ICRA (ICRA) Q4 24/25 earnings summary

Executive summary

• Group revenue for FY25 grew 11.6% year-over-year to ₹49,802.12 lakhs, with PAT up 12.5% to ₹17,120.42 lakhs; Q4 FY25 revenue was ₹13,621.29 lakhs and PAT was ₹5,598.97 lakhs.

• Ratings division grew 14.4% year-over-year, research and analytics rose 8.3% year-over-year, and new ESG offerings and collaborations with BitSight and FTSE Russell expanded the business.

• Margin expansion in ratings was driven by strong top-line and operating leverage; research and analytics growth was tempered by the planned ESG service conclusion.

• Board recommended a dividend of ₹60 per share for FY25, subject to approval, lower than the previous year's ₹100 per share (which included a special dividend).

• The company resolved a legal dispute with an ex-employee through a voluntary settlement in April 2025.

Financial highlights

• FY25 revenue was ₹49,802.12 lakhs, up from ₹44,611.47 lakhs in FY24; PAT reached ₹17,120.42 lakhs, up from ₹15,224.19 lakhs.

• Q4 FY25 revenue was ₹13,621.29 lakhs, with PAT at ₹5,598.97 lakhs.

• Earnings per share (EPS) for FY25 was ₹176.73 (basic), up from ₹157.07 in FY24.

• Dividend payout for FY25 is ₹57.91 crore, compared to ₹96.51 crore in FY24.

• Net cash generated from operating activities for FY25 was ₹20,007.36 lakhs.

Outlook and guidance

• GDP growth forecast to dip to 6.2% in FY2026 from 6.5% in the previous year; domestic growth drivers remain resilient, but export outlook is muted.

• Bond issuances and credit market growth expected to benefit from anticipated rate cuts and supportive government policies.

• Securitisation volumes in FY2026 estimated at ~₹2.5 trillion.

• Risk and analytics poised for growth, driven by regulatory focus in banks and NBFCs.

• The Board’s dividend proposal is subject to shareholder approval at the upcoming AGM.