CreditAccess Grameen Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript CreditAccess Grameen Ltd filed with BSE on 13 May 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 Q4 FY26 AUM growth of 14.0% YoY and 11.4% QoQ, with disbursements of INR 8,313 Crore in the quarter and INR 24,859 Crore for the full year. PAT for Q4 grew over 6x YoY to INR 340 Crore, translating to an ROA of 4.4% and ROE of 17.8%, while full-year credit cost came in at 6.74% against a guidance of 5.5% to 6.0%. Management outlined FY27 guidance across AUM growth, NIM, cost-to-income, credit cost, ROA and ROE, and described a multi-year strategy called Project Shakti to expand beyond microfinance into individual loans, mortgages and two-wheeler financing.
Numbers mentioned
AUM growth: 14.0% YoY and 11.4% QoQ (Q4 FY26)
p. 3
“The AUM grew 14.0% YoY and 11.4% QoQ, in line with the annual growth guidance, despite 7.6% write-offs made in FY26.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
Disbursement: INR 8,313 Crore (Q4 FY26)
p. 3
“Disbursement in Q4 grew 28.4% YoY, and 44.1% QoQ to INR 8,313 Crore, while the full year disbursements came in at INR 24,859 Crore, up to 24.1%.”
Ganesh Narayanan, page 3 of the filed PDF · View the filing
NIM: 14.2% (Q4 FY26)
p. 4
“NIMs expanded by 35 bps QoQ to 14.2% in Q4.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Cost of borrowing: 9.2% (Q4 FY26)
p. 4
“Cost of borrowing further declined to 9.2% in Q4, marking a total 60 bps reduction during the year.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Cost-to-income ratio: 30.4% (Q4 FY26)
p. 4
“Cost-to-income ratio improved QoQ to 30.4%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
PPOP: INR 780 Crore (Q4 FY26)
p. 4
“PPOP grew 23.1% YoY and 14.7% QoQ to INR 780 Crore in Q4, while PAT grew over 6x YoY and 34.7% QoQ to INR 340 Crore, translating to an ROA of 4.4% and an ROE of 17.8%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Gross NPA: 3.17% (Q4 FY26)
p. 4
“Gross NPA predominantly at 60 DPD, stood at 3.17%, net NPA at 1.12% and PAR 90 at 2.28%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Capital adequacy: 24.4% (Q4 FY26)
p. 4
“Our balance sheet is strong with capital adequacy at 24.4%, total equity at INR 7,842 Crore and a debt equity ratio at a conservative 3.0x.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Full year PPOP: INR 2,809 Crore (FY26)
p. 4
“Considering the full year performance, our PPOP of INR 2,809 Crore grew 6.5% YoY.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Full year PAT: INR 778 Crore (FY26)
p. 4
“We ended the year with INR 778 Crore PAT, translating to ROA of 2.7% and ROE of 10.7%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Credit cost: 6.74% (FY26)
p. 4
“While our PPOP was in line with the budget, our credit cost ended at 6.74% as against the guidance of 5.5% to 6.0%.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Additional ECL provisioning due to West Asia crisis: INR 39 Crore (Q4 FY26)
p. 4
“Considering the ongoing West Asia crisis, the new ECL model has incorporated a higher weightage for major external event scenario resulting in an additional provisioning of INR 39 Crore in Q4.”
Ganesh Narayanan, page 4 of the filed PDF · View the filing
Retail finance share of AUM: 18.1% (March 2026)
p. 3
“The share of retail finance increased to 18.1% as of March 2026, up from 5.9% a year ago.”
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 growth — 20.0-25.0% · FY27
stated firmly by Ganesh Narayanan
p. 6
“For FY27, we are guiding an AUM growth of 20.0-25.0%, NIM of 12.8-13.2%, cost to income of 33.0-35.0%, credit cost of 3.0-4.0%, ROA of 4.0-4.8%, and an ROE of 16.0-20.0%.”
Ganesh Narayanan, page 6 of the filed PDF · View the filing
NIM — 12.8-13.2% · FY27
stated firmly by Ganesh Narayanan
p. 6
“For FY27, we are guiding an AUM growth of 20.0-25.0%, NIM of 12.8-13.2%, cost to income of 33.0-35.0%, credit cost of 3.0-4.0%, ROA of 4.0-4.8%, and an ROE of 16.0-20.0%.”
Ganesh Narayanan, page 6 of the filed PDF · View the filing
Credit cost — 3.0-4.0% · FY27
stated firmly by Ganesh Narayanan
p. 6
“For FY27, we are guiding an AUM growth of 20.0-25.0%, NIM of 12.8-13.2%, cost to income of 33.0-35.0%, credit cost of 3.0-4.0%, ROA of 4.0-4.8%, and an ROE of 16.0-20.0%.”
Ganesh Narayanan, page 6 of the filed PDF · View the filing
MFI portfolio growth — 10-12% · FY27
stated firmly by Ganesh Narayanan
p. 11
“So our assumption is around 10-12%.”
Ganesh Narayanan, page 11 of the filed PDF · View the filing
Retail finance share of AUM — 24-25% · FY27 end
stated as an aspiration by Ganesh Narayanan
p. 10
“It should hit somewhere around 24-25%.”
