The CreditAccess Grameen shares surged as much as 10.44% to an intra-day high of Rs 1,496.70 on the National Stock Exchange. The rally in the stock price came after the brokerage upgraded the stock. This was after the company posted a net profit in Q3 FY26, compared to a loss in the same quarter a year ago.
Nomura on Credit Access Grameen
Nomura revised its target price upwards to Rs 1,450 from Rs 1,090, implying an upside of roughly 17%. The brokerage has also upgraded the rating to ‘Buy’ from ‘Neutral’. MFI customers have significant overlaps with other retail loan categories, such as mortgages and auto loans.
Management’s strategy to re-look at its product profile is sensible, said Nomura. “We lift FY27-FY28 loan growth to 18-19% YoY and expect the company to deliver 17-19% ROEs.”
HSBC Global on CreditAccess Grameen
The international brokerage house HSBC Global has upgraded the company to a “Buy” from a “Hold” rating. It has raised the target price to Rs 1,630 from Rs 1,310, implying an upside of over 31%. The company’s strong performance is likely to exceed FY27 guidance, supporting the brokerage’s rating upgrade.
Most metrics typically improve together during MFI upcycles, leading to sharp earnings increases that beat guidance. “We believe CreditAccess Grameen is in the middle of such a revival, along with the rest of the MFI sector.
The key difference, however, is that CreditAccess Grameen did not reiterate its conservative guidance from Q2 FY26, but instead chose to wait for Q4 FY26 to refresh its guidance,” said Abhishek Murarka, Senior Analyst of India Financials at HSBC Global.
Given that all key asset quality and provision-related metrics have shown smart improvement in Q3 FY26, and the exit run-rate in Q4 FY26 will likely be far better, the brokerage believes there is a high likelihood that CreditAccess Grameen will improve its FY27 credit cost guidance.
JM Financial on CreditAccess Grameen
JM Financial also lifted the rating on the stock to Buy from Add, while maintaining the target price at Rs 1,530. The price target implies that the stock may rise 23% over the next 12 months.
CreditAccess Grameen delivered a net profit of Rs 250 crore (up 100% QoQ, 14% ahead of JM Financial’s estimates). The surge was driven by a sharp decline in credit cost to 5.6%. Credit cost improvement of 310 basis points QoQ was driven by lower new PAR accretion and a reduction in write-offs to 3.9% (as against 10.5% in Q2 FY26), despite an increase in ECL provisioning rate.
The company’s management guided 20% AUM growth, largely led by an increase in retail finance, credit cost of 4-4.5% and RoA of 4-4.5% in FY27.
“Given 11% correction in the stock price in the last 3 months, the current valuation of 1.9x FY28 P/BV doesn’t capture this ROA and ROE improvement. We expect AUM CAGR of 18% over FY26-28 and average ROA of 4.5% and 19% over FY27-28,” said JM Financial.
CreditAccess Grameen Q3 FY26
CreditAccess Grameen swung back to black, posting a net profit of Rs 252 crore in the third quarter of the current financial year, reversing a loss of Rs 99.5 crore in the same quarter last year. The company reported a consolidated revenue of Rs 1,490 crore in Q3 FY26, rising 8% year-on-year, from Rs 1,380 crore in Q3FY25. Its EBITDA surged 126% YoY to Rs 813 crore in Q3 FY26, compared with Rs 360 crore in the same period a year ago, driving margin expansion to 54.5% from 26.07%.
CreditAccess Grameen stock performance
The share price of Credit Access Grameen has risen by almost 12% in the previous five trading sessions. The stock has surged 11% in the past one month and 13% in the last six months. The shares of the company have raised investors’ worth by more than 50% in the last one year.