹223.06 lakhs as of March 31, 2026 (down from ₹351.41 lakhs in FY25), of which ₹187.42 lakhs represents projects in progress under 1 year and ₹35.64 lakhs between 1-2 years. One software project with a book value of ₹164.57 lakhs is overdue for completion within 1 year.
- R&D and Process Capex: In the BRSR report, formal laboratory R&D is reported as Nil given the service-oriented model; however, product engineering is maintained through internal tech development in the BankTech and CapTech platforms.
- Capital Commitments: Estimated contractual capital commitments remaining to be executed on capital account and not provided for stood at ₹41.35 lakhs as of March 31, 2026 (compared to ₹8.75 lakhs as of March 31, 2025).
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
The corporate family tree comprises five direct operating subsidiaries, three step-down entities, one special trust vehicle, and one entity undergoing liquidation as disclosed in Form AOC-1.
| Entity Name | Country of Incorporation | Holding Category | % Equity Shareholding | Turnover (FY26) (₹ in Lakhs) | Profit / (Loss) After Tax (FY26) (₹ in Lakhs) |
|---|---|---|---|---|---|
| ICRA Analytics Limited (IAL) | India | Direct Subsidiary | 100.00% | 18,953.78 | 6,404.91 |
| D2K Technologies India Private Limited | India | Step-Down Subsidiary (held via IAL) | 60.00% | 2,375.75 | (751.61) |
| Fintellix India Private Limited | India | Direct Subsidiary (Acquired Oct 17, 2025) | 98.75% | 5,137.48 | 699.20 |
| Fintellix South Africa Proprietary Ltd | South Africa | Step-Down Subsidiary | 100.00% | 77.69 | (7.83) |
| Fintellix US LLC | USA | Step-Down Subsidiary | 100.00% | 36.50 | 0.06 |
| ICRA ESG Ratings Limited | India | Direct Subsidiary | 100.00% | 140.94 | (152.95) |
| ICRA Nepal Limited | Nepal | Direct Subsidiary | 51.00% | 680.75 | 207.49 |
| ICRA Lanka Limited | Sri Lanka | Direct Subsidiary (Under Liquidation) | 100.00% | – | (2.89) |
| ICRA Employees Welfare Trust | India | Controlled Entity | – | – | 80.00 |
Pursuant to the Companies Act, 2013, ICRA Limited has no associate companies or joint ventures. ICRA Analytics Limited acts as the primary domestic analytical engine, contributing ₹6,404.91 lakhs in standalone net profit. Fintellix, acquired on October 17, 2025 for an aggregate purchase price not exceeding ₹245.63 crores (upfront cash payment of ₹24,564.00 lakhs for 98.75%), contributed ₹5,137.48 lakhs in turnover and ₹699.20 lakhs in profit after tax for the consolidated period.
Strategic Investments & Treasury Holdings
ICRA maintains a liquid, low-risk treasury book deployed under a Board-approved investment policy across mutual funds, term deposits, and select long-term holdings:
- Strategic Equity Holdings: Long-term quoted equity holding of 3,000 shares in CRISIL Limited valued at ₹112.84 lakhs as of March 31, 2026 (compared to ₹125.37 lakhs in FY25), along with debentures worth ₹137.77 lakhs.
- Treasury Mutual Funds (Current Assets): Liquid mutual fund portfolio stood at ₹72,699.63 lakhs as of March 31, 2026. Deployments include UTI Money Market Fund (₹9,276.78 lakhs), ICICI Prudential Money Market Fund (₹9,274.88 lakhs), Tata Money Market Fund (₹9,258.04 lakhs), HDFC Money Market Fund (₹8,658.57 lakhs), Nippon India Money Market Fund (₹8,556.27 lakhs), and Aditya Birla Sun Life Money Manager Fund (₹8,310.74 lakhs).
- Term Deposits: Bank fixed deposits maturing beyond 12 months totaled ₹18,835.80 lakhs, while short-term term deposits and bank cash balances stood at ₹5,310.76 lakhs. Total cash and treasury reserves stood at ₹108,367 lakhs (₹1,083.67 crores).
- Deferred Consideration Liabilities: In connection with the acquisition of the remaining 40% equity stake in D2K Technologies, the Group carries an anticipated-acquisition deferred consideration liability of ₹3,827.30 lakhs under current financial liabilities as of March 31, 2026.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The Board of Directors comprises eight members: three Independent Non-Executive Directors, four Non-Executive Non-Independent Directors (representing Moody’s), and one Executive Director. The positions of Chairman and Chief Executive Officer are strictly separated.
