CP Capital reported a strong Q2 FY27 with standalone profit rising to Rs 22.56 crore. The company successfully launched a digital lending vertical, disbursing Rs 3.75 crore in its first week. While margins improved significantly, investors should watch the high double-digit NPA levels.
CP Capital Q2 Profit Soars to Rs 22.56 Crore
CP Capital's standalone Q2 profit rose to Rs 22.56 crore from Rs 8.20 crore last year. Standalone revenue grew to Rs 34.97 crore compared to Rs 15.11 crore in Q2 FY26.
Reader Takeaway: Robust top-line growth and high margins are visible, but double-digit NPA ratios remain a key credit risk.
What just happened
CP Capital announced financial results for the quarter ended September 30, 2026. The company saw a sharp year-on-year increase in both revenue and profit. Alongside these results, the company debuted its digital lending vertical, which disbursed Rs 3.75 crore across 1,570 loans in its first seven days of operation.
Why this matters
The jump in profitability is bolstered by an operating EBITDA margin of 93.71%. The shift to a digital-first lending model represents a pivot in the firm's growth strategy, targeting Tier 2 and Tier 3 cities where half of the new digital loans originated.
Portfolio and Asset Quality
The company's gross loan book stands at Rs 266.41 crore, primarily composed of Loans Against Property at 71.9%. Asset quality remains a concern, with a Gross NPA of 13.47% and Net NPA of 10.81%. The firm also clarified a Rs 43.97 crore technical write-off from the previous quarter, noting that the exposure was already fully impaired.
Governance
The Board approved the results, and statutory auditors M/s S P Chopra & Co. provided an unmodified review report for both standalone and consolidated financials.
What to track next
Investors should monitor whether the digital lending segment maintains low default rates as it scales and whether the company can successfully reduce its high NPA levels in subsequent quarters.