Slides
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1 INVESTOR PRESENTATION Q2 & H1 FY2027 October 2026 #35YearsofUnwaveringCredibility
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2 2www.icra.in Agenda ICRA’S STRATEGIC PRIORITIES SCALING RISK & ANALYTICS BUSINESS RATINGS & ANCILLARY SERVICES FINANCIAL SYNOPSIS MACRO -ECONOMIC OUTLOOK RESEARCH & OUTREACH
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3 ICRA’S STRATEGIC PRIORITIES
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4 4www.icra.in ▪ Embed technology and AI to enhance client experience, productivity and controls ▪ Build scalable, future- ready technology infrastructure Digital Transformation ▪ Maintain high rating quality to remain a trusted voice in financial markets ▪ Optimise operations, enhance profitability ▪ Leverage technology for scale and efficiency Ratings & ancillary ▪ Build a future-ready workforce ▪ Attract and retain high- quality talent Human Resources ▪ Enhance R&A revenues through organic and inorganic measures ▪ Deepen client value through cross-sell efforts ▪ Diversify client mix Risk & Analytics (R&A) ▪ Expand into adjacent markets and capabilities across data, analytics, risk and reporting Inorganic Growth ICRA’s strategic priorities *FY2026 revenue is shown on a pro forma basis, including Fintellix revenue for the full year, for illustrative purposes only Group Revenue grew at a 16.5% CAGR from FY2021 (₹ 301.1 crore) to FY2026 (₹ 646.9* crore) ▪ Healthy revenue growth at a 12.4% CAGR from ₹ 187.2 crore in FY2021 to ₹ 336.5 crore in FY2026 ▪ Consistent expansion in Ratings margin, growing from 20.8% in FY2021 to 37.6% in FY2026 ▪ Revenue grew ~2.7x at a 22.2% CAGR from ₹ 114.9 crore in FY2021 to ₹ 313.2* crore in FY2026 ▪ Anchor client revenue share reduced to 49% * from 80% in FY2021 ▪ Addition of new capabilities and products across the credit lifecycle with recent acquisitions ▪ Integration across enterprise tools ▪ Development of in-house platforms with AI integration for workflow optimisation ▪ Increase in people strength from ~1,120 in FY2021 to ~1,700 in FY2026 ▪ Continued investment in talent and retention
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5 SCALING RISK & ANALYTICS BUSINESS
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6 6www.icra.in ICRA Analytics THE FOUNDATION▪ Banking risk solutions, consulting- based work ▪ Asset management solutions ▪ Data & analytics services for Moody’s D2K AGILITY & ENGINEERING▪ Banking software solutions ▪ Engineering capability ▪ Agile product development Fintellix SCALE & MATURITY▪ Risk & regulatory solutions ▪ Mature technology & delivery ▪ Professional operating capability Presence in risk solutions limited to niche pockets ONE R&A - INTEGRATED PLATFORM ICRA operated primarily as a credit rating agency Strategic investments to build a scalable R&A platform The capability set expanded in stages, from a knowledge and analytics foundation to engineering agility, and then to greater scale, breadth and operating maturity Risk & Analytics: Strategic investments that bring scale and diversification *FY2026 revenue from operations is shown on a pro forma basis, including Fintellix revenue for the full year, for illustrativ e purposes only 1 2 3 114.9 313.2 FY 2021 FY 2026* 80% 49% 20% 51% FY 2021 FY 2026* Anchor Client Others ₹ crore Changing revenue mix R&A Revenue CAGR (22.2%)
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7 7www.icra.in Risk & Analytics business structure Risk & Analytics (R&A) Knowledge Tech Offshore tech-enabled data management, analytical, and digital transformation assistance across industries ▪ Data operations ▪ Financial intelligence ▪ ESG analytical services ▪ Digital transformation BankTech Advanced tools and consulting for credit, market, and operational risk ▪ Regulatory reporting ▪ Supervisory solutions ▪ EWS; IRS; ECL ▪ Engineering services ▪ Model validation Fixed-income data and valuations, mutual fund research, and portfolio tracking ▪ Rating tracker ▪ Performance data & research of live MF schemes ▪ Fixed Income indices ▪ Bond valuation ▪ Customised research CapTech Tech-enabled Data & Knowledge Services Risk, Regulatory & Supervisory Technology Market Data, Valuation & Investment Intelligence The integration of people, processes, go-to-market and products marks an important milestone, with R&A now operating as a unified platform, offering clients integrated risk, data and regulatory solutions and creating stronger cross-selling opportunities
