The shares of this NBFC-Microfinance Institution, is in the spotlight after reporting a strong Q1FY26 update. Following the robust performance, the company’s stock surged by 9%, reflecting positive investor sentiment.
With a market capitalization of Rs. 21,250 crore, the shares of CreditAccess Grameen Ltd was trading at Rs. 1,323.30 per share, up 6.63% from its previous close of Rs. 1,241. The stock touched today’s high of Rs. 1,354.80, reflecting a strong market response following its robust Q1FY26 results.
Q1FY26 Update
CreditAccess Grameen (CAGL) kicked off FY26 on a strong note, recording its highest-ever first-quarter disbursements. During the quarter, the company added nearly 2 lakh new borrowers, signaling sustained demand and successful geographic expansion of its lending operations. On a sequential basis, its Gross Loan Portfolio (GLP), excluding write-offs, grew by 3.1%, reflecting steady credit deployment aligned with MFIN Guardrails.
As of June 2025, the GLP stood at Rs. 26,055 crore, slightly up from Rs. 25,948 crore in March 2025. Karnataka continued to be the largest contributor with a GLP of Rs. 8,104 crore, while the rest of the states combined accounted for Rs. 17,951 crore.
The company also expanded its workforce, increasing its employee count to 21,333 from 20,970 in the previous quarter. A key highlight of the quarter was the improvement in asset quality. Portfolio at Risk (PAR) metrics showed a broad-based decline across all-time buckets. PAR 0+ improved to 5.9% from 6.9% in March 2025, while PAR 30+ and PAR 60+ dropped to 4.9% and 4.1%, respectively.
PAR 90+ remained stable at 3.3%. Notably, when excluding Karnataka, PAR 0+ dropped further to 4.4% from 6.1%, indicating enhanced credit discipline in other regions.
The state-wise performance showed encouraging trends, with Maharashtra, Tamil Nadu, Madhya Pradesh, and Bihar all witnessing notable improvements in both PAR 0+ and PAR 90+ metrics. Bihar, which had previously faced higher stress levels, showed significant recovery—PAR 0+ fell to 8.5% from 12.2%, and PAR 90+ improved to 5.2% from 7.3%. However, Karnataka remained an area of concern, as its PAR 90+ rose to 5.1% from 2.4%, although PAR 0+ saw only a slight increase.
The monthly accretion rate of PAR 15+ to Assets Under Management (AUM) has shown a steady decline across most states, indicating improved collection efficiency and stronger borrower discipline. In Karnataka, the rate dropped significantly from 2.02% in March 2025 to 0.58% in June. Tamil Nadu also demonstrated consistent improvement, with its PAR 15+ accretion rate falling to 0.54%.
Other key states such as Bihar, Uttar Pradesh, Maharashtra, and Madhya Pradesh reported accretion rates ranging between 0.34% and 0.43% as of June 2025. These positive trends highlight the effectiveness of CreditAccess Grameen’s robust credit monitoring, operational execution, and risk mitigation strategies.
Written by Manideep Appana
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