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MFI CreditAccess Grameen Q1 net profit down 85% on higher provisions
Its stock closed 1.03 per cent higher at Rs 1,280.20 per share on the BSE.
In a filing with the exchanges, the company said its net interest income (NII) declined 1.6 per cent to Rs 937 crore in Q1 FY26. Sequentially, NII grew by 7 per cent from Rs 876.1 crore in Q4 FY25. Its net interest margin (NIM) dropped to 12.8 per cent in Q1 FY26 from 13.0 per cent in Q1 FY25. However, it improved slightly from 12.7 per cent in Q4 FY25.
Bengaluru-based microfinance lender's total write-off stood at Rs 692.5 crore in Q1 FY26, including Rs 603.2 crore in accelerated write-offs, resulting in an additional credit cost of Rs 192.8 crore. Gross non-performing assets (NPAs) rose sharply to 4.70 per cent as of June 2025, up from 1.46 per cent a year ago. However, they declined from 4.76 per cent at the end of March 2025.
The microfinance lender's gross loan portfolio declined by 0.9 per cent YoY to Rs 26,055 crore as of June 2025. Sequentially, it rose from Rs 25,948 crore as of March 2025.
The outlook for FY26 remains encouraging, with favourable monsoon forecasts and strengthening rural sentiment, laying the groundwork for sectoral revival, said Ganesh Narayanan, Chief Executive Officer of CreditAccess Grameen.
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