CREDITACCESS GRAMEEN LIMITED

CreditAccess Grameen Limited reported Q2 FY27 results with a record quarterly profit of INR 502 crore, marking a fivefold growth over five years. The company achieved INR 995 crore in PAT for the first half of FY27, up from INR 778 crore in the previous year. Key metrics include a 5.9% ROA and 23.8% ROE, with AUM growing 19.5% YoY to INR 30,946 crore. Disbursements rose 19.4% YoY to INR 6,355 crore, and new borrower additions reached 2.3 lakh, with 35% being new-to-credit. Retail Finance AUM grew to INR 7,200 crore, 23.3% of total AUM, driven by secured business loans, affordable housing, and 2-wheeler finance. Asset quality improved, with gross NPA at 1.79% and net NPA at 0.59%, while collection efficiency remained strong. The company raised profitability guidance for FY27, targeting ROA of 5.2% to 5.8% and ROE of 21% to 24%. Management discussed challenges like drought-related credit risks in Maharashtra and flood impacts in northern states, but emphasized strong balance sheet positioning and strategic focus on retail finance growth. The company also secured USD 175 million in ECB funding and plans to maintain NIMs amid macroeconomic uncertainties. Management guided toward a credit cost range of 3% to 4% for FY27 and expects AUM growth of 20% to 25%.

The document highlights strong financial performance, improved asset quality, and strategic growth initiatives, with management expressing confidence in meeting guidance.