ICRA Limited (ICRA) AI Stock Analysis

• Market Cap: ₹50.57B
• Dividend Yield: 0.97%
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): 37.6
• Beta (1Y): 0.85
• Revenue Growth: 8.06%
• EPS Growth: 24.52%
• Country: IN
• Employees: 1,238
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 40.35
• Shares Outstanding: 9,651,231
• 10 Day Avg. Volume: 94
• 30 Day Avg. Volume: 1,578
• PEG Ratio: 2.51
• Price to Book (P/B): 5.07
• Price to Sales (P/S): 10.75
• P/FCF Ratio: 40.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 186.59
• Revenue Forecast (FY): ₹6.05B

• Rating: 72 Outperform
• Price Target: ₹5,803.00 ▼(-7.82% Downside)
• Action: Upgraded Date: 10/28/25
• Date: Action: Upgraded 10/28/25

ICRA Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and a solid balance sheet. Technical analysis indicates a neutral trend, with no clear momentum. The valuation suggests the stock is relatively expensive, which may limit upside potential.

Positive Factors

Revenue & EPS Growth

Consistent double-digit revenue and EPS growth demonstrate sustained demand for ICRA's core ratings and analytics services. Over months this underpins recurring fee streams and pricing power, enabling reinvestment in research and product development and supporting durable margin expansion.

Strong Balance Sheet

A solid equity base and low leverage provide financial flexibility to invest, absorb shocks and maintain operational independence crucial for a ratings firm. This conservative capital structure reduces refinancing risk and supports long-term credibility with issuers and investors.

Cash Generation

Sustained operating cash flow and positive free cash flow show effective cash conversion of core operations. Over a multi-month horizon this funds organic investment, supports analytics product expansion, and provides a buffer for timing variability in deal-driven rating fees.

Negative Factors

Issuer‑paid Revenue Concentration

Heavy reliance on issuer-paid rating and surveillance fees concentrates revenue on capital-market activity and issuer willingness to pay. Structural shifts—regulatory changes, competitive pressure, or weakened issuance—could reduce demand and make revenue sensitive to sector cyclicality.

Declining Gross Profit

A year‑over‑year drop in gross profit signals margin pressure potentially from pricing, increased personnel/tech costs, or a shift to lower‑margin services. If this trend persists it can compress operating margins, limit reinvestment capacity, and weaken long-term profitability resilience.

Cash Flow Volatility

Investing cash flow swings and sizable financing outflows create timing and liquidity risk despite strong operating cash. Over several months this can constrain strategic flexibility, limit M&A or product spending, and increase reliance on internal liquidity management during slower issuance periods.

ICRA Limited Business Overview & Revenue Model

Company Description

ICRA Limited operates as an independent and professional investment information, and credit rating agency in India and internationally. The company operates through Rating, Research and Other Services; Consulting Services; Knowledge Services; and Market Services segments. It offers credit, bank loan, structured finance, issuer, mutual fund, industry research, fund management quality, equity grading rating, and insurance financial strength rating, line of credit rating services, as well as public issue proceeds monitoring services. The company also provides grading services to banking and finance, insurance, and hydro-electricity sectors, as well as construction, trading, aviation, and manufacturing companies; industry research services in the areas of business and profitability outlook, industry analysis, competitive landscape, impact of regulatory environment, benchmarking of companies, industry credit profile, company profile on listed players, etc.; and management consulting services, such as risk management, financial advisory, and outsourcing and policy advisory. In addition, it offers financial information products and services, as well as KPO services. The company was formerly known as Investment Information and Credit Rating Agency of India Limited. ICRA Limited was incorporated in 1991 and is headquartered in Gurugram, India.

How the Company Makes Money

ICRA primarily makes money by charging fees for credit rating and related services. Its main revenue stream is ratings and surveillance fees paid by issuers/borrowers (and, in some cases, arrangers or other transaction participants) for assigning initial ratings to debt instruments/issuers and for ongoing monitoring (surveillance) of those ratings over the life of the instrument or engagement. These engagements span areas such as corporate ratings, bank and non-bank financial institution ratings, structured finance transactions (e.g., securitisation), and public/municipal or infrastructure-related issuances. A second revenue stream comes from research and analytics/risk-management offerings, where ICRA provides sector/economic reports, data, and analytical tools or services that clients (such as banks, NBFCs, investors, corporates, and other institutions) pay for via subscriptions, licenses, or service contracts, depending on the product. ICRA can also earn fees from non-rating advisory and analytical assignments (where permitted under applicable regulations and internal policies), such as risk assessments, grading, and other analytical services for corporates and financial institutions. Information on specific partnership-driven revenue splits or the exact contribution of each stream is null.

