ICICI Bank financial performance now reads like a paradox: the bank reported a net income of INR 510.29B in FY2025 while recording negative operating cash flow of INR -752.52B, an earnings‑to‑cash conversion divergence that alters the capital‑allocation signal for investors.
That split — simultaneous profit expansion and cash‑flow strain — shows up across Monexa AI’s dataset and requires reconciling reported profit, balance‑sheet growth and financing activity before treating headline profits as cash available for dividends or buybacks (detailed citations follow). IBN finished the session at $32.57 with an intraday move of -0.40% (Source: Monexa AI.
What explains ICICI Bank's profit vs operating cash‑flow gap?#
ICICI Bank’s FY2025 accounts show a clear timing and funding story: strong accrual profits but negative operating cash flow, driven by working‑capital swings and large investing outflows that were funded through financing activity. In short: profit recognition outpaced cash conversion during the period. (Concise answer: accrual net income rose while loans, deposits or investment flows created a cash‑use profile that financing activity covered.)
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The data: Revenue rose to INR 2,945.86B in FY2025 (+106.31% vs FY2024) while net income increased to INR 510.29B (+15.30%), per Monexa AI fiscal figures (Source: Monexa AI. But operating cash flow turned sharply negative at INR -752.52B and free cash flow was INR -800.22B (Source: Monexa AI. These numbers imply an operating cash‑to‑profit ratio of about -147.49% (operating cash / net income), a material conversion deterioration.
That deterioration is visible in the cash‑flow line items: investing cash use INR -772.88B and financing cash inflow INR 2,036.47B in FY2025, indicating the bank raised funding (or reclassified liabilities) to support asset expansion rather than generating cash from operations (Source: Monexa AI.
Key financial developments and growth metrics#
ICICI recorded an unusually large reported revenue increase in FY2025: INR 2,945.86B versus INR 1,427.90B in FY2024 — a +106.31% jump (Source: Monexa AI. Net income rose to INR 510.29B (+15.30%) while reported operating margin and net‑income ratios remain positive (Sources: Monexa AI. These headline gains are accompanied by a move in market valuation — market capitalization displays as $116.26B in Monexa’s quote profile (Source: Monexa AI.
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A critical data caveat: Monexa’s dataset contains unit and per‑share inconsistencies (for example, quote‑level EPS 1.68 vs key‑metrics TTM net income per share 74.20). Those differences likely reflect ADR vs domestic share bases or divergent per‑share denominators; investors should reconcile the FY2025 statutory filings for per‑share definitions before comparing EPS across sources (Source: Monexa AI.
The bank’s recent earnings cadence shows consistent small beats: the July 19, 2025 quarter reported EPS 0.43 vs estimate 0.40 (Source: Monexa AI, indicating near‑term execution remains above consensus at the quarter level.
| Fiscal Year | Revenue (INR B) | Net Income (INR B) | Net Margin |
|---|---|---|---|
| 2025 | 2,945.86 | 510.29 | 17.32% |
| 2024 | 1,427.90 | 442.56 | 30.99% |
| 2023 | 1,847.33 | 340.37 | 18.42% |
| 2022 | 1,575.31 | 251.10 | 15.94% |
(Source: Monexa AI
Balance‑sheet and cash‑flow dynamics#
Total assets expanded to INR 26,422.41B in FY2025 from INR 23,640.63B in FY2024 — an increase of approximately +11.77% (Source: Monexa AI. That asset growth outpaced operating cash generation and coincided with a meaningful net‑debt swing: Monexa reports net debt of INR 986.43B in FY2025 versus INR 108.69B in FY2024 (Source: Monexa AI. The net‑debt move is a clear financing signal.
On the liability side, long‑term debt rose to INR 2,188.83B from INR 1,837.03B (+19.15%), and financing cash inflows of INR 2,036.47B covered investing and cash increases (Source: Monexa AI. The combination — asset growth plus sizeable financing — explains how the bank converted accrual profits into balance‑sheet build rather than free cash.
Dividend and capital returns show mixed signals: Monexa’s summary reports dividend per share of 11 (payout ratio 13.31%, dividend yield 0.77%) while the ADR‑level history lists an adj dividend of 0.21861 for August 12, 2025 — a unit mismatch investors should reconcile with the company’s distribution notes (Source: Monexa AI.
| Balance‑Sheet / Cash Flow | FY2025 | FY2024 |
|---|---|---|
| Cash & Short‑term Investments (INR B) | 2,140.23 | 1,901.30 |
| Net Debt (INR B) | 986.43 | 108.69 |
| Net Cash from Operations (INR B) | -752.52 | 858.21 |
| Free Cash Flow (INR B) | -800.22 | 1,536.06 |
(Source: Monexa AI
Analyst estimates, valuation and market signals#
Monexa’s consensus estimates show a multi‑year growth trajectory: estimated revenue rises from INR 1,087.5B (FY2025) to INR 1,789.1B (FY2029) while estimated EPS moves from 131.20 to 210.23 in the same window (Source: Monexa AI. These forward numbers sit alongside a reported P/E around 19.16–19.39x (TTM / quote), and an enterprise‑value/EBITDA TTM of 10.19x (Source: Monexa AI.
| Estimate Year | Est. Revenue (INR B) | Est. EPS (INR) |
|---|---|---|
| 2025 | 1,087.5 | 131.20 |
| 2026 | 1,203.52 | 141.03 |
| 2027 | 1,375.00 | 161.18 |
| 2028 | 1,576.89 | 184.47 |
| 2029 | 1,789.10 | 210.23 |
(Source: Monexa AI
Note the forward multiples shown in Monexa’s model (forward EV/EBITDA falling toward the low single digits) reflect analysts’ profit and cash‑flow normalization assumptions; validate those builds against FY2025 cash‑conversion notes in ICICI’s filings.
What this means for investors#
Management delivered stronger accrual profits but FY2025 cash metrics shifted the capital‑allocation picture: financing — not operational cash — funded asset growth. That dynamic changes the signal for distributions, balance‑sheet flexibility and the pace at which buybacks or special dividends are feasible (no buy/sell recommendation implied).
Key near‑term considerations for investors:
- Reconcile per‑share bases: confirm ADR vs domestic share denominators before comparing EPS or dividend per‑share figures (Source: Monexa AI.
- Monitor cash conversion: operating cash flow turned -147.49% of net income in FY2025 — a leading indicator for distribution sustainability (Source: Monexa AI.
- Watch leverage: net debt surged to INR 986.43B and financing inflows funded the balance‑sheet build; track leverage metrics in the next filing (Source: Monexa AI.
Key takeaways and strategic implications#
ICICI Bank’s FY2025 results show strong accrual earnings alongside a large cash‑flow mismatch. The data indicate management funded growth through market financing rather than operating cash, producing an above‑average asset expansion and a material net‑debt swing (Source: Monexa AI.
Investors and analysts should prioritize reconciling per‑share units in Monexa’s quotes versus the domestic filings, review the FY2025 notes on working‑capital and investment flows, and track subsequent quarters for cash‑conversion recovery or continued reliance on financing. The earnings trajectory remains positive, but the funding mix is the immediate strategic signal for capital allocation and risk monitoring.
(Source data and tables compiled from: Monexa AI