| Name & DIN | Designation & Category | Committee Chairmanships / Roles | Professional Profile & Background |
|---|---|---|---|
| Mr. Palamadai Sundararajan Jayakumar (DIN: 01173236) | Non-Executive Independent Chairman | Audit Committee Member; Ratings Sub-Committee Member | Career commercial banker with 20+ years at Citibank (former Co-Head of Citibank India); former MD & CEO of Bank of Baroda (2015-2019) who led the merger with Dena Bank and Vijaya Bank. Gurukul Chevening Scholar from LSE. |
| Mr. Ramnath Krishnan (DIN: 09371341) | Managing Director & Group CEO (Executive) | CSR Committee Member; Risk Committee Member; Stakeholders Relationship Member | Senior banker and risk professional with over 30 years experience, including 23 years with HSBC (former Chief Risk Officer of HSBC Malaysia) and former Chief Risk Officer at RBL Bank. Joined ICRA in July 2020. |
| Mr. Pradip Kanakia (DIN: 00770347) | Non-Executive Independent Director | Audit Committee Chairman; Risk Committee Member; Nomination & Remuneration Member | Chartered Accountant (England & Wales and India) with extensive audit leadership; former senior partner at Price Waterhouse and KPMG. Chairman of ICRA Analytics Limited. |
| Ms. Anuranjita Kumar (DIN: 05283847) | Non-Executive Independent Director | CSR Committee Chairperson; Nomination & Remuneration Chairperson | Global HR leader; former Head of HR for Citi South Asia and NatWest Group; Founder & CEO of We Ace. XLRI graduate. |
| Ms. Wendy Huay Huay Cheong (DIN: 08927070) | Non-Executive Non-Independent Director (Moody’s) | Strategy Committee Chairperson; Audit Committee Member | Managing Director & Regional Head – Asia Pacific for Moody’s Ratings; CEO of MIS Singapore. Joined Moody’s in 2010. Retiring by rotation and eligible for reappointment. |
| Mr. Stephen Arthur Long (DIN: 09595066) | Non-Executive Non-Independent Director (Moody’s) | Risk Management Committee Chairman; Ratings Sub-Committee Member | Global Co-Head of Banking at Moody’s Ratings; former Managing Director & Regional Head – EMEA for Moody’s. Oxford graduate. |
| Mr. Brian Joseph Cahill (DIN: 10615493) | Non-Executive Non-Independent Director (Moody’s) | Ratings Sub-Committee Chairman; Strategy Committee Member | Vice Chairman, Moody’s Ratings Asia Pacific; Cambridge Law graduate; former Global Head of Sustainable Finance at Moody’s. |
| Ms. Shivani Priya Mohini Kak (DIN: 09486147) | Non-Executive Non-Independent Director (Moody’s) | Stakeholders’ Relationship Committee Chairperson; CSR Member | Managing Director and Head of Investor Relations Finance at Moody’s Corporation. Cornell MBA graduate. |
The Key Managerial Personnel and senior management team comprise:
- Mr. Venkatesh Viswanathan: Group Chief Financial Officer, steering corporate finance, treasury allocation, and financial reporting.
- Mr. S. Shakeb Rahman: Company Secretary & Compliance Officer, managing secretarial oversight and regulatory compliance.
- Mr. Amit Gupta: General Counsel, directing corporate legal strategy and compliance frameworks.
- Mr. K. Ravichandran: Executive Vice President & Chief Rating Officer, heading analytical rating committees.
- Mr. L. Shivakumar: Executive Vice President & Chief Business Officer, directing commercial engagements and rating franchise expansion.
- Mr. Anand Iyer: Group Chief Technology Officer, overseeing group information technology and engineering architecture.
- Mr. Shailendra Mruthyunjayappa: Chief Executive Officer of ICRA Analytics Limited (appointed CEO effective February 1, 2026, succeeding Mr. Jayanta Chatterjee).
- Ms. Aditi Nayar: Chief Economist & Head of Research and Outreach.
- Ms. Sheetal Sandhu: Group HR Head.
- Mr. Abhishek Dafria: Head of Group Strategy & Business Transformation.
Who Owns the Stock? Shareholding Pattern
The authorized share capital of ICRA Limited is ₹1,500.00 lakhs divided into 1,50,00,000 equity shares of ₹10 each. The issued, subscribed, and paid-up equity share capital is ₹965.12 lakhs comprising 96,51,231 equity shares of ₹10 each fully paid-up.
| Shareholder Category | Number of Shares Held | Equity Percentage (%) |
|---|---|---|
| Promoter & Promoter Group | 50,05,622 | 51.87% |
| – Moody’s Investment Company India Private Limited | 30,55,900 | 31.66% |
| – Moody’s Singapore Pte. Limited | 19,49,722 | 20.20% |
| Institutional Shareholding | 31,30,859 | 32.44% |
| – Mutual Funds, Banks, Alternative Investment Funds & Insurance | – | – |
| – Foreign Portfolio Investors (FPIs / FIIs) | – | – |
| Non-Institutional Public Shareholding | 14,87,219 | 15.41% |
| Non-Promoter Non-Public Shareholding (ESOP Trust) | 27,531 | 0.28% |
| Total Equity Capital | 96,51,231 | 100.00% |
Public institutional shareholders holding more than 1% of the equity capital as of March 31, 2026 include:
- Nippon Life India Trustee Ltd. (A/C Small Cap Fund): 6,64,324 shares (6.88%).
- Pari Washington India Master Fund, Ltd: 3,00,296 shares (3.11%).
