Strong start; cautious about monsoon: Strong ROA of 6% in 1Q27 will normalise as the company passes benefits to customer; maintain Buy

研报英文原文证据摘录

Strong start; cautious about monsoon: Strong ROA of 6% in 1Q27 will normalise as the company passes benefits to customer; maintain Buy

Global Markets Research

CreditAccess Grameen CRDE.NS CREDAG IN 26 July 2026

EQUITY: FINANCIALS

RatingStrong start; cautious about monsoon Remains Buy

Target priceStrong ROA of 6% in 1Q27 will normalise as the company Increased from INR 1,830passes benefits to customer; maintain Buy INR 1,740

1Q27: 33% beat on our and consensus net profit estimates Closing24 July 2026price INR 1,518

• Credag has reported a normalized 1Q27 net profit, which is a 33% beat to our and

Implied upside Bloomberg consensus estimates. NII was up 28% y-y and with a 63% yy lower credit +20.6%

cost, PBT was up 8x y-y.

Market Cap (USD mn) 2,520.0

• 1Q27 is typically a seasonally weaker quarter; thus disbursements were down 27% q-q ADT (USD mn) 8.9

and up 12% y-y only. Loan growth was decent at 16% led by the non-MFI segment as

MFI loans were flat q-q (Fig.11). Relative performance chart

As credit cost normalizes, the company will pass benefits to customers

• ROA (calculated) was 6% in 1Q27, and NIMs (calculated) at 16% is its highest ever.

Apart from interest reversal for unrecognized loans, management has kept lending

rates elevated.

• It plans to take lending rate cuts from 2H27E if monsoon trends and credit cost run

rate are healthy. We expect 4.4-4.5% ROA and 18.2-19.0% ROE over FY27-29F (

Fig.4).

Scale up of non-MFI portfolio is progressing well

• Non-MFI loans now form 21% of loan mix, of which 91% is formed by retail loans to

graduated customers (under “Unnati” and “Vishesh” categories). The company is Source: LSEG, Nomura

keeping a healthy control on customer profile under the Unnati category with an

average customer credit score of 732. Research Analysts