Capri Global Capital Ltd. Releases Q2 FY26 Earnings Call Transcript, Reports Strong Growth & Profitability
Capri Global Capital Limited released Q2 FY26 earnings call transcript, reporting robust AUM growth, strong PAT increase, improved asset quality, and positive future guidance for AUM and profitability.
The announcement details strong financial performance for Q2 FY26, including substantial growth across all lending segments, improved profitability metrics, and strategic expansions. The clear future guidance for AUM and PAT growth, along with capital raising, indicates a significant positive impact on the company's prospects and market perception.
The company reported significant year-on-year growth in AUM (40%) and PAT (143%), improved asset quality with declining Stage 3 assets, and provided a positive outlook for future AUM growth, profitability, and cost of funds reduction. The successful NCD issuance also indicates strong investor confidence.
* Capri Global Capital Limited (CGCL) released the transcript of its earnings conference call for the second quarter and half year ended September 30, 2025, held on Friday, October 31, 2025. * The company strengthened its leadership with the appointment of Mr. Monu Ratra as CEO. * CGCL successfully completed its maiden public issuance of secured rated listed redeemable non-convertible debentures for ₹400 crores, which was oversubscribed across all investor categories. * As of September 30, 2025, consolidated Assets Under Management (AUM) stood at ₹27,040 crores, reflecting a robust 40% year-on-year (YoY) growth and 9% quarter-on-quarter (QoQ) growth. * Gold loan AUM grew 58% YoY to ₹10,406 crores, crossing ₹10,000 crores, and serving over 10 lakh customers since inception. 21 new gold loan branches were added, including entry into Bihar. Average AUM per branch increased to ₹12.4 crores. * MSME AUM grew 18% YoY to ₹5,602 crores, with 13 new branches added. Micro LAP AUM rose to ₹543 crores across 137 locations, with 43 net branch additions and entry into Tamil Nadu and Karnataka. * Housing AUM reached ₹5,972 crores, a 37% YoY growth, with 4 new branches opened in Telangana. * Construction finance AUM grew 48% YoY to ₹4,969 crores, funding over 286 active residential projects with an average sanction ticket size of ₹51 crores. * Total branch network expanded to 1,224 locations with 86 net additions, and the employee base marginally increased to 12,197. * Net interest income for Q2 FY26 was ₹480 crores, a 57% YoY and 15% QoQ increase. Non-interest income grew 97% YoY to ₹203 crores, contributing 29.8% to net total income, driven by insurance distribution (₹28 crores) and co-lending fee income (₹81 crores). * Pre-provision operating profit surged 137% YoY to ₹345 crores, and Profit After Tax (PAT) was ₹236 crores, up 143% YoY. * Return on Average Equity (ROAE) was 14.4% and Return on Average Assets (ROAA) was 4% for the quarter. * Asset quality improved, with impairment cost at ₹31 crores (0.6% of gross loan book). Gross Stage 3 assets declined to 1.3% and Net Stage 3 to 0.7%, partly due to a ₹79 crores MSME portfolio sale to an ARC. * The company's standalone capital adequacy ratio for CGCL is 32.9% and for Capri Global Housing Finance Limited is 26.1%. Liquidity remains comfortable with over ₹3,200 crores. * Management expects cost of funds to decrease by 30-40 basis points in the next 2-3 quarters. * CGCL invested ₹29 crores in technology, deploying AI-driven initiatives for asset quality and recovery. * The company's Sustainalytics ESG risk rating improved from 31.1 to 24, moving from high to medium risk category. * Management Outlook: CGCL aims for 25-30% annualized AUM growth and sustainable ROAE of 16-18% plus ROAA of 4-4.5% by FY28. For FY26, AUM is targeted at ~₹32,000 crores and PAT at ~₹850 crores. For FY27, AUM is targeted at ~₹42,000 crores and PAT at ~₹1,200 crores. Credit costs are projected to be in the range of 80-90 basis points. * By the end of FY26, the company plans to have approximately 995 gold loan branches and a total of about 200 new branches across segments in the next two quarters.
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