Capri Global Capital Limited reported a consolidated profit after tax (PAT) of ₹3,534 crore for Q1FY27, marking a 102% year-on-year increase from ₹1,749 crore in the corresponding quarter of the previous year. The non-deposit taking NBFC crossed a significant milestone as its consolidated assets under management (AuM) reached ₹40,112 crore, up 62% YoY from ₹24,755 crore. This robust performance was driven by a 79% surge in net interest income to ₹7,364 crore and a 28% rise in non-interest income to ₹2,169 crore, reflecting strong demand across its key retail lending verticals including gold loans and affordable housing.

The Board of Directors approved the unaudited financial results on July 27, 2026. The figures were subject to a limited review by the Joint Statutory Auditors. Management highlighted that profitability acceleration was primarily driven by margin expansion, with the spread on advances widening by 110 basis points to 7.8%, alongside improved operational efficiency that reduced the cost-to-income ratio to 44.2%. An earning conference call is scheduled for July 29, 2026.

Financial Performance Highlights

The company’s revenue generation capabilities strengthened significantly during the quarter. Net interest income grew 79% YoY, while non-interest income rose 28% YoY, contributing approximately 23% to the net total income. This diversification was supported by fee income from insurance distribution and car loan distribution businesses. Operating expenses increased by 56% YoY to ₹4,212 crore, which remained lower than the growth rate of AuM, indicating scale economies.

Asset Quality and Capital Adequacy

Asset quality remained stable with the Gross Stage 3 ratio at 1.1%, compared to 1.7% in Q1FY26. The provision coverage ratio on Stage-3 loans stood at 43.2%, reflecting conservative provisioning policies. Impairment costs for the quarter were ₹622 crore (ECL provisions of ₹888 crore less write-offs of ₹267 crore). The standalone capital adequacy ratio (CRAR) was recorded at 24.7%, maintaining a strong buffer. Consolidated total equity increased 18% YoY to ₹75,655 crore.

What the Numbers Show

A notable divergence in the results is the rapid expansion of AuM outpacing the growth in operating expenses. While AuM grew by 62% YoY, operating expenses increased by only 56% YoY. This decoupling indicates significant scale economies and productivity gains from the existing branch network of 1,433 locations. Furthermore, the rise in Return on Average Equity (RoAE) to 19.1% ahead of the company’s stated timeline suggests that capital efficiency is improving faster than asset growth, positioning the firm well for its revised guidance of ₹650 billion AuM by FY28.

Managing Director Rajesh Sharma stated that the diversified and fully secured retail portfolio helped protect margins despite macroeconomic volatility. He noted that continued investments in technology and a strong capital position allow the company to target a 30%+ CAGR in AuM growth through FY28, with consistent RoAE of 19%-21% and RoAA of 4.2%-4.7%.

Capri Global Capital reported a consolidated net profit of ₹3,533.81 million for the quarter ended June 30, 2026 (Q1FY26), more than doubling the ₹1,749.04 million recorded in the corresponding quarter of the previous year. The Mumbai-based non-banking financial company (NBFC) also saw its total revenue from operations surge to ₹15,764.75 million, up from ₹10,009.98 million in Q1FY25, driven primarily by higher interest income and fee-based revenues. The results were approved by the Board of Directors on July 27, 2026, and reviewed by Joint Statutory Auditors M S K A & Associates LLP and Singhi & Co., who issued an unmodified opinion.

Financial Performance Highlights

The company’s top-line growth was led by interest income, which rose to ₹13,228.58 million in Q1FY26 from ₹8,064.44 million in Q1FY25. Fee and commission income also expanded significantly to ₹1,554.01 million, compared to ₹1,122.96 million in the prior-year quarter. Net gain on derecognition of financial instruments under amortized cost contributed ₹651.39 million to revenue.

On the expense front, total expenses increased to ₹11,112.33 million from ₹7,750.20 million year-on-year. This rise was largely attributed to higher finance costs of ₹5,864.75 million (up from ₹3,939.52 million) and employee benefit expenses of ₹3,013.86 million (up from ₹1,826.93 million). Impairment on financial instruments decreased to ₹621.52 million from ₹814.89 million, indicating improved asset quality.

Standalone Results and Asset Quality

On a standalone basis, Capri Global Capital reported a net profit of ₹3,140.83 million for Q1FY26, up from ₹1,501.59 million in Q1FY25. Standalone revenue from operations stood at ₹12,325.20 million, compared to ₹7,634.45 million in the previous year’s quarter.

The company maintained strong asset quality metrics, with Gross Non-Performing Assets (GNPA) at 1.02% and Net Non-Performing Assets (NNPA) at 0.56% as of June 30, 2026. The Capital Adequacy Ratio (CAR) was reported at 24.66%, well above regulatory requirements.

Regulatory Disclosures and Fund Utilization

Capri Global Capital disclosed no deviation in the utilization of proceeds from its various Non-Convertible Debenture (NCD) issuances. The company raised funds through private placements and public issues between August 2019 and April 2026, with all proceeds fully utilized for intended purposes such as onward lending, refinancing, and general corporate activities.

The Joint Statutory Auditors confirmed that the security cover for listed NCDs aggregating to ₹1,462.29 crore was maintained at 1.26 times the aggregate face value, compliant with SEBI Listing Regulations. Additionally, two subsidiaries, Capri Global Capital Markets Private Limited and Capri Global Securities Private Limited, obtained SEBI registrations as Merchant Bankers and Stock Brokers, respectively, during the quarter.

What the Numbers Show

The significant jump in net profit, outpacing revenue growth, suggests improved operational leverage and better credit costs. The reduction in impairment charges alongside rising interest income indicates that the company is successfully scaling its loan book while maintaining prudent risk management. The expansion in fee income points to growing diversification beyond traditional lending.