CreditAcc. Gram. Q1 FY27 Results (NSE: CREDITACC)
Signal: Earnings grew
The read
Q1FY27 shows strong earnings recovery with PAT at ₹493 Cr (up 720% YoY, 45% QoQ), driven by 22% revenue growth and normalisation of credit costs (impairment down 63% YoY). Asset quality improved with Gross Stage 3 at 2.18% and provision coverage at 65%. The turnaround is evident after the stress in H1FY25, but the low base warrants caution on sustainability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,784.41 Cr | 21.9% | 11.6% |
| Net profit | ₹493.39 Cr | 719.7% | |
| EPS | ₹30.79 | 716.7% |
P&L walk
Strong earnings rebound driven by revenue growth and sharp decline in impairment provisions; credit costs normalising after prior year stress.
Key positives
- PAT surged 720% YoY to ₹493 Cr on revenue growth of 22% and sharp decline in provisions.
- Impairment on financial instruments fell 63% YoY to ₹213 Cr, indicating improving asset quality.
- Asset quality metrics improved: Gross Stage 3 at 2.18%, Net Stage 3 at 0.76%, Provision coverage 65%.
- CRAR strong at 24.87% and LCR 189%, indicating robust capital and liquidity.
Key concerns
- Finance costs grew 14% YoY, slightly outpacing other opex, though within revenue growth.
- The low base of prior year Q1 (PAT ₹60 Cr) makes YoY comparisons exaggerated; sequential improvement is more moderate (45% QoQ).
- Sustainability of low impairment levels needs monitoring as normalization may partly reflect one-off recoveries.
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