Capri Global Q3 Profit Soars 99% to ₹255 Crore in FY26

Introduction

Capri Global Capital Limited (NSE: CGCL) announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company achieved its highest-ever quarterly profit, underscoring strong execution and a resilient business model. The results reflect significant growth in assets under management (AUM), improved profitability metrics, and stable asset quality, positioning the company for continued expansion.

Record Profitability and Income Growth

In Q3 FY26, Capri Global reported a Profit After Tax (PAT) of ₹255 crore, marking a substantial 99% increase compared to the same period last year. This record profit was driven by strong growth in both interest and non-interest income streams. The company's pre-provision operating profit (PPOP) grew by an impressive 92% year-on-year to reach ₹363 crore for the quarter.

Net Interest Income (NII) for the quarter stood at ₹510 crore, a 48% year-on-year increase. This growth was supported by continued loan book expansion and a healthy net interest margin. Furthermore, the company's strategic focus on diversifying its earnings profile yielded significant results. Non-interest income surged by 124% year-on-year to ₹240 crore, contributing 32% of the net total income for the quarter. This increase was largely fueled by fee income from insurance distribution and co-lending activities.

Strong AUM Growth Across Segments

Capri Global's consolidated Assets Under Management (AUM) reached ₹30,406 crore as of December 31, 2025. This represents a robust 47% year-on-year growth and a 12% sequential growth from the previous quarter. The expansion was broad-based, with all lending verticals showing strong momentum.

The Gold Loan business was a standout performer, with its AUM growing by 80% year-on-year to ₹12,555 crore. The Housing Loan segment also saw healthy growth, with its AUM rising by 40% year-on-year to ₹6,490 crore. The MSME loan book expanded by 19% year-on-year, reaching ₹5,886 crore. The company's strategic focus on capital-efficient models is evident in its co-lending AUM, which surged by 93% year-on-year to ₹7,138 crore, now constituting 23.5% of the total AUM.

Key Financial Highlights for Q3 FY26

Operational Efficiency and Network Expansion

Capri Global demonstrated significant improvements in operational efficiency during the quarter. The cost-to-income ratio improved to 51.6% in Q3 FY26 from 58.2% in the corresponding quarter of the previous year. This improvement highlights the benefits of a maturing branch network, rising productivity, and strong operating leverage across the organization.

Branch productivity in the gold loan segment increased to ₹14.1 crore per branch. The company also continued its network expansion to enhance customer reach and build a pan-India footprint. In the MSME business, 15 new branches opened in Uttar Pradesh during the previous quarter are now fully operational. The company's total physical touchpoints increased to 1,366, marking a 7% sequential increase.

Stable Asset Quality and Strong Balance Sheet

The company maintained a healthy asset quality profile amidst its rapid growth. The consolidated Gross Stage 3 ratio stood at 1.2%, with Stage 3 assets remaining flat quarter-on-quarter at ₹275 crore. Impairment costs for the quarter were contained at ₹23 crore. This reflects the company's disciplined approach to credit underwriting and risk management.

Capri Global's balance sheet remains strong, with a low leverage ratio of 2.8x, providing ample headroom for future growth. During the quarter, the company successfully raised ₹635 crore through Non-Convertible Debentures (NCDs) and commercial papers. The company's return ratios also saw considerable improvement, with a Return on Equity (ROE) of 15% and a Return on Assets (ROA) of 4% for the quarter.

Market Impact and Outlook

The strong Q3 performance demonstrates Capri Global's ability to execute its growth strategy effectively while maintaining profitability and asset quality. The significant contribution from non-interest income sources like co-lending fees and insurance distribution points to a more diversified and resilient business model. This reduces dependency on traditional interest income and enhances overall return on equity.

Investors have responded positively to the company's consistent performance, which is reflected in its ability to raise capital through various instruments. The management's focus on improving operational leverage and expanding its distribution network is expected to sustain the growth momentum. The company's strong capital adequacy and low leverage provide a solid foundation to support accelerated growth across its business segments in the coming quarters.

Conclusion

Capri Global Capital's third-quarter results for FY26 highlight a period of exceptional growth and record profitability. The 99% year-on-year surge in net profit, coupled with a 47% growth in AUM, showcases the company's strong market position and operational capabilities. With a diversified loan book, improving efficiency metrics, and a stable asset quality, Capri Global is well-positioned to continue its growth trajectory and create further value for its stakeholders.