CreditAccess Grameen margin rises as Q1FY27 profit jumps 719.72% YoY
Revenue grew 21.92% YoY faster than expenses, while other income contributed only 0.14% of pre-tax profit.
Filed 24 Jul 2026, 18:01 IST · after market close · CreditAccess Grameen Ltd (CREDITACC)
Key takeaways
- Consolidated net profit rose 719.72% YoY to Rs 493.39 cr, helped by the low Q1FY26 base.
- Revenue grew 21.92% YoY while expenses grew 10.30%, lifting operating margin by 2.13 percentage points to 79.74%.
- Operating margin was 7.52 percentage points above the 72.22% median for 22 Financial Services peers that had reported.
Price around the results
Revenue growth translated into wider margins
Consolidated revenue rose 21.92% YoY and 11.66% QoQ, while expenses grew 10.30% YoY and 6.54% QoQ. That cost discipline lifted operating margin by 2.13 percentage points YoY and 0.97 percentage points QoQ to 79.74%. Interest expense still rose 14.08% YoY and 15.06% QoQ, but grew slower than revenue on a yearly basis.
Profit growth was amplified by a low base, not other income
Net profit increased 719.72% YoY to Rs 493.39 cr, against Q1FY26 profit before tax of Rs 81.12 cr, and rose 45.31% QoQ. The tax rate declined 0.55 percentage points YoY, providing a modest lift, while other income was only 0.14% of pre-tax profit. Operating margin has recovered from 76.45% in Q3FY26 to 79.74% in Q1FY27 after reaching 78.77% in the previous quarter.
Margin remained ahead of reported financial-services peers
CreditAccess Grameen's 79.74% operating margin was 7.52 percentage points above the 72.22% median among 22 Financial Services peers that had reported the quarter. The sequential margin improvement came despite a 1.55-percentage-point rise in the tax rate and a 15.06% increase in interest expense.
AUM and branch expansion continued through the industry crisis
The company said AUM reached Rs 30,319 cr in Q1FY27 and its branch network reached 2,209. Management said it is streamlining the field app to reduce operational friction and deploying a quality-control team for targeted collections support across geographies. It also said funding requirements are being addressed through foreign and long-term sources, with public NCDs and diversified products planned over the medium term.
Market response is still pending
The results were filed after market close, so there was no immediate market reaction to assess. Across eight previous result reactions, the stock rose three times and fell five times, with a median absolute move of 4.97%, indicating that post-results moves have usually been material and more often negative.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,783 cr | ₹1,597 cr | +11.66% | +21.92% |
| Other income | ₹1 cr | ₹1 cr | -29.77% | +24.32% |
| Expenses | ₹361 cr | ₹339 cr | +6.54% | +10.30% |
| Operating profit | ₹1,422 cr | ₹1,258 cr | +13.04% | +25.27% |
| Operating margin (%) | 79.74% | 78.77% | — | — |
| Interest | ₹550 cr | ₹478 cr | +15.06% | +14.08% |
| Depreciation | ₹16 cr | ₹16 cr | +3.31% | +6.50% |
| Profit before tax | ₹660 cr | ₹445 cr | +48.32% | +713.65% |
| Tax | ₹167 cr | ₹105 cr | +58.03% | +696.18% |
| Net profit | ₹493 cr | ₹340 cr | +45.31% | +719.72% |
| EPS (₹) | ₹30.79 | ₹21.20 | +45.24% | +716.71% |
Operating margin of 79.74% compares with a Financial Services sector median of 72.22% across 22 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- AUM reached INR 30,319 crore in Q1 FY27.
- The branch network reached 2,209 branches in Q1 FY27.
Guidance & outlook
- The company targets meeting funding requirements through foreign and long-term sources.
- The company plans to use public NCDs over the medium term with diversified products.
New initiatives
- The company is streamlining its field app to reduce friction and enhance operational capabilities.
- The company is deploying a quality control team for targeted collections support across geographies.
Problems & risks
- The company operated amid an industry crisis during FY25 and FY26.
What to watch
- Whether operating margin holds above 79.74% after its 0.97-percentage-point QoQ improvement.
- Whether interest expense growth moderates from 15.06% QoQ as revenue growth remains at 11.66%.
- Whether AUM progresses from Rs 30,319 cr and the branch network from 2,209 in the next quarter.