CreditAccess Grameen (CREDITACC) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 performance showed strong normalization in asset quality, with collection efficiency at 99.71% in December 2025 and a sharp decline in monthly PAR 15 accretion to 18 bps from 47 bps in September 2025.

• Gross Loan Portfolio (GLP) reached ₹26,566 Cr, up 7.1% YoY, with disbursements of ₹5,767 Cr, up 13.4% YoY, and 2.1 lakh new borrowers added in Q3.

• PAT for Q3 FY26 was ₹252 Cr, a 153.3% YoY increase, with asset quality normalizing (GNPA 4.04%, NNPA 1.36%, PAR 90+ 2.94%).

• Retail finance portfolio increased to 14.1% of AUM, up from 11.1% in Q2, reflecting a shift of quality JLG customers to individual business loans.

• Branch network expanded by 15 to 2,222 branches; employee base stable at 21,701.

Financial highlights

• Net interest income rose 13.4% YoY to ₹977 Cr; portfolio yield improved to 21%.

• Average cost of borrowing declined 26 bps QoQ to 9.4%; marginal cost of new borrowing at 8.9%.

• PPOP at ₹680 Cr (adjusted ₹699 Cr); PAT doubled QoQ to ₹252 Cr (adjusted ₹266 Cr).

• ROA and ROE at 3.5% and 13.8% respectively; adjusted for labor code impact, ROA at 3.7% and ROE at 14.6%.

• Cost-to-income ratio at 34.1% (adjusted 32.3%); opex/GLP ratio at 5.4% (5.1% adjusted).

Outlook and guidance

• FY27 credit cost guidance at 4-4.5%, based on monthly PAR 15 accretion of 30-35 bps; potential for lower credit cost if PAR accretion remains at 20-25 bps.

• AUM growth target of 20%+ for FY27, with retail finance expected to contribute a larger share.

• NIM expected to remain around 14-14.5% in the near term, with ROA guidance of 4-4.5%.

• Business momentum is expected to remain strong, underpinned by normalized asset quality, improved operating profits, and a robust balance sheet.

• Focus remains on rural expansion, high borrower retention, and further deleveraging.