CREDITACCESS GRAMEEN LIMITED has informed the Exchange about Transcript
CREDITACC · price
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CreditAccess Grameen reported Q2 FY26 PAT of Rs 126 crore, with ROA of 1.8% and ROE of 7.1%. Disbursements grew 32.9% YoY to Rs 5,322 crore, while NIM stayed steady at 13.3% and cost-to-income at 32.5%. Management revised FY26 credit cost guidance upward by 70-100 bps due to delayed PAR accretion improvement (40-45 bps vs 25-30 bps expected) and higher ECL provisioning from rising PD/LGD data points. For FY27, they guided credit cost to 4-4.5% (including a one-time 70-80 bps ECL impact) but maintained ROA target of 4-4.5%, supported by ~100 bps of PPOP improvement from better yields, lower borrowing costs, and a 75 bps hike in group loan pricing. Asset quality showed signs of stress with PAR 90+ at 2.50%, GNPA at 3.65%, and elevated accelerated write-offs of Rs 683 crore. Branch count rose to 2,209, and retail finance now accounts for 11.1% of AUM. Mr. Manoj Kumar was appointed as the new Chairman.
Shareholders should brace for higher credit costs in FY26-FY27 but management's confident ROA guidance of 4-4.5% and improving operating leverage from pricing actions and falling borrowing costs (targeting ~9.3% next year) signal margin recovery. Near-term stock sentiment may remain cautious given elevated write-offs, but the 20%+ growth outlook for FY27 and deleveraging progress (3+ lender exposure down from 25.3% to 6.9%) are positives.