CreditAccess Grameen rallies even as broader market stays weak; strong FY26 show cheers investors

Shares of CreditAccess Grameen surged sharply in early trade on Tuesday, April 7, bucking a weak broader market, after the company reported a strong close to FY26 with improving business momentum and fully normalised asset quality.

The stock climbed nearly 10 per cent to touch an intraday high of Rs 1,298 on the National Stock Exchange. It opened at Rs 1,226, up 4 per cent from its previous close of Rs 1,180.6. Around 12:00 PM, it was trading at Rs 1,217, higher by about 3.12 per cent. Meanwhile, the Nifty 50 was down 0.030 per cent at 22,960.40, showing the overall market mood was still cautious.

Loan book continues to grow steadily

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The company’s numbers for the March quarter (Q4FY26) show that business growth remained on track. Its gross loan portfolio (GLP) rose 14 per cent year-on-year to Rs 29,590 crore, compared to Rs 25,948 crore a year ago. On a sequential basis too, the loan book increased from Rs 26,566 crore in the December quarter.

Disbursements were strong during the quarter, coming in at Rs 8,313 crore, up 28 per cent year-on-year. For FY26, total disbursements stood at Rs 24,860 crore, posting a 24 per cent increase.

Traction in Retail segment

One of the major aspect has been the growing share of retail finance in the overall mix. This segment now contributes 18 per cent as of March 2026, compared to just 6 per cent a year ago. The company said this was led by better customer retention and borrowers moving up to higher-ticket loans.

At the same time, its digital push is also showing results. The ‘Mahi’ app added around 8.4 lakh users during the year, helping improve customer reach and engagement.

Collections improve, stress eases

Asset quality, which had been a concern earlier for the microfinance sector, now appears to have stabilised. The company said its performance has normalised across regions, with X-Bucket collection efficiency at 99.84 per cent in March. This indicates strong repayment trends and easing stress in the segment.

Expansion continues; outlook positive

CreditAccess Grameen also continued to expand its footprint, adding 183 new branches during FY26, including 18 in the March quarter.

According to SBI Securities, the strong disbursement growth has supported healthy expansion in assets under management. With sectoral stress reducing, the brokerage expects the growth momentum to continue.

The company currently has a market capitalisation of around Rs 19,946 crore. While the stock is still below its 52-week high of Rs 1,496.70, it has recovered well from its low of Rs 920, suggesting improving investor confidence.