Detailed Narrative
Robust AUM Growth and Diversified Portfolio
Capri Global achieved a consolidated AUM of ₹36,623 crores in Q4 FY26, marking a significant 60% year-on-year and 20% quarter-on-quarter growth. This growth was driven by strong performances across all lending businesses: gold loans grew 111% YoY, MSME 23% YoY, housing loans 43% YoY, and construction finance 38% YoY. The company's customer base now exceeds 6.9 lakhs, reflecting a granular and retail-led growth strategy. Disbursements for the quarter rose 116% YoY to ₹18,145 crores, supported by an expanding distribution network.
Record Profitability and Improved Efficiency
The company reported its highest ever quarterly profit of ₹283 crores in Q4 FY26, a 59% increase YoY, and a full-year profit of ₹949 crores, nearly doubling from the previous year. This strong profitability was underpinned by improved operational efficiency, with the cost-to-income ratio declining to 49.4% in Q4 FY26 from 54.8% in Q4 FY25. Return on average equity for FY26 improved to 16.5% (from 11.8% in the previous year), and return on average assets reached 3.5% (from 2.7%). Net interest income for Q4 FY26 stood at ₹596 crores, up 56% YoY, while non-interest income grew 36% YoY to ₹247 crores, contributing 29% to total net income.
Strong Asset Quality and Risk Management
Capri Global demonstrated marked improvement in asset quality, with gross NPA declining to 0.9% and net Stage 3 ratio at 0.5%, placing it among the top quartile in the industry. Gross Stage 2 assets decreased by ₹100 crores, driven by reductions across MSME, gold, and construction finance segments. The company maintained conservative loan-to-value ratios in gold loans and focused on effective risk management practices. The provision coverage ratio on Stage 3 assets remained steady at 41.2%, reflecting adequate provisioning.
Strategic Branch Expansion and Technology Adoption
The company expanded its total branch network to 1,429 locations, with a net addition of 98 branches in Q4 FY26 and 318 for the full year. This expansion, particularly in high-potential Southern and Eastern regions, supports future growth. Technology plays a crucial role, with the Capri loans customer app recording over 31.5 lakh digital customer engagements in Q4, facilitating transactions worth ₹784 crores. The company's AI-first approach, including a specialized small language model (SSLM), enhances decision-making, sales productivity, and operating efficiency.
Funding Diversification and Capital Adequacy
Borrowings increased by 55% YoY, with incremental sanction limits of ₹10,950 crores in FY26. The company diversified its funding mix by raising ₹2,187 crores through non-convertible debentures and commercial papers, and completed a public NCD issuance of ₹489 crores. The cost of borrowings declined by 18 bps QoQ. The balance sheet remains robust with a low leverage ratio of 3.3x. Capital adequacy ratios stood at 25.8% for CGCL and 27.7% for CGHFL, providing ample headroom for growth.
Co-lending and Fee Income Strategy
Co-lending AUM surged 91% YoY to ₹7,783 crores, now accounting for 21% of total AUM, reflecting a strategy for capital-efficient growth. New RBI co-lending guidelines, effective January 2026, are expected to cause a temporary slowdown in co-lending volumes for a couple of quarters, with full business volume anticipated to resume by Q2 FY27. The company is also strengthening its non-interest income streams, with insurance distribution generating ₹65 crores in Q4, and plans to expand into cross-sell for retail health and motor insurance through digital channels.