CRISIL Q2CY26 Results (NSE: CRISIL)
Signal: Earnings grew
The read
CRISIL delivered a strong Q2CY26: revenue +27.6% YoY on broad-based growth, OPM expanding 200bps YoY to 29.8% — 5th consecutive quarter of margin expansion — driven by operating leverage in Research & Analytics segment and cost discipline. Core operating profit growth outpaced revenue. Half-yearly PAT of ₹450 Cr (+35.7% YoY) confirms accelerating earnings trajectory. The standalone entity saw a transitory dip in PAT due to lower subsidiary dividends, not operational weakness. Net cash position remains robust at ~₹890 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,075.39 Cr | 27.6% | 1.7% |
| EBIT | ₹0 Cr | ||
| Net profit | ₹216.46 Cr | 26.2% | |
| EPS | ₹29.6 | 26.2% |
P&L walk
Revenue grew 27.6% YoY driven by Research, Analytics & Solutions (+30.1%) and Ratings (+21.4%). OPM expanded 200bps YoY to 29.8% — 5th straight quarter of expansion — as scale benefits and cost discipline more than offset 90bps increase in employee cost % of revenue. Other expenses declined 170bps as % of revenue. PAT grew in line with operating profit; other income fell 41% but was a small contributor. Half-yearly PAT of ₹450 Cr (+35.7% YoY) confirms strong momentum.
Segments
Research, Analytics & Solutions (RAS) is the primary growth engine — revenue ₹771 Cr, +30.1% YoY, now 72% of total revenue (vs 70% a year ago). RAS segment profit margin expanded 440bps YoY to 20.4%, demonstrating strong operating leverage. Ratings segment revenue grew 21.4% YoY but QoQ declined 5.4%, likely seasonal; its margin compressed 620bps QoQ to 44.3% but expanded 310bps YoY, reflecting healthy underlying profitability. Consolidated growth is driven by RAS; Ratings provides high-margin cash generation.
Key positives
- Revenue ₹1,075 Cr, +27.6% YoY — strongest growth in 8 quarters, driven by Research, Analytics & Solutions (+30.1%)
- OPM expanded 200bps YoY to 29.8% — 5th straight quarter of margin expansion, demonstrating consistent operating leverage
- Ratings segment profit margin improved 310bps YoY to 44.3%, underscoring pricing power and scale
- Half-yearly PAT ₹450 Cr, +35.7% YoY — earnings acceleration vs 3-year CAGR of 21.5%
- Net cash position of ~₹890 Cr provides financial flexibility for investments/accretive M&A
- Trade receivables growth (+44% to ₹992 Cr) partly reflects M&A addition (PriceMetrix) and is partially offset by strong operating cash flow of ₹314 Cr in H1
- Second interim dividend of ₹10/share announced
Key concerns
- Trade receivables jumped 44% from Dec '25 to ₹992 Cr, significantly outpacing revenue growth of ~16% H1-over-H2 — DSO expansion needs monitoring
- Standalone PAT fell 14.4% YoY due to lower dividend income from subsidiaries; while non-operational, it shows dependence on subsidiary payout timing
- Other income declined 41% YoY to ₹21 Cr (consolidated), though impact muted as it's only 2% of total income
- Employee cost as % of revenue rose 90bps YoY to 53.6% — wage inflation remains a watch item, though scale benefits are more than offsetting currently
Research and educational content only. Not investment advice.