CreditAccess Grameen (CREDITACC) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 FY26 disbursements of INR 5,458 crore, adding 2.16 lakh borrowers, 43% new-to-credit.

• Retail finance share increased YoY from 2.9% to 6.8% of the book by June 2025, reflecting diversification.

• Asset quality stabilized with GNPA at 4.70% and PAR90 at 3.29%, supported by conservative provisioning and accelerated write-offs.

• Employee base grew to 21,333 by June 2025, with attrition rate reduced to 27.1%.

• Board and Audit Committee reviewed and approved Q1 FY26 results with no material misstatements.

Financial highlights

• Net interest income for Q1 FY26 was INR 937 crore, portfolio yield at 20.3%, and interest spread at 10.6%.

• PAT for Q1 FY26 was INR 60 crore, with ROA at 0.9% and ROE at 3.4%; EPS at ₹3.77.

• NIM steady at 12.8%; cost to income ratio at 33.5%; PPOP at INR 653 crore.

• Liquidity levels at INR 2,025 crore (7.3% of total assets); CRAR at 25.55%; LCR at 180.66%.

• Provisioning at 4.62% of portfolio, with INR 693 crore written off in Q1 FY26, including INR 603 crore for 180+ DPD accounts.

Outlook and guidance

• FY26 GLP growth guided at 14–18%, with NIM expected at 12.6–12.8%.

• Credit cost expected to remain elevated in H1 FY26 (5.5–6.0%), moderating in H2 as asset quality stabilizes.

• ROA projected at 2.9–3.4% for FY26, with steady-state ROA above 4.5% in H2.

• Retail finance share projected to reach 12%-15% by 2028; MFI book expected to grow 13%-15% annually.

• Company continues to focus on domestic lending, with no change in business segment or geographic focus.