CreditAccess Grameen Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript CreditAccess Grameen Ltd filed with BSE on 29 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
CreditAccess Grameen reported Q1 FY27 AUM growth of 16.4% YoY to INR 30,319 Crore, with PAT up 720% YoY to INR 493 Crore driven by normalized credit costs and improved asset quality. Management said net interest margin stood at 14.4%, ROA at 5.9% and ROE at 24.4% for the quarter, while retail finance now constitutes 20.6% of AUM. The company maintained its medium-term guidance of INR 50,000 Crore AUM by calendar year 2028 and said it would evaluate pricing changes in the second half of FY27 based on credit cost trends.
Numbers mentioned
AUM: INR 30,319 Crore (Q1 FY27)
p. 3
“Our AUM grew 16.4% YoY and 2.5% QoQ to INR 30,319 Crore, despite 6.3% TTM write-off and typical seasonal softness that Q1 brings.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
Disbursements: INR 6,107 Crore (Q1 FY27)
p. 3
“Disbursements for the quarter stood at INR 6,107 Crore, up 11.9% YoY.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
Net interest margin: 14.4% (Q1 FY27)
p. 4
“Our net interest margin was robust at 14.4% at the end of Q1 FY27, driven by a combination of improving yields, lower interest reversals and stable cost of borrowings.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Cost-to-income ratio: 29.3% (Q1 FY27)
p. 4
“Our cost-to-income ratio stood at 29.3% and PPOP grew 33.6% YoY to INR 873 Crore.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
X-Bucket collection efficiency: 99.68% (June 2026)
p. 4
“X-Bucket collection efficiency for June 2026 stood at 99.68%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Credit cost: INR 212 Crore or 0.72% non-annualized (Q1 FY27)
p. 4
“whereas the credit cost for the quarter stood at INR 212 Crore or 0.72% on a non-annualized basis, comfortably within our guided range.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Gross NPA: 2.18% (Q1 FY27)
p. 4
“Gross NPA stood at 2.18%, net NPA at 0.76% and PAR 90 at 1.46%, each showing sequential improvement.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
PAT: INR 493 Crore, up 720% YoY (Q1 FY27)
p. 4
“As a result, our Q1 FY27 PAT grew 720% YoY to INR 493 Crore, resulting in an ROA of 5.9% and ROE of 24.4%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Trailing 12-month ROA: 4% (TTM as of Q1 FY27)
p. 4
“thus helping us to improve our trailing 12-month ROA to 4% and ROE to 16%, both aligned with our guided cross-cycle profitability metrics.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Cash and cash equivalents: INR 3,536 Crore, 10.4% of total assets (Q1 FY27)
p. 4
“we continue to maintain ample liquidity with cash and cash equivalents of INR 3,536 Crore, amounting to 10.4% of the total assets.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
CRAR: 24.9% (Q1 FY27)
p. 5
“capital position remaining strong, where CRAR stood at 24.9%.”
Ganesh Narayanan, page 5 of the filed PDF · View the filing
Net worth: INR 8,347 Crore (Q1 FY27)
p. 5
“the company's net worth increased from INR 2,734 Crore in FY20 to INR 8,347 Crore in Q1 FY27, compounding at 20% CAGR, of which 86% increase came just through internal accruals.”
Ganesh Narayanan, page 5 of the filed PDF · View the filing
Employee attrition: 20.6% (Q1 FY27)
p. 3
“employee attrition continued to moderate meaningfully, standing at 20.6% as of Q1 FY27 against 25.8% in Q1 FY26.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM — INR 50,000 Crore · calendar year 2028
stated firmly by Ganesh Narayanan
p. 5
“We remain fully committed to our medium-term guidance of INR 50,000 Crore AUM by calendar year 2028, confidence reinforced by the strength of the start we have made this quarter across borrower additions, asset quality and margins.”
