Summary
Capri Global Capital Limited - Q3 FY 2026 Earnings Call Summary Monday, February 02, 2026, 1:02 p.m. IST
Event Participants
Executives 5 Divya Sutar (Executive Director, Strategy), Hardik Doshi (Head, Corporate Finance & IR), Kishore Lodha (CFO), Rajesh Sharma (MD and Promoter), Sanjeev Srivastava (CRO)
Analysts 9 Aman Baheti, Bansal, Ishank Gupta, Mokshang Sanghvi, Ninad Jadhav, Prit Nagersheth, Sagar Shah, Sohail Kanalil, Varun Dubey, Vikramaditya Gajbar
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated AUM | ₹30,406 crores | +47% YoY, +12% QoQ; broad-based growth across all segments. |
| Gold Loan AUM | ₹12,799 crores | +80% YoY, +26% QoQ; productivity rose to ₹14.1 crores AUM per branch. |
| Co-lending AUM | ₹7,138 crores | +93% YoY; accounts for 23.5% of total AUM, up from 21% in Q2. |
| Net Interest Income | ₹510 crores | +48% YoY; driven by loan expansion and margin enhancement. |
| Non-Interest Income | ₹240 crores | +124% YoY, +18% QoQ; driven by insurance (₹34 cr) and co-lending fees (₹116 cr). |
| Net Profit (PAT) | ₹255 crores | +99% YoY; highest ever quarterly profit. |
| Cost of Funds | 9.26% | -24 bps QoQ; benefit of MCLR reduction and liability repricing. |
| Gross Stage 3 (GNPA) | 1.2% | -10 bps QoQ; improved in Gold, Housing, and Construction Finance. |
| Net Stage 3 (NNPA) | 0.7% | -7 bps QoQ; PCR improved to 43.6%. |
| Cost-to-Income | 51.6% | -660 bps YoY; reflecting operating leverage and maturing branch network. |
| Return on Assets (ROA) | 4.0% | +110 bps YoY; significantly improved profitability. |
| Capital Adequacy | 30.3% | Substantial headroom following ₹2,000 crore capital infusion in Q1. |
Geographic & Segment Commentary
- Gold Loan: Successfully expanded into South India (Orissa, Andhra Pradesh, Telangana, Karnataka) with 68 net new branches. Branch productivity increased to ₹14.1 crores per branch, with 20% of branches exceeding ₹20 crores AUM.
- MSME & Micro LAP: MSME AUM grew 19% YoY to ₹5,886 crores, with 16 UP branches hitting full operations. Micro LAP AUM reached ₹650 crores (₹5 crore/branch) with a presence in 151 branches and a target of ₹3,000 crores in 2.5 years.
- Housing & Construction Finance: Housing AUM rose 40% YoY to ₹6,490 crores, expanding into AP and Karnataka. Construction Finance grew 37% YoY to ₹5,109 crores, funding 279 residential projects with a granular average outstanding ticket size of ₹18 crores.
Company-Specific & Strategic Commentary
- Technology & AI Leverage: Management reported an AI-first lending platform where disbursements grew 87% YoY while headcount increased only 19%. Proprietary systems like SPARK (onboarding), Orion (LOS), and Pegasus (collections) have reduced turnaround time for gold loans to under 30 minutes.
- Capri Care Ecosystem: Launched a digital-first insurance platform moving from indemnity to wellness-led offerings (health screenings, cashless consultations). Fee income from insurance distribution stood at ₹34 crores for the quarter.
- Capital Efficiency: Co-lending strategy is capped at 22-23% of AUM to maintain capital efficiency and ROE without additional balance sheet strain.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 AUM | ₹33,000 – ₹34,000 crores | Management is on track based on 9M performance. |
| FY27 AUM | ₹43,000 – ₹44,000 crores | Revised upward from previous internal targets. |
| FY28 AUM | ₹55,000 crores | Upgraded from previous guidance of ₹50,000 crores. |
| ROA / ROE | 4.0-4.25% / 16-18% | Targets for FY28 based on operating leverage and yield expansion. |
| Spread | 7.2% | Expected improvement from current 7% driven by Gold Loan mix and lower cost of funds. |
Risks & Constraints
| Risk | Context |
|---|---|
| Gold Price Volatility | Management maintains conservative LTVs (64% for new loans vs 75% allowable) and uses dynamic collateral monitoring to trigger margin calls within 14 days. |
| Leadership Continuity | The CEO resigned within 4 months of appointment; MD clarified the departure was for personal entrepreneurial reasons and stated individual vertical heads ensure stability. |
| Competition | Bank competition in gold loans remains high; however, management relies on niche service for small ticket sizes (₹30k-50k) where banks lack operational focus. |
Q&A Highlights
Gold Loan Yields
- Question: Why did Gold Loan yields decline sequentially? (Ishank Gupta)
- Answer: The decline was due to expansion into rural markets with smaller ticket sizes and rebates given to customers for timely repayments during the harvesting cycle. Expect a 20 bps improvement in Q4. (Rajesh Sharma)
Operating Leverage
- Question: How should we think about AUM per branch benchmarks for Gold and Micro LAP? (Aman Baheti)
- Answer: Gold branches average ₹14.1 crores; many are still under ₹10 crores, providing 30%+ growth potential. Micro LAP is expected to double branch AUM to ₹10 crores by next year. (Rajesh Sharma)
Cost of Funds
- Question: Will the cost of funds rise due to government borrowing pressure? (Prit Nagersheth)
- Answer: Any systemic rise will be passed to borrowers. Internally, we target reducing costs by another 25 bps through borrowing mix (CPs/NCDs) regardless of credit rating upgrades. (Rajesh Sharma)
Asset Quality in Micro LAP
- Question: How is the repayment behavior in the new Micro LAP segment? (Ninad Jadhav)
- Answer: Collection efficiency is at 99% with a GNPA of 0.9% on an AUM of ₹650 crores. The average ticket size is ₹5 lakhs with yields of 23-24%. (Rajesh Sharma)
Key Takeaway
Capri Global delivered a robust Q3 FY26, characterized by a 99% YoY surge in PAT to ₹255 crores and a 47% growth in AUM to ₹30,406 crores. The performance was anchored by the Gold Loan segment, which grew 80% YoY, and a highly efficient co-lending model representing 23.5% of AUM. Strategic focus remains on “agentic AI” and technology platforms that allowed an 87% increase in disbursements with only a 19% increase in headcount, driving a sharp improvement in the cost-to-income ratio to 51.6%. Management has upgraded its FY28 AUM target to ₹55,000 crores while maintaining a target ROA of 4.0-4.25%. While leadership churn (CEO resignation) and gold price volatility remain watch points, the company’s conservative 60% portfolio LTV and 30%+ capital adequacy provide a significant cushion for its next phase of pan-India expansion.
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