1. At a Glance
There are companies that make products. There are companies that make software. Then there is CRISIL — a company whose entire business is basically telling other companies whether they are financially fit, half-dead, or walking around like zombies wearing a tie.
And in Q1 FY26, CRISIL came out looking like the class topper who also somehow found time to captain the cricket team, win the debate competition, and collect a dividend cheque.
Revenue jumped 30.1% year-on-year to ₹1,058 crore, while profit after tax rose 45.9% to ₹233 crore. Operating margins remained at a fat 30%. The Ratings business continued minting money like a private ATM, while the Research and Analytics business got a big boost from overseas demand, AI solutions, and the newly acquired PriceMetrix business.
But of course, because this is India and no company is allowed to enjoy life peacefully, CRISIL also got hit with tax notices.
One reassessment order wants ₹121.2 crore for FY17. Another TDS assessment wants ₹27.24 crore for AY2020-21. There was also a GST penalty order of about ₹40 lakh. CRISIL plans to appeal all of them, but still, it is a reminder that even a company that rates risk cannot escape the tax department’s version of jump scares.
Then there is the valuation problem.
At over ₹4,300 per share and a P/E near 38 times trailing earnings, the market is already treating CRISIL like it is a luxury brand rather than a ratings company. Investors are paying premium pricing because they believe CRISIL has become much more than just a domestic rating agency. It is now a global analytics machine, deeply linked to S&P Global, with exposure to risk solutions, banking analytics, AI products, private markets, and global consulting.
The question is not whether CRISIL is a good business.
That part is obvious.
The real question is whether investors are paying today for profits that may come five years from now.
Because when a company trades at 10.4 times book value, gives less than 1% dividend yield, and still attracts buyers, expectations become dangerous things.
And when expectations become too high, even a good quarter can suddenly start looking “not good enough.”
2. Introduction
CRISIL is one of those rare Indian companies that looks boring on the surface but becomes fascinating once you open the bonnet.
Most people know it as the ratings agency whose logo appears on debt papers, NBFC presentations, and mutual fund brochures. But that is now only part of the story.
Today, CRISIL earns only around 28% of its revenue from ratings. The bigger part comes from research, analytics, consulting, risk solutions, benchmarking, banking intelligence, and global financial data businesses.
In other words, the company has quietly transformed from “that credit rating firm” into a diversified global analytics player.
The company now serves more than 11,400 clients across 40 countries. It works with top Indian banks, NBFCs, mutual funds, global investment banks, asset managers, and consulting firms.
This is not some small Indian back-office outsourcing shop anymore.
CRISIL is present in India, the US, Europe, Australia, China, UAE and several other markets. Around 41% of revenue comes from North America, 28% from India, 23% from Europe and the remaining from other geographies.
That global diversification is important.
Because when India slows, global analytics can help. When the US banking sector slows, India’s domestic ratings business can help. And when both are slow, management simply launches another AI product and puts “GenAI” in the presentation deck.
To be fair, unlike many companies that sprinkle AI buzzwords like coriander on roadside noodles, CRISIL seems to be genuinely building products.
The company spoke about products like GenEye Credit, DeepMine, CRISIL I360, Credit+ and ICON. These are AI-led risk and decisioning tools for financial institutions.
Management also claimed that a majority of the workforce is already using AI-enabled workflows.
That sounds impressive.
It also sounds like CRISIL employees may soon spend more time reviewing AI outputs than making PowerPoints.
Still, the strategic logic is clear.
Banks, NBFCs, insurers and investment firms are drowning in data. CRISIL wants to be the company that organises that data, rates it, analyses it, sells it, and then charges a subscription fee every year.
Frankly, that is a very nice business model.
3. Business Model – WTF Do They Even Do?
CRISIL has three main engines.
The first is Ratings.
This is the old-school business. Companies, banks and NBFCs come to CRISIL when they want their bonds, loans, debt papers or financial strength rated.
This business contributes only around 28% of revenue, but contributes over half the profit.
That is because ratings is a beautiful business.
You write reports, put some letters like AAA or BBB on top, hold meetings, make financial models, and get paid handsomely.
The second engine is Research, Analytics and Solutions.
This is where most of the revenue comes from.
CRISIL works with global banks, private
