CreditAccess Grameen (CREDITACC) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw improving business momentum, with Gross Loan Portfolio (GLP) at ₹25,904 crore, up 3.1% YoY, and disbursements of ₹5,332 crore, a 32.9% increase YoY, adding 220,000 new borrowers, 39% new-to-credit.

• Retail finance share increased to 11.1% of AUM, driven by individual business loans and higher regulatory limits, while group loan book declined due to accelerated write-offs.

• Asset quality stabilized with GNPA at 3.65%, PAR 90+ at 2.5%, and collection efficiency at 94.5% (excluding arrears), supported by conservative provisioning and write-offs.

• Branch network expanded by 150 in H1, reaching 2,209 branches, and workforce grew to 21,701 employees.

• Board approved unaudited results for Q2 and H1 FY26; Manoj Kumar appointed Chairman, and new statutory auditors named.

Financial highlights

• Net interest income for Q2 FY26 was ₹976 crore, up 4.7% YoY; NIM at 13.3%, cost-to-income ratio at 32.5%, and PPOP at ₹695 crore.

• PAT for Q2 FY26 was ₹126 crore, down 32.4% YoY due to higher credit costs and write-offs; H1 FY26 PAT was ₹186 crore.

• Total assets as of September 30, 2025, were ₹27,679 crore; total equity at ₹7,164 crore; debt/equity ratio at 2.8.

• Liquidity (cash and equivalents) at ₹2,176 crore, 7.9% of total assets; liquidity coverage ratio at 160.64%.

• Earnings per share (EPS) for H1 FY26 was ₹11.64 (basic), up from ₹7.87 YoY.

Outlook and guidance

• Management reaffirmed FY26 growth guidance, expecting robust H2 AUM growth and targeting 20%+ for FY27, combining retail finance and microfinance.

• Credit cost for FY26 expected to be 70-100 bps higher than initial guidance, with FY27 credit cost projected at 4%-4.5% due to ECL model updates.

• ROA is expected to recover to 4-4.5% in FY27 as operating profit improves and credit costs normalize.

• Healthy monsoons and strong rural demand anticipated to support loan growth and asset quality improvement.

• The company continues as a non-deposit taking NBFC, classified as NBFC-ML by RBI.