CreditAccess Grameen Q4 results: Net profit down 88.1% at ₹47.2 crore

Net profit drops to ₹47.2 crore in Q4FY25 due to accelerated write-offs, even as FY25 profit rises 63.2%; lender targets up to 18 per cent loan growth in FY26

Microfinance lender CreditAccess Grameen Ltd reported an 88.1 per cent year-on-year (YoY) decline in net profit to ₹47.2 crore for the quarter ended March 2025 (Q4FY25), owing to conservative provisioning and accelerated write-offs.

 

For the full financial year FY25, the company’s net profit rose 63.2 per cent YoY to ₹531.4 crore. Its stock closed 0.9 per cent higher at ₹1,204.90 per share on the BSE.

 

In a filing with the exchanges, the company said its net interest income (NII) declined 5.0 per cent to ₹876.1 crore in Q4FY25. Its net interest margin dropped to 12.7 per cent from 13.1 per cent in Q4FY24.

 

The total write-off stood at ₹518.2 crore in Q4, including ₹479.2 crore in accelerated write-offs, resulting in an additional credit cost of ₹150.7 crore. Gross non-performing assets (NPAs) rose sharply to 4.76 per cent as of March 2025, up from 1.18 per cent a year ago.

 

The microfinance lender’s gross loan portfolio declined by 2.9 per cent YoY to ₹25,948 crore as of March 2025.

 

Considering the evolving business environment, the company is targeting loan portfolio growth of 14–18 per cent in FY26. Of this, growth in the microfinance segment will be 8–12 per cent, with the remainder coming from retail finance, said Ganesh Narayanan, Chief Executive Officer of CreditAccess Grameen.

 

Udaya Kumar Hebbar, Managing Director of the company, said the continued effort to address ground-level challenges, reduce customer leverage, and expand the on-ground workforce has significantly improved customer engagement.

 

“This has enabled more frequent and disciplined follow-ups on delinquent accounts, resulting in improved collections,” the company said in a statement.