ICRA Limited Financial Statement Overview

Summary

ICRA Limited exhibits strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet is solid with low leverage, enhancing financial security. Cash flow generation is positive, although some volatility in cash flow components calls for cautious monitoring.

Income Statement

ICRA Limited has demonstrated strong revenue growth, with a consistent upward trajectory over the past five years. The gross profit margin has remained robust, highlighting effective cost management. The EBITDA and EBIT margins are healthy, reflecting solid operational efficiency. However, the decline in gross profit compared to the previous year warrants attention.

Balance Sheet

The company maintains a strong equity position with a solid equity ratio and low debt-to-equity ratio, reflecting financial stability. Increasing stockholders' equity and a steady growth in total assets indicate a robust financial foundation. The low level of debt minimizes financial risk, which is advantageous in the current market conditions.

Cash Flow

ICRA Limited has shown a positive trend in free cash flow growth, supported by consistent operating cash flow. The operating cash flow to net income ratio is strong, suggesting good cash generation from operations relative to net income. However, fluctuations in investing cash flow and substantial financing cash outflows may pose potential risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.17B	4.97B	4.46B	4.03B	3.40B	2.98B
Gross Profit	2.38B	2.44B	1.83B	1.96B	1.75B	1.41B
EBITDA	2.74B	2.55B	2.24B	1.92B	1.61B	1.24B
Net Income	1.88B	1.70B	1.51B	1.35B	1.12B	816.60M
Balance Sheet
Total Assets	13.64B	12.94B	11.87B	11.01B	9.78B	8.96B
Cash, Cash Equivalents and Short-Term Investments	10.96B	10.51B	5.75B	5.03B	3.70B	4.17B
Total Debt	122.46M	131.35M	126.83M	130.28M	140.26M	169.61M
Total Liabilities	2.72B	2.37B	2.06B	1.46B	1.31B	1.35B
Stockholders Equity	10.87B	10.53B	9.76B	9.50B	8.44B	7.58B
Cash Flow
Free Cash Flow	730.71M	1.32B	1.00B	901.70M	921.54M	728.71M
Operating Cash Flow	779.99M	1.45B	1.07B	992.58M	973.75M	763.84M
Investing Cash Flow	-436.88M	-168.90M	274.94M	-768.39M	-718.62M	-321.14M
Financing Cash Flow	-607.27M	-1.03B	-1.37B	-321.26M	-320.29M	-320.31M

ICRA Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6295.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ICRA, the sentiment is Negative. The current price of 6295.5 is above the 20-day moving average (MA) of 5535.31, above the 50-day MA of 5848.49, and above the 200-day MA of 6255.21, indicating a bearish trend. The MACD of -171.21 indicates Positive momentum. The RSI at 28.85 is Positive, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ICRA.

ICRA Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARERATING	75 Outperform	₹46.90B	33.44	―	1.23%	19.50%	33.27%
ICRA	72 Outperform	₹50.57B	37.64	―	0.97%	8.06%	24.52%
CRISIL	68 Neutral	₹294.96B	41.26	―	1.38%	6.61%	11.88%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

ICRA Limited Corporate Events

ICRA Closes Trading Window Ahead of FY26 Results

ICRA Limited has announced that its trading window for dealing in the company’s shares will be closed from March 13, 2026, until 48 hours after the declaration of its standalone and consolidated financial results for the fourth quarter and full year ending March 31, 2026. This measure is in line with the Securities and Exchange Board of India’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct.

During this period, designated persons of ICRA and their immediate relatives are prohibited from trading in the company’s shares to prevent any misuse of unpublished price-sensitive information. The move underscores ICRA’s adherence to regulatory requirements on insider trading and reinforces governance standards aimed at protecting market integrity and shareholder interests.

ICRA Files Q3 FY2026 Investor Presentation with Stock Exchanges

ICRA Limited has released its investor presentation for the third quarter of fiscal year 2026, in compliance with Securities and Exchange Board of India listing regulations, and submitted the document to both BSE and the National Stock Exchange of India. The disclosure underscores ICRA’s ongoing engagement with capital markets and its commitment to regulatory transparency, providing investors and stakeholders with updated information on its performance and operations for the quarter.

ICRA Opens Special Window for Re‑lodgement of Legacy Physical Share Transfers

ICRA Limited has notified shareholders that, pursuant to a Securities and Exchange Board of India circular, a special window has been opened to re-lodge transfer requests for physical shares that were originally submitted before April 1, 2019 but were rejected, returned or left unattended due to documentation or process deficiencies. The window, which runs from July 7, 2025 to January 6, 2026, allows eligible shareholders to resubmit original transfer documents with corrected or missing details to the company’s registrar and transfer agent, with all successfully processed transfers to be completed only in dematerialised form, reinforcing the market-wide shift away from physical share certificates and potentially aiding investors in regularising legacy holdings.