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CreditAccess Grameen Ltd

| Quarterly Financial Results Q3 FY 2025–26

BULLISH SENTIMENT

Report Source

⬤20th Jan 26

Summary : CreditAccess Grameen reported strong Q3-25 financial results, including a significant profit turnaround, while navigating new Labour Code regulations and granting employee stock options.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Finance costs: ₹459.34 crore (Q3-25)
  2. Fee and commission expense: ₹0.56 crore (Q3-25)
  3. Impairment on financial instruments: ₹342.57 crore (Q3-25)
  4. Employee benefit expenses: ₹226.85 crore (Q3-25)
  5. Depreciation and amortisation expenses: ₹16.38 crore (Q3-25)
  6. Other expenses: ₹107.69 crore (Q3-25)
  7. Interest income: ₹1,434.98 crore (Q3-25)
  8. Fees and commission: ₹33.54 crore (Q3-25)
  9. Net gain on fair value changes: ₹8.11 crore (Q3-25)
  10. Bad debt recovery: ₹12.47 crore (Q3-25)
  11. Net gain / (loss) on derecognition of financial instruments: ₹1.31 crore (Q3-25)
  12. Other income: ₹0.90 crore (Q3-25)
  13. Net worth: ₹7,413.34 crore (9M-25)
  14. Debt-Equity Ratio: 2.79 (9M-25)
  15. Total debts to total assets: 0.72 (9M-25)
  16. Net profit margin: 9.82% (9M-25)
  17. Both standalone and consolidated unaudited financial results are presented.
  18. Consolidated results include CreditAccess India Foundation (100% shareholding).

Corporate Overview

  1. Operates in a single geographical segment, i.e., domestic.
  2. Assessing financial impact of new Labour Codes (Code on Wages, Industrial Relations Code, Social Security, Occupational Safety, Health and Working Conditions Code).
  3. Non-deposit taking Non-Banking Financial Company (NBFC).
  4. Operates in Micro Finance and Retail Finance segments.
  5. Lending to borrowers is the single business segment.
  6. Formal and compliant with regulatory disclosures.
  7. Lending to borrowers.
  8. Interest income
  9. Fees and commission
  10. Net gain on fair value changes
  11. Bad debt recovery
  12. Net gain / (loss) on derecognition of financial instruments under amortised cost category
  13. Other income

Risk Factors

  1. Uncertainty from new Labour Codes.
  2. Reliance on unreviewed subsidiary data.
  3. NBFC-ML regulatory classification.

Key Drivers

  1. Strong Q3 profit growth.
  2. Employee stock option plan.
  3. Continued focus on core lending.

Auditor’s Report

  1. Limited review conclusion, not an audit opinion.
  2. Conclusion not modified regarding reliance on unreviewed interim financial information of CreditAccess India Foundation (subsidiary) for consolidated results.

Board Commentary

  1. Incremental impact of gratuity (₹13.53 crore) and long-term compensated absences (₹4.80 crore) due to wage definition changes from new Labour Codes.
  2. Government of India notified four Labour Codes (Code on Wages, Industrial Relations Code, Social Security, Occupational Safety, Health and Working Conditions Code) on November 21, 2025.
  3. Draft Central Rules and FAQs published by Ministry of Labour & Employment for financial impact assessment.
  4. Grant of 9,12,500 Stock Options to eligible employees under CAGL Employees Stock Option Plan – 2011.

Corporate Governance

  1. Audit Committee reviewed and approved financial results.
  2. Nomination & Remuneration Committee recommended ESOP grants.

Management Discussion & Analysis

Risk Control Measures

  1. Company is monitoring the finalisation of Central/State Rules for Labour Codes.
  2. Will provide appropriate accounting effect based on developments.

Critical Risks

  1. Uncertainty regarding the finalisation of Central/State Rules and clarifications for new Labour Codes.
  2. Potential incremental impact on gratuity and long-term compensated absences due to changes in wage definition.