Shares of CreditAccess Grameen fell over 4% to ₹1,153.30 intraday on Monday, at 9:16AM after the company reported an 88.1% year-on-year drop in net profit to ₹47.2 crore for the fourth quarter of FY25. The plunge in profitability was attributed to a sharp rise in impairment on financial instruments, which soared to ₹582.9 crore, while net interest income declined marginally.
Brokerages responded with mixed views on the stock, which closed the previous session at ₹1,204.70.
CLSA downgraded the stock to underperform with a target price of ₹1,050, flagging a high 9% credit cost and ongoing stress in Karnataka. The firm projected credit costs of 5.5–6% for FY26 and warned of continued pressure over the next six months due to over-leveraging and MFIN regulatory constraints.
Nomura, on the other hand, upgraded the stock to neutral, raising the target price to ₹1,090. The brokerage noted a positive shift from a loss in Q3 to a net profit of ₹472 million in Q4, supported by a 3% sequential rise in net interest income—5% above its expectations. It highlighted the company’s focus on reversing delinquency trends in the second half of FY26.
Goldman Sachs maintained a sell rating with a target of ₹700, citing continued stress. The brokerage pointed out that while PPOP declined 7% year-on-year, it remained 6% ahead of estimates due to cost cuts. However, credit costs stayed elevated at ~9.85%, 35 basis points higher than their forecast, leading to a steep decline in PAT.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
