Capri Global Q3 FY26 Results: AUM Soars 47%, PAT Jumps 99%

Introduction

Capri Global Capital Ltd, a diversified Non-Banking Financial Company (NBFC), announced strong financial results for the third quarter ending December 31, 2025. The company reported a 99% year-on-year (YoY) increase in consolidated Profit After Tax (PAT) to ₹255 crore. Its Assets Under Management (AUM) also saw a significant 47% YoY growth, reaching ₹30,406 crore. These results reflect the company's sustained momentum and successful expansion across its key lending verticals.

Q3 FY26 Financial Performance

The board meeting held on January 29, 2026, approved the unaudited results, which highlighted robust growth. The impressive bottom-line performance was driven by strong operational execution and expansion in high-yield business segments. This continues the trend of strong performance seen in previous quarters, where the company reported a 143% YoY jump in PAT for Q2 FY26.

In addition to the strong quarterly results, the board also approved several strategic initiatives. These include establishing a Global Medium Term Note (GMTN) programme to raise up to USD 1 billion, signaling its intent to tap international markets for future funding. The company will also invest ₹200 crore in its wholly-owned subsidiary, Capri Global Housing Finance Ltd (CGHFL), to fuel growth in the affordable housing sector.

Consistent Growth Trajectory

Capri Global's Q3 performance is not an isolated event but part of a consistent growth pattern. In the preceding quarter (Q2 FY26), the company achieved its highest-ever quarterly profit, with PAT rising 143% YoY to ₹236 crore and AUM growing 40% to ₹27,040 crore. Net Interest Income (NII) for Q2 FY26 had increased by 57% YoY to ₹480 crore, supported by a 97% surge in non-interest income.

This sustained growth is a result of a well-diversified business model that focuses on underserved markets, including MSME lending, affordable housing, gold loans, and construction finance.

Segment-Wise Business Performance

Capri Global's growth is broad-based, with all its lending segments performing well. The gold loan business has been a standout performer, crossing the ₹10,000 crore AUM mark in Q2 FY26 with a 58% YoY growth. Other segments also demonstrated strong results in the second quarter:

The company's focus on a 100% secured loan portfolio, with a mix of gold, property, and construction-linked assets, provides a strong foundation for its expansion.

Operational Efficiency and Network Expansion

Operational leverage has been a key theme in Capri Global's recent performance. The cost-to-income ratio improved significantly to 49% in Q2 FY26 from 64% in the same quarter of the previous year. This efficiency gain comes alongside a rapid expansion of its physical network. The company added 86 branches in Q2, taking its total to 1,224 locations across 20 states, with plans to add another 200 in the next two quarters.

Furthermore, the co-lending business has scaled up, with its AUM increasing 61% YoY to ₹5,677 crore, now constituting 21% of the total AUM. This capital-efficient model helps boost returns and diversify funding sources.

Asset Quality and Capital Adequacy

Despite its rapid growth, Capri Global has maintained healthy asset quality. As of Q2 FY26, Gross Stage 3 assets stood at 1.3%, with Net Stage 3 assets at a comfortable 0.7%. The company's capital position is robust, further strengthened by a ₹2,000 crore equity infusion through a Qualified Institutional Placement (QIP) in June 2025. The standalone capital adequacy ratio was a strong 32.9% at the end of Q2.

Peer Comparison

Capri Global is carving out a niche for itself among larger peers in the NBFC space. While smaller in market capitalization, its growth metrics and profitability have been impressive.

Management Outlook and Future Targets

Management has laid out an ambitious roadmap for the coming years. The company is targeting an AUM of ₹32,000 crore by the end of FY26 and ₹42,000 crore by FY27. The long-term goal is to reach ₹50,000 crore in AUM by FY28.

Managing Director Rajesh Sharma stated, "We are well-placed to deliver 25% to 30% annualized AUM growth and sustainable return on average equity of 16% to 18% plus return on average assets of 4% to 4.5% by FY '28." The strategy involves deepening geographical presence, leveraging technology for operational excellence, and diversifying product offerings.

Conclusion

Capri Global Capital's strong Q3 FY26 results underscore its effective strategy of targeting underserved segments with a diversified and secured product portfolio. With robust capitalization, improving operational efficiency, and clear growth targets, the company is positioning itself as a significant player in India's retail credit landscape. The new GMTN programme and continued investment in its housing finance arm are expected to further support its long-term growth ambitions.