CRISIL's profit rises 45.93% YoY, but margin slips sequentially
Revenue grew faster than expenses over last year, while a lower tax rate helped net profit; the stock's initial gain was smaller than its usual post-result move.
Filed 17 Apr 2026, 19:03 IST · after market close · CRISIL Ltd (CRISIL)
Key takeaways
- Consolidated net profit rose 45.93% YoY to Rs 233.26 cr as revenue growth outpaced expense growth.
- Operating margin improved 1.59 percentage points YoY but fell 1.28 percentage points QoQ to 30.12%.
- The stock was up 0.66% one session after the results, versus a 4.21% median absolute move after its past four results.
Price around the results
Revenue growth lifted the consolidated profit base
Consolidated revenue increased 30.06% YoY to Rs 1,057.66 cr, with expenses growing 27.17%, which lifted operating profit 37.31% to Rs 318.57 cr. The sequential picture was softer: revenue fell 2.21% while expenses declined only 0.39%, pulling operating profit down 6.18%. Management said accelerated renewals had supported revenue and that this benefit is expected to normalise over the year.
Lower tax rate amplified the YoY profit increase
The tax rate fell 5.31 percentage points YoY to 24.36%, helping net profit grow 45.93%, faster than the 35.69% rise in pre-tax profit. Other income contributed 11.68% of pre-tax profit, so reported earnings were not driven by operating income alone. QoQ, interest expense rose 34.26% and the tax-rate decline of 1.68 percentage points only partly offset the operating slowdown.
Margin remains below the Financial Services peer median
Operating margin rose from 28.53% in Q4FY25 to 30.12% in Q4FY26 because revenue grew faster than expenses, but it declined from 31.40% in Q3FY26. The margin had risen through Q1FY26, Q2FY26 and Q3FY26 before this latest pullback, rather than extending that sequence for a fourth quarter. Among 52 Financial Services peers that had reported, CRISIL's 30.12% margin was 29.29 percentage points below the 59.41% median and ranked 10th from the bottom.
Management points to broader analytics and AI work
Management said CRISIL Global Analytics Center expanded analytical and operational support for S&P Global Ratings into areas beyond ratings. The company also said it is focusing on domain-led AI solutions, including GenEye for automated credit reports and DeepMine for data extraction. Management said profitability-focused global banks were taking a measured approach to discretionary spending.
Initial market response was mild before a later decline
The results were filed after market close, and the stock opened 0.57% higher and was up 0.66% one session later. It was down 1.01% after five sessions, 7.02% after 15 sessions and 10.31% after 30 sessions. That initial move was smaller than the stock's typical post-result reaction: it rose after three of its past four results, with a median absolute move of 4.21%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,058 cr | ₹1,082 cr | -2.21% | +30.06% |
| Other income | ₹36 cr | ₹27 cr | +32.88% | +17.72% |
| Expenses | ₹739 cr | ₹742 cr | -0.39% | +27.17% |
| Operating profit | ₹319 cr | ₹340 cr | -6.18% | +37.31% |
| Operating margin (%) | 30.12% | 31.40% | — | — |
| Interest | ₹7 cr | ₹5 cr | +34.26% | +22.16% |
| Depreciation | ₹39 cr | ₹35 cr | +12.31% | +32.42% |
| Profit before tax | ₹308 cr | ₹327 cr | -5.56% | +35.69% |
| Tax | ₹75 cr | ₹85 cr | -11.64% | +11.40% |
| Net profit | ₹233 cr | ₹242 cr | -3.41% | +45.93% |
| EPS (₹) | ₹31.90 | ₹33.02 | -3.39% | +45.93% |
Operating margin of 30.12% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.00% | -0.05% |
| Next session | +0.66% | — |
| 5 sessions | -1.01% | +0.06% |
| 15 sessions | -7.02% | — |
| 30 sessions | -10.31% | — |
Volume on the results session was 1.62× 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 Global Analytics Center saw increased delegation of surveillance support to S&P Global Ratings during Q1 FY26.
Guidance & outlook
- The company expects the revenue benefit from accelerated renewals to normalize over the year.
Expansion
- Crisil Global Analytics Center expanded analytical and operational support to S&P Global Ratings in new areas beyond ratings.
New products
- GenEye is a generative-AI-based platform for automated credit report generation.
- DeepMine is a generative-AI-based data extraction platform.
New initiatives
- Crisil is focusing on domain-led AI solutions to enhance client value and operational efficiency.
- The company’s AI programme includes layered training across foundational, role-based and expert pathways.
Competition
- Crisil Ratings maintained its leadership position, supported by investor preference for best-in-class ratings.
Problems & risks
- Profitability-focused global banks are taking a measured stance on discretionary spending.
What to watch
- Whether consolidated revenue rebounds from Rs 1,057.66 cr after the 2.21% QoQ decline.
- Whether operating margin holds above 30.12% after the 1.28 percentage-point sequential fall.
- Whether the 11.68% share of pre-tax profit from other income changes materially.