Capri Global Capital Reports Strong FY26 Performance, Board Proposes Major Borrowing Boost

Capri Global Capital's total income for FY2026 reached ₹4,742.01 crore, with net profit at ₹949.15 crore.

Reader Takeaway: Strong profit growth reported; borrowing hike needs shareholder nod.

Key Financial Results Announced

Capri Global Capital Ltd announced strong financial results for the fiscal year ended March 31, 2026. The company's total income climbed to ₹4,742.01 crore, a significant increase from the previous fiscal year. Profit after tax for FY2026 reached ₹949.15 crore.

Key decisions from the Board of Directors meeting on April 30, 2026, included recommending a final dividend of ₹0.20 per equity share for FY2026. The Board also proposed to increase the company's aggregate borrowing limit from ₹25,000 crore to ₹35,000 crore. This move aims to support future growth and expansion, pending necessary shareholder approval.

The company stated its statutory auditors issued an unmodified opinion on the audited financial results, confirming clean accounts.

Significance of the Results

The strong financial performance demonstrates Capri Global's ability to grow income and profitability, likely driven by its diversified lending portfolio and efficient operations. An increased borrowing limit could allow Capri Global to scale up its lending operations, potentially boosting Assets Under Management (AUM) and market share in segments like MSME, housing, and gold loans.

Company Overview

Capri Global Capital is a diversified NBFC focused on MSME lending, affordable housing finance, gold loans, and construction finance. It uses a 'phygital' model, combining physical branches with digital services, targeting underserved customers. The company has a history of accessing capital markets for growth, raising funds through QIPs and Non-Convertible Debentures (NCDs). For example, it completed a ₹2,000 crore QIP in June 2025. This proactive funding approach is crucial for NBFCs to maintain healthy capitalisation and support expanding loan books.

What This Means

Shareholders will vote on the proposed increase to the borrowing limit, which could unlock greater financial leverage for growth. The recommended final dividend, if approved, will offer a direct return to shareholders. The approved FY2026 audited results confirm the company's financial health and performance trajectory. An increased borrowing limit may signal accelerated expansion plans for loan origination and AUM growth.

Key Risks

The proposed increase in aggregate borrowing limits from ₹25,000 crore to ₹35,000 crore is subject to approval by shareholders at the upcoming Annual General Meeting. Failure to secure this approval could constrain future funding plans.

Competitive Landscape

Capri Global Capital operates in a competitive landscape alongside major NBFCs like Bajaj Finance, Shriram Finance, and Muthoot Finance. While Bajaj Finance is a diversified leader, Shriram Finance has a strong presence in commercial vehicles and MSME loans. Muthoot Finance leads in gold loans, a key growth vertical for Capri. Aavas Financiers is a competitor in the affordable housing finance segment. These competitors also actively manage their capital and borrowing to fuel growth.

Previous Year's Performance

For FY2025, Capri Global Capital reported consolidated total income of ₹3,250.84 crore and consolidated profit of ₹478.53 crore.

What Investors Are Watching

Investors will monitor shareholder voting outcomes on the proposed borrowing limit increase. They will also track the announcement and payment of the final dividend, pending AGM approval. Management commentary on how the increased borrowing capacity will drive future AUM growth and profitability will be key. Updates on co-lending partnerships and their business impact will also be watched.