Creditaccess Grameen Q1 Results | Net profit dives 85% to ₹60 crore on higher credit costs

Microlender Creditaccess Grameen Ltd on Tuesday (July 22) reported an 84.9% year-on-year (YoY) decline in net profit at ₹60.2 crore for the first quarter that ended June 30, 2025. In the year-ago period, Creditaccess Grameen posted a net profit of ₹398 crore.

Revenue from operations dipped 3.2% to ₹1,464 crore against ₹1,512 crore in the corresponding period of the preceding fiscal.

The company's pre-provision operating profit (PPOP) stood at ₹653.0 crore. Profit before tax (PBT) rose 58.8% sequentially, increasing from ₹51.1 crore to ₹81.1 crore. A reduction in new portfolio at risk (PAR) accretion led to a decline in credit cost, which stood at ₹571.9 crore for the quarter.

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Gross and net non-performing assets (GNPA/NNPA), predominantly measured at 60+ days past due (dpd), were 4.70% and 1.78%, respectively, with PAR 90+ at 3.29%. The company maintained robust liquidity of ₹2,025 crore in cash, cash equivalents, and investments — amounting to 7.3% of total assets — and a healthy capital adequacy ratio (CRAR) of 25.5%.

Operationally, disbursements rose 21.9% year-on-year to ₹5,458 crore, up from ₹4,476 crore. The company added 2.16 lakh new borrowers during the quarter, with 43% being new-to-credit (NTC). The branch network expanded by 7% YoY to 2,114 branches, and the employee base grew by 8.5% to 21,333. Assets under management (AUM) remained steady sequentially at ₹26,055 crore.

Portfolio at risk (PAR) 0+ decreased from 6.9% in Q4 FY25 to 5.9% in Q1 FY26, while collection efficiency, including arrears, improved to 94.1% in June 2025 from 93.0% in March 2025. The retail finance portfolio showed significant growth, rising 134.1% YoY from ₹761.8 crore to ₹1,783.5 crore.

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Ganesh Narayanan, Chief Executive Officer and Managing Director (Designate) of CreditAccess Grameen, said, "Our Q1 FY26 performance reflects progress across all key dimensions of the business with the highest-ever first-quarter disbursements of ₹5,458 crore,” adding, “We witnessed a broad-based decline in the monthly new delinquency rate across all operating geographies, reducing to 0.46% in June 2025, from 1.34% in November 2024, supported by stable manpower, disciplined customer engagement and consistent reduction in customer leverage."

The results came after the close of the market hours. Shares of Creditaccess Grameen Ltd ended at ₹1,278.40, down by ₹15.10 or 1.17%, on the BSE.