Capri Global Capital (531595) Q1 25/26 earnings summary

Executive summary

• Completed a landmark INR 2,000 crore (₹20,000 million) Qualified Institutional Placement, strengthening the balance sheet and enabling business expansion and technology investment.

• Achieved robust year-on-year growth in AUM, profitability, and operational efficiency, with a focus on secured lending segments including MSME, Gold, Housing, and Construction Finance.

• Net Interest Income rose 38% YoY to ₹4,156 mn, Non-Interest Income increased 53% YoY to ₹1,661 mn, and operating profit surged 115% YoY to ₹3,115 mn.

• Cost-to-income ratio improved significantly to 46.5% from 64.6% YoY.

• Board approved unaudited financial results for Q1 FY26, with an unmodified auditor opinion and key management changes including a new CFO.

Financial highlights

• Consolidated AUM reached INR 24,754 crore (₹247,538 mn) as of June 30, 2025, up 42% year-on-year.

• Net interest income for Q1 FY26 was INR 416 crore (₹4,156 mn), up 38% YoY; non-interest income grew 53% to INR 166 crore (₹1,661 mn).

• Pre-provision operating profit surged 115% YoY to INR 312 crore (₹3,115 mn); profit after tax rose 131% to INR 175 crore (₹1,749 mn).

• Cost-to-income ratio improved to 46.5% (adjusted for one-time benefit), down from 64.6% in Q1 FY25.

• Capital adequacy ratio stood at 34.5% for Q1FY26.

Outlook and guidance

• Targeting 30% annual AUM growth for FY26 and the next three years, aiming for INR 50,000 crore (₹500 bn) AUM by FY28.

• ROE expected at 13.5%-14% for FY26, improving to 16%-17% by FY27; ROA to rise from 3.5% to 4%.

• Strategic focus on product diversification, geographic expansion, and leveraging technology for operational excellence.

• Cost-to-income ratio projected to remain around 50% due to branch expansion, with further improvement expected as scale increases.

• Credit cost guidance at 70 basis points for the year.