CreditAcc. Gram. Q2 FY27 Results (NSE: CREDITACC)
Signal: Earnings grew
The read
The earnings inflection is credit-cost-driven rather than a new revenue acceleration: total income grew 26.2% YoY to ₹1,904.80 crore, but the key swing was impairment falling 43.1% YoY to ₹299.23 crore, lifting PAT 298.7% to ₹501.57 crore; loans expanded 21.5% YoY to ₹29,293.77 crore, while negative half-year operating cash flow of ₹436.70 crore remains the main quality check.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,904.8 Cr | +26.2% | +6.7% |
| Net profit | ₹501.57 Cr | +298.7% | |
| EPS | ₹31.27 | +297.3% | |
| EBIT margin | 0 |
P&L walk
Total income increased to ₹1,904.80 crore, +26.2% YoY and +6.7% QoQ, while impairment declined to ₹299.23 crore, -43.1% YoY; PAT consequently rose to ₹501.57 crore, +298.7% YoY, although operating cash flow for the half year remained negative.
Key positives
- Credit costs normalized: impairment declined 43.1% YoY to ₹299.23 crore, helping PAT rise 298.7% YoY to ₹501.57 crore.
- Asset quality was disclosed at 1.79% Gross Stage III and 0.59% Net Stage III, with 67.55% provision coverage.
- Loan assets grew 21.5% YoY to ₹29,293.77 crore while CRAR remained 26.90% and liquidity coverage was 218.65%.
- Total income grew 26.2% YoY to ₹1,904.80 crore, led by interest income growth from ₹1,414.13 crore to ₹1,800.64 crore.
Key concerns
- Half-year operating cash flow was negative ₹436.70 crore versus positive ₹315.02 crore in the prior-year period, despite half-year PAT of ₹995.00 crore, reflecting cash absorption from loan growth.
- Impairment increased 40.8% QoQ to ₹299.23 crore after ₹212.50 crore in Q1FY27, so the credit-cost recovery is not yet a straight-line decline.
- Finance costs rose 15.3% YoY to ₹553.04 crore, remaining a significant funding drag as the loan book expands.
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