CreditAccess Grameen's margin reaches 58.69% as expenses fall 23.60% YoY
Consolidated profit rose 619.23% YoY, while the stock fell 13.24% five sessions after results—well below its usual reaction.
Filed 08 May 2026, 17:46 IST · after market close · CreditAccess Grameen Ltd (CREDITACC)
Key takeaways
- Consolidated net profit rose 619.23% YoY as revenue grew 13.55% while expenses fell 23.60%, although the tax rate increased 16.12 percentage points.
- Operating margin expanded 4.16 percentage points QoQ to 58.69% as revenue rose 7.17% and expenses declined 2.63%.
- The stock fell 13.24% five sessions after the results, a weaker reaction than its 4.97% median absolute move after the past eight results.
Price around the results
Profit growth was led by lower operating costs
Consolidated revenue rose 13.55% YoY and 7.17% QoQ, while operating profit increased 72.66% YoY and 15.34% QoQ. Expenses fell 23.60% YoY and 2.63% QoQ, allowing operating profit to grow much faster than revenue. Profit before tax rose 771.18% YoY and 31.69% QoQ.
Margin expansion was operational, not other-income driven
Operating margin widened 20.09 percentage points YoY and 4.16 percentage points QoQ because expenses declined even as revenue increased. Interest expense was almost unchanged YoY, rising 0.06%, but increased 4.07% QoQ. Other income contributed only 0.29% of pre-tax profit, so it did not materially support earnings quality; the QoQ tax-rate reduction of 1.70 percentage points helped net profit, while the YoY tax rate was 16.12 percentage points higher.
Operating margin has risen for five straight quarters
The operating margin climbed from 26.07% in Q3FY25 to 38.60% in Q4FY25, 39.49% in Q1FY26, 44.01% in Q2FY26, 54.53% in Q3FY26 and 58.69% in Q4FY26. Against 52 Financial Services peers that have reported, the company's margin was 0.72 percentage points below the 59.41% median.
Management linked the quarter to recovery efforts and process changes
The presentation said the company had navigated an industry crisis during FY25 and FY26. It reported AUM of Rs 29,590 cr in Q4FY26. Management said it is streamlining the field app to reduce friction and improve operational capabilities.
The market reaction was weaker than CreditAccess Grameen's usual post-result move
The stock fell 1.08% on the reaction day and 7.09% on the following session, with the decline reaching 13.24% after five sessions. Across the past eight results, reactions were evenly split between four rises and four falls, with a median absolute move of 4.97%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,597 cr | ₹1,490 cr | +7.17% | +13.55% |
| Other income | ₹1 cr | ₹1 cr | +45.56% | +21.30% |
| Expenses | ₹660 cr | ₹678 cr | -2.63% | -23.60% |
| Operating profit | ₹937 cr | ₹813 cr | +15.34% | +72.66% |
| Operating margin (%) | 58.69% | 54.53% | — | — |
| Interest | ₹478 cr | ₹459 cr | +4.07% | +0.06% |
| Depreciation | ₹16 cr | ₹16 cr | -4.21% | +3.50% |
| Profit before tax | ₹445 cr | ₹338 cr | +31.69% | +771.18% |
| Tax | ₹105 cr | ₹86 cr | +22.86% | +2624.81% |
| Net profit | ₹340 cr | ₹252 cr | +34.69% | +619.23% |
| EPS (₹) | ₹21.20 | ₹15.76 | +34.52% | +616.22% |
Operating margin of 58.69% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.08% | +0.41% |
| Next session | -7.09% | — |
| 5 sessions | -13.24% | -11.06% |
| 15 sessions | -12.13% | — |
| 30 sessions | -8.43% | — |
Volume on the results session was 1.39× 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
- AUM reached INR 29,590 crore in Q4 FY26.
New initiatives
- The company is streamlining its field app to reduce friction and enhance operational capabilities.
Problems & risks
- The company described FY25 and FY26 as an industry crisis.
What to watch
- Whether operating margin holds above 58.69%.
- Whether expenses remain below Rs 659.84 cr as revenue continues to grow.
- Whether AUM moves above Rs 29,590 cr after the field-app changes management described.