CreditAccess Grameen Q1 PAT surges to ₹493 Cr as credit costs normalise, NPM back to 27.7%

CreditAccess Grameen reported consolidated Q1 FY27 (quarter ended June 30, 2026) net profit of ₹493.39 Cr, up from just ₹60.19 Cr a year ago and ₹339.55 Cr in the March quarter, on total revenue from operations of ₹1,783.49 Cr (+21.9% YoY, +11.7% QoQ). The headline +720% YoY profit print is almost entirely a base effect: the story is the normalisation of credit costs. Impairment on financial instruments collapsed to ₹212.50 Cr from ₹571.85 Cr in the stressed year-ago quarter (and ₹335.31 Cr in Q4), a ~₹359 Cr swing that is the single driver of the earnings recovery. Stripped of that abnormally weak base, underlying PAT growth is a far more modest ~50%. Net profit margin rebounded to 27.66% (from 4.11% a year ago and 21.24% last quarter) — margin expansion sits squarely on the provisioning line, not on core spreads, as finance costs actually rose to ₹550.05 Cr from ₹482.16 Cr.

The print tracks management's own FY27 roadmap. On the Q4 concall the board guided for AUM growth of 20-25%, ROA of 4.0-4.8%, and — critically — a normalisation of credit costs to the 3.0-4.0% range; the sharp drop in impairment this quarter is the first confirmation of that credit-cost thesis, and the ~22% revenue growth is consistent with the AUM guidance. Asset-quality metrics corroborate: Gross Stage-III improved to 2.18% and Net Stage-III to 0.76%, with provision coverage at 65.36% and CRAR a comfortable 24.87%. Operationally the company had already flagged record Q1 disbursements of ₹6,107 Cr (+11.9% YoY) and GLP growth to ~₹30,319 Cr (+16%), with the retail-finance book at ~21% share — evidence its 'Project Shakti' shift toward individual loans is progressing toward the 24-25% FY27 target.

The stock went into the print at ₹1,517.6, up 3.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

Alongside results, the board approved a large fundraising programme — a public NCD issue of up to ₹2,000 Cr and a private-placement NCD limit of up to ₹1,000 Cr — to fund the AUM growth guided for FY27. No formal per-quarter PAT guidance is given and no clean street consensus print surfaced for this specific quarter, so the beat/miss versus consensus is unquantified. Standalone and consolidated figures are effectively identical (₹493.39 Cr PAT, EPS ₹30.79), so the two tell the same story.