- Parag Parikh Flexi Cap Fund: 2,93,522 shares (3.04%).
- SBI Banking & Financial Services Fund: 2,78,740 shares (2.89%).
- Canara Robeco Small Cap Fund: 2,72,130 shares (2.82%).
- Tencore Partners Master Ltd.: 1,81,114 shares (1.88%).
- Pari Washington Investment Fund: 1,67,523 shares (1.74%).
- Aditya Birla Sun Life MNC Fund: 1,61,540 shares (1.67%).
- HDFC Life Insurance Company Limited: 1,19,411 shares (1.24%).
- General Insurance Corporation of India: 1,10,000 shares (1.14%).
- Robeco Capital Growth Funds: 1,07,772 shares (1.12%).
- JM Flexicap Fund: 1,05,532 shares (1.09%).
- ICICI Prudential Smallcap Fund: 1,01,154 shares (1.05%).
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
ICRA’s competitive standing is supported by established operational moats:
- Methodological Alignment with Moody’s: The long-term Technical Services Agreement provides access to globally benchmarked credit scoring models and validation protocols, supporting institutional credibility.
- Discriminatory Rating Track Record: The Group recorded an overall issuer default rate of 0.4% in FY 2025-26, with an Average Default Position (ADP) exceeding 90% across a five-year cycle, indicating strong risk differentiation.
- Dual-Engine Business Mix: Non-rating Research & Analytics services account for 44.02% of consolidated turnover, providing revenue diversification against domestic credit cycles.
- Expansion Across the RegTech Lifecycle: The combined operations of Fintellix and D2K Technologies enable end-to-end data processing from origination and early warning systems to regulatory provisioning and central bank reporting.
- Liquid Balance Sheet: The Group holds ₹1,083.67 crores in treasury investments, term deposits, and cash, with nominal bank borrowings of ₹0.63 crores, providing balance sheet flexibility.
What Could Go Wrong? Key Challenges & Business Risks
Management identifies several operating and macroeconomic risks in its filing:
- Macroeconomic Headwinds & Geopolitical Instability: Unresolved conflicts in West Asia, energy price volatility, and potential sub-par domestic monsoons (due to prospective El Niño conditions) present risks to corporate profitability, bank loan growth, and debt market issuance volumes.
- Debt Market Yield Volatility: Corporate bond issuances moderated in H2 FY 2025-26 (contracting 7.0% YoY) as bond yields increased. Further hardening of bond yields may lead issuers to prioritize bilateral bank loans over market issuances.
- Client Revenue Concentration: The KnowTech business vertical derives ₹15,454.94 lakhs (25.78% of consolidated revenue) from a single multinational customer group. Significant strategic shifts or automation within that client group could impact services revenue.
- Generative AI Disruption: Rapid automation and generative AI tools could lower market demand or pricing power for standard data validation, summarization, and introductory financial research.
- Regulatory & Compliance Liabilities: ICRA remains subject to SEBI regulatory oversight. A pending appeal before the Securities Appellate Tribunal (SAT) contests an enhanced penalty order of ₹1.00 crore (deposited under protest) relating to historical credit ratings. Contingent tax claims contested in appellate forums total ₹56.73 lakhs.
The Next Chapter: Growth & CapEx Initiatives
Group ICRA’s forward-looking operational initiatives focus on several key priorities:
- Expected Credit Loss (ECL) Implementation: Leveraging the BankTech product portfolio to support Indian commercial banks as they transition to the RBI’s mandatory ECL provisioning guidelines effective from April 2027.
- Fintellix Platform Scale-Up: Expanding regulatory reporting and supervisory technologies into international financial centers across South Africa, the Middle East, the UK, and North America.
- SEBI Specialized Investment Funds (SIFs): Enhancing CapTech valuation services and index tracking products following SEBI’s January 2026 Mutual Funds framework introduction.
- Responsible AI Integration: Embedding artificial intelligence and workflow automation across analytical operations while maintaining human oversight, model validation, and data auditability.
- Environmental Stewardship: Continuing resource efficiency initiatives across operating sites, expanding digital-first workflows, and managing corporate CSR interventions such as Project KIRAN (solar power installations in aspirational districts).
The Verdict: Strategic Outlook & Conclusion
Fiscal year 2025-26 marked a pivotal operational milestone for ICRA Limited. Entering its 35th year of commercial operations, the Group demonstrated operational resilience by generating ₹599.51 crores in revenue and ₹182.53 crores in profit after tax. The strategic integration of Fintellix, paired with the expansion of ICRA Analytics and D2K Technologies, transitions the enterprise from a traditional domestic credit rating agency into a diversified, multi-jurisdictional risk analytics and supervisory technology provider.
Supported by a debt-free capital structure, substantial liquid treasury assets of ₹1,083.67 crores, an established credit ratio of 3.1x, and strategic alignment with Moody’s Corporation, ICRA remains well-positioned to navigate changing regulatory standards and capture growth opportunities across the domestic and global financial landscape.
Official Site: https://www.icra.in