CreditAccess Grameen Ltd Q1 FY27 Results Analysis: PAT Surges 720%, Revenue Grows 22%

CreditAccess Grameen Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 1,783.49 Cr (+21.92% YoY) and PAT growth of +719.72% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 21.9% YoY and PAT surged 719.7% YoY, driven by sharp credit cost decline and operating leverage. Cost-to-income improved to 28.0% and asset quality remains healthy with GNPA at 2.18%. However, cost of funds is rising and credit cost run-rate is above full-year guidance.

Key Investment Insights

Key Positives

• Revenue grew 21.9% YoY to Rs.1,783.49 Cr
• PAT grew 719.7% YoY to Rs.493.39 Cr
• Cost-to-income improved to 28.00% from 31.92% YoY
• Impairment charge declined 62.8% YoY to Rs.212.50 Cr
• CRAR at 24.87% well above regulatory minimum
• GNPA at 2.18% and NNPA at 0.76% with PCR of 65.36%

Risk Factors

• Finance costs increased 15.1% QoQ, reflecting rising cost of funds
• Credit cost at 11.91% of revenue is above the full-year guidance range of 4.0-4.5% (though early in the year)