CRISIL margin slips for a second quarter despite 27.56% YoY growth
Sequential profit fell 7.20% as expenses grew faster than revenue; the company said the PriceMetrix acquisition will reflect in Q2 2026 and H1 2026.
Filed 21 Jul 2026, 22:12 IST · after market close · CRISIL Ltd (CRISIL)
Key takeaways
- Consolidated revenue rose +27.56% YoY while operating margin improved only 0.12 percentage points, as expense growth broadly matched revenue growth.
- Operating margin narrowed 1.71 percentage points QoQ as expenses grew +4.04% against revenue growth of +1.68%, extending the decline from 28.15% in Q3FY26 to 24.68%.
- The reported stock reaction was +4.48%, above the 3.26% median absolute move after the last five results, though it coincided with a corporate action.
Price around the results
Revenue growth held, but sequential momentum softened
CRISIL reported consolidated revenue growth of +27.56% YoY, with operating profit rising +28.16% as expenses grew slightly slower at +27.37%. Net profit increased +26.16% YoY, helped by a 1.09 percentage-point reduction in the tax rate, despite other income declining -10.16%. Sequentially, revenue rose only +1.68%, while operating profit fell -4.93% and net profit fell -7.20%.
Margin gives back gains from Q3FY26
The 1.71 percentage-point QoQ margin contraction reflects expenses growing +4.04% against revenue growth of +1.68%. Depreciation also rose +7.74%, while other income fell -41.29%, adding to the sequential decline in profit before tax. Operating margin has now fallen for a second straight quarter from 28.15% in Q3FY26 to 26.39% in Q4FY26 and 24.68% in Q1FY27.
Margin remains below the reported peer median
CRISIL's 24.68% operating margin was 47.54 percentage points below the 72.22% median for the 22 Financial Services peers that had reported the same quarter, placing it fourth from the bottom. The stock rose +4.48% on the reported reaction day, above its 3.26% median absolute move across the last five results; its history includes three rises and two falls. That reaction overlapped with a corporate action, so the results alone may not explain the full move.
Management points to products, analytics and expansion
Management said Crisिल Ratings grew revenue and retained its leadership despite a steep decline in bond issuances, while Crisil Integral IQ saw demand for Credit Lending Solutions and Fundamental Research. The company said its PriceMetrix acquisition and accelerated pipeline conversion would be reflected in Q2 2026 and H1 2026 results. Management also said it is building domain-led products and upgrading AI to improve client experience, insights and efficiency, while the Global Analytics Center has expanded support for S&P Global Ratings into new areas. The presentation said the U.S. economy is expected to grow 2.1% in 2026.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,075 cr | ₹1,058 cr | +1.68% | +27.56% |
| Other income | ₹21 cr | ₹36 cr | -41.29% | -10.16% |
| Expenses | ₹810 cr | ₹779 cr | +4.04% | +27.37% |
| Operating profit | ₹265 cr | ₹279 cr | -4.93% | +28.16% |
| Operating margin (%) | 24.68% | 26.39% | — | — |
| Interest | ₹7 cr | ₹7 cr | -1.18% | +18.79% |
| Depreciation | ₹42 cr | ₹39 cr | +7.74% | +34.02% |
| Profit before tax | ₹280 cr | ₹308 cr | -9.25% | +24.39% |
| Tax | ₹63 cr | ₹75 cr | -15.63% | +18.69% |
| Net profit | ₹216 cr | ₹233 cr | -7.20% | +26.16% |
| EPS (₹) | ₹29.60 | ₹31.90 | -7.21% | +26.17% |
Operating margin of 24.68% compares with a Financial Services sector median of 72.22% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.48% | +5.27% |
| Next session | +2.26% | — |
Volume on the results session was 7.10× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Crisil Ratings grew revenues and maintained its leadership position in the quarter despite lower bond issuances.
- Crisil Integral IQ saw demand for Credit Lending Solutions and Fundamental Research.
Guidance & outlook
- The U.S. economy is expected to grow 2.1% in 2026.
Expansion
- Crisil Coalition Greenwich’s PriceMetrix acquisition is reflected in Q2 2026 and H1 2026 results.
New initiatives
- Crisil is building domain-led products and implementing AI upgrades to improve client experience, insights and efficiency.
- Crisil Global Analytics Center expanded analytical and operational support to S&P Global Ratings in new areas.
Competition
- Crisil Ratings maintained its leadership position, supported by investor preference for best-in-class assessments.
Problems & risks
- Crisil Ratings maintained its leadership position despite a steep decline in bond issuances.
What to watch
- Whether operating margin recovers from 24.68% after two consecutive quarterly declines.
- Whether expenses grow slower than revenue after rising +4.04% QoQ against revenue growth of +1.68%.
- How the PriceMetrix acquisition is reflected in the Q2 2026 and H1 2026 results, as stated by management.