Capri Global Capital Ltd.: Record Profit & Aggressive AUM Growth Fuels Future Outlook

Capri Global Capital Ltd. has reported a record-breaking fourth quarter for FY26, with profits surging and assets under management showing significant expansion. The company announced a consolidated profit of ₹283 crore for the quarter, marking a 59% increase year-on-year. This strong performance was largely fueled by a substantial 60% rise in consolidated Assets Under Management (AUM), which reached ₹36,623 crore.

For the full fiscal year 2026, Capri Global Capital's profit nearly doubled compared to the previous year, totaling ₹949 crore. This robust financial outcome reflects considerable gains in operational efficiency. The company's cost-to-income ratio improved notably, dropping to 49.4% in Q4 FY26 from 54.8% in the same quarter last year. Asset quality remained a strong point, with Gross Stage 3 assets at a low 0.9% and Net Stage 3 assets at 0.5%.

A key driver behind this growth is the company's rapidly expanding gold loan business, which saw its AUM grow by an impressive 111% year-on-year during FY26. Management attributes efficiency gains to strategic investments in technology, including the deployment of a specialized small language model (SSLM) designed to enhance decision-making processes and collection strategies.

Looking ahead, Capri Global Capital has set ambitious targets. The company aims to grow its AUM to ₹46,000 crore by FY27 and further to ₹57,000 crore by FY28. This expansion will be supported by a growing branch network, with plans to add 350 new gold loan branches and an overall increase in its retail footprint. Diversification across MSME, housing, and construction finance segments is also part of the growth strategy, aiming for a balanced portfolio where gold loans are targeted to constitute 50% of the AUM.

The company's performance also suggests potential for credit rating upgrades, which could lead to a lower cost of funds, further boosting profitability.

In the competitive landscape, Capri Global Capital's aggressive growth rate in gold loans positions it strongly against peers like Muthoot Finance and Manappuram Finance. While other lenders also focus on asset quality, Capri Global's ability to achieve significant market share gains while maintaining low Stage 3 asset ratios is a notable achievement.

However, the company faces certain challenges. Adjustments required by new co-lending norms may lead to a temporary slowdown in volume growth until September FY27. Broader macroeconomic uncertainties and increased hedging costs for international borrowing have also impacted funding activities.

Investors will be closely watching Capri Global's progress in achieving its aggressive AUM targets for FY27 and FY28, the actual impact of new co-lending guidelines, and its success in reaching sustainable return on equity (RoE) of 16-18% and return on assets (RoA) of 4-4.5% by FY28. The expansion of its branch network and the evolution of its AUM mix will also be key areas to monitor.