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8 8www.icra.in Building future-ready platform The combined platform brings together the core capabilities, operating model and go-to-market needed to drive growth DOMAIN Deep domain expertise, institutional knowledge Trusted, proprietary data assets built for decision-making DATA Models, analytics and decisioning capabilities ANALYTICS Software, platforms, agentic solutions for scalable delivery TECHNOLOGY Traditional Strength | Built Internally | Integrated | Cross-sold | Being Expanded INTELLIGENCE Combined actionable intelligence and enterprise outcomes Build broader intelligence propositions, embed platforms with proprietary data, AI to develop new delivery models Next Steps ICRA’s traditional strength in the credit risk domain is augmented with the operational integration of D2K and Fintellix
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9 9www.icra.in Target Action Growth opportunities for R&A Established offerings across Credit Risk, Regulatory & Data and Investment Analytics for Banks, Asset Managers and Regulators Established business models across Services, Data and Software Strong presence in India and select international markets Introduced AI-native capabilities across select existing products Expanded offerings across Enterprise Risk Serving Insurance, Broker and Private Markets From point solutions to larger domain-led transformation, through integrated platforms and Intelligence-as-a-Service Data-intelligence, AI-enabled and agentic solutions, selectively developed, spanning risk solutions and domain knowledge services Expansion opportunities across the US, Europe and Middle East; combining Knowledge Tech services with traditional risk tech solutions Present Future MOVE UP THE VALUE CHAIN ONE STOP INTELLIGENCE CREATE NEW PROPOSITIONS EXPAND INTERNATIONALLY Core strengths: Financial-domain depth + trusted data and IP + technology capability + institutional relationships
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10 RATINGS & ANCILLARY SERVICES
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11 11www.icra.in GDP growth is expected to ease in H2 FY2027 with lower than normal monsoon, elevated input prices, rising inflation and monetary tightening weighing on consumption activity. While the strong base of the last year is likely to optically compress volume growth in H2 FY2027, fiscal slippage risks could manifest into cuts in discretionary spending by the Government and consequently impact growth. Bond Bank Credit Securitisation Ratings & ancillary services: Business environment and outlook Environment Outlook ▪ Improved competitive position vis-à-vis bonds, surplus liquidity and steady demand from both retail and corporate are likely to support credit growth. However, lenders may remain watchful of stress emanating from elevated input costs and supply chain disruptions driven by geopolitical conflicts. ▪ Securitisation volumes in FY2027 are expected to be ~ ₹ 2.6 – 2.7 lakh crore, marking an all-time high, largely driven by NBFCs and HFCs, which are projected to register high-teen growth during the year . ▪ Ongoing requirements of banks to meet their priority sector lending obligations are expected to continue providing structural support to securitisation activity. ▪ Bond issuances will remain volatile as the outlook on macro factors remain uncertain and bond yields remain elevated. However, higher yields in developed markets will keep foreign currency borrowings muted and support growth in domestic bond issuances. ▪ CP issuances in H2 FY2027 are likely to be relatively lower given the rise in short-term rates. ICRA expects a relatively lower growth of 8-12% in CP outstanding as on March 31, 2027, compared to that witnessed as on September 30, 2026. ▪ Bond issuances started on a tepid note in Q1 FY2027 but rose sharply in Q2 FY2027 driven by several large-ticket transactions and quarter end activity by issuers to raise funds before the onset of rate hike cycle. ▪ Commercial paper (CP) outstanding grew at a strong 27% YoY as on Sep 30, 2026, reflecting higher working capital requirements and issuers’ preference for the instrument because of relatively lower short-term rates during the