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Earnings Call Transcript

CreditAccess Grameen Earnings Call Transcript: Key Takeaways

CreditAccess Grameen (CAG) delivered a resilient FY26 despite persistent macroeconomic challenges, achieving 14% AUM growth. However, profits were dampened by conservative provisioning linked to the West Asia crisis and a new ECL model.

Guidance and delivery
Management target Revenue 25.0% FY27
Highlights
Revenue growthAUM grew 14% YoY; disbursements up 24.1% YoY to 24,859 Cr.
MarginsNIMs improved by 35 bps QoQ to 14.2% in Q4 FY26.
Demand visibilityStrong rural demand; targeting 23.5 Cr low-income households by 2030.
Management confidenceBalanced; transparent about credit cost misses and external macro risks.

Growth

AUM grew 14% YoY; disbursements reached 24,859 Cr, up 24.1% YoY. Retail finance share expanded to 18.1%.

Outlook

FY27 guidance targets 20-25% AUM growth, 12.8-13% NIM, and 16-20% ROE.

Risks

Higher credit costs (6.74%) vs 6.0% upper guidance; West Asia crisis risks triggered extra provisioning.

Last quarter's promises, checked

Delivered

  • AUM growth guidance 14% → delivered 14% (= BEAT)
  • PPOP guidance INR 2,800 Cr → delivered INR 2,809 Cr (= BEAT)
  • Liability diversification (foreign share) 21% → delivered 24.4% (= BEAT)

Missed

  • Credit cost guidance 5.5-6.0% → delivered 6.74% (= MISS)
  • ROA guidance lower end 2.9% → delivered 2.7% (= MISS)
  • ROE guidance lower end 11.8% → delivered 10.7% (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: CREDITACC. Summary written with AI assistance from the document.

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CreditAccess Grameen Ltd: key numbers

Share price
₹1,298.80
Market cap
₹20,848 Cr
Revenue (annual)
₹6,059 Cr
Net profit (annual)
₹777.6 Cr
P/E (TTM)
17.2×Sector 22.0×
Promoter holding
66.21%-0.03% QoQ
FII holding
13.48%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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