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    CreditAcc. Gram.

    CREDITACC
    Financial Services·8 May 2026
    Management Summary

    CreditAccess Grameen reported a strong Q4 FY26 performance with significant growth in AUM, disbursements, and PAT, alongside margin expansion. The company demonstrated resilience and progress in digital adoption and product diversification. However, full-year credit costs were higher than guided, impacting ROA and ROE, primarily due to increased ECL provisioning and a new model incorporating external event scenarios.

    Highlights

    5

    • AUM grew 14.0% YoY and 11.4% QoQ, in line with annual growth guidance.

    • Disbursement in Q4 grew 28.4% YoY and 44.1% QoQ to INR 8,313 Crore, with full year disbursements at INR 24,859 Crore (up 24.1%).

    • PAT grew over 6x YoY and 34.7% QoQ to INR 340 Crore, translating to a Q4 ROA of 4.4% and ROE of 17.8%.

    • NIMs expanded by 35 bps QoQ to 14.2% in Q4, and cost of borrowing declined to 9.2% in Q4, marking a total 60 bps reduction during the year.

    • Digital collections increased YoY from 14% in Q4 FY25 to 22% in Q4 FY26, with 8.4 Lakh borrowers onboarded to Grameen Mahi app in FY26.

    Concerns

    3

    • Credit cost for FY26 ended at 6.74% against the guidance of 5.5% to 6.0%.

    • An additional provisioning of INR 39 Crore was made in Q4 due to the West Asia crisis and the new ECL model.

    • Marginal miss on the lower end of FY26 ROA (2.7% vs 2.9%) and ROE (10.7% vs 11.8%) guidance due to higher credit cost.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    5
    • PAT
      ₹340 Cr
      YoY+5%QoQ+34.7%
    • AUM Growth
      14.0%
      QoQ+11.4%
    • NIM
      14.2%
    • ROA
      4.4%
    • ROE
      17.8%

    FY26

    1
    • Credit Cost
      6.7%

    Guidance & targets

    16
    CategoryTargetPriority
    Volume
    AUM Growth
    20.0-25.0%
    		High
    Volume
    AUM CAGR
    28.6%
    		High
    Volume
    Disbursement CAGR
    24.7%
    		High
    Volume
    MFI Net Growth
    10-12%
    		High
    Volume
    New Customer Acquisition
    much, much better than last year
    		Medium
    Volume
    New Customer Disbursement Share
    30-40%
    		Medium
    Margin
    NIM
    12.8-13.2%
    		High
    Profitability
    Cost to Income Ratio
    33.0-35.0%
    		High
    Profitability
    Credit Cost
    3.0-4.0%
    		High
    Profitability
    ROA
    4.0-4.8%
    		High
    Profitability
    ROE
    16.0-20.0%
    		High
    Profitability
    PAT CAGR
    29.7%
    		High
    Profitability
    Cross-cycle ROA
    3.4%
    		High
    Profitability
    Cross-cycle ROE
    13.9%
    		High
    Other
    Equity Base CAGR
    32.7%
    		High
    Market Share
    Retail Finance Share in AUM
    24-25%
    		Medium

    ECL Provisioning Model Adjustments

    Next quarter
    CurrentNew model implemented, higher weightage for external events, reviewed quarterly.
    TargetAny adjustments or further impacts from external factors on ECL provisioning.

    Why it matters

    Directly impacts credit cost and profitability, especially given the current macroeconomic uncertainties.

    So every quarter this committee will convene, and whatever has happened in the previous quarter, or we foresee for the next quarter will be taken into account before making any adjustment.

