CreditAccess Grameen (CREDITACC) Q4 24/25 earnings summary

Executive summary

• FY25 was marked by regulatory and operational challenges, especially in Karnataka, leading to elevated credit costs and write-offs, but borrower resilience and portfolio stability were maintained.

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

• Net profit after tax for FY25 was ₹531.40 crore, down from ₹1,445.93 crore in FY24, impacted by higher credit costs.

• Employee strength increased to 20,970 by March 2025, with attrition managed at 30.5% annualized in Q4.

• Leadership transition announced: current MD to retire in June 2025, CEO to take over as MD & CEO.

Financial highlights

• Net interest income for FY25 was ₹3,623 crore, up 11.1% YoY; NIM was 12.9% for FY25 and 12.7% for Q4.

• Q4 FY25 profit was ₹47 crore, impacted by accelerated write-offs; FY25 PPOP at ₹2,638 crore.

• Write-offs totaled ₹1,124 crore in FY25, with ₹518 crore in Q4 alone; credit cost at ₹1,929 crore (7.7% of AUM).

• Collection efficiency (excluding arrears) was 94.9% for FY25 and 91.9% for Q4.

• CRAR stood at 25.4% with Tier 1 at 24.5%.

Outlook and guidance

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

• NIM guidance for FY26 is 12.6–12.8%, credit cost 5.5–6%, ROA 2.9–3.4%, ROE 11.8–13.3%.

• Credit cost expected to remain elevated in H1 FY26, normalizing in H2; asset quality and business momentum expected to improve.