CreditAccess Grameen (CREDAG IN): Buy: Spurred by fair winds and following seas

Research evidence excerpt

CreditAccess Grameen (CREDAG IN): Buy: Spurred by fair winds and following seas

Equities ● Diversified Financial Services

25 July 2026

Key takeaways from the post-earnings conference call

Loan growth

◆ Retail finance is a key growth lever, with strong cross-sell momentum: its flagship retail loan

product ‘Unnati’ is 100% cross-sold to existing customers, with an average customer

vintage of 7.7 years with CREDAG and an average credit score of 732.

◆ Most of the retail finance is sourced internally through branch employees or by customer

referral. In two-wheeler loans, it uses dealership network for fulfilling and not for sourcing.

◆ Customer additions are accelerating: c250k new borrowers were added during the quarter.

Of this, c35% were new-to-credit. Management expects the run-rate to improve towards

c100k borrowers per month.

◆ Customer concentration is favourable: Of the total AUM, c45.7% is where CREDAG is the

unique lender to the customer. The AUM exposure to customers with more than three

lenders is c2.6%, suggesting limited over-leverage pockets.

◆ Digital/field ecosystem is expanding: Grameen Mahi has 1.53m registered customers, and

management expects it to evolve into a broader lead generation and collections platform.

Margins and operating expenses

◆ Most products are profitable if the cost of head office allocation is not considered. Only two-

wheeler loans are loss-making given the small book size.

◆ Mortgage needs scale to absorb HO costs: management indicated that a cINR10bn of AUM

in mortgage segment would be sufficient to reach break-even after the head office cost

allocation.

◆ Secured retail loan pricing remains attractive: lending rates for most secured products,

except for affordable housing, are similar or only marginally lower than MFI loans.