CreditAccess Grameen Limited , a leading microfinance institution in India, has reported sequential improvement in its Q2 performance, with profit after tax rising 109% quarter-on-quarter to ₹125.8 crore. The company's financial results reveal a mixed performance, showing growth in some areas while facing challenges in others.

Key Financial Highlights

• Profit Growth: The company's profit after tax increased significantly on a quarter-on-quarter basis, reaching ₹125.8 crore.

• Loan Portfolio: The Gross Loan Portfolio (GLP) stood at ₹25,904.00 crore as of the end of Q2, showing a 3.1% year-over-year growth.

• Disbursements: CreditAccess Grameen reported disbursements of ₹5,322.00 crore in Q2, a 32.9% increase compared to the same quarter last year.

• Asset Quality: The company showed signs of stabilizing asset quality, with Portfolio at Risk (PAR) 0+ declining from 5.9% to 4.7% quarter-on-quarter. The Gross Non-Performing Assets (GNPA) ratio improved to 3.65%.

Operational Performance

CreditAccess Grameen demonstrated resilience in its operational metrics:

• New Borrowers: The company added 2.20 lakh new borrowers, with 39% being new-to-credit customers.

• Unique Borrowers: The portfolio share of unique borrowers increased to 41% from 36% in the previous quarter.

• Liquidity and Capital Adequacy: The company maintained liquidity of ₹2,175.50 crore and a capital adequacy ratio of 26.1%.

Financial Management

• Credit Cost: Credit cost declined sequentially to ₹525.70 crore, despite accelerated write-offs of ₹682.90 crore during the quarter.

Management Changes

• Mr. Manoj Kumar was appointed as Chairman of the Board.

Outlook

While the company faces ongoing challenges, it maintains a positive outlook based on:

• Gradual stabilization in asset quality
• Strong business momentum in disbursements
• Focus on new borrower additions, particularly new-to-credit customers
• Maintained liquidity and capital adequacy

CreditAccess Grameen's Q2 results reflect the company's efforts to navigate the challenges in the microfinance sector while focusing on growth and asset quality improvement. The sequential improvement in profit and stabilizing asset quality are positive signs, but the company will need to continue balancing growth with prudent financial management in the coming quarters.

CreditAccess Grameen Limited , a leading microfinance institution, has announced strong disbursement growth for the second quarter of fiscal year 2026 (Q2 FY26), demonstrating resilience in a seasonally weaker quarter.

Key Highlights

• 33% year-over-year growth in disbursements for Q2 FY26
• 27% year-over-year growth in disbursements for H1 FY26
• 150 new branches opened in H1 FY26, including 96 in Q2
• Approximately 4.4 lakh new borrowers added in H1 FY26, with 2.2 lakh in Q2

Disbursement and Portfolio Performance

CreditAccess Grameen has shown impressive growth in its disbursements despite Q2 typically being a seasonally weaker period. The company's disbursements grew by approximately 33% year-over-year in Q2 FY26, while the first half of FY26 saw a 27% year-over-year increase.

The company's Gross Loan Portfolio (GLP) stood at ₹25,904.00 crore as of September 2025, slightly lower than the ₹26,055.00 crore reported in June 2025. This marginal decrease can be attributed to the impact of ₹683.00 crore in write-offs, including accelerated write-offs, during Q2 FY26.

Expansion and Customer Base

CreditAccess Grameen continued its expansion strategy, opening 150 new branches in the first half of FY26, with 96 of these branches established in Q2 alone. This expansion has helped the company reach more customers, resulting in the addition of approximately 4.4 lakh new borrowers in H1 FY26, including 2.2 lakh new borrowers in Q2.

Asset Quality

The company reported improvements in its asset quality metrics:

The Portfolio at Risk (PAR) figures show a declining trend across all categories, indicating an improvement in overall asset quality. However, the company noted that PAR 15+ accretion rate remained range-bound due to the temporary impact of heavy rains and floods across its operating geographies. The management expects this metric to improve in the coming months.

State-wise Performance

Karnataka, the company's largest market, showed significant improvement in asset quality:

Other key states like Maharashtra, Tamil Nadu, Madhya Pradesh, and Bihar also showed varying degrees of improvement in their PAR ratios.

Conclusion

CreditAccess Grameen's strong disbursement growth in Q2 FY26, coupled with its expanding branch network and improving asset quality, demonstrates the company's resilience and growth potential in the microfinance sector. The management's focus on geographical expansion and customer acquisition appears to be yielding positive results, setting a solid foundation for future growth.

Investors and market watchers will likely keep a close eye on how the company manages its growth trajectory while maintaining asset quality in the face of environmental challenges such as heavy rains and floods in its operating areas.