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    Capri Global Capital Q1 FY27 earnings call

    CGCL
    Financial Services·29 Jul 2026
    Management Summary

    Capri Global Capital Limited delivered a strong Q1 FY27, with PAT growing 102% YoY to INR353 crores and AUM reaching INR40,112 crores, up 62% YoY. The company achieved significant improvements in NII and cost-to-income ratio, driving higher RoAE and RoAA. While overall asset quality remained robust with low GNPA, Stage 2 assets increased due to gold price volatility and one construction finance account slipped into Stage 3, which management expects to recover.

    Highlights

    5

    • PAT surged to INR353 crores, marking a 102% increase year-on-year.

    • Consolidated AUM grew robustly by 62% year-on-year and 10% quarter-on-quarter to INR40,112 crores.

    • Net Interest Income (NII) increased by 79% year-on-year to INR736 crores, driven by strong loan book growth and margin expansion.

    • Cost-to-income ratio significantly improved to 44.2% in Q1 FY27 from 49.4% in Q4 FY26, reflecting operational leverage.

    • Return on average equity (RoAE) improved to 19.1% (from 13% year before) and Return on average asset (RoAA) to 4.1% (from 3.2% year before).

    Concerns

    3

    • Gross Stage 2 assets increased by INR385 crores, primarily due to INR373 crores in gold loan, attributed to a 4% QoQ decline in gold prices.

    • Construction finance gross Stage 3 ratio increased from 0.3% to 0.7% QoQ due to one particular account slipping into NPA.

    • Co-lending volume growth slowed to 4% QoQ, impacted by new CLM1 guidelines and partner bank transitions.

    Key financials

    Single quarter

    12 metrics
    1. 01PAT₹353 Cr+102%YoY
    2. 02Consolidated AUM₹40,112 Cr+62%YoY
    3. 03Net Interest Income (NII)₹736 Cr+79%YoY
    4. 04Cost-to-Income Ratio44.2%-10.5%QoQ
    5. 05Return on Average Equity (RoAE)19.1%

    Segment breakdown

    Gold Loan
    ₹19,179 Cr AUM
    MSME
    ₹6,779 Cr AUM₹616 Cr Disbursements
    Housing Loans
    ₹7,815 Cr AUM
    Construction Finance
    ₹6,332 Cr AUM
    Co-lending and DA
    ₹8,126 Cr AUM₹65 Cr Income
    Total Disbursements
    ₹11,114 Cr Disbursements
    Car Loan Distribution
    ₹3,282 Cr Origination Volume
    Non-Interest Income
    ₹217 Cr Non-Interest Income
    Insurance Distribution
    ₹42 Cr Net Fee Income
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Cash ₹4,037 crores

    INR4,037 crores in cash and bank balance investment and undrawn credit lines.

    Guidance & targets

    8
    CategoryTargetPriority
    AUM
    AUM Target
    INR65,000 crores
    		High
    AUM
    AUM Target
    INR50,000 crores
    		High
    Profitability
    Return on Average Equity (RoAE)
    19% to 21%
    		High
    Profitability
    Return on Average Asset (RoAA)
    4.2% to 4.7%
    		High
    Branch Expansion
    Gold Loan Branches
    400 branches
    		High
    Portfolio Mix
    Gold Loan Contribution to AUM
    about 55%
    		Medium
    Efficiency
    Cost-to-Income Ratio
    44%-45%
    		High
    Yields
    Gold Loan Yields
    50 to 75 basis further improvement
    		Medium

    What to watch in Q2 FY27

    5

    Gold Loan Yield Improvement

    next quarter
    CurrentAround 18.5%
    Target50-75 bps further improvement

    Why it matters

    Management guided for further yield improvement in gold loans, which is a key driver of profitability and NIM.

    I think next quarter also, we'll see💬 some improvement in the yield and current improvement have happened to about 18.5%. I think another 50 to 75 basis further improvement will happen in the yield.

