CreditAccess Grameen reported its Q2 FY26 results, highlighting improvements in portfolio quality and consistent business momentum. Despite Q2 being seasonally weak, the company disbursed Rs. 5,322 crore, a 32.9% YoY increase. The company added approximately 4.4 lakh new borrowers in H1 FY26 and expects robust on-ground demand in H2 FY26. Accelerated write-offs cleaned up the legacy stress book.
Financial Performance Highlights
CreditAccess Grameen reported improved performance in Q2 FY26, driven by consistent business momentum. Key highlights include:
- Disbursements of Rs. 5,322 crore in Q2 FY’26, up 32.9% YoY.
- Added approximately 4.4 lakh new borrowers in H1 FY’26.
- Retail Finance portfolio share now stands at 11.1% of AUM at the end of Q2 FY’26.
- Employee base grew to 21,701 in Sep-25.
Asset Quality
The company focused on maintaining asset quality:
- GLP % of borrowers with > 3 lenders at 6.9% in Sep-25.
- Accelerated write-off of Rs. 683 crore in Q2 FY’26.
- Collection efficiency (excl. arrears) stood at 94.5% for Q2 FY’26.
Key Financial Metrics
- Net interest income grew 4.2% QoQ to Rs. 976 crore.
- Average cost of borrowings declined to 9.6% at the end of Q2 FY’26.
- NIM remained steady at 13.3% for Q2 FY’26.
- Cost-to-income ratio stood at 32.5%.
- PAT of Rs. 126 crore in Q2 FY’26, leading to ROA of 1.8% and ROE of 7.1%.
Write-Offs and Provisions
The company accelerated its write-off journey to clean the legacy stress book:
- Undertook write-off of Rs. 683 crore in Q2 FY’26.
- Held provisions higher than PAR 90+ and IRAC prudential norms.
Looking Ahead
CreditAccess Grameen expects to leverage its risk-based pricing strategy and low cost of borrowings to protect its ROA within the 4-4.5% range.
Source: BSE