Capri Global Capital Limited (CGCL), a prominent non-banking financial company (NBFC), has announced an ambitious growth strategy aimed at significantly expanding its market presence by fiscal year 2028 (FY28).

Aggressive AUM Target

The company's Co-Managing Director has set forth a strategic goal to achieve Rs 50,000 crores in Assets Under Management (AUM) by FY28. This target represents a substantial increase from the company's current AUM, which stood at Rs 27,040.00 crores as of September 30, 2025, according to the latest financial results.

Financial Performance Objectives

In addition to the AUM target, CGCL has outlined specific financial performance objectives:

• Return on Average Equity (ROAE): The company aims to achieve an ROAE of 16-18% by FY28.
• Return on Average Assets (ROAA): CGCL targets an ROAA of 4.0%-4.5% for the same period.

These targets indicate the company's focus on maintaining profitability while pursuing aggressive growth.

Current Financial Position

The announcement comes on the heels of CGCL's strong financial performance in the second quarter of fiscal year 2026. Key highlights from the Q2 FY26 results include:

The company's robust growth across various segments, including Gold Loans (58.1% YoY growth) and Affordable Housing (37.0% YoY growth), provides a strong foundation for its ambitious future plans.

Strategic Initiatives

To achieve its FY28 goals, Capri Global Capital is likely to focus on:

1. Expanding its product portfolio
2. Enhancing its geographical presence
3. Leveraging technology for improved efficiency
4. Strengthening its capital base

The company's recent Qualified Institutions Placement (QIP) of equity shares, which raised approximately Rs 20,000.00 million, demonstrates its commitment to fortifying its financial position to support future growth.

Market Implications

CGCL's aggressive growth strategy could potentially reshape the competitive landscape in the NBFC sector. The company's focus on high-yielding segments like Gold Loans and Affordable Housing, coupled with its emphasis on maintaining strong return ratios, positions it as a significant player to watch in the coming years.

As the company pursues its ambitious targets, investors and market observers will be keenly watching its execution capabilities and ability to maintain asset quality while scaling up operations.

While the targets set by Capri Global Capital are undoubtedly ambitious, they reflect the company's confidence in its business model and the growth potential of the Indian financial services sector. The success of this strategy will depend on various factors, including the overall economic environment, regulatory landscape, and the company's ability to innovate and adapt to changing market conditions.

Capri Global Capital Limited (CGCL), a prominent non-banking financial company, has reported a strong financial performance for the second quarter, with significant growth in both revenue and profitability.

Key Financial Highlights

• Net Profit: ₹2.36 billion, up 143% year-on-year from ₹970 million
• Revenue: ₹11.21 billion, increased from ₹7.52 billion, representing a 49% growth
• Interest Income: ₹7.20 billion, up from ₹4.88 billion in the previous year's corresponding quarter
• Fee and Commission Income: ₹440.81 million, compared to ₹142.11 million in the same quarter last year

Operational Performance

The company's robust growth is reflected in its loan portfolio and asset quality:

• Loans: ₹157.84 billion as of September 30, showing significant expansion
• Gross NPA Ratio: 1.23%, indicating strong asset quality
• Net NPA Ratio: 0.69%, further underlining the company's effective risk management

Financial Position

CGCL's balance sheet remains strong, with:

• Total Assets: ₹195.33 billion
• Net Worth: ₹62.10 billion
• Capital Adequacy Ratio (CAR): 32.86%, well above regulatory requirements

Management Commentary

Rajesh Sharma, Managing Director of Capri Global Capital Limited, commented on the results: "Our Q2 performance demonstrates the resilience and strength of our business model. The significant increase in net profit and robust growth in revenue reflect our strategic focus on expanding our loan book while maintaining asset quality. We remain committed to leveraging technology and our deep market understanding to drive sustainable growth."

Business Segments

While specific segment-wise data was not provided, CGCL's growth appears to be broad-based across its various lending segments, which typically include MSME loans, housing finance, and construction finance.

Future Outlook

The company's strong capital position, with a high CAR of 32.86%, positions it well for future growth opportunities. CGCL's focus on maintaining asset quality while expanding its loan book suggests a balanced approach to growth and risk management.

Conclusion

Capri Global Capital's Q2 results showcase a company on a strong growth trajectory, with impressive improvements in profitability and revenue. The significant year-on-year growth in net profit and the healthy expansion of its loan book indicate effective execution of its business strategies. As the company continues to navigate the dynamic financial services landscape, its robust financial metrics and focus on asset quality position it well for sustained performance in the coming quarters.