Quarterly Financial Results
CreditAccess Grameen Q1 FY27 Results: PAT Surges 720% as Asset Quality Normalises and AUM Crosses ₹30,000 Crore
NSE
CREDITACC
BSE
541770
- CreditAccess Grameen Limited reported a strong recovery in Q1 FY27, with Profit After Tax (PAT) surging 719.7% YoY to ₹493 crore, supported by robust business momentum, improving asset quality and higher net interest margins.
- Assets Under Management (AUM) grew 16.4% YoY to ₹30,319 crore, while Gross NPA declined to 2.18% and Net NPA improved to 0.76%, reflecting normalization across the portfolio.
- The company also maintained a strong capital position with a CRAR of 24.9%, providing ample room for future growth.
PRICE-SENSITIVE TRIGGER
Event: CreditAccess Grameen announced its Investor Presentation and Financial Performance for the quarter ended 30 June 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company delivered strong earnings growth driven by higher AUM, improving collections, lower credit costs and continued normalization in asset quality, reinforcing confidence in its recovery trajectory.
Metrics:
Key Financial Metrics:
- Assets Under Management (AUM): ₹30,319 crore (▲16.4% YoY | ▲2.5% QoQ)
- Disbursements: ₹6,107 crore (▲11.9% YoY)
- Net Interest Income (NII): ₹1,164 crore
- Pre-Provision Operating Profit (PPOP): ₹873 crore (▲33.6% YoY)
- Profit After Tax (PAT): ₹493 crore (▲719.7% YoY)
- Net Interest Margin (NIM): 14.4%
- Interest Spread: 12.6%
- Cost-to-Income Ratio: 29.3%
- Operating Expense to AUM Ratio: 4.8%
- Gross NPA: 2.18%
- Net NPA: 0.76%
- PAR 90+: 1.46%
- Collection Efficiency (Excluding Arrears): 97.4%
- Expected Credit Loss (ECL) Provisioning: 3.20%
- Capital Adequacy Ratio (CRAR): 24.9% (Tier I: 24.2%)
- Return on Assets (ROA): 5.9%
- Return on Equity (ROE): 24.4%
Highlight:
- CreditAccess Grameen reported a seven-fold increase in quarterly profit while maintaining industry-leading profitability, stronger asset quality and a robust capital position despite continued portfolio write-offs.
What Happened ?
CreditAccess Grameen delivered a strong operational and financial performance during Q1 FY27 as improving collections, disciplined underwriting and lower credit costs supported a sharp recovery in profitability.
The company continued to strengthen its rural lending franchise with healthy AUM growth, higher retail finance contribution and improved borrower engagement through digital platforms. Asset quality also normalized further, with lower portfolio-at-risk (PAR) accretion and declining delinquency levels across geographies, helping reduce credit costs during the quarter.
key details
Business Performance & Operational Highlights:
- Assets Under Management increased 16.4% YoY to ₹30,319 crore.
- Retail Finance contribution increased to 20.6% of total AUM from 18.1% in the previous quarter.
- Disbursements grew 11.9% YoY to ₹6,107 crore.
- The company added 2.5 lakh new borrowers during the quarter.
- Grameen Mahi customer app onboarded 4 lakh customers, taking the total digital user base to 15.3 lakh.
- Collection Efficiency remained strong at 97.4% (excluding arrears).
- PAR accretion returned to pre-crisis levels, supporting normalization in asset quality.
- Credit Cost reduced to 0.72% (non-annualized) during Q1 FY27.
- Digital collections increased to 24.2%, compared with 16.3% a year earlier.
- The company issued ₹425 crore of privately placed Non-Convertible Debentures (NCDs) to diversify its funding base.
- Branch network expanded to 2,276 branches across 16 states and one Union Territory, with 42 new branchesadded during the year.
- Liquidity remained comfortable with ₹3,536 crore of cash and cash equivalents, while funding sanctions stood at ₹2,993 crore with an additional ₹9,440 crore in the pipeline.
Note:
- The company’s performance reflects a combination of healthy business growth, disciplined risk management and improving customer behavior.
- Increased retail finance penetration, better collections, lower credit costs and digital adoption continue to strengthen CreditAccess Grameen’s long-term operating model while maintaining adequate capital for future expansion.
Risk Analysis
Summary:
- While CreditAccess Grameen has significantly improved profitability and asset quality, future performance will depend on maintaining collection efficiency, credit discipline and borrower repayment behavior amid evolving macroeconomic conditions.
Key Risks:
- Asset quality normalization must remain sustainable as loan growth accelerates.
- Rural economic conditions and borrower cash flows remain key monitorable factors.
- Credit costs could rise if delinquency trends reverse.
- Changes in interest rates may influence borrowing costs and net interest margins.
- The company has incorporated additional ₹41 crore of provisions under its revised Expected Credit Loss (ECL) model considering ongoing geopolitical uncertainties in West Asia.
- Continued execution of disciplined underwriting and portfolio monitoring will remain critical.
Worst Case:
- If macroeconomic conditions weaken or borrower repayment behavior deteriorates, higher delinquencies and provisioning requirements could moderate profitability despite the company’s strong capital base and liquidity position.
Risk Level: Medium
Company Commentary
- Management stated that CreditAccess Grameen continues to outperform the industry through strong business momentum, normalized asset quality and a resilient balance sheet.
- The company highlighted continued improvement in collection efficiency, lower credit costs and sustained borrower additions.
- Management emphasized higher retail finance penetration, digital customer engagement and disciplined operating cost management as key growth drivers.
- The company reaffirmed its FY27 guidance, targeting:
- AUM Growth: 20–25%
- NIM: 12.8–13.2%
- Cost-to-Income Ratio: 33–35%
- Credit Cost: 3–4%
- ROA: 4–4.8%
- ROE: 16–20%
Official Exchange Filing: CreditAccess Grameen Limited
