New Research Reports

CreditAccess Grameen (CREDAG) is emerging from the recent MFI stress phase with improving operating momentum, resilient portfolio retention, and a structurally stronger business mix.

Equitas SFB (EQUITASB) reported a 3QFY26 PAT of ~INR900m (36% YoY, 27% beat) amid healthy NII and higher other income. During 3QFY26, the bank sold its NPA assets amounting to INR548.5mn to an ARC.

PAT marginally above our estimates; asset quality performance remains better vs peers

CreditAccess Grameen’s Q3 reflected a decisive shift from asset quality repair to growth as Management highlighted a sharp improvement in collections and early delinquency trends, supporting a recovery in profitability and operating momentum.

Ujjivan Small Finance Bank (USFB)’s Q3FY26 RoA improved to 1.5% (four straight quarters of RoA expansion), driven by a strong uptick in revenue, aided by NIM expansion and subsiding stress in MFI (gross slippages moderated to INR 2.2bn vs. INR 2.8bn QoQ).

We maintain our BUY recommendation on the stock

CA Grameen’s (Grameen) Q3FY26 financial performance indicates faster-than-anticipated recovery, with collections nearing pre-disruption levels (X-Bucket CE at 99.71% in Dec’25) and a sharp revival in disbursements with 26% MoM growth in Dec’25 volume.

AUSFB reported strong PAT growth of 19% QoQ during Q3FY26, benefitting from NIM expansion and sustained improvement in asset quality, especially in MFI and credit card. As a result, RoA crossed 1.5% after three quarters and management sounded upbeat about sustaining the improving trajectory in profitability in the near term.

CREDAG’s 3QFY26 PAT stood at INR2.5b (in line). NII grew 13% YoY to ~INR9.8b (in line). Opex grew ~24% YoY to INR3.5b (in line). Cost-to-income ratio rose ~150bp QoQ to ~34% (PQ: ~32.5% and PY: ~31%).

AUBANK delivered a solid performance in 3QFY26, beating our estimates on many parameters even as the bank continued to invest well in the business to sustain superior growth over the long term.

We recommend a BUY with a target price of Rs 1,417, implying an upside of ~10% from the CMP.

Utkarsh SFB (Utkarsh) is embarking on a journey to deliver 25% credit growth with 50% share of secured products and RoE of ~15% over the next 2–3 years driven by NIM expansion to 8.5% and credit cost at ~2%.

Post the management change in Mar’25 with Mr. Sanjay Garyali taking the charge as CEO of Fusion Finance, the company has focused on building blocks for a sustainable and resilient portfolio.

The company continues to demonstrate strong disbursement traction, while margins should remain resilient supported by declining funding costs, recent pricing actions, and operating leverage from scale.

Spandana Sphoorty (SPANDANA)’s 2QFY26 loss stood at ~INR2.5b (vs. MOFSLe loss of INR2.4b). NII dipped 70% YoY to ~INR1.05b (in line). Opex declined ~14% YoY to ~INR1.9b (in line).

Equitas SFB (EQUITASB) reported 2QFY26 PAT at ~INR241m (87% YoY, miss to our estimate) vs. loss of INR2.2b in 1QFY26, owing to higher-than-expected provisions.

CreditAccess Grameen (CREDAG) guided ~70–100bp higher credit costs in FY26 and credit costs of 4.0-4.5% in FY27 (including 70–80bp higher provisions from the ECL revision).

About the stock: CreditAccess Grameen is one of the largest microfinance companies in India, having over 3 decades of experience, over 25,904 crore AUM and a strong distribution channel to provide financial aid to low-income households. It operates in over 16 states and 1 UT with 2,209 branches, having a growing employee base of 21,701 Q2FY26 performance: CreditAccess Grameen reported a sequential recovery in Q2FY26, driven by margin expansion and lower credit cost. AUM was flat QoQ (3.1% YoY) as disbursements fell 2% QoQ amid weather disruptions and slower...

PPoP largely in line with estimates; lower provisions resulted in higher PAT; business momentum stays strong