CreditAccess Grameen (CREDITACC) Q4 24/25 earnings summary

Executive summary

• FY 2025 was marked by significant challenges for the microfinance sector, including regulatory changes, customer over-leveraging, and regional disruptions, especially in Karnataka.

• Gross Loan Portfolio (GLP) stood at ₹25,948 crore, down 2.9% YoY, with disbursements at ₹20,037 crore, down 13.4% YoY.

• Consolidated revenue from operations for FY25 was ₹5,752.33 crore, up from ₹5,166.67 crore year-over-year.

• Net profit after tax for FY25 stood at ₹531.40 crore, compared to ₹1,445.93 crore in FY24, impacted by elevated credit costs and write-offs.

• Management transition announced: current MD to retire in June 2025, with the CEO stepping up as MD & CEO.

Financial highlights

• Net interest income for FY25 was ₹3,623 crore, up 11.1% YoY; NIM at 12.9% for FY25.

• Q4 FY25 profit at ₹47 crore, with FY25 PAT at ₹531 crore, impacted by accelerated write-offs.

• Credit cost for FY25 at ₹1,929 crore (7.7%), with Q4 at ₹583 crore, mainly due to Karnataka stress.

• Collection efficiency (ex-Karnataka) at 91.9% for Q4 FY25; PAR 90+ at 3.28%, NNPA at 1.73%.

• Liquidity at ₹2,336 crore (8.4% of assets); capital adequacy at 25.5%.

Outlook and guidance

• FY26 AUM/GLP growth targeted at 14–18%, with MFI growth at 8–12% and the rest from retail finance.

• NIM expected at 12.6–12.8%, credit cost at 5.5–6%, ROA at 2.9–3.4%, ROE at 11.8–13.3%.

• Asset quality normalization and business growth to be balanced; write-offs to be front-loaded in H1 FY26.

• No dividend proposed for FY25; previous year’s dividend of ₹10 per share was paid.