CreditAccess Grameen Q2 FY27 Results Overview

CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770) reported unaudited, limited‑reviewed results for the second quarter of FY 2026‑27, delivering its highest quarterly profit after tax (PAT) of INR 502 crore, a 298.7 % increase year‑on‑year and roughly five‑fold growth over the past five years.

Financial Performance

The company’s total income rose 26.2 % YoY to INR 1,904.8 crore. Pre‑provision operating profit (PPOP) climbed 39.6 % YoY to INR 970.2 crore. Credit cost fell 43.2 % YoY to INR 299 crore. Profit before tax (PBT) surged 296.6 % YoY from INR 169.2 crore to INR 670.9 crore, while PAT increased from INR 125.8 crore to INR 501.6 crore (rounded to INR 502 crore). The first half of FY27 recorded PAT of INR 995 crore, up from INR 778 crore in FY26, with ROA of 5.9 % and ROE of 23.8 %.

Asset Quality, Liquidity and Capital

Gross NPA (GNPA) for assets 60 + days past due stood at 1.79 % and Net NPA (NNPA) at 0.59 %; PAR 90+ was 1.11 % and overall PAR 0+ 2.1 % in Q2. The X‑Bucket collection efficiency reached 99.71 % in September 2026. Liquidity comprised INR 3,501.9 crore of cash, cash equivalents and investments, representing 10.2 % of total assets. The capital adequacy ratio (CRAR) was 26.9 %. The company retained its AA‑/Stable credit rating from CRISIL, ICRA and India Ratings.

Operational Highlights

Assets under management (AUM) expanded 19.5 % YoY to INR 30,946 crore, up from INR 25,903 crore. Disbursements grew 19.4 % YoY to INR 6,355 crore, up from INR 5,322 crore. The retail‑finance portfolio share rose to 23.3 % of AUM in September 2026, compared with 20.6 % in June 2026. New borrower additions in Q2 amounted to 2.3 lakh, of which 35 % were new‑to‑credit, bringing the H1 total to 4.9 lakh borrowers. The branch network increased 5.3 % YoY to 2,326 branches, and the employee base grew 4.5 % YoY to 22,677 staff.

Guidance and Outlook

The board revised FY27 profitability guidance upward: ROA is now expected between 5.2 % and 5.8 % (previously 4.0‑4.8 %) and ROE between 21 % and 24 % (previously 16‑20 %). The AUM growth target of 20‑25 % and credit‑cost target of 3‑4 % remain unchanged. Loan pricing was reduced by 50 basis points effective from October. Management indicated a focus on responsible growth in H2, with heightened vigilance in drought‑prone districts, continued credit‑need fulfilment for existing customers, and accelerated new‑customer acquisition.

Management Commentary

Ganesh Narayanan, Managing Director and Chief Executive Officer, highlighted the five‑fold PAT increase, the record‑high profitability, and the diversification of the loan book, noting that retail finance now accounts for roughly 23 % of AUM and that the company is positioned to serve the full spectrum of household financial needs, including business loans, affordable‑housing loans and two‑wheeler financing.

Business Footprint

CreditAccess Grameen operates across 460 districts in 16 Indian states—Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, West Bengal—and the union territory of Puducherry, through its 2,326 branches. The promoter is CreditAccess India B.V., a multinational inclusive‑financing entity backed by global institutional investors.