Ganesh Narayanan, page 5 of the filed PDF · View the filing
Pricing/lending rate — 50 bps price cut · end of Q2 FY27
stated conditionally by Ganesh Narayanan
p. 9
“In our thought process, currently by end of Q2 FY27, probably can look at a 50 bps price cut if we are able to hold the asset quality.”
Ganesh Narayanan, page 9 of the filed PDF · View the filing
Pricing/lending rate — 50 bps in Q3, another 50 bps in Q4 · H2 FY27
stated conditionally by Nilesh Dalvi
p. 10
“So obviously, even if we don't need a 200 bps pricing cut, I mean, as of now, maybe we may have to take 50 bps pricing cut in third quarter, maybe another 50 bps in fourth quarter.”
Nilesh Dalvi, page 10 of the filed PDF · View the filing
ROA/ROE cross-cycle — ROA around 4.5%, ROE around 18%-20%
stated as an aspiration by Nilesh Dalvi
p. 10
“we have to recoup the profitability and ensure that our cross-cycle returns are in the range of 4.5% and ROEs are around 18%-20%.”
Nilesh Dalvi, page 10 of the filed PDF · View the filing
New borrower additions — average of 1 Lakh borrowers per month
stated as an aspiration by Ganesh Narayanan
p. 3
“we expect this run rate to improve further, adding close to an average of 1 Lakh borrowers per month going forward.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
Stage 1 PCR — 1.63% · next quarter
stated conditionally by Ganesh Narayanan
p. 11
“Probably if nothing materially happens, next quarter also, it could remain here until we get clarity on certain variables that are currently available.”
Ganesh Narayanan, page 11 of the filed PDF · View the filing
Credit cost guidance — 3% to 4% · FY27
stated conditionally by Nilesh Dalvi
p. 11
“And if we believe that we are not seeing any upside risks to the credit cost, then we may end towards the lower end of the credit cost guidance, what we have given for the year.”
Nilesh Dalvi, page 11 of the filed PDF · View the filing
Mortgage internal/external mix — 60% internal, 40% external
stated as an aspiration by Ganesh Narayanan
p. 14
“Yes, 60% of the customers should be internal, that is group loan graduated customers and probably 40% will be open market.”
Ganesh Narayanan, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said conditions currently look positive and they will retain guidance for now, watching one more quarter before any revision.
Answered by Ganesh Narayanan
Asked by Renish: Is there any risk to the current momentum from El Nino or the war that would change guidance?
p. 5
“However, we remain with the guidance today as it is so that we watch one more quarter before we take any further step on the guidance.”
Ganesh Narayanan, page 5 of the filed PDF · View the filing
Management said most products are already profitable except a small 2-wheeler book, and mortgage needs about INR 1,000 Crore in book size to reach full breakeven including HO allocation.
Answered by Ganesh Narayanan
Asked by Renish: How profitable are the new non-MFI products relative to the core MFI business?
p. 6
“Mortgage, we may need something like INR 1,000 Crore to reach a full level breakeven, including HO allocation costs.”
Ganesh Narayanan, page 6 of the filed PDF · View the filing
Management confirmed no stress is visible and no leading indicators point to any buildup.
Answered by Ganesh Narayanan
Asked by Abhijit: Can we conclude nothing negative is being seen on the ground regarding monsoon weakness?
p. 7
“Yes, there's absolutely nothing on the ground. There are also no leading indicators indicate any buildup of additional stress at this point.”
Ganesh Narayanan, page 7 of the filed PDF · View the filing
CFO said the trend is holding well, with new PAR15 accretion around 15-20 bps in recent months, though weather could cause hiccups.
Answered by Nilesh Dalvi
Asked by Abhijit: Will credit costs settle at the current 2.8-2.9% run rate or trend higher over the medium term?
p. 8
“The current trend is still holding well, maybe around 15, 20 bps of new PAR 15 is what we have been seeing in the first 4 months.”
