CreditAccess Grameen Q2 FY27 PAT jumps 299% to Rs 502cr

Results announcement and why it matters

CreditAccess Grameen Limited (NSE: CREDITACC, BSE: 541770) reported its unaudited, limited reviewed results for the second quarter of FY27, posting its highest-ever quarterly profit after tax. The microlender’s Q2 FY27 PAT rose 298.7% year-on-year to INR 501.6 crore, supported by higher income, improved operating profitability, and a sharp reduction in credit cost. The quarter also showed steady business momentum, with assets under management (AUM) rising 19.5% YoY to INR 30,946 crore and disbursements up 19.4% YoY to INR 6,355 crore.

The update came alongside disclosures on asset quality indicators and balance sheet strength, including a capital adequacy ratio (CRAR) of 26.9% and liquidity of INR 3,501.9 crore in cash, cash equivalents, and investments. The company also referenced improved asset quality and noted upward revisions to profitability guidance.

Profit rises sharply on higher income and lower credit cost

The headline feature of the quarter was the jump in profitability. Profit before tax (PBT) increased 296.6% YoY to INR 670.9 crore from INR 169.2 crore. Profit after tax (PAT) rose to INR 501.6 crore from INR 125.8 crore in the corresponding quarter last year.

Total income increased 26.2% YoY to INR 1,904.8 crore. The company’s pre-provision operating profit (PPOP) rose 39.6% YoY to INR 970.2 crore, indicating stronger core operating performance ahead of provisioning. Credit cost declined 43.2% YoY to INR 299 crore, which materially supported the jump in reported profit.

In another indicator of operating performance, net interest income (NII) rose 31.3% YoY to INR 1,351 crore from INR 1,029 crore.

AUM growth remains strong, disbursements rise nearly 20%

On the business side, AUM grew 19.5% YoY from INR 25,903 crore to INR 30,946 crore. Disbursements increased 19.4% YoY from INR 5,322 crore to INR 6,355 crore.

Customer additions continued during the quarter. CreditAccess Grameen added 2.3 lakh new borrowers, with 35% classified as new-to-credit customers. The company’s total active borrower base stood at 44.98 lakh, up 1.3% YoY.

Asset quality: PAR and NPA indicators disclosed

The company reported portfolio-at-risk (PAR) metrics for the quarter, with PAR 0+ at 2.1% in Q2 FY27 and PAR 90+ at 1.1%. It also reported GNPA and NNPA measured predominantly at 60+ dpd at 1.79% and 0.59%, respectively, alongside PAR 90+ of 1.11%.

The combination of lower credit cost and the stated improvement in asset quality was a key theme in the quarter’s performance summary and was cited as a reason for upward revisions to profitability guidance.

Operating efficiency and margins: what the presentation highlighted

In its investor presentation for Q2 and H1 FY27 dated October 22, 2026, the company indicated a net interest margin (NIM) of 15.1% in Q2, compared with 14.4% in Q1 FY27 and 13.3% in Q2 FY26. It also cited stable cost of borrowings at 9.1%.

The presentation also highlighted an improvement in the cost-to-income ratio to 28.2% from 32.5% a year earlier. PPOP in the quarter was reiterated at INR 970 crore, described as up 39.6% year over year and 11.2% quarter over quarter.

Branch expansion and employee growth

CreditAccess Grameen continued expanding its distribution footprint. Its branch network grew 5.3% YoY from 2,209 branches in September 2025 to 2,326 branches in September 2026. Headcount increased 4.5% YoY from 21,701 employees to 22,677 employees.

These operating metrics provide context for how the lender is scaling origination and servicing capacity while managing costs, especially in a high-touch rural lending model.

Liquidity, capital, and credit ratings

The company reported liquidity of INR 3,501.9 crore in cash, cash equivalents, and investments, stated as 10.2% of total assets. It also reported a CRAR of 26.9%, indicating a strong capital position at the end of the quarter.

On external assessment, the company listed credit ratings of AA-/Stable by CRISIL, ICRA, and India Rating.

Key numbers at a glance

Market impact and what investors will track

CreditAccess Grameen’s Q2 numbers show how earnings can rebound sharply when credit costs fall while income and operating profits keep expanding. For market participants, the quarter’s key monitorables are the sustainability of asset quality indicators such as PAR 0+ and PAR 90+, and whether credit cost remains contained after a period of stress in parts of the microfinance sector.

Investors are also likely to track the relationship between AUM growth and borrower growth. With AUM up 19.5% YoY and active borrowers up 1.3% YoY, the company’s disclosure points to higher ticket sizes and customer progression, which can influence yields and risk profile. Management’s reference to upward revisions to profitability guidance will also keep attention on subsequent quarterly updates and any further disclosures.

Conclusion

CreditAccess Grameen delivered record Q2 FY27 profitability with PAT of INR 501.6 crore, driven by higher income, stronger PPOP, and a 43.2% YoY decline in credit cost. Business momentum remained steady, with AUM at INR 30,946 crore and disbursements at INR 6,355 crore, while liquidity and capital levels were reported as robust. The next focus areas will be the trend in PAR and GNPA/NNPA indicators and any further detail around the company’s upgraded profitability guidance in coming communications.