ICRA Limited
One of only seven SEBI-licensed credit rating agencies in India, majority owned by Moody's.
On the record
Checkpoint: Q1 FY2026/27 results release, first full quarter to show Fintellix integration and R&A margin trend
The call
ICRA sits behind a license wall that AI cannot cross for ratings, while AI nibbles at the report-writing side of the business.
ICRA rates the creditworthiness of Indian companies and bonds. Only seven agencies in India are allowed to do this work by law, and the government will not add competitors or let AI do the job instead because someone has to sign their name and face legal responsibility if a rating goes wrong. The one thing to watch is whether artificial intelligence starts taking over the smaller research and report-writing side of the business (which makes up about 30 percent of their money) and whether that cost savings disappears, or if the government suddenly changes the rules about who can rate companies.
Why
01
AI pressure: Generative AI tools for report writing and data analysis. AI can draft research reports and crunch data, pressuring the Research and Analytics unit, but it cannot issue SEBI-recognized ratings. Could AI do the core job? Unlikely.
02
Bigger players: CRISIL (S&P Global owned). CRISIL is about six times ICRA's revenue and competes for the same rating mandates, but both sit inside the same seven-license wall. Could a giant copy it? No, they are blocked.
03
What protects it. A government-issued CRA license that only seven firms hold, backed by decades of default data and Moody's 52% ownership.
What would change this call
Q1 FY27 results (due ~31 July 2026) show Research & Analytics segment growth rate versus Ratings segment. Reveals whether AI-driven automation is eroding the non-ratings analytics business faster than it can be replaced.
Fintellix full-year FY27 revenue contribution disclosed versus FY26 partial-year figures. Shows whether the analytics acquisition is offsetting margin pressure or falling short.
Any SEBI enforcement action or public rating-lapse finding naming ICRA in FY27. Would test whether the regulatory trust moat is holding after the Feb 2026 disclosure circular.
Fintellix full-year FY27 revenue contribution disclosed versus FY26 partial-year figures. Shows whether the analytics acquisition is offsetting margin pressure or falling short.
Any SEBI enforcement action or public rating-lapse finding naming ICRA in FY27. Would test whether the regulatory trust moat is holding after the Feb 2026 disclosure circular.
Key numbers
- FY2026 revenue ₹599.5 crore, up 20.4% YoY
- FY2026 PAT ₹188.6 crore, up 6.7% YoY
- Research and Analytics segment grew 29.8% in FY2026
Named risks
- Rating scandal or major default implicating an ICRA rating could trigger lasting regulatory and reputational damage.
- AI automation erodes Research & Analytics revenue growth faster than new products like Fintellix can offset.
- Scale gap versus CRISIL (roughly 6x larger) limits ICRA's ability to lead pricing or market share in ratings.
- Fintellix integration costs (amortization) dragged Q4 FY26 PAT down 5.9% YoY, signaling near-term margin pressure.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| CRISIL | contesting | CRISIL revenue 3,649cr vs ICRA 599.51cr as of mid-2026, roughly 6x larger scale |
| CARE Ratings | contesting | CARE revenue 473.07cr close behind ICRA's 599.51cr as of 2026-07-15 |
| India Ratings (Fitch affiliate) | contesting | Smaller domestic SEBI-licensed peer within same 7-agency oligopoly |
| Nasdaq Adenza (RegTech) | gaining on | Global RegTech vendor competes with ICRA's Fintellix risk-analytics unit |
Questions people ask
- Is ICRA Limited profitable in 2026?
- Yes. ICRA's consolidated PAT for FY2026 (year ended 31 March 2026) rose 6.7% YoY to 188.6 crore rupees, on consolidated revenue from operations of 599.5 crore rupees, up 20.4% YoY, per company results disclosed 25 June 2026.
- Who owns ICRA Limited?
- Moody's Corporation is ICRA's majority owner, holding 52.03% of shares as of 30 September 2025. Moody's first raised its stake to just over 50% via an open offer in 2014, up from roughly 28.5% previously.
- Could AI replace ICRA's credit ratings business?
- No, not the core ratings business. ICRA is one of only seven SEBI-registered credit rating agencies in India, a license AI cannot hold or substitute since regulators require a liability-bearing licensed entity. Management has flagged automation as a headwind mainly in its non-ratings Research and Analytics segment.
- Who is ICRA's biggest competitor?
- CRISIL, majority owned by S&P Global, is ICRA's largest domestic rival with roughly 3,649 crore rupees in revenue versus ICRA's 599.51 crore rupees as of mid-2026, about six times ICRA's scale, though both operate inside the same SEBI-licensed oligopoly.
- Is ICRA a safe company to work for?
- ICRA is a profitable, dividend-paying listed company backed by Moody's, with FY2026 revenue up 20.4% to 599.5 crore rupees. However Q4 FY26 PAT fell 5.9% YoY to 52.69 crore rupees due to Fintellix acquisition amortization costs, disclosed 22 May 2026.
- Did ICRA acquire Fintellix?
- Yes. ICRA signed a definitive agreement in June 2025 and completed acquisition of a 98.75% stake in Fintellix India, a Bengaluru RegTech and risk-analytics firm, for 245.63 crore rupees, finalized 20 October 2025.
Timeline
- 2026-06-25FY26 results: revenue up 20.4% to 599.5cr, PAT up 6.7% to 188.6cr, 105/share dividend declared
- 2026-05-22Q4 FY26 PAT fell 5.9% YoY to 52.69 crore due to Fintellix amortization costs
- 2026-01-28Q3 FY26 results note residual impact from ESG project discontinuation
- 2025-10-20ICRA completes acquisition of 98.75% stake in Fintellix India for 245.63 crore
- 2025-09-30Moody's shareholding in ICRA recorded at 52.03%
- 2025-06-19ICRA signs definitive agreement to acquire Fintellix India
- 2025-05-29Q4 FY25 results: revenue growth 11.6% FY, dividend of 60/share declared
- 2020-09-22SEBI raises IL&FS-related penalty on ICRA to 1 crore rupees
- 2007-04-13ICRA Limited lists on BSE and NSE
- 1991ICRA founded as joint venture between Moody's and Indian financial institutions
Revision history
21 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Who Owns ICRA? ICRA Shareholders (2026-06-25)
- Icra hits record high as Moody's ups stake to 50%
- ICRA Ltd Directors Report
- Q4 FY2025 Results Press Release (2025-05-29)
- ICRA Investor Relations, Earnings Summary & Outlook (2026-06-25)
- ICRA Q4 PAT Dips 5.9% to ₹53 Crore (2026-05-22)
- Crisil Ltd. Peers Comparison & Competitor Analysis (2026-07-15)
- Study of Competition Among Credit Rating Agencies in India (2017-02-28)
- Saraf, Samvad advise on ICRA's acquisition of Fintellix (2025-06-19)
- ICRA Finishes Acquisition of 98.75% Stake in Fintellix India (2025-10-20)
- Q3 FY2026 Results Press Release (2026-01-28)
- Monitoring Agency Report