Detailed Narrative
Strong Financial Performance and Growth Momentum
Capri Global closed FY25 with its best financial performance, achieving a consolidated AUM of INR 22,857 crores, marking a robust 46% year-on-year growth. Net Profit for Q4 FY25 surged by 115% YoY to INR 178 crores, and for the full year, it grew 71% to INR 479 crores. This strong performance was underpinned by a diversified strategy across secured retail lending segments, with significant contributions from gold loans and construction finance.
Robust Growth in Core Lending Segments
The gold loan AUM grew sharply by 130% YoY to INR 8,042 crores in FY25, supported by 803 specialized branches and an average AUM per branch of INR 10 crores. Housing Finance AUM reached INR 5,202 crores, growing 24% YoY, while Construction Finance AUM increased 58% YoY to INR 4,133 crores. MSME and housing finance together comprised 46% of the total AUM, with MSME standing at INR 5,278 crores.
Enhanced Profitability and Operational Efficiency
The company reported improved yields of 17.3% and spreads of 7.8% in Q4 FY25, leading to a 49% YoY increase in Q4 NII to INR 381 crores. The cost-to-income ratio significantly improved from 70.5% in Q4 FY24 to 54.8% in Q4 FY25, reflecting higher productivity per branch and economies of scale. Pre-provisioning operating profit for Q4 FY25 increased by 132% YoY to INR 254 crores.
Asset-Light Income Streams and Co-lending Success
Non-interest income contributed over 27% to net income in FY25, driven by car loan origination (INR 96 crores net fee from INR 10,700 crores disbursement) and insurance distribution (INR 73 crores net fee). The co-lending platform demonstrated strong momentum, with AUM reaching INR 4,079 crores, accounting for 18% of total AUM, up from 12% a year ago, and generating INR 165 crores in income for FY25.
Disciplined Risk Management and Strong Capital Position
Asset quality remained steady with Gross Stage 3 assets at 1.5% and Net Stage 3 assets at 0.9% in Q4 FY25, supported by a 41.7% Provision Coverage Ratio. Credit costs for FY25 were well-contained at INR 101 crores. The company maintained strong capital adequacy ratios of 22.8% for CGCL and 26.9% for CGHFL, alongside robust liquidity of over INR 1,827 crores.
Strategic Technology and Geographical Expansion
Capri Global continues to invest heavily in technology, spending INR 90-100 crores annually on data science, AI/ML for underwriting, fraud detection, and collection efficiency, achieving a 99% average collection efficiency. Geographically, after focusing on North and West, the company is expanding into Southern states like Andhra, Telangana, Tamil Nadu, and Karnataka with Micro LAP, housing finance, MSME, and gold loan branches in FY26.
Ambitious Future Growth and Profitability Targets
Management guided for a sustained AUM growth in the range of 27-30% CAGR, targeting INR 50,000 crores AUM by FY28. They also aim to deliver a sustainable Return on Equity (ROE) of 16%+ by FY28, supported by continued investment in technology, branch network, and a focus on high-margin businesses. The MSME segment is expected to grow at a normal rate of 15-20% in FY26.