Nilesh Dalvi, page 8 of the filed PDF · View the filing
Management indicated a possible 50 bps cut in Q3 and another 50 bps in Q4, dependent on credit cost trends, with repricing taking 15-18 months to fully flow through.
Answered by Nilesh Dalvi
Asked by Rajiv Mehta: What pricing cuts will be needed in H2 to bring ROE back to guided levels?
p. 10
“So typically, it takes around 15 to 18 months for the assets to reprice.”
Nilesh Dalvi, page 10 of the filed PDF · View the filing
CFO said they will not cap ROA and expect strong profitability this year similar to FY24, with benefits passed to customers if performance sustains.
Answered by Nilesh Dalvi
Asked by Nidhesh: What ROA level is comfortable during the up cycle given the 4-5% guided range?
p. 11
“Yes. So Nidhesh, as I said, we'll not be capping our ROA.”
Nilesh Dalvi, page 11 of the filed PDF · View the filing
Management said branch and employee expansion is already budgeted, an overlay of INR 41 Crore has been made for the West Asia crisis, and more could be added if Q2 weather conditions warrant.
Answered by Ganesh Narayanan
Asked by Abhishek: How is the company using excess profitability - through pricing cuts, overlay provisions, or capacity expansion?
p. 12
“And with respect to overlay, we already have given the overlay of INR 41 Crore for the West Asia crisis.”
Ganesh Narayanan, page 12 of the filed PDF · View the filing
Management said asset quality in both books remains stable and strong, with no significant concerns.
Answered by Ganesh Narayanan
Asked by Sonal: Is there anything to read into individual loan or mortgage book asset quality trends?
p. 13
“Yes, nothing to read on asset quality. It's quite stable and strong.”
Ganesh Narayanan, page 13 of the filed PDF · View the filing
Management said sourcing is entirely through internal employees and customer referrals via the Mahi app, without DSAs or connectors.
Answered by Ganesh Narayanan
Asked by Shreepal Doshi: What sourcing strategy is used for new products like SBL, AHL and 2-wheeler loans?
p. 13
“This is completely sourced by our own employees. We don't use DSA or connectors or any channel for sourcing.”
Ganesh Narayanan, page 13 of the filed PDF · View the filing
Management said attrition is managed through a hire-fresh-and-promote-internally strategy and protecting employee incentives during stress, while KYC risk is mitigated through combining voter ID, PAN and e-KYC.
Answered by Ganesh Narayanan
Asked by Shreepal Doshi: How has the company addressed employee attrition and KYC issues from the last credit cycle?
p. 14
“In fact, in Q1, we closed with attrition of 20.6%, probably one of the lowest.”
Ganesh Narayanan, page 14 of the filed PDF · View the filing
Risks flagged
West Asia crisis impact on liquidity and business, though no impact seen yet
p. 4
“This is particularly important given the ongoing West Asia crisis I want to clarify that to date, we've seen no discernible impact on our business from this development.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Potential El Nino impact on rural cash flows being monitored
p. 4
“Separately, on El Nino and its potential impact on rural cash flows, we've not witnessed any visible impact currently.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Possible fuel shortage from West Asia crisis affecting ECL model variables
p. 11
“if the West Asia crisis results in some additional fuel shortage or etcetera, then we can increase the weightage to that, and that is when it can go up.”
Ganesh Narayanan, page 11 of the filed PDF · View the filing
KYC-related issues persist though not significant
p. 15
“So KYC-related issue will continue to be there, but it is not so significant to speak of, right?”
Ganesh Narayanan, page 15 of the filed PDF · View the filing
Credit cost guidance range reflects uncertainty from West Asia crisis and monsoon
p. 10
“When we gave a 3% to 4% credit cost guidance, obviously, we had 2 cut factors in front of us. One is the West Asia crisis. And secondly, obviously, we had to see how the monsoon is shaping up because there was a lot of news flow on how the monsoon is going to pan out in this year.”
Nilesh Dalvi, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.