CRISIL Ltd Q3 FY26 – The ₹911 Crore Quarter Where India’s Nerd-in-Chief Still Charges 46x Earnings To Tell Others What Their Credit Score Is!
1. At a Glance
Welcome to CRISIL Ltd – India’s most gloriously overqualified tattletale. This is the company that literally gets paid to tell other companies whether they can pay their bills. Market Cap? ₹34,476 crore. Quarterly revenue? ₹911 crore. PAT? ₹193 crore. And yes, this overachiever managed to grow both by ~12% YoY — because apparently even the economy listens when CRISIL says “Hmm, looks risky.”
The current price is ₹4,714, which is basically a masterclass in valuation arrogance — trading at a P/E of 46x while the entire financial services sector begs for mercy at an industry average of 33.8x. ROE? 27.8%. ROCE? 35.6%. Dividend yield? A cute 0.53% — because like your class topper, CRISIL hoards its notes and gives pocket money only when it’s bored.
In short — a ₹34k crore empire that audits the nation, mentors the bankers, and still finds time to host infrastructure summits titled “Revving Roads and Renewables”. Because of course they do.
2. Introduction
If India’s financial sector had a surveillance camera, it would have the CRISIL logo on it. Born in the late 80s, adopted by global ratings dad S&P Global, and raised in the furnace of regulation, CRISIL today is less a company and more a lifestyle choice for bankers.
The company exists at the intersection of nerdiness and power. When CRISIL sneezes, PSU treasurers reach for tissues. When CRISIL frowns, NBFCs suddenly remember their covenants. It rates 35,000+ entities, does research across 77 sectors, and then advises half of them on how to fix the problems it just rated them for.
Over the last five years, sales grew at 13.5% CAGR while profit grew at 14.4%. Those are IIT-level grades for a company that basically sells judgment. But here’s the kicker — despite being the most ethical, rule-following, spreadsheet-loving creature on Dalal Street, its stock has barely moved in a year (0.26%). Because the market, like a jealous sibling, loves to ignore overachievers.
Still, don’t mistake boredom for weakness. CRISIL’s balance sheet is clean, debt negligible (0.11x D/E), and it’s sitting on cash flows that could make many fintechs cry.
So, what’s going on behind that calm, bespectacled face?
3. Business Model – WTF Do They Even Do?
CRISIL has three big brains under one head:
a) Ratings (28% of revenue)
The OG business. India’s rating agency that evaluates your creditworthiness before the banks do. It contributes only 28% of revenue but delivers over 50% of profits — talk about being the family member who does half the chores and takes all the credit.
CRISIL Ratings Ltd is now a wholly owned subsidiary thanks to SEBI’s structural OCD, and it’s the most profitable bit of the empire.
b) Research (65% of revenue)
The “Consulting MBA” of the group. CRISIL provides deep research to banks, mutual funds, insurers, and governments. Think of it as the Google of finance — covering 77 industries and 1,200 clients including 90% of India’s banking system.
It’s further split into:
India Research – The team that knows your GDP before the RBI does.
Global Research & Analytics – Fancy offices across New York, London, Poland, and Argentina serving global banks.
CRISIL Coalition – The analytics arm that tells global investment banks how they’re performing versus peers.
Greenwich Associates – The 2020 acquisition that whispers secrets from the world’s largest asset managers.
c) Advisory (7% of revenue)
This is the “social worker” wing — giving policy and infrastructure advice to governments and multilateral agencies across Asia and Africa. It also builds business analytics software for banks. Basically, CRISIL lectures the world and gets paid for it.
So in short — 28% Ratings, 65% Research, 7% Advisory — all of them print money.
4. Financials Overview
Source table
Metric
Latest Qtr (Q3 FY26)
YoY Qtr (Q3 FY25)
Prev Qtr (Q2 FY26)
YoY %
QoQ %
Revenue
₹911 Cr
₹811 Cr
₹843 Cr
12.3%
8.1%
EBITDA
₹263 Cr
₹224 Cr
₹239 Cr
17.4%
10.0%
PAT
₹193 Cr
₹172 Cr
₹172 Cr
12.6%
12.1%
EPS (₹)
26.4
23.5
23.4
12.3%
12.8%
At ₹4,714 per share and annualised EPS of ₹106, you get a P/E of ~44x — that’s what the market pays to hear CRISIL say “moderate risk”. EBITDA margins at 29% are rock-solid.
Like a CAs’ favourite client — punctual, predictable, and premium.
5. Valuation Discussion – Fair Value Range
Let’s crunch it academically (without telling anyone to buy/sell).
Method 1: P/E Approach
3-year average EPS = ₹93
Expected FY26 EPS = ₹106
Fair P/E range = 35x (sector premium) to 45x (S&P halo) → Fair Value Range = ₹3,700 – ₹4,800
