Why CreditAccess Grameen outran markets in FY26? Share price at 52-wk high

CreditAccess Grameen share price today

 

CreditAccess Grameen share price hit a 52-week high of ₹1,431 on the BSE today, gaining 3 per cent in Thursday's intraday trade, in an otherwise weak market. By comparison, the BSE Sensex was down 0.3 per cent at 81,487 at 11:55 AM.

 

The stock of the micro finance institution (MFI) was quoting higher for the third straight day, surging 6 per cent during the period. Further, tn the past nine trading days, it has rallied 11 per cent. CreditAccess Grameen stock surpassed its previous high of ₹1,425.50 which it touched on September 1, 2025.

 

Moreover, thus far in the financial year 2025-26 (FY26), the stock price of CreditAccess Grameen has appreciated by 50 per cent. In comparison, the BSE Sensex was up 5.3 per cent during the same period.

 

Why CreditAccess Grameen shares are outperforming the markets?

 

CreditAccess Grameen is a rural-focused microfinancier that caters mainly to women borrowers who lack access to the formal banking sector. CreditAccess Grameen is predominantly present in Karnataka, Maharashtra, and Tamil Nadu, which cumulatively contribute to 71 per cent of its Gross Loan Portfolio (GLP) and 63 per cent of its total borrower base as of June 2025.

 

The company's Promoter is CreditAccess India B.V., a multinational company specialising in micro and small enterprise financing. It is backed by institutional investors and has a micro-lending experience in India of more than a decade.

 

The microfinance sector is showing signs of stabilisation supported by implementation of Microfinance Industry Network (MFIN) guardrails and improved lending discipline across the ecosystem.

 

Looking ahead, the management holds an encouraging outlook for the current financial year with favourable monsoon forecasts and strengthening rural sentiment laying the groundwork for sectoral development.

 

"The company's strong business momentum and stabilising asset quality position the company well to deliver robust profitability in the second half of FY26 as guided," the management said in its Q1FY26 earnings call.  ALSO READ | Why Nomura continues to back Glenmark Pharma; Retains 'Buy'; Find out here

Microfinance sector overview

 

Over the past year, the microfinance industry navigated multiple challenges due to macroeconomic cycles, volatile agriculture-led ecosystem incomes, extreme heatwaves, customer overleveraging, evolving regulatory requirements, and transient impact due to the announcement of the Karnataka Ordinance on micro-lending practices of unregulated lending entities.

 

Amid an increasingly competitive environment and emerging signs of overleveraging, the microfinance industry took corrective action to reinforce lending discipline. In mid-2024, the MFIN introduced a set of self-regulatory measures aimed at curbing excessive borrower exposure and encouraging more responsible lending practices.

 

The industry is expected to make a strong comeback in FY26 and demonstrate a more balanced growth whilst adhering to the MFIN guardrails. This revival will continue to be driven by the collective support of regulators, government bodies, lenders, and investors, longstanding believers in the microfinance growth story, CreditAccess Grameen had said in its FY25 annual report.  ALSO READ | Anand Rathi bullish on 2 solar stocks; eyes up to 33% upside: Here's why

CreditAccess Grameen share price target: Axis Securities view

 

According to analysts at Axis Securities, the company has been successfully navigating the challenges of the recent MFI credit downcycle and exhibited resilience as it gradually inches closer to normalcy.

 

The brokerage expects CreditAccess to revert to its RoA delivery of 4.5+ per cent from FY27E, supported by strong gross loan portfolio (GLP) growth, steady margin profile, controlled opex, and meaningfully lower credit costs.

 

Resultantly, the brokerage firm factors in a strong GLP/NII/Earnings compound annual growth rate (CAGR) growth of 18/13/54 per cent over FY25-28E, with RoA/RoE delivery of 4.5-4.6 per cent/18-19 per cent over the same period. It has a 'buy' rating on the stock with a target price of ₹1,461 per share.