CreditAccess Grameen profit surges, but operating margin slips sequentially
Year-on-year profit growth benefited from a 21.1-point margin expansion, while quarterly costs grew faster than revenue.
Filed 22 Oct 2026, 17:36 IST · after market close · CreditAccess Grameen Ltd (CREDITACC)
Key takeaways
- Consolidated net profit rose 298.67% year on year to Rs 501.57 cr, driven by an 86.74% increase in operating profit.
- Operating margin fell 3.6 percentage points sequentially as expenses grew 19.0% against 6.74% revenue growth, ending a four-quarter improvement streak.
- Asset quality returned to pre-crisis levels, which management said was its best position in the last 10 quarters.
Price around the results
Profit growth was led by operating leverage
CreditAccess Grameen reported consolidated net profit growth of 298.67% year on year in Q2FY27, as operating profit rose 86.74%. Revenue increased 26.21%, while expenses declined 21.36%, producing a 21.1 percentage-point expansion in operating margin. Interest expense still rose 15.33%, but other income contributed only 0.16% of pre-tax profit, so the result was not materially dependent on non-operating income.
Sequential margin pressure followed faster cost growth
Quarter on quarter, revenue grew 6.74% but expenses increased 19.0%, narrowing operating margin by 3.6 percentage points to 65.11%. Interest expense rose only 0.54% and the tax rate was almost unchanged, down 0.01 percentage points, so the main pressure came above the operating-profit line. The margin had increased in each of the previous four quarters, making Q2FY27 the first sequential decline in that run.
Margin stayed just above the sector median
The company's 65.11% operating margin was 0.61 percentage points above the 64.5% median for the 19 Financial Services peers that had reported the quarter. Management said operating costs remained under control despite inflationary trends. It also said FY27 guidance includes 20.0%-25.0% AUM growth, 14.4%-14.7% NIM and 3.0%-4.0% credit cost.
Newer lending channels and asset quality were highlighted
Management said the 2W loan book crossed INR 60 Cr in Q2FY27, versus INR 20 Cr in Q1. It also said asset quality had returned to pre-crisis levels and was the best in the last 10 quarters. The presentation said the company is streamlining its field app, using BRE and granular policies for underwriting, and expanding engagement through Grameen Mahi, digital payments, WhatsApp and tele-calling.
Results were filed after market close
The results were filed after market close, so there was no market reaction to assess yet. Across the stock's last eight result reactions, four were positive and four negative, with a median absolute move of 4.97%, indicating a mixed historical response rather than a consistent direction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,904 cr | ₹1,783 cr | +6.74% | +26.21% |
| Other income | ₹1 cr | ₹1 cr | +15.22% | +58.21% |
| Expenses | ₹664 cr | ₹558 cr | +19.00% | -21.36% |
| Operating profit | ₹1,240 cr | ₹1,225 cr | +1.16% | +86.74% |
| Operating margin (%) | 65.11% | 68.71% | — | — |
| Interest | ₹553 cr | ₹550 cr | +0.54% | +15.33% |
| Depreciation | ₹17 cr | ₹16 cr | +2.78% | +5.44% |
| Profit before tax | ₹671 cr | ₹660 cr | +1.65% | +296.64% |
| Tax | ₹169 cr | ₹167 cr | +1.64% | +290.73% |
| Net profit | ₹502 cr | ₹493 cr | +1.66% | +298.67% |
| EPS (₹) | ₹31.27 | ₹30.79 | +1.56% | +297.33% |
Operating margin of 65.11% compares with a Financial Services sector median of 64.50% across 19 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.28% | -4.90% |
Volume on the results session was 13.56× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The 2W loan book crossed INR 60 Cr in Q2 FY27 versus INR 20 Cr in Q1.
- Asset quality returned to pre-crisis levels and was the best in the last 10 quarters.
Guidance & outlook
- FY27 AUM growth guidance is 20.0%–25.0%.
- FY27 NIM guidance is 14.4%–14.7%.
- FY27 credit cost guidance is 3.0%–4.0%.
- FY27 ROA guidance is 5.2%–5.8% and ROE guidance is 21.0%–24.0%.
- FY27 cost-to-income guidance is 29.0%–30.0%.
New initiatives
- The company is streamlining its field app to reduce friction and improve operational capabilities.
- The company is using BRE and granular policy implementation for efficient underwriting.
- The company is using the Grameen Mahi app, digital payments, WhatsApp and tele-calling for multichannel engagement.
Problems & risks
- The company is operating amid an industry crisis during FY25 and FY26.
- The company says operating costs remained under control despite inflationary trends.
What to watch
- Whether operating margin recovers from 65.11% after the 3.6-point sequential decline.
- Whether the 2W loan book builds on the INR 60 Cr reported for Q2FY27.
- Whether reported cost-to-income stays within management's FY27 guidance of 29.0%-30.0%.