CreditAccess Grameen Q2 Results: Profit jumps 4-fold as credit costs fall 43%; FY27 guidance raised

Microlender CreditAccess Grameen Ltd on Thursday (October 22) reported a 298.7% year-on-year increase in net profit to ₹502 crore for the quarter ended September 30, 2026, compared with ₹126 crore in the year-ago period, on Thursday (October 22). Net interest income (NII) rose 31.3% to ₹1,351 crore from ₹1,029 crore.

The company reported its highest-ever quarterly profit after tax (PAT), with assets under management (AUM) increasing 19.5% year-on-year to ₹30,946 crore from ₹25,903 crore. Return on assets (ROA) stood at 5.8%, while return on equity (ROE) was 23.2%.

CreditAccess Grameen raised its financial year 2026–27 guidance, projecting ROA of 5.2–5.8% and ROE of 21–24%.

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Total income increased 26.2% year-on-year to ₹1,904.8 crore. Pre-provision operating profit (PPOP) rose 39.6% to ₹970.2 crore, while profit before tax (PBT) increased 296.6% to ₹670.9 crore from ₹169.2 crore a year earlier. Credit cost declined 43.2% year-on-year to ₹299 crore.

CreditAccess Grameen Business Highlights

Disbursements increased 19.4% year-on-year to ₹6,355 crore from ₹5,322 crore in Q2 FY27. The company added 2.3 lakh new borrowers during the quarter, of whom 35% were new-to-credit (NTC) customers.

It added 4.9 lakh borrowers during the first half of FY27. The retail finance portfolio accounted for 23.3% of the total portfolio as of September 2026, compared with 20.6% in June 2026.

The company's portfolio at risk (PAR) of over zero days past due (DPD) stood at 2.1% in Q2 FY27, while PAR of over 90 days past due was 1.1%. Gross non-performing assets (GNPA) and net non-performing assets (NNPA), measured predominantly at 60 days past due, stood at 1.79% and 0.59%, respectively. Collection efficiency for the X-bucket stood at 99.71% in September 2026.

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Branch Network, Liquidity

CreditAccess Grameen's branch network increased 5.3% year-on-year to 2,326 branches in September 2026 from 2,209 a year earlier. Its employee base grew 4.5% to 22,677 from 21,701.

The company had cash, cash equivalents and investments of ₹3,501.9 crore, equivalent to 10.2% of total assets. Its capital adequacy ratio (CRAR) stood at 26.9%.

Ganesh Narayanan, Managing Director and Chief Executive Officer of CreditAccess Grameen Ltd, said, "We reported our highest quarterly PAT of INR 502 crore in Q2 FY27, having grown five-fold over the past five years. FY27 marks a clear turnaround in profitability, recording INR 995 crore PAT in H1 FY27 as against INR 778 crore PAT in FY26.

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Our H1 FY27 ROA stood at 5.9% and ROE at 23.8%, reflecting strong business performance. Our ROA guidance has been revised upward from 4.0–4.8% (earlier) to 5.2–5.8% (revised) and ROE guidance from 16.0–20.0% (earlier) to 21.0–24.0% (revised), while retaining our AUM growth at 20.0–25.0% and credit cost at 3.0–4.0%.

We have reduced our loan pricing by 50 bps applicable from October month in line with our board-approved pricing policy. CA Grameen stands today as a more diversified and profitable company than at any point in its history. Our transformation into a diversified, rural-focused lender is now visible at scale, with Retail Finance share at 23% of the AUM.

We are increasingly working towards serving the entire customer household’s financial needs, from business loans to financing mortgages, affordable housing and two-wheelers. For H2 FY27, our focus is to grow responsibly while staying vigilant amidst an evolving macroeconomic environment.

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We will remain cautious in districts showing drought-related challenges, while meeting the growing credit needs of our seasoned customers and stepping up new customer acquisition. As we enter the seasonally stronger second half, we do so with momentum in our business, strength in our balance sheet and confidence in delivering on our aforesaid guidance."

Shares of CreditAccess Grameen Ltd ended at ₹1,095.00, down by ₹48.50, or 4.24%, on the BSE.