CreditAccess Grameen reports strong Q2 FY26 performance, expanding reach

CreditAccess Grameen reported a 32.9% year-over-year increase in Q2 FY26 disbursements, reaching Rs. 5,322 crore. The company added approximately 4.4 lakh new borrowers in H1 FY26, with 2.2 lakh added in Q2 FY26. It expanded its reach by opening 150 branches in H1 FY26, including 96 in Q2 FY26, bringing the total branch count to 2,209. The Retail Finance (RF) portfolio now constitutes 11.1% of the AUM as of Q2 FY26, up from 6.8% in Q1 FY26.

The company's net interest income grew 4.2% quarter-on-quarter to Rs. 976 crore, with a portfolio yield of 20.7% and an interest spread of 11.1%. The average cost of borrowings continued its downward trajectory, declining 11 bps to 9.6% by the end of Q2 FY26. CreditAccess Grameen delivered a Profit After Tax (PAT) of Rs. 126 crore in Q2 FY26, resulting in a Return on Assets (ROA) of 1.8% and Return on Equity (ROE) of 7.1%.

CreditAccess Grameen undertook write-offs of Rs. 683 crore in Q2 FY26, including an accelerated write-off of Rs. 554.7 crore related to 180+ DPD non-paying accounts, leading to an additional credit cost of Rs. 172 crore for the quarter. The company expects the overall credit cost to potentially range between 4-4.5% in FY27, including a one-time ECL rate revision of 70-80 bps.