Crisil margin falls for fourth straight quarter as costs outpace revenue
Revenue rose +20.18% YoY, but faster cost growth, a 38.24% rise in depreciation and a 3.25-point tax-rate increase limited profit growth to +5.92%.
Filed 23 Oct 2026, 17:03 IST · after market close · CRISIL Ltd (CRISIL)
Key takeaways
- Consolidated operating margin fell 1.36 percentage points YoY as expenses grew +22.48%, faster than revenue at +20.18%.
- Sequential revenue growth of +1.84% was outpaced by expense growth of +3.41%, driving a 1.10 percentage-point margin decline and a 3.25 percentage-point rise in the tax rate.
- Net profit grew only +5.92% YoY despite revenue growth of +20.18%, while other income contributed 9.33% of profit before tax.
Price around the results
Costs and tax absorbed most of the revenue gain
The YoY margin squeeze came from expenses growing faster than revenue, while depreciation rose +38.24% and interest costs increased +17.39%. Profit before tax grew only +5.25% as other income fell -30.37% YoY. Sequentially, the tax rate rose 3.25 percentage points to further reduce net profit, which declined -5.51% despite revenue growth of +1.84%.
Operating margin is now 36.97 points below the peer median
Operating margin has declined for four straight quarters, from 31.40% in Q3FY26 to 27.53% in Q2FY27. Crisil’s margin was 36.97 percentage points below the 64.5% median for the 25 Financial Services peers that had reported the quarter, placing it fourth from the bottom. The current-quarter decline therefore extends an established direction rather than marking a one-off movement.
Ratings and analytics businesses continued to add activity
Management said Crisil Ratings grew revenue and maintained its leadership position despite an on-year decline in bond issuances. The company said its Global Analytics Center expanded analytical and operational support for S&P Global Ratings, while Crisil Integral IQ recorded wins, added new logos and gained traction in Fundamental Research and Credit Lending Solutions. Management also said Crisil Intelligence continued to gain traction in data analytics, consulting, and credit and risk solutions.
No post-result market move yet
The consolidated results were filed after market close, so there is no post-result stock reaction to assess yet. After the previous six results, the stock rose four times and fell twice, with a median absolute move of 4.21%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,095 cr | ₹1,075 cr | +1.84% | +20.18% |
| Other income | ₹26 cr | ₹21 cr | +21.81% | -30.37% |
| Expenses | ₹794 cr | ₹768 cr | +3.41% | +22.48% |
| Operating profit | ₹302 cr | ₹308 cr | -2.07% | +14.54% |
| Operating margin (%) | 27.53% | 28.63% | — | — |
| Interest | ₹7 cr | ₹7 cr | +4.78% | +17.39% |
| Depreciation | ₹44 cr | ₹42 cr | +4.03% | +38.24% |
| Profit before tax | ₹276 cr | ₹280 cr | -1.35% | +5.25% |
| Tax | ₹72 cr | ₹63 cr | +12.83% | +3.38% |
| Net profit | ₹205 cr | ₹216 cr | -5.51% | +5.92% |
| EPS (₹) | ₹27.97 | ₹29.60 | -5.51% | +5.91% |
Operating margin of 27.53% compares with a Financial Services sector median of 64.50% across 25 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.02% | -0.70% |
Volume on the results session was 5.76× 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 Integral IQ recorded traction and wins in Fundamental Research and Credit Lending Solutions and added new logos during the quarter.
- Crisil Intelligence continued to gain traction in data analytics, consulting, and credit and risk solutions.
Expansion
- Crisil Global Analytics Center expanded its analytical and operational support to S&P Global Ratings in new areas.
New initiatives
- Crisil RE rejuvenated 20 wells in Udaipur to provide year-long water supply.
Competition
- Crisil Ratings maintained its leadership position, supported by investor preference for best-in-class assessments.
Problems & risks
- Crisil Ratings reported growth despite an on-year decline in bond issuances.
- Revenue growth at Crisil Coalition Greenwich moderated in Q3 2026 after accelerated renewal pipeline conversion in H1 2026.
What to watch
- Whether operating margin recovers from 27.53% after four consecutive quarterly declines.
- Whether expenses grow slower than revenue after rising +3.41% QoQ against revenue growth of +1.84%.
- Whether other income remains close to 9.33% of profit before tax.