Ganesh Narayanan, page 10 of the filed PDF · View the filing
AUM CAGR — at least 20% plus · next 10 years
stated as an aspiration by Ganesh Narayanan
p. 12
“Yes. Right now, we've assumed a growth rate of at least 20% plus.”
Ganesh Narayanan, page 12 of the filed PDF · View the filing
MFI growth rate near term — near term
stated firmly by Ganesh Narayanan
p. 16
“It will be range-bound, like we guided. It should not change much in the near term.”
Ganesh Narayanan, page 16 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 the new ECL model incorporates forward-looking global risk factors and that they kept a wider range to accommodate evolving externalities while current PAR accretion trends remain stable.
Answered by Nilesh Dalvi
Asked by Abhijit Tibrewal: Why is the credit cost guidance band so wide, and how much relates to higher ECL provisioning?
p. 7
“The broader range, what we have picked from 3.0-4.0%, it is primarily to take into account all these evolving externalities, because we need to see how, what is going to be the actual fallout of the global issues.”
Nilesh Dalvi, page 7 of the filed PDF · View the filing
Management said cost of borrowing has likely bottomed and any movement gets priced into the model, and that the wider credit cost range accounts for normalization from an elevated period plus potential external shocks.
Answered by Ganesh Narayanan
Asked by Aravind R.: Does the guidance factor in bond market rate volatility, and is the credit cost guidance conservative given lower PAR accretion?
p. 9
“So the model takes care of it predominantly. But what we see is that, so far, we've had a very strong cost of borrowing reduction. And I think now we've reached kind of the bottom.”
Ganesh Narayanan, page 9 of the filed PDF · View the filing
Management said an ECL committee reviews variables quarterly and that the 1.63% rate would broadly remain range-bound unless data supports reduction.
Answered by Ganesh Narayanan
Asked by Rajiv Mehta: Will the additional West Asia crisis provisioning become a permanent higher ECL rate?
p. 11
“Broadly, you should expect that it will be range-bound. It will remain there.”
Ganesh Narayanan, page 11 of the filed PDF · View the filing
Nilesh Dalvi explained that as credit costs decline, some benefit is expected to be passed to customers via pricing, and that borrowing cost is expected to be range-bound with some buffer kept for rate volatility.
Answered by Nilesh Dalvi
Asked by Rajiv Mehta: Why is the NIM guidance lower than the Q4 exit NIM?
p. 11
“So from that perspective, if we are able to do a better credit cost this year, compared to FY26, obviously, some of it will flow as a benefit to the customer.”
Nilesh Dalvi, page 11 of the filed PDF · View the filing
Management said the regulatory threshold has moved up over time and that they could manage the mix via securitization, portfolio sale, co-lending or inorganic diversification if needed.
Answered by Ganesh Narayanan
Asked by Shreya Shivani: Does the NBFC-MFI 60-40 mix regulation constrain the long-term 20%+ CAGR target given MFI must grow at similar pace?
p. 13
“Or in the worst case, we can look at managing the 60-40 in various methods, including securitization, sale of portfolio, whatever you deem it.”
Ganesh Narayanan, page 13 of the filed PDF · View the filing
Management said MFI would grow 10-12% and the rest from non-MFI, with yields close between the two segments except for home loans.
Answered by Ganesh Narayanan
Asked by Chintan Shah: What portion of AUM growth guidance comes from MFI versus non-MFI, and what is the yield differential?
p. 15
“Chintan, as we said earlier, the microfinance growth being in the range of 10-12% and the rest of the growth will come from the non-MFI.”
Ganesh Narayanan, page 15 of the filed PDF · View the filing
Nilesh Dalvi said all retail products except mortgage are already profitable at the product level, with mortgage expected to break even once the book reaches INR 800-1,000 Crore.
Answered by Nilesh Dalvi
Asked by Shreepal Doshi: When will each retail product become profitable at a standalone level?
p. 16
“For mortgage loan products, the standalone retail finance branches, we should see them achieving breakeven as we near maybe INR 800 Crore to INR 1,000 Crore of mortgage book from the retail finance branches.”
Nilesh Dalvi, page 16 of the filed PDF · View the filing
Risks flagged
Potential prolonged disruption from the West Asia geopolitical crisis affecting customer resilience
p. 8
“But say, for example, if there is no supply of fuel or gas for months, then what happens?”
Ganesh Narayanan, page 8 of the filed PDF · View the filing
Global issues potentially causing inflationary cost pressures affecting cost-to-income ratio
p. 12
“So we have built certain inflationary elements because of the global issues.”
Nilesh Dalvi, page 12 of the filed PDF · View the filing
Volatility in domestic and international borrowing rate environment
p. 12
“Depending upon the rate environment, we are keeping certain buffer on the borrowing cost as well because even, the domestic rate environment seems to have been reversing now in the coming 3 to 4 quarters.”
Nilesh Dalvi, page 12 of the filed PDF · View the filing
FY26 credit cost exceeded guidance due to new PAR and higher ECL provisioning rates
p. 4
“The 6.74% credit cost consisted of 6.10% due to new PAR and 0.64% due to increase in ECL provisioning rates.”
Ganesh Narayanan, page 4 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.