Credit Rating Update
Capri Global Capital Reports Record Q1 FY27 Results with 102% PAT Growth
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- Capri Global Capital Limited (Capri Loans) reported its strongest-ever quarterly performance in Q1 FY27, with Assets Under Management (AuM) crossing ₹40,000 crore, Profit After Tax (PAT) doubling to ₹353 crore, and Net Interest Income rising 78.5% YoY. The company also achieved its targeted return ratios ahead of schedule while maintaining healthy asset quality and liquidity.
PRICE-SENSITIVE TRIGGER
Event: Capri Global Capital announced its unaudited consolidated financial results for the quarter ended June 30, 2026.
Type: Credit Rating Upgrade
Impact: Positive
Immediate Effect: The company delivered record profitability, strong loan book expansion, improving operating efficiency, and healthy asset quality, reinforcing its long-term growth outlook.
Metrics:
Financial Metrics:
- Assets Under Management (AuM): ₹40,112 crore (+62.0% YoY | +9.5% QoQ)
- Net Interest Income (NII): ₹736 crore (+78.5% YoY | +23.6% QoQ)
- Net Total Income: ₹953 crore (+63.9% YoY)
- Operating Profit: ₹532 crore (+70.8% YoY)
- PAT: ₹353 crore (+102.0% YoY | +25.0% QoQ)
- Spread on Advances: 7.8% (up 110 bps YoY)
- Cost-to-Income Ratio: 44.2% (improved from 46.5%)
- Operating Profit Margin: 5.5%
- RoAA: 4.1%
- RoAE: 19.1%
- Basic EPS: ₹3.67
- Gross Stage-3 Ratio: 1.1%
- Provision Coverage Ratio (PCR): 43.2%
- Standalone CRAR: 24.7%
Segment Performance:
- Gold Loans: ₹19,179 crore (+110.6% YoY)
- MSME Loans: ₹6,779 crore (+23.7% YoY)
- Affordable Housing Loans: ₹7,815 crore (+42.3% YoY)
- Construction Finance: ₹6,332 crore (+40.1% YoY)
Highlight:
- PAT more than doubled to ₹353 crore while consolidated AuM crossed ₹40,000 crore for the first time, driven by broad-based growth across all lending segments.
What Happened ?
Capri Global Capital delivered its best-ever quarterly performance in Q1 FY27, driven by strong expansion across secured retail lending businesses. Growth was led by Gold Loans, MSME financing, affordable housing, and construction finance. Higher margins, improved operating efficiency, and robust fee income supported a sharp rise in profitability, while asset quality remained under control and capital adequacy stayed strong.
key details
Business & Operational Highlights
- Consolidated AuM crossed ₹40,000 crore, increasing 62% YoY to ₹40,112 crore.
- Customer base expanded beyond 7.6 lakh, supported by a network of 1,433 branches.
- Net Interest Income increased 78.5% YoY to ₹736 crore, supported by higher spreads.
- Non-interest income rose 28% YoY to ₹217 crore, contributing 23% of total income.
- Insurance distribution fee income increased 66% YoY to ₹42 crore.
- Car loan distribution income grew 37% YoY.
- Off-book assets contributed 20% of total AuM.
- Cost-to-income ratio improved to 44.2%, reflecting higher productivity.
- Asset quality remained healthy with GNPA at 1.1%, NNPA at 0.6%, and annualised credit cost of 0.8%.
- Standalone capital adequacy ratio remained strong at 24.7%, while consolidated equity increased to ₹7,565 crore.
Note:
Management has revised its medium-term guidance, targeting AuM of ₹650 billion, 30%+ CAGR by FY28, RoAE of 19%–21%, and RoAA of 4.2%–4.7%, supported by continued investments in technology and a strong capital base.
Risk Analysis
Summary:
Despite strong growth, maintaining asset quality, funding discipline, and operating efficiency will remain critical as the company expands its loan book.
Key Risks:
- Rapid loan book growth requires continued prudent underwriting.
- Higher borrowings need to be managed while maintaining healthy leverage.
- Macroeconomic volatility could affect borrower repayment behaviour.
- Sustaining low credit costs will be important as the lending portfolio scales.
Worst Case:
A deterioration in asset quality or slowdown in retail credit demand could pressure profitability and return ratios despite strong capitalisation.
Risk Level: Medium
Company Commentary
- Management described Q1 FY27 as the company’s strongest quarterly performance.
- Profitability improved through higher-margin products, fee income growth, and operating efficiency.
- Asset quality remained under control despite macroeconomic volatility.
- Continued investment in technology and strong capital position support future growth.
- The company has upgraded its guidance to achieve ₹650 billion AuM, 30%+ CAGR, RoAE of 19%–21%, and RoAA of 4.2%–4.7% by FY28.
Official Exchange Filing: JSW Steel Limited
