Capri Global Capital Secures 'Good' ESG Rating, Boosting Green Finance Access

Capri Global Capital Ltd. reported Assets Under Management (AUM) of ₹30,000 crores as of December 31, 2025. The company also posted a Profit After Tax (PAT) of ₹478.53 crore for FY25.

Reader Takeaway: ESG rating boost signals responsible growth; past regulatory scrutiny remains a minor overhang.

What Happened Today

Capri Global Capital Limited has secured a 'Good' ESG rating from Sustainable Fitch. This rating serves as a Second-Party Opinion (SPO) on the company's Sustainable Finance Framework, confirming its full alignment with the International Capital Market Association's (ICMA) Green Bond, Social Bond, and Sustainability Bond Principles. This accreditation enables Capri Global to raise green and social funds for eligible environmental and social projects.

The company plans to fund or refinance initiatives that support sustainability goals, climate action, and inclusive growth. Sustainable Fitch noted a strong process for evaluating and selecting projects. Capri Global will publish annual allocation and impact reports to maintain transparency until the funds are fully utilized.

Why This Matters

This ESG rating and the established Sustainable Finance Framework are significant for Capri Global. They boost the company's credibility with investors and lenders prioritizing sustainability. Access to green and social finance can lead to more favorable borrowing terms and unlock new funding sources, supporting expansion and alignment with global environmental and social goals.

Past Developments

Capri Global Capital has been steadily strengthening its commitment to ESG principles through focused initiatives across its operations. In March 2024, the company announced its first Green Bond issuance of ₹300 crore, signaling its intention to utilize sustainable finance. Alignment with ICMA principles demonstrates adherence to globally recognized standards for sustainable debt. Recent financial performance highlights strong growth: FY25 Profit After Tax (PAT) rose 71% year-over-year to ₹478.53 crore, with Assets Under Management (AUM) reaching ₹22,857 crore.

What This Means

• Capri Global can now tap into a broader pool of capital from investors focused on ESG credentials.
• The company can raise funds designated for environmental and social projects, amplifying its sustainability impact.
• The rating offers external validation for its governance and sustainability initiatives.
• It reinforces the company's strategy for responsible, long-term growth.

Potential Risks

While the ESG rating is positive, investors will watch how funds are deployed under the sustainable framework. Capri Global has faced regulatory scrutiny; in 2023, SEBI fined individuals for share price manipulation linked to the company's stock. Furthermore, the NBFC sector continues to face risks from rising interest rates, competition, and concerns over asset quality, especially in segments like MSME and construction finance.

Comparing with Peers

While many Indian NBFCs are increasing their ESG focus, direct comparisons to 'Good' ESG ratings from Sustainable Fitch are scarce in public disclosures. L&T Finance Holdings, another major NBFC, holds a 'Strong' ESG rating from CRISIL. Typically, Indian banks exhibit higher ESG scores than NBFCs, but companies like Capri Global are actively improving their ESG practices to meet rising investor demand and regulatory expectations.

Key Metrics

• Assets Under Management (AUM): ₹30,000 crore as of December 31, 2025.
• Customer base: 6.3 Lakhs as of December 31, 2025.
• Profit After Tax (PAT) for FY25: ₹478.53 crore.

Looking Ahead

• Upcoming allocation and impact reports for its sustainable finance initiatives.
• Successful issuance and deployment of green and social finance.
• Continued financial performance, focusing on profit growth and asset quality.
• Further enhancements to governance practices, noting the withdrawal of the director re-appointment notice.
• The evolving ESG regulatory landscape in India and its impact on NBFCs.