CreditAccess Grameen share price nosedives 18% on week Q3 earnings; check details

The company's stock price dropped 15.72% to ₹771.15 apiece on the BSE at 9:30 am after opening at ₹851.

The microfinance lender on Friday reported a net loss of ₹99.5 crore for the third quarter that ended December 31, 2024. The loss was due to early risk recognition, conservative provisioning, and accelerated write-offs, positioning the company for normalised growth and profitability in the coming quarters.

However, the lender’s total income increased 6.7% in the reporting quarter to ₹1,381.9 crore as compared to ₹1,295 crore same quarter last financial year.

The operating income plummeted by 54.11% compared to the previous quarter, and it decreased by 63.3% year-over-year, highlighting significant operational challenges faced by the company during this period. The earnings per share (EPS) stood at ₹24.4 for Q3, reflecting a decrease of 12.54% year-over-year.

“While Q3 FY25 profits were impacted by our early risk recognition, conservative provisioning, and accelerated write-offs, we still delivered ROA of 2.3% and ROE of 9.4% for 9M FY25. We foresee 7-8% loan portfolio growth for FY25 with ROA of 2.3-2.4% and ROE of 9.5-10.0%. We anticipate asset quality to normalise by Q1 FY26 and profitability to normalise by Q2 FY26,” Udaya Kumar Hebbar, managing director of the company said while commenting on the Q3 numbers.

The company’s asset under management (AUM) grew 6.1% to ₹24,810 crore during the December quarter as compared to ₹23,382 crore same period previous fiscal.

“Our preliminary outlook for FY26 suggests AUM growth of 18-20% driven by robust customer additions, improved customer retention, and higher share of retail finance. We expect to deliver ROA of 4.2-4.5% and ROE of 17-19% in FY26,” Hebbar further said.

The company’s borrower base advanced by 2.4% year-on-year to 48.05 lakh as against 46.93 lakh.