CA Intermediate · January 2026 · Paper 6
CA Intermediate Financial Management and Strategic Management January 2026: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICAI; read them on ICAI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a) | 5 | Deriving inventory, working capital and basic defence interval from ratios | Financial Analysis and Planning - Ratio Analysis |
| 1(b) | 5 | Effective cost of factoring versus in-house credit management | Management of Receivables |
| 1(c) | 5 | Share value under Gordon's model and the Modigliani-Miller dividend irrelevance check | Dividend Decision |
| 2(a) | 5 | EBIT, combined leverage and sales level where EBT becomes zero | Financing Decisions - Leverages |
| 2(b) | 5 | Accounting rate of return and NPV using WACC for a project with tax shield on depreciation | Investment Decisions |
| 3(a) | 8 | External funds requirement from sales growth and allocation across short-term debt, long-term debt and equity | Financial Analysis and Planning - Ratio Analysis |
| 3(b) | 2 | Why financial leverage is called a double-edged sword | Financing Decisions - Leverages |
| 4(a) | 4 | Key features of seed capital assistance | Types of Financing |
| 4(b) | 4 | Advantages and popularity of virtual banking | Treasury and Cash Management |
| 4(c) | 2 | Financial distress and consequences of prolonged distress | Financing Decisions - Capital Structure |
| 4(c) OR | 2 | Effect of specific transactions on the current ratio | Financial Analysis and Planning - Ratio Analysis |
| 5(a) | 5 | Choosing and applying a tool to analyse a market dominated by strong rivals | Strategic Analysis: External Environment |
| 5(b) | 5 | Turnaround strategy and steps to implement it for a declining firm | Strategic Choices |
| 5(c) | 5 | Competitor analysis and the steps to conduct it | Strategic Analysis: External Environment |
| 6(a) | 5 | Corporate culture and its sources | Strategy Implementation and Evaluation |
| 6(b) | 5 | Conditions favouring cost leadership and its pitfalls | Strategic Choices |
| 7(a) | 5 | Factors in selecting strategic performance measures | Strategy Implementation and Evaluation |
| 7(b) | 5 | What innovation offers an organisation and the risks involved | Strategic Choices |
| 8(a) | 5 | Sources of competitive pressure under Porter's five forces | Strategic Analysis: External Environment |
| 8(b) | 5 | Characteristics of well-framed strategic objectives | Introduction to Strategic Management |
| 8(b) OR | 5 | Concept of strategy | Introduction to Strategic Management |
What stood out
- The FM MCQs were anchored by a four-question cost of capital case (CAPM, convertible debentures, WACC).
- FM written questions (Q1 to Q4) were mostly numerical; ratio analysis and financial planning carried the most marks.
- SM questions (Q5 to Q8) were all descriptive; Q5 used short business cases while Q6 to Q8 were direct concept questions.
- Strategic choices and external environment analysis were the most tested SM areas.
- Two MCQs (one in each section) were worth 1 mark, so each MCQ section totalled 15 marks.
Practise the chapters that carried the marks
Strategic Choices, Strategic Analysis: External Environment, Financial Analysis and Planning - Ratio Analysis: study guides and practice questions in the CA Intermediate format.