CreditAccess Grameen Limited, India’s largest rural-focused microfinance institution, delivered a strong financial performance for the first quarter of FY27 (Q1 FY26–27). Driven by moderating credit costs and steady portfolio growth, the company reported an over 8-fold (720%) jump in consolidated net profit to ₹493 crore, up from ₹60.1 crore in the same period last year.
Key Financial Highlights (Q1 FY27)
| Metric | Q1 FY27 | Q1 FY26 | YoY Change |
| Net Profit (PAT) | ₹493 crore | ₹60.1 crore | +719.7% |
| Assets Under Management (AUM) | ₹30,319 crore | ₹26,050 crore | +16.4% |
| Pre-Provision Operating Profit (PPOP) | ₹873 crore | ₹653 crore | +33.6% |
| Disbursements | ₹6,107 crore | ₹5,458 crore | +11.9% |
| Credit Costs | ₹212 crore | ₹570 crore | -62.8% |
Key Operational Takeaways
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Asset Quality Normalization: The sharp earnings rebound was primarily fueled by a 62.8% YoY decline in credit costs to ₹212 crore, signaling that the microfinance sector’s past stress and elevated write-offs are continuing to ease.
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Asset Quality Metrics: Gross Non-Performing Assets (GNPA) stood at 2.18%, Net NPA came in at 0.76%, and Portfolio at Risk (PAR 0+) dropped to 2.2% from 3.0% in the previous quarter.
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Customer Expansion: The lender added 2.5 lakh new borrowers during the quarter, with 35% of them being new-to-credit customers.
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Diversification into Retail Finance: Non-microfinance retail lending reached 20.6% of total AUM (up from 18.1% in Q4 FY26), as long-vintage microfinance borrowers migrated to higher-ticket secured products like loan against property and business loans.
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Capital & Funding: Capital adequacy remained comfortable with a CRAR of 24.9%. During the quarter, the company raised ₹425 crore via a private Non-Convertible Debenture (NCD) placement to further diversify its liability base.
Management Commentary:
“The company delivered a steady and disciplined performance in Q1 FY27. Our continued ability to recover quickly drove a strong improvement in profitability for the second consecutive quarter. We expect this trajectory to be sustained through the rest of the year.”
— Ganesh Narayanan, MD & CEO, CreditAccess Grameen
