Shares of CreditAccess Grameen surged over 9 percent in intra-day trade on Friday, July 4, after the company released its interim business update for the June 2025 quarter (Q1FY26). The microfinance lender reported record disbursements, robust borrower additions, and a notable improvement in asset quality, fueling investor optimism and sending the stock close to its 52-week high.
Record Disbursements, Portfolio Growth in Q1FY26
CreditAccess Grameen (CAGL) began FY26 on a strong footing, delivering its highest-ever first-quarter disbursements. The company added nearly 2 lakh new borrowers during the quarter, indicating continued demand and successful expansion of its lending network. On a sequential basis, the company posted a 3.1 percent growth in its Gross Loan Portfolio (GLP), excluding write-offs, aligning with MFIN Guardrails and underlining steady credit deployment.
As of June 2025, the company’s GLP stood at ₹26,055 crore, slightly higher than the ₹25,948 crore recorded in March 2025. Karnataka remained the largest contributor with a GLP of ₹8,104 crore, while other states collectively accounted for ₹17,951 crore. The company also strengthened its workforce, expanding its employee base to 21,333 from 20,970 in the previous quarter.
Improvement in Asset Quality Across Regions
One of the key highlights of the update was the broad-based improvement in asset quality. The company reported a decline in Portfolio at Risk (PAR) metrics across time buckets. PAR 0+ improved significantly to 5.9 percent from 6.9 percent in March 2025, while PAR 30+ and PAR 60+ fell to 4.9 percent and 4.1 percent, respectively. PAR 90+ remained steady at 3.3 percent. Notably, excluding Karnataka, PAR 0+ fell further to 4.4 percent from 6.1 percent, suggesting improved credit discipline in other operating geographies.
A state-wise review showed encouraging trends. Maharashtra, Tamil Nadu, Madhya Pradesh, and Bihar saw meaningful reductions in both PAR 0+ and PAR 90+. In Bihar, which had seen elevated stress earlier, PAR 0+ dropped sharply to 8.5 percent from 12.2 percent, while PAR 90+ improved to 5.2 percent from 7.3 percent. However, Karnataka remained a soft spot. PAR 90+ in the state increased to 5.1 percent from 2.4 percent, even though PAR 0+ saw only a marginal rise.
Collection Efficiency and Accretion Rates Reflect Improved Underwriting
The monthly accretion rate of PAR 15+ to Assets Under Management (AUM) has steadily declined across most states, a positive signal of improved collections and borrower discipline. Karnataka’s accretion rate dropped to 0.58 percent in June 2025 from 2.02 percent in March. Tamil Nadu, another key market, recorded a consistent decline in delinquency with the PAR 15+ accretion rate falling to 0.29 percent.
Other major states also posted healthy trends. Bihar, Uttar Pradesh, Maharashtra, and Madhya Pradesh showed accretion rates in the 0.34–0.52 percent range as of June 2025. These improvements reflect the company’s strong credit monitoring framework, operational execution, and successful risk containment strategies.
The company credited its performance to enhanced internal systems, operational efficiencies, and workforce support. During the quarter, CAGL reported disciplined write-offs totalling ₹693 crore, which included accelerated provisions. These efforts, along with a proactive credit risk management approach, helped stabilise non-performing assets and improve overall portfolio health. The management expressed confidence in sustaining this positive momentum into subsequent quarters.
Stock Price Performance
Following the upbeat update, CreditAccess Grameen shares surged as much as 9.1 percent to an intra-day high of ₹1,355 on the NSE, just shy of its 52-week high of ₹1,369.25 hit in July 2024. The rally marked the fifth straight month of gains for the stock.
Despite a 6 percent decline over the past 12 months, the stock has delivered a strong comeback in recent months. It has already risen over 10 percent in July. This follows a 5.7 percent gain in June, 5.5 percent in May, 14 percent in April, and 3.5 percent in March. The stock, however, faced pressure earlier this year, falling 15 percent in February after a sharp 22 percent jump in January.
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