Capri Global Capital Limited (CGCL), a retail-focused non-banking financial company (NBFC), has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth across key metrics and outlining ambitious expansion plans.

Financial Highlights

For Q2 FY26, CGCL reported:

• A 40% year-on-year increase in Assets Under Management (AUM) to ₹270,401.00 million
• Net Interest Income growth of 57% year-on-year to ₹4,795.00 million
• A 143% surge in Profit After Tax (PAT) to ₹2,360.00 million
• Improvement in Return on Average Equity (RoAE) to 14.40% and Return on Average Assets (RoAA) to 4.00%

The company's performance was driven by strong growth across its key business segments, including MSME loans, gold loans, and affordable housing finance.

Strategic Initiatives and Future Outlook

CGCL has outlined several strategic initiatives to drive scale and deliver sustainable returns:

1. Product Diversification: The company plans to offer customized products addressing underserved markets with high growth potential.

2. Geographic Expansion: CGCL aims to open new branches in existing and newer states, focusing on expanding its retail lending segments.

3. Technology and Analytics: The company is leveraging Generative AI and data analytics to enhance operational efficiency and customer experience.

4. Fee Income Growth: CGCL intends to cross-sell loan products to its growing customer base and increase insurance penetration.

5. Diversified Borrowings: The company plans to diversify its funding mix through various sources, including NCDs and ECBs, to reduce the cost of funds.

Rajesh Sharma, Managing Director of Capri Global Capital, stated, "We are targeting an AUM of ₹500 billion by FY28, growing at a CAGR of 25-30%. Our focus on retail secured lending in underserved segments, coupled with our technology-driven approach, positions us well to achieve this goal."

Asset Quality and Capital Position

The company maintained a healthy asset quality with Gross Non-Performing Assets (GNPA) at 1.28% and Net Non-Performing Assets (NNPA) at 0.74%. The provision coverage ratio stood at 42.80%, reflecting prudent risk management practices.

CGCL's capital position remains strong, with a consolidated networth of ₹66,730.00 million and a capital adequacy ratio of 32.90% for the standalone entity.

Expansion and Network Growth

The company has significantly expanded its branch network to 1,224 locations across 20 states and union territories. This expansion is expected to drive future growth and improve profitability through economies of scale.

Conclusion

Capri Global Capital's strong Q2 FY26 performance and strategic initiatives demonstrate its commitment to sustainable growth in the retail lending space. With a focus on underserved markets, technological innovation, and prudent risk management, the company appears well-positioned to achieve its ambitious targets in the coming years.

As the financial services landscape continues to evolve, CGCL's emphasis on digital transformation and customer-centric products may provide it with a competitive edge in capturing market share in high-growth segments such as MSME lending, gold loans, and affordable housing finance.

Capri Global Capital Limited , a retail-focused non-banking financial company (NBFC), has reported a robust performance for the second quarter of fiscal year 2026, with significant growth across key financial metrics.

Strong Financial Performance

The company's profit after tax (PAT) surged by 143% year-on-year to ₹236.00 crores in Q2 FY26, showcasing substantial bottom-line growth. This impressive increase in profitability was underpinned by a 40% year-on-year expansion in the company's Assets Under Management (AUM), which reached ₹27,040.00 crores.

Key Financial Highlights

• Net Interest Income: Increased by 57% year-on-year to ₹480.00 crores
• Consolidated AUM: Grew by 40% year-on-year to ₹27,040.00 crores
• Return on Average Equity (RoAE): Improved to 14.4%
• Return on Average Assets (RoAA): Reached 4%

Segment-wise Performance

Capri Global Capital witnessed growth across its various business segments:

The gold loan business achieved a significant milestone by crossing the ₹10,000.00 crore AUM mark, growing 58% year-on-year to ₹10,406.00 crores.

Operational Expansion

The company continued its expansion strategy, adding 86 new branches during the quarter, bringing its total network to 1,224 locations. This expansion is expected to drive further growth and improve market penetration.

Co-lending and Fee Income

Capri Global's co-lending AUM increased by 61% year-on-year to ₹5,677.00 crores, now accounting for 21% of the total AUM. This strategic focus on co-lending partnerships is contributing to capital-efficient growth.

The company also saw a significant rise in non-interest income, which grew by 97% year-on-year, contributing 29.8% of the net total income for the quarter. This growth was primarily driven by increased commission on insurance distribution and co-lending fee income.

Asset Quality and Provisions

The company maintained a healthy asset quality with:

• Gross Stage 3 assets at 1.3%, down 39 basis points sequentially
• Net Stage 3 assets at 0.7%, a reduction of 26 basis points sequentially
• Provision coverage ratio improved to 43%

Capital Adequacy and Liquidity

Capri Global Capital remains well-capitalized with:

• Standalone capital adequacy ratio of 32.9%
• Capri Global Housing Finance Limited's capital adequacy at 26.1%
• A comfortable leverage ratio of 2.5x

The company's liquidity position remains strong with over ₹3,200.00 crores in cash, bank balances, investments, and undrawn credit lines across its entities.

Management Commentary

Rajesh Sharma, Managing Director of Capri Global Capital Limited, commented on the results, stating, "We delivered consistent and all-round performance in the current quarter, achieving our highest ever quarterly profit. With a strong capital base, a scalable branch network, a diversified portfolio, and significant investments in technology, we are well-placed to deliver 25% to 30% annualized AUM growth and sustainable return on average equity of 16% to 18% plus return on average assets of 4% to 4.5% by FY '28."

Future Outlook

The company has set ambitious targets for the future:

• AUM target of ₹32,000.00 crores by the end of FY26
• Projected AUM of ₹42,000.00 crores by FY27
• Aiming for a profit of around ₹850.00 crores in FY26 and ₹1,200.00 crores in FY27

Capri Global Capital's strong performance in Q2 FY26 reflects its successful strategy in expanding its retail-focused secured lending business, particularly in underserved markets. The company's focus on diversification, technological advancement, and operational efficiency positions it well for continued growth in the coming years.