Microfinance Institutions (MFIs) experienced a rebound in Q4FY26, marked by an increase in lending, enhanced asset quality, and positive outlook for FY27. Leading the pack is CreditAccess Grameen with a significant 28% year-on-year growth. The sector's success can be attributed to tighter regulations and structured methods.
CREDITACCESS GRAMEEN LIMITED
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CreditAccess Grameen's assets under management (AUM) increased by 14% year-over-year (YoY) in Q4 FY26, reaching ₹29,590 crore. Notably, the quarterly profit after tax (PAT) skyrocketed by an impressive 619% YoY to ₹340 crore. For the entire FY26, PAT showed a robust growth of 46% YoY, amounting to ₹778 crore.
CreditAccess Grameen saw a substantial increase in Q4 profits, nearly doubling compared to the previous period. This surge was accompanied by a 14% growth in Assets Under Management (AUM) and a 20% boost in Net Interest Income (NII), signaling strong financial performance.
CreditAccess Grameen's Q4 net profit surged to ₹3.4 billion, a notable increase compared to last year. A substantial 13% rise in revenue was also recorded, with Q4 figures reaching ₹15.97 billion.
CreditAccess Grameen's fourth-quarter report shows an improvement in potential loan issues, with the Stage 3 gross percentage decreasing from 4.04% to 3.17%. The net Stage 3 also improved, dropping from 1.36% to 1.12%, suggesting enhanced credit quality overall.
CreditAccess Grameen experienced a significant 10% jump in trading today, bucking the Nifty's 0.66% decline to reach an intraday high of ₹1,463.8 on the NSE. This surge follows a 24% year-on-year increase in FY26 disbursements. Analysts are optimistic about continued momentum but caution that profit booking may occur near the resistance level of ₹1,490.
CreditAccess Grameen executed a significant block trade on the NSE, valued at around INR 20.8 crore, with each share trading at INR 1,256.5. This indicates substantial investor interest in the company.
The shares of Gallantt Ispat, CreditAccess Grameen, Shyam Metalics, and GCPL have increased following Q4 updates, with Gallantt seeing a jump of 13%. CreditAccess reports a 28% increase in disbursements, Shyam Metalics' steel sales are up by 59%, while GCPL anticipates a potential margin decline.
CreditAccess shares experience a significant boost, climbing over 9%, following the release of their Q4 updates, suggesting optimistic sentiments among investors about the company's quarterly performance.
CreditAccess Grameen's lending platform (GLP) saw a 14% year-on-year growth in Q4 FY26, reaching ₹29,590 crores. Notably, disbursements rose by 28% quarter-on-quarter to ₹8,313 crores, and the PAR 90 score improved to 2.3%, indicating a healthier loan portfolio.