1. At a Glance
India’s largest NBFC-MFI, CreditAccess Grameen, clocked ₹60.2 Cr PAT in Q1 FY26 — but that’s down 85% YoY. Loan disbursements were at an all-time high, NPAs are rising, and margins have shrunk faster than a cotton kurta in the rain.
2. Introduction with Hook
Picture this: You’re the microfinance kingpin of India. Disbursements? Record-breaking. Borrowers? Millions. And yet… profits are evaporating faster than voter turnout in corporate AGMs.
- PAT fell from ₹398 Cr (Q1 FY25) to ₹60 Cr
- Gross NPAs at 4.76% — worst in years
- Financing margin down to a modest 7%
The crown is still on — but it’s definitely tilted.
3. Business Model (WTF Do They Even Do?)
CreditAccess Grameen = Lending to women in rural India.
Model:
- Joint Liability Group (JLG)
- Target: Women in rural/semi-urban India
- Avg loan size: ₹40–50K
- Repayment: Weekly/biweekly
Also cross-selling:
- Insurance products
- Livelihood loans
- Home improvement loans
This is grassroots lending at scale. Not your average digital wallet-fueled NBFC.
4. Financials Overview
TTM Snapshot (₹ Cr)
| Metric | Value |
|---|---|
| Revenue | 5,703 |
| Net Profit | 194 |
| Gross NPA | 4.76% |
| ROE | 7.86% |
| Book Value | ₹436 |
| CMP | ₹1,280 |
| P/E | 105x |
Yes, the P/E is three digits. Yes, the growth is now in single digits. Yes, we’re confused too.
5. Valuation
Let’s cut to it:
- TTM EPS: ₹12.16
- CMP: ₹1,280 → P/E = ~105x
- Book Value: ₹436 → P/B = ~2.94x
Fair Value Range (Based on historical P/E of 30–50x):
- Conservative (30x): ₹350–₹400
- Optimistic (50x): ₹600–₹650
At current price? You’re paying for the legacy, not the earnings.
6. What’s Cooking – News, Triggers, Drama
Latest Q1 FY26 Announcements:
- Record disbursements: ₹5,458 Cr
- PAT fell 85% YoY
- Gross NPA surged from 1.18% (Q4) to 4.76%
- Net NPA at 1.73%
- Management calls it “seasonal” — market calls it “shaky”
Trigger radar:
- Faster rural recovery post-elections
- Inflation stabilizing = better repayments
- Any fall in NPAs could swing sentiment back
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 160 |
| Reserves | 6,796 |
| Borrowings | 20,446 |
| Total Assets | 27,802 |
| Net Worth | 6,956 |
| Debt/Equity | ~2.9x |
Still a solid balance sheet. But the asset quality deterioration = worth watching like a hawk on Red Bull.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | -₹3,290 | -₹314 | ₹3,365 | -₹239 |
| FY24 | -₹4,734 | -₹994 | ₹5,494 | -₹234 |
| FY25 | ₹1,125 | ₹708 | -₹1,669 | ₹164 |
Cash flows were a mess in FY23–24. FY25 was better, but this is still a cash-intensive machine relying heavily on fresh debt.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 7.86% | Dull |
| ROCE | 9.55% | Decent-ish |
| Gross NPA | 4.76% | Stress alert |
| Net NPA | 1.73% | Not catastrophic (yet) |
| Interest Cov. | Low | Thin margin for shocks |
| Dividend Yield | 0.78% | Token |
10. P&L Breakdown – Show Me the Money
Q1 FY26 (₹ Cr)
| Metric | Value |
|---|---|
| Revenue | ₹1,463 |
| Interest Expense | ₹482 |
| Operating Exp. | ₹885 |
| Profit Before Tax | ₹81 |
| Net Profit | ₹60.2 |
Context: Down from ₹398 Cr PAT last Q1. Margins are tight, costs are up, and provisioning is biting hard.
11. Peer Comparison
| Company | CMP (₹) | P/E | MCap (Cr) | GNPA % | ROE % |
|---|---|---|---|---|---|
| CreditAccess G. | 1,280 | 105 | 20,447 | 4.76 | 7.86 |
| Spandana Sphoorty | 304 | — | 2,171 | 4.5+ | -31.0 |
| Satin Creditcare | 158 | 9.3 | 1,741 | 3.0+ | 7.5 |
| Muthoot Microfin | 166 | — | 2,831 | 6.0+ | -8.2 |
Still the best house in a troubled neighbourhood — but even the best has termites right now.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2023 | Jun 2025 | Change |
|---|---|---|---|
| Promoters | 66.77% | 66.43% | -0.34% |
| FIIs | 9.55% | 12.13% | +2.6% |
| DIIs | 11.90% | 12.76% | +0.86% |
| Public | 11.77% | 8.67% | -3.1% |
FIIs seem to be buying the dip. Promoters are stable. Retail is getting nervous.
13. EduInvesting Verdict™
CreditAccess Grameen still rules the MFI space. But the Q1 FY26 results clearly scream: “This ain’t 2022 anymore!”
The asset quality is deteriorating. Margins are under pressure. And valuation? Way ahead of reality.
This stock is like that star student who scored 99% last year but just scraped 60 this time — still better than others, but no longer the benchmark.
Watch it. Don’t worship it.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: CreditAccess Grameen, NBFC, Microfinance, Rural Lending, GNPA Spike, Q1 FY26, MFIs India, Disbursement Record
