Capri Global Capital: Q3 FY26 Performance Highlights Robust Growth and Strategic Expansion

Capri Global Capital Limited, a prominent non-deposit taking and systemically important NBFC, has unveiled its unaudited financial results for the third quarter and nine months ended December 31, 2025, showcasing a period of robust growth and strategic advancements. The company delivered its strongest quarterly performance yet, with consolidated Assets Under Management (AUM) crossing the 3,000 Crore mark and a significant surge in profitability, reinforcing its position as a retail-focused secured lender with a diversified portfolio.

The company's consolidated AUM reached 3,040.6 Crore, reflecting an impressive 47% year-on-year growth and a 12% quarter-on-quarter increase. This growth was broad-based across all lending verticals, with Gold Loans leading the charge with an 80% year-on-year increase, followed by MSME Loans at 19% and Housing Loans at 40%. Disbursements for the quarter soared by 87% year-on-year to 1,087.9 Crore, indicating strong customer acquisition and an expanding distribution network. The customer base now exceeds 6.3 lakh, underscoring the scalability and resilience of Capri Global's business model.

Profitability saw a substantial uptick, with Profit After Tax (PAT) reaching a record 255.4 Crore, a remarkable 99% increase year-on-year. This surge in profitability was primarily driven by expanding margins, the benefits of operating leverage, and consistent growth across all key business segments. The company demonstrated strong improvements in return metrics, with annualized Return on Average Equity (RoAE) at 15.0% and Return on Average Assets (RoAA) at 4.0%, compared to 12.6% and 2.8% respectively, in the corresponding quarter of the previous year.

Net Interest Income (NII) grew by 48% year-on-year to 510.3 Crore, propelled by the robust expansion of the retail loan book and a reduction in the cost of funds, leading to spread expansion. Blended yields remained stable at 16.4%, and spreads expanded by 36 basis points year-on-year to 7.0%, showcasing the company's ability to protect its margins effectively. Non-interest income also scaled meaningfully, growing by 124% year-on-year to 240.4 Crore and contributing 32.0% of the net total income. This was supported by strong growth in co-lending fee income and the insurance distribution business.

Co-lending AUM witnessed a significant increase, growing by 93% year-on-year and now constituting 23.5% of the consolidated AUM, up from 21.0% in Q2 FY26. This capital-efficient model continues to enhance RoE, diversify funding sources, and scale fee-led income without incremental balance sheet strain. The insurance distribution business generated net fee income of 34.2 Crore in Q3 FY26, with partnerships with 20 insurance companies and growing penetration across its expanding retail customer base. The car loan distribution business maintained steady momentum, with originations of 329 Crore in Q3 FY26, up 15% year-on-year.

Operational efficiency was a key focus, with the cost-to-income ratio improving to 51.6% in Q3 FY26, compared to 58.2% in Q3 FY25. This improvement is attributed to the benefits of a maturing branch network, rising productivity, and strong operating leverage across businesses. Pre-provision operating profit surged by 92% year-on-year to 363.4 Crore. The branch network expanded to 1,331 locations, with 107 new branches added during the quarter, while the employee base increased marginally to 13,066, reflecting improved productivity.

Asset quality also saw significant improvements, with impairments for Q3 FY26 standing at 2.3 Crore, down by 26% quarter-on-quarter. The Gross Stage 3 ratio declined to 1.2% (down 49 basis points year-on-year), and the Net Stage 3 ratio improved to 0.7% (down 35 basis points year-on-year), supported by an adequate provision coverage ratio of 43.6% on Stage 3 loans. The company's standalone capital adequacy ratio remained strong at 30.3%, and consolidated total equity grew by 68% year-on-year to 6,92.7 Crore, with a comfortable debt/equity ratio of 2.8x.

Capri Global Capital Limited's Q3 FY26 performance underscores its strategic clarity and disciplined execution. The company's focus on technology-led operational efficiency, diversified lending, and robust risk management has enabled it to achieve significant growth and profitability. With a strong capital position and continued investments in technology and distribution, Capri Global is well-positioned to scale efficiently and achieve its ambitious targets of 5,500 Crore AUM by FY28 and sustainable return metrics, creating long-term value for all stakeholders.