quarter. ▪ Bank credit growth has been supported by a shift in demand from bond market amid higher market yields and steady demand from corporate and retail segments. ▪ Deposit rates have witnessed gradual easing with the transmission getting largely completed. Further, sizeable FCNR(B) deposits have boosted liquidity, reducing the need to chase expensive deposits and thereby cushioning margins. ▪ H1 FY2027 was marked by a strong 42% growth in volumes by NBFCs and HFCs, with gold loans continuing to lead the overall growth in volumes, recording an increase of ~1.5 times YoY. At the same time, traditional segments such as vehicle loans, MSME/Business loans and mortgage loans maintained a steady pace of growth, supporting overall volumes. ▪ Vehicle loans and gold loans remained the dominant asset classes. The tailwinds from FY2026, including the income tax cuts, GST rationalisation, low inflation, monetary easing, and healthy crop output supported growth in H1 FY2027. However, external and domestic headwinds, arising from the West Asia crisis and sub-par monsoon, respectively are likely to impact the near-term outlook. Elevated input costs have increased fund raising requirements for businesses. H1 FY2027: 3.7% YoY growth [PY 30.5%] As on Sep 30, 2026: 21.4% YoY growth [PY 10.4%] Market volumes are estimated to have grown by ~42% in H1 FY2027 YoY
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12 12www.icra.in Ratings performance metrics remain strong Source: ICRA Note: Excludes a default due to operational reasons, recognised in Feb 2025 in accordance with the SEBI regulations *Percentages may not sum to 100% due to rounding Trend in rating reaffirmation* and rating changes – Momentum in rating upgrades remains healthy Reaffirmations 10-year average: 81% Downgrades 10-year average: 8% Upgrades 10-year average: 12% Investment Grade Default Rates remain low, reflecting the high discriminatory power of ICRA-assigned rating ` Average Default Position remains robust, demonstrating a consistently high rating accuracy 9% 12% 11% 8% 8% 19% 16% 14% 13% 17% 15%8% 8% 8% 13% 9% 6% 5% 6% 6% 5% 4% 84% 81% 81% 80% 83% 75% 78% 80% 81% 78% 82% 1.2 1.5 1.3 0.6 0.9 3.0 2.8 2.1 2.0 3.1 3.4 0.0 1.0 2.0 3.0 4.0 0% 20% 40% 60% 80% 100% FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 (Annualised)Upgrades Downgrades Reaffirmations Credit Ratio 2.6% 3.4% 2.8% 2.3% 1.2% 1.3% 0.8% 0.2% 0.2% 0.4% 0.0% FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 H1 FY2027 Overall Default Rate Investment Grade Default Rate 96.9% 70% 75% 80% 85% 90% 95% 100% Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 5-year average: 93%
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13 FINANCIAL SYNOPSIS
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14 14www.icra.in Revenue *PAT Financial performance: Q2 & H1 FY2027 (₹ crore) *Profit after tax (PAT) Q2 FY2026 Q2 FY2027 136.6 H1 FY2026 H1 FY2027 261.1 341.2 Q2 FY2026 Q2 FY2027 48.0 52.4 H1 FY2026 H1 FY2027 90.8 108.9 177.9 30.7%30.2% 20.0% ▪ ICRA delivered strong revenue growth, led by broad-based growth in Ratings, supported by healthy credit activity across bank loans, bonds, commercial paper and securitisation. R&A growth was led by the acquisition of Fintellix, with steady demand for risk and regulatory solutions and favourable currency movement ▪ The PAT growth was supported by strong performance of the Ratings business, partly offset by acquisition-related depreciation and amortisation in R&A. The underlying R&A operating performance remained healthy, with EBITDA increasing by 35% YoY to ₹ 47.1 crore in H1 FY2027 9.2%
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15 15www.icra.in *Segment Revenue **Segment Results Segmental performance: Q2 & H1 FY2027 (₹ crore) *Group revenue numbers exclude inter-segment revenue **Segment results before exceptional item 52.9 80.5 84.1 98.7 Q2 FY2026 Q2 FY2027 136.6 177.9 103.6 161.0 158.4 182.6 H1 FY2026 H1 FY2027 261.1 341.2 15.3 14.7 29.4 40.3 Q2 FY2026 Q2 FY2027 44.7 55.0 30.1 30.3 52.5 69.3 H1 FY2026 H1 FY2027 82.6 99.6 Ratings & ancillary services Risk & Analytics 30.2% 30.7% 23.0% 20.5% ▪ Rating revenue growth was supported by broad-based credit activity across bank loans, bonds, commercial paper and securitisation. Bank credit grew strongly amid elevated bond yields, while bond issuances remained healthy, supported by large-ticket