Capri Global Capital delivered exceptional FY26: AUM ₹36,623 crore (+60%), PAT ₹949 crore, Q4 PAT ₹283 crore (+59%), gold loan AUM +111%, GNPA 0.9%, spread 7.1%, blended yield 16.3%. FY28 targets: ₹57,000 crore AUM, ROAE 16-18%, ROA 4-4.5%. Good sentiment, high confidence (AUM growth, gold loan acceleration, credit quality, ambitious but credible FY28 targets).

Headline Numbers

Metric FY26 / Q4 FY26 Notes
Consolidated AUM ₹36,623 crore +60% YoY
FY26 PAT ₹949 crore
Q4 PAT ₹283 crore +59% YoY
Gold Loan AUM Growth +111% YoY
GNPA 0.9%
Blended Yield 16.3%
Spread 7.1%
C/I Ratio FY26 49%
FY28 AUM Target ₹57,000 crore
FY28 ROAE Target 16-18%
FY28 ROA Target 4-4.5%

What Drove the Results

  • AUM +60% — gold loan + MSME compounding: At 60% AUM growth, Capri Global is adding ₹13,000+ crore of AUM annually. Gold loan's 111% growth is the primary accelerant — it has become the fastest-growing segment and now represents a meaningful portion of total AUM. MSME loans growing at 20-25% provide the stable base. The combination creates a high-growth blended portfolio with strong yield (16.3% blended).
  • GNPA 0.9% — exceptional credit quality for MSME/gold NBFC: For an NBFC serving MSMEs (historically higher risk than salaried segments), GNPA of 0.9% is exceptional. This reflects: (1) gold loan security (100% collateral, LTV 75-80%), (2) MSME secured lending (property/equipment collateral), and (3) disciplined underwriting — CGCL's credit team has refined its MSME risk models over years. The low GNPA means credit cost is minimal, allowing most spread (7.1%) to flow to profit.
  • Spread 7.1%, yield 16.3% — premium economics: CGCL earns 16.3% yield on its assets vs. borrowing cost of ~9.2% = 7.1% spread. This is among the highest spreads in the NBFC sector, reflecting: high-yield gold loans (18-24% p.a.), MSME loans at 14-18% p.a., and disciplined liability management. At ₹36,623 crore AUM with 7.1% spread, that's ₹2,600 crore of NII annually — before operating costs.
  • FY28 targets — ambitious but asset quality underpins: ROAE of 16-18% and ROA of 4-4.5% are significantly above current FY26 levels. These require: AUM scaling to ₹57,000 crore (operating leverage reducing C/I from 49% toward 40%), credit cost remaining below 1%, and spread maintenance at 7%+. If CGCL executes on branch expansion (gold loans) and co-lending partnerships (MSME), the trajectory is achievable.
  • Co-lending headwind — temporary friction, not structural issue: New RBI co-lending guidelines require CGCL to restructure some bank partnership arrangements. Near-term impact: slower MSME disbursement growth as documentation and risk-sharing are renegotiated. Once the new framework is in place (expected FY27 H1), co-lending volumes should normalise and grow. Gold loans (100% CGCL book, no co-lending) are unaffected.

What Management Said

Management was highly confident on FY28 targets while acknowledging co-lending headwind. On AUM: "₹36,623 crore, 60% growth — we are executing across all segments. Gold loan is the fastest-growing." On gold loan: "111% growth — we expanded our branch network significantly. Gold prices helped LTV; our team execution is the driver." On FY28: "₹57,000 crore AUM, ROAE 16-18%, ROA 4-4.5% — these are clear targets. Operating leverage as AUM scales is the mechanism." On GNPA: "0.9% GNPA — our underwriting quality is consistent. Collateral-first lending protects us." On co-lending: "Near-term headwind from new guidelines. We are adapting our bank partnership structures. Underlying demand from MSME borrowers is intact."

Key Tailwinds and Risks

Tailwinds:

  • Gold loan demand secular — rural and urban informal borrowers using gold as collateral
  • Gold price appreciation — increases AUM LTV headroom on existing loans
  • MSME credit underserved — banks don't adequately serve ₹10-50 lakh MSME loans
  • Operating leverage — C/I declining from 49% as AUM scales toward ₹57,000 crore
  • Co-lending framework stabilisation — once new RBI guidelines are absorbed, volume recovers

Risks:

  • Co-lending guideline friction — near-term MSME growth headwind from restructuring
  • Gold price reversal — 20%+ decline in gold prices could stress LTV ratios
  • Regulatory risk — NBFC gold loan norms are evolving; compliance risk
  • AUM concentration in gold loans — high growth but single-product concentration building
  • ROAE/ROA target achievement — requires sustained C/I improvement and credit quality maintenance

StockMirror AI Signal Summary

Signal Reading
Overall Sentiment Good
Management Confidence High
Prepared Remarks Good — 60% AUM growth, gold loan milestone, FY28 targets, GNPA discipline
Q&A Sentiment Good — candid on co-lending friction, confident on FY28 path
Revenue Growth Exceptional — AUM +60%; gold loan +111%; PAT +59%
Margin Direction Improving — operating leverage; C/I declining to FY28 targets
Earnings Quality Strong — GNPA 0.9%; spread 7.1%; collateral-secured portfolio

Track Capri Global Capital's full AI earnings breakdown — AUM trajectory, gold loan growth, and FY28 target progress — at Capri Global's earnings page.

Key Takeaways

  • FY26 AUM ₹36,623 crore (+60%); PAT ₹949 crore; Q4 PAT ₹283 crore (+59%)
  • Gold loan AUM +111% — fastest-growing segment; GNPA 0.9%; spread 7.1%; yield 16.3%
  • FY28 targets: AUM ₹57,000 crore, ROAE 16-18%, ROA 4-4.5%
  • Co-lending guideline headwind near-term — structural MSME demand intact
  • C/I 49% declining — operating leverage as AUM scales is the margin improvement path

Related: IIFL Finance Q4 FY26 · Five Star Business Finance Q4 FY26 · MAS Financial Q4 FY26

Disclaimer: This article is for informational purposes only and does not constitute investment advice. StockMirror's AI analysis is based on publicly available earnings transcripts and BSE/NSE filings. Please consult a SEBI-registered financial advisor before making investment decisions.