CreditAccess Grameen Q2 FY27 Results Analysis: PPOP Surges 39.6%, GNPA Hits Multi-Quarter Low

CreditAccess Grameen Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,903.74 Cr (+26.20% YoY) and PAT growth of +298.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q2 FY27 delivered 26.2% YoY revenue growth with PPOP up 39.6% YoY and cost-to-income at 28.23%, well inside the guided 33-35% band. Asset quality continued a five-quarter improvement with GNPA at 1.79% and NNPA at 0.59%, both multi-quarter lows, while CRAR strengthened to 26.9%. Watch items are the QoQ rise in impairment (+40.8%) from monsoon-driven PAR accretion and the QoQ PAT plateau at ~Rs.500 Cr.

Key Investment Insights

Key Positives

• Revenue from operations grew 26.2% YoY to Rs.1,903.74 Cr, with interest income up 27.4% YoY
• NII grew 33.5% YoY to Rs.1,247.60 Cr as finance costs rose only 15.4% YoY
• PPOP grew 39.6% YoY to Rs.970.18 Cr with PPOP margin expanding to 50.96% from 46.07% YoY
• PAT grew 298.7% YoY to Rs.501.57 Cr (Q2FY26 base of Rs.125.81 Cr was depressed by elevated impairment)
• GNPA improved to 1.79% (from 3.65% YoY, 2.18% QoQ); NNPA to 0.59% (from 1.26% YoY)
• Cost-to-income improved to 28.23% from 32.51% YoY, inside the guided 33-35% band
• CRAR at 26.90% (up from 24.4% at FY26-end), LCR at 218.65%, PCR at 67.55%
• Loans book grew 21.5% YoY to Rs.29,293.77 Cr; AUM +19.5% YoY to Rs.30,946 Cr

Risk Factors

• Impairment rose 40.8% QoQ to Rs.299.23 Cr with non-annualized credit cost at 1.02% vs 0.76% in Q1, on seasonal PAR accretion from excess rainfall in Bihar, UP, Chhattisgarh and MP
• Monthly PAR accretion rose to 0.26% in Sep-26 from 0.21% in Aug-26
• PAT grew only 1.7% QoQ, indicating earnings plateauing at ~Rs.500 Cr/quarter as operating leverage plays out
• Promoter holding reduced 2.28% via open-market sale in August 2026
• 73,313 accounts with Rs.178.60 Cr exposure under resolution plan implementation