CreditAccess Grameen (CREDITACC) Q3 24/25 earnings summary

Executive summary

• Delinquency trends peaked in October–mid-November 2024 due to external disruptions but have since reversed, with new additions slowing and collections improving across geographies.

• Asset quality is stabilizing, with collection efficiency (excluding arrears) at 93.3% and including arrears at 94.1% for Q3 FY25; December and January saw collection efficiency above 99%.

• AUM/GLP returned to growth in December after eight months of contraction, reaching ₹24,810 crore at December-end and ₹25,125 crore by January 20, 2025, up 6.1% YoY with 48.05 lakh active borrowers.

• Accelerated write-offs and conservative provisioning have been implemented to address legacy delinquencies, resulting in a Q3 FY25 net loss of ₹99.5 crore and higher credit costs.

• Retail finance share increased YoY from 2.1% to 5.0%, with new-to-credit customer additions rising to 42% in Q3 FY25.

Financial highlights

• Net interest income grew 7.4% year-over-year to ₹862 crore in Q3 FY25; portfolio yield at 20.2%, average cost of borrowing at 9.8%.

• NIMs declined to 12.5% in Q3 FY25 due to ₹75 crore interest reversal; nine-month NIM at 13%.

• Credit cost for Q3 FY25 was ₹750 crore; total write-offs for Q3 FY25 at ₹376 crore and for nine months at ₹606 crore.

• Q3 FY25 PAT was -₹99.5 crore (vs. ₹353 crore YoY); 9M FY25 PAT was ₹484 crore (vs. ₹1,049 crore YoY).

• PPOP stood at ₹623 crore for Q3 FY25 and ₹2,004 crore for nine months FY25.

Outlook and guidance

• FY25 guidance: AUM/GLP growth of 7–8%, NIM of 12.8–13%, credit cost of 6.7–6.9%, ROA of 2.3–2.4%, ROE of 9.5–10%.

• FY25 credit cost guidance increased to 4.5–5.0%, with profitability expected to normalize from Q2 FY26.

• Preliminary FY26 outlook: AUM/GLP growth of 18–20%, ROA of 4.2–4.5%, ROE of 17–19%.

• Management expects normalization of delinquency trends between Q4 FY25 and Q1 FY26.