    How to verify

    risks_and_concerns[risk='Global Issues / Macroeconomic Volatility']

    Risks & concerns

    3
    RiskSeverity

    West Asia Crisis Impact on Provisioning

    New ECL model incorporated a higher weightage for major external event scenario, resulting in an additional provisioning of INR 39 Crore in Q4. — Management acknowledged

    medium

    Global Issues / Macroeconomic Volatility

    New ECL model captures probable impact of ongoing global issues; inflationary elements built into cost-to-income guidance. — Management acknowledged

    medium

    Prolonged Disruptions (e.g., fuel/gas supply)

    Management has budgeted for potential prolonged disruptions, indicating a prepared stance for extreme scenarios. — Management acknowledged

    medium

    Q&A highlights

    8

    “individual finance to graduated microfinance customers is a clear way to progress. And the growth in individual loans will look larger because of the base, like you said, and its initial time period. As we start penetrating into a certain proportion of customers, which we believe roughly around 6-8% of our customer base, we should be able to target, convert to retail finance customers every year.”

    Clarifies the company's strategy for individual loans as a progression for existing microfinance customers, indicating a calibrated growth approach.

    asked by Abhijit Tibrewal

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 FY26 Performance Highlights

    CreditAccess Grameen reported a robust Q4 FY26, with AUM growing 14.0% YoY and 11.4% QoQ. Disbursements for the quarter reached INR 8,313 Crore, marking a 28.4% YoY and 44.1% QoQ increase, contributing to a full-year disbursement of INR 24,859 Crore (up 24.1%). The company achieved a PAT of INR 340 Crore in Q4, growing over 6x YoY and 34.7% QoQ, leading to a Q4 ROA of 4.4% and ROE of 17.8%. NIMs expanded by 35 bps QoQ to 14.2%, while the cost of borrowing declined by 60 bps YoY to 9.2% in Q4.

    02

    Strategic Evolution and Product Diversification

    The company is transforming into a rural-focused inclusive financing platform, expanding beyond group-based microfinance into individual business loans, mortgage-backed loans, and 2-wheeler financing. The AUM share of unique group loan borrowers increased to 46.1% from 26.6% in August 2024, while retail finance grew to 18.1% of AUM as of March 2026, up from 5.9% a year ago. This expansion is driven by deepening relationships with its 44 Lakh customer base and graduating vintage borrowers to higher-value products.

    03

    Digital Adoption and Technology Advancement

    CreditAccess Grameen observed strong digital adoption, with its customer app, Grameen Mahi, onboarding 8.4 Lakh borrowers in FY26, bringing the total active base to 11.2 Lakh customers (25.4% of the borrower base). Digital collections increased YoY from 14% in Q4 FY25 to 22% in Q4 FY26. The technology architecture processes over 30 Lakh transactions per day, and the company is integrating AI into credit decisioning, compliance monitoring, and customer engagement.

    04

    Credit Quality and Provisioning

    For FY26, the credit cost stood at 6.74%, exceeding the guidance of 5.5% to 6.0%. This included 6.10% due to new PAR and 0.64% due to increased ECL provisioning rates. The company evolved its ECL provisioning model in Q4 to capture past data and forward-looking macroeconomic variables, incorporating a higher weightage for external events like the West Asia crisis, which resulted in an additional provisioning of INR 39 Crore in Q4. Gross NPA (60 DPD) was 3.17%, Net NPA 1.12%, and PAR 90 was 2.28%.

    05

    FY27 Guidance and Outlook

    For FY27, CreditAccess Grameen guides for an AUM growth of 20.0-25.0%, NIM of 12.8-13.2%, and a cost-to-income ratio of 33.0-35.0%. The credit cost is projected to be 3.0-4.0%, leading to an ROA of 4.0-4.8% and an ROE of 16.0-20.0%. The company expects the share of retail products to reach 24-25% by FY27 end, with MFI net growth around 10-12% despite customer graduation to retail.

    06

    Long-Term Vision: Project Shakti

    The company's long-term ambition, 'Project Shakti', aims to build a clear leadership position in inclusive finance. Over the past decade (FY17-FY26), AUM compounded at 28.6% and PAT at 29.7%, with a cross-cycle ROA of 3.4% and ROE of 13.9%. The strategy involves deepening market reach, expanding household-level relationships, increasing customer wallet share, and enhancing people, technology, and AI capabilities.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.