transactions and some preponement ahead of anticipated rate hikes. Commercial paper activity strengthened, while securitisation remained a key funding avenue for NBFCs ▪ Risk & Analytics growth primarily reflected Fintellix consolidation, besides continued demand for BankTech’s risk and regulatory solutions and growth in CapTech. Knowledge Tech remained resilient despite automation-led shifts in client demand. Integration of sales, customer support, product and delivery functions marked an important milestone towards operating as a unified platform across risk, data and regulatory solutions ▪ The R&A segment results include acquisition-related depreciation and amortisation. R&A EBITDA increased by 35% YoY to ₹ 47.1 crore in H1 FY2027
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16 MACRO-ECONOMIC OUTLOOK
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17 17www.icra.in Baseline macroeconomic projections for FY2027 e: estimates; Source: ICRA Research Real GDP Growth FY2026: 7.8% FY2027e: 7.1%, with downside risks Nominal GDP Growth FY2026: 8.6% FY2027e: 12.5% GDP CPI Inflation FY2026: 2.1% FY2027e: 5.2% WPI Inflation FY2026: 0.4% FY2027e: 9.0% INFLATION Another rate hike is expected in December 2026, followed by a pause thereafter, unless crude oil prices remain elevated REPO RATE Government of India’s (GoI’s) Fiscal Deficit/GDP ratio FY2026: 4.4% FY2027e: 4.5%, 20 bps higher than target FISCAL DEFICIT Current Account Deficit/GDP FY2026: 0.7% FY2027e: 0.9%, with high crude oil prices posing upside risk EXTERNAL ACCOUNT
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18 18www.icra.in India’s FY2027 growth outlook subject to external and domestic headwinds Source: ICRA Research Sub-par and uneven rainfall during the Southwest Monsoon season 2026, has weighed on kharif acreage, and is likely to dampen crop yields and output. Besides, the shortfall in reservoir storage levels vis-à-vis the historical average in October 2026 so far is expected to have a bearing on the sowing and output of rabi crops. ICRA remains circumspect around the potential impact of the weak monsoon on crop output and farm incomes, which may dampen rural demand in H2 FY2027. Additionally, this would exert upside risks to food inflation outlook for H2 FY2027. While the GoI’s capex growth of 14.3% budgeted for FY2027 augurs well for investment activity, fiscal slippage risks could manifest into discretionary spending cuts by the Government, which would also impact growth outcomes. External and domestic headwinds, related to the West Asia crisis and weak monsoons, respectively, would also constrain private capex from broad- basing. Merchandise exports are expected to grow by double digits in FY2027, benefitting from elevated commodity price inflation, with downside risks stemming from the adverse impact of the geopolitical tensions in West Asia. Besides, the outlook for services exports remains cautious, amid the impact of geopolitical uncertainty on global growth. The tailwinds from the previous fiscal on account of the income tax cuts, GST rationalisation, low inflation, monetary easing, and healthy crop output growth have dissipated. Rising inflation is expected to start weighing on urban consumption, even as the strong base of GST rationalisation would also optically dampen volume growth in H2 FY2027. Further, elevated input prices would impact growth in value-added of businesses, while rising inflation and the onset of monetary tightening would start weighing on household consumption.
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19 RESEARCH & OUTREACH
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20 20www.icra.in Research & Outreach RESEARCH PUBLISHED 2 MEDIA COVERAGE 3 WEBINARS & EVENTS 1
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21 21www.icra.in Social listening
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22 © Copyright, 2026 ICRA Limited. All Rights Reserved. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies, while publishing or otherwise disseminating other reports may have presented data, analyses and/or opinions that may be inconsistent with the data, analyses and/or opinions in this publication. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents. #35YearsofUnwaveringCredibility
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23 Thank You! #35YearsofUnwaveringCredibility