CreditAccess Grameen consolidated PAT +299% YoY to ₹502 Cr as credit costs ease; AUM soft

CreditAccess Grameen's consolidated Q2 FY27 net profit came in at ₹501.57 Cr, up 298.7% year-on-year from ₹125.81 Cr in Q2 FY26 and up a modest 1.7% sequentially from ₹493.39 Cr in Q1 FY27. Revenue from operations rose 26.2% YoY and 6.7% QoQ to ₹1,903.74 Cr. The YoY swing is not a one-off — there is no exceptional-item line in the filing — but a credit-cost base effect: impairment on financial instruments fell 43.1% YoY, from ₹525.67 Cr in the year-ago quarter (when the microfinance sector was working through asset-quality stress) to ₹299.23 Cr this quarter. The print landed marginally above the ₹450-500 Cr PAT range we flagged pre-result, a modest beat (our preview cited 93.8% Buy consensus with a median target of ₹1,750; no fresher external Q2 FY27 PAT consensus turned up in search). Net profit margin expanded sharply to 26.35% from 8.34% a year ago but slipped from 27.65% in Q1 FY27, because the impairment charge itself rose 40.8% sequentially (₹212.50 Cr to ₹299.23 Cr) even as the book grew — the credit-cost line is re-normalizing upward off its Q1 low. On a rough annualized basis (quarterly impairment × 4 ÷ period-end loan book of ₹29,293.77 Cr), credit cost runs near ~4.1%, at the top of management's 3-4% FY27 guided band rather than comfortably inside it. AUM grew 19.5% YoY to ₹30,946 Cr (per the October 5 disclosure), trailing the 20-25% FY27 AUM growth management guided on the July 29 concall — a miss on that specific metric even as profitability metrics look strong: half-year PAT of ₹995 Cr annualizes to a ROE of roughly 22-23% on period-end net worth of ₹8,797 Cr, above the guided 16-20% through-cycle band. Overall guidance delivery is mixed — profitability ahead, growth pace behind — rather than a clean beat. Management's own conditional call to consider a 50bps pricing cut "if quality holds" is not addressed in this filing; Gross/Net Stage III of 1.79%/0.59% and 67.55% provision coverage suggest quality is holding, but the pricing decision itself remains a concall item to confirm. The quarter's funding activity backs continued AUM scaling: a ₹215 Cr NCD allotment (October 1), a $175 Mn syndicated social loan (October 12), ₹300 Cr via bilateral NCD (September 3), and a ₹260.64 Cr direct-assignment sale (September 30) that trimmed on-book loans. No company press release was available to extract management's own framing of the quarter, so this read rests on the filing and board-meeting outcome alone. Capital adequacy stayed ample at 26.90% CRAR and 218.65% liquidity coverage. Going into Q3 FY27, the two swing factors are whether the credit-cost run-rate eases back toward the guided 3-4% band from this quarter's ~4.1% estimate, and whether AUM growth re-accelerates toward the 20-25% range needed to keep the ₹50,000 Cr-by-CY2028 AUM target on track.