Whalesbook
Strong FY26 Results Driven by AUM Growth
Capri Global Capital Ltd announced robust financial results for the fiscal year ending March 31, 2026. The company reported a consolidated Profit After Tax (PAT) of ₹94.86 crore, marking a significant 98% jump from ₹47.85 crore in FY25. This performance was underpinned by a 50% increase in Net Interest Income (NII) to ₹199.79 crore.
Consolidated Assets Under Management (AUM) demonstrated impressive growth, surging 60% year-on-year to ₹3,662.33 crore by the end of FY26. The company also saw an improvement in asset quality, with Net Non-Performing Assets (NNPA) decreasing to 0.5% from 0.9% a year earlier. During the fourth quarter of FY26 (Q4FY26), PAT rose 59% year-on-year to ₹28.28 crore, while the AUM continued its 60% growth trajectory.
Ambitious Growth Plans
Capri Global is setting aggressive growth targets, aiming for ₹55,000 crore in AUM by FY28 and projecting over ₹100,000 crore by FY32. To support this expansion, the NBFC plans to open 750-800 new branches over the next two years to enhance market penetration.
Diversified Business and Strategy
The company operates a diversified Non-Banking Financial Company (NBFC) model, with business lines including MSME loans, affordable housing finance, construction finance, car loan distribution, and gold loans. A key focus has been scaling the gold loan portfolio, which offers higher yields, alongside leveraging co-lending partnerships with banks for efficient AUM growth.
The recent performance has outpaced previous guidance, which had projected an AUM target of ₹33,000-34,000 crore for FY26. Capri Global is also investing in technology, including artificial intelligence (AI) tools, to boost underwriting accuracy and operational efficiency across its various lending segments.
Future Initiatives and Risk Factors
Capri Global intends to diversify its borrowing sources by utilizing instruments like Non-Convertible Debentures (NCDs) and Commercial Papers (CPs), while also widening its lender base to potentially lower its cost of funds. These strategies are aimed at sustaining high growth momentum towards its ambitious future AUM targets.
Investors should note a past regulatory action: in September 2023, SEBI imposed a penalty of ₹1.3 crore on 25 individuals for share price manipulation related to Capri Global's stock between August 2019 and June 2020.
Market Position and Performance Metrics
Capri Global's current Price-to-Earnings (P/E) ratio stands around 21.07, which is notably lower than many industry peers like Bajaj Finance or Cholamandalam Investment & Finance, often traded at higher multiples. While its gold loan segment places it in competition with entities like Muthoot Finance, its broader strategy targets the MSME and housing finance sectors. Historically, Capri Global's AUM grew at a three-year compound annual growth rate of 51% up to March 31, 2025.
Key Watchpoints for Investors
Moving forward, investors will be tracking the execution of the planned large-scale branch expansion. The successful integration and impact of AI tools on lending operations will also be closely monitored. Additionally, developments in diversifying borrowing channels and managing funding costs are crucial. Progress towards achieving the FY28 AUM target of ₹55,000 crore and the long-term goal of over ₹100,000 crore by FY32 will be key indicators of the company's trajectory.