CRISIL Q1 FY27 Results (NSE: CRISIL)
Signal: Earnings grew
The read
Crisil delivered a strong Q1 with 27.5% revenue growth and 26% PAT growth, aided by robust performance from both segments and employee cost leverage. Operating margin expanded 100bps YoY, the sixth consecutive quarter of expansion. However, receivables days increased sharply to 85, a working capital concern. The interim dividend of ₹10/share signals confidence. Consolidated performance far outperforms standalone, underscoring subsidiary strength.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,075.39 Cr | 27.6% | 1.7% |
| EBIT | ₹307.11 Cr | 27.9% | |
| Net profit | ₹216.46 Cr | 26.1% | |
| EPS | ₹29.6 | 26.2% | |
| EBIT margin | 28.6% |
P&L walk
Revenue grew 27.5% YoY led by both segments; operating margin expanded 100bps YoY on employee cost efficiency, though declined sequentially on higher other expenses and professional fees.
Segments
Both segments delivered strong double-digit growth; Research segment (72% of revenue) grew 30.1% YoY and profit 32.8%, driving consolidated performance. The standalone parent saw PAT decline 14.4% YoY, confirming that group earnings are concentrated in subsidiaries (especially Crisil Ratings and overseas entities).
Key positives
- Revenue growth 27.5% YoY, driven by 30% growth in Research segment and 21% in Ratings.
- Operating margin expanded 100bps YoY to 28.6% (OPM 29% per prior series), reflecting employee cost efficiency.
- PAT grew 26.1% YoY to ₹216.46 Cr; EPS ₹29.60, up 26.2%.
- Both segments reported profit growth >30% YoY.
- Board declared second interim dividend of ₹10/share.
Key concerns
- Sequential revenue growth of only 1.7% QoQ, a deceleration from Q4FY26's 30% YoY.
- Operating margin contracted 300bps QoQ from 31.6% in Q4FY26, likely due to higher professional fees and other expenses.
- Trade receivables days increased to 85 from 69 at Dec'25, indicating slower collections.
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