India · Delayed Price · Currency is INR CreditAccess Grameen Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY 2026 saw robust AUM and disbursement growth, margin expansion, and strong digital adoption. FY 2027 guidance targets 20%-25% AUM growth, with retail finance expected to reach 24%-25% of AUM. Credit cost guidance widened due to macro risks and new ECL provisioning.
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Q3 FY26 saw strong asset quality normalization, 13.4% YoY disbursement growth, and improved profitability, with retail finance now 14.1% of AUM. FY27 targets 20%+ AUM growth, stable margins, and lower credit costs if PAR trends hold.
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Q2 FY 2026 saw strong disbursement growth, improved asset quality, and a rising retail finance share. Credit costs are elevated due to delayed PAR improvement and ECL updates, but management expects robust H2 growth and ROA recovery in FY 2027.
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Q1 FY 2026 saw record disbursements, improved asset quality, and stable margins, despite elevated credit costs from accelerated write-offs. Retail finance grew to 6.8% of the book, with guidance for 12%-15% by 2028. Outlook remains positive with sector stabilization and robust H2 profitability expected.
Fiscal Year 2025
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FY25 saw significant regulatory and operational challenges, especially in Karnataka, leading to elevated credit costs and accelerated write-offs, but borrower resilience and strong liquidity supported stability. Retail finance expanded, and guidance for FY26 targets improved growth, asset quality, and profitability.
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Delinquency trends have reversed since mid-November, with collection efficiency above 99% in recent months and AUM returning to growth. Accelerated write-offs and strong provisioning have stabilized asset quality, while FY25 guidance remains on track and FY26 outlook is optimistic.
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AUM grew 11.8% YOY to INR 25,133 crore, with net interest income up 20.8% and NIM at 13.5%. Delinquencies rose due to environmental and industry factors, but stabilization is expected in Q3 FY25. FY25 guidance: 8-12% loan growth, 4.5-5% credit cost, and 12-14% ROE.
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AUM grew 20.6% year-over-year to INR 26,000 crore, with strong profitability and stable asset quality despite election-related disruptions. Credit cost guidance and growth targets for FY2025 are maintained, supported by granular risk management and industry-wide regulatory measures.