CRISIL's Strong Revenue Growth Masks a Profit Squeeze
The analytics firm posted a 27.6% revenue jump year-on-year, but profit fell sequentially and margins tightened.
CRISIL reported robust year-on-year growth for Q1 FY27, with revenue up 27.6%. However, profit declined from the previous quarter, indicating margin pressure.
CRISIL began FY27 with impressive top-line momentum, though profitability showed signs of strain. Revenue for the quarter ended June 2026 surged 27.6% year-on-year to ₹1,075.4 crore, but profit after tax (PAT) of ₹216.5 crore declined 7.2% from the previous quarter, even as it grew 26.2% compared to the same period last year.
The sequential profit dip points to a margin squeeze. The company's net profit margin for Q1 FY27 settled at 20.1%, down from 22.1% in Q4 FY26 and slightly below the 20.4% margin from Q1 FY26. This suggests costs grew faster than revenue in the latest quarter, offsetting some of the strong sales performance.
A look at the last five quarters shows a clear trajectory of revenue growth, but profit has been more volatile.
Revenue (₹ Cr)
Profit (PAT) (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 1,075.4YoY +28% | 1,057.7 | 843.0 |
| Profit (PAT) (₹ Cr) | 216.5YoY +26% | 233.3 | 171.6 |
| Net Profit Margin (%) | 20.1YoY -1.5% | 22.1 | 20.4 |
Over the trailing twelve months (TTM), CRISIL's performance remains solid with a net profit margin of 21.4% on revenue of ₹4,125.9 crore. The company also maintains a pristine balance sheet with zero debt and a high return on equity of 27.5%.
The stock, trading at a P/E of 41.3, commands an 18.7% premium to its industry. This valuation reflects the market's confidence in its analytics-driven business model, despite the recent quarterly profit pressure. The coming quarters will reveal if CRISIL can translate its robust revenue growth back into stronger bottom-line performance.
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· CRISIL
(BSE)
ISIN: INE007A01025
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