    Risks & concerns

    3
    RiskSeverity

    Gold price volatility impact on asset quality

    A 4% QoQ decline in gold prices led to an increase of INR373 crores in gold loan Stage 2 assets. Management states automated margin calls and auctions mitigate risk, and the portfolio is well under control. — Management acknowledged

    medium

    Construction finance account slippage to NPA

    One particular account slipped into NPA, causing the construction finance gross Stage 3 ratio to increase. Management has taken 70% provision and expects recovery within 6-9 months due to strong collateral. — Management acknowledged

    low

    Slowdown in co-lending volume growth

    Co-lending volume growth slowed to 4% QoQ due to new CLM1 guidelines and the transition of partner banks to the new model. This impacted income from co-lending and DA, which was down 8% YoY. — Management acknowledged

    low

    Q&A highlights

    8

    “Out of INR385 crores, which is increased in the Stage 2, INR10 crores have increased in MSME, INR15 crores have increased in housing. Construction finance, it has increased by INR13 crore. Gold loan, it has increased by INR373 crores. Thus, total increase in Stage 2 is by INR385 crores. Gold loan primarily has gone up because the gold prices have been on the lower side. And quarter-on-quarter basis, we have seen a 4% decline in the price, and that has resulted in more Stage 2 cases.”

    Provides a detailed breakdown of the increase in Stage 2 assets, attributing the majority to gold loans due to price volatility.

    asked by Krina Shah

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Growth Across Lending Segments

    Capri Global Capital Limited reported a strong Q1 FY27, with consolidated AUM reaching INR40,112 crores, marking a 62% year-on-year and 10% quarter-on-quarter growth. Gold loans led the growth with an impressive 111% YoY increase to INR19,179 crores, while housing loans grew 42% YoY to INR7,815 crores. MSME AUM expanded by 24% YoY to INR6,779 crores, and construction finance AUM increased by 40% YoY to INR6,332 crores. Total disbursements for the quarter rose 31% YoY to INR11,114 crores, driven by an expanding customer base exceeding 7.6 lakhs.

    02

    Strong Profitability and Efficiency Gains

    The company achieved its highest-ever quarterly PAT of INR353 crores, a 102% increase year-on-year. Net Interest Income (NII) grew by 79% YoY to INR736 crores, supported by improved blended yields of 17% and spreads on net advances of 7.8%. Operational efficiency significantly improved, with the cost-to-income ratio declining to 44.2% in Q1 FY27 from 49.4% in Q4 FY26. This led to a 71% YoY surge in pre-provision profit to INR532 crores, and a notable increase in RoAE to 19.1% and RoAA to 4.1%.

    03

    Asset Quality Remains Resilient Despite Minor Slippages

    Capri Global maintained strong asset quality with a consolidated gross Stage 3 ratio of 1.1% and net Stage 3 ratio of 0.6%. Gold loan gross NPA stood at a low 0.3%. However, gross Stage 2 assets increased by INR385 crores, primarily due to INR373 crores in gold loans, attributed to a 4% QoQ decline in gold prices. Additionally, construction finance gross Stage 3 assets increased by INR31 crores, with one particular account slipping into NPA, for which a 70% provision has been taken. Management expressed confidence in recovering these accounts within 6-9 months due to strong collateral.

    04

    Strategic Branch Expansion and Digital Transformation

    The company's gold loan branch network remained steady at 1,000 branches, with aggregate branch productivity increasing to INR19 crores per branch. A revised plan aims to add 400 branches by December 2026, focusing on Southern and Eastern India. On the technology front, Capri Global collaborated with OpenAI to integrate generative AI across business functions, analyzing 6.7 lakh customer calls and recording 2.64 lakh geo-tagged field visits. The Kronos 4.0 collection platform and omnichannel engagement platform have significantly enhanced recovery outcomes and operational efficiency.

    05

    Revised AUM and Profitability Targets

    Management revised its AUM target upwards to INR65,000 crores by FY28, implying a 30%+ CAGR. Concurrently, the company set new targets for Return on Average Equity (RoAE) at 19% to 21% and Return on Average Asset (RoAA) at 4.2% to 4.7% by FY28. The FY27 AUM target is on course for INR50,000 crores. These targets reflect confidence in sustained growth and profitability, supported by ongoing investments in technology and distribution, even amidst an expansion phase with 400-500 branch openings annually.

    This is an AI-generated summary of a publicly available earnings call transcript.