CreditAccess Grameen Posts Record Q2 PAT of Rs 502 Crore, Raises FY27 Guidance

The Bengaluru-headquartered company announced its unaudited and limited-reviewed financial performance for the second quarter and first half of the financial year 2026-27, reporting growth in assets under management (AUM), disbursements and operating profit, alongside a decline in credit costs.

CA Grameen’s AUM increased 19.5% year-on-year from INR 25,903 crore to INR 30,946 crore in Q2 FY27. Disbursements rose 19.4% from INR 5,322 crore to INR 6,355 crore. The company added 2.3 lakh new borrowers during the quarter, of whom 35% were new-to-credit (NTC) customers. Total new borrower additions reached 4.9 lakh in the first half of FY27.

The company continued to expand its retail finance portfolio, with its share of AUM increasing to 23.3% in September 2026 from 20.6% in June 2026. Its branch network grew 5.3% year-on-year, from 2,209 branches in September 2025 to 2,326 in September 2026. The employee base increased 4.5% over the same period, from 21,701 to 22,677.

Portfolio quality indicators included a PAR 0+ ratio of 2.1% in Q2 FY27 and a PAR 90+ ratio of 1.1%. X-Bucket Collection Efficiency stood at 99.71% in September 2026.

On the financial front, total income increased 26.2% year-on-year to INR 1,904.8 crore, while pre-provision operating profit (PPOP) rose 39.6% to INR 970.2 crore. Credit costs declined 43.2% to INR 299 crore.

Profit before tax (PBT) surged 296.6% year-on-year, rising from INR 169.2 crore to INR 670.9 crore. Profit after tax increased 298.7%, from INR 125.8 crore to INR 501.6 crore.

Gross non-performing assets (GNPA) and net non-performing assets (NNPA), measured predominantly at 60 days past due (dpd), stood at 1.79% and 0.59%, respectively. The PAR 90+ ratio was reported at 1.11%.

CA Grameen maintained cash, cash equivalents and investments worth INR 3,501.9 crore, equivalent to 10.2% of total assets. Its capital adequacy ratio (CRAR) stood at 26.9%. The company’s credit rating remained AA-/Stable from CRISIL, ICRA and India Rating.

Commenting on the performance, Ganesh Narayanan, Managing Director and Chief Executive Officer of CreditAccess Grameen Ltd, said the company had recorded its highest quarterly PAT of INR 502 crore in Q2 FY27, having grown fivefold over the past five years.

He said FY27 marked a turnaround in profitability, with the company recording INR 995 crore in PAT during H1 FY27, compared with INR 778 crore PAT in FY26. The company’s ROA and ROE for the first half of FY27 stood at 5.9% and 23.8%, respectively.

Following the performance, CA Grameen revised its FY27 ROA guidance upward from the earlier range of 4.0–4.8% to 5.2–5.8%. Its ROE guidance was raised from 16.0–20.0% to 21.0–24.0%. The company retained its AUM growth guidance at 20.0–25.0% and credit cost guidance at 3.0–4.0%.

Narayanan also said the company had reduced its loan pricing by 50 basis points, effective October, in line with its board-approved pricing policy.

He added that CA Grameen had become more diversified and profitable than at any previous point in its history. Its transformation into a diversified, rural-focused lender was reflected in retail finance accounting for approximately 23% of AUM.

The company is increasingly seeking to address the financial requirements of entire customer households through a broader range of products, including business loans, mortgage financing, affordable housing loans and two-wheeler financing.

For the second half of FY27, Narayanan said the company would focus on responsible growth while remaining vigilant amid the evolving macroeconomic environment. CA Grameen plans to exercise caution in districts facing drought-related challenges while meeting the growing credit requirements of seasoned customers and increasing new customer acquisition.

He said the company was entering the seasonally stronger second half with business momentum, a strong balance sheet and confidence in delivering its revised guidance.

CreditAccess Grameen Limited is a rural-focused inclusive financing platform headquartered in Bengaluru. It provides a lifecycle credit suite to low-middle income households, covering group loans, individual business loans, secured business loans, affordable housing loans and two-wheeler financing.

The company operates across 460 districts in 16 states—Andhra Pradesh, Bihar, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal—and one union territory, Puducherry, through 2,326 branches.

Its promoter is CreditAccess India B.V., a multinational company focused on inclusive financing and supported by leading global institutional investors. The latest quarterly results and revised profitability targets reflect the company's financial performance and its continued expansion across rural and inclusive lending markets.