Capri Global Q3 Results: Profit Jumps 99% to ₹255 Cr, AUM Tops ₹30,000 Cr

Introduction to Q3 Performance

Capri Global Capital Ltd. has announced a robust financial performance for the third quarter of fiscal year 2026, ending December 31, 2025. The non-banking financial company (NBFC) reported a 99.44% year-on-year (YoY) increase in its consolidated Profit After Tax (PAT), which stood at ₹255.44 crore. This significant growth was accompanied by a major milestone, as the company's Assets Under Management (AUM) surpassed the ₹30,000 crore mark, reaching ₹30,406 crore. The results highlight strong execution across its diversified lending segments and improved operational efficiencies.

AUM and Loan Book Expansion

The company's AUM grew by a substantial 47% on a YoY basis, reflecting aggressive expansion and strong credit demand. On a sequential basis, the loan book expanded by 12% from the previous quarter. This growth was broad-based, with notable contributions from all key lending verticals. The Gold Loan portfolio was a standout performer, registering an 80% YoY growth. The Affordable Housing Finance segment also saw healthy expansion with a 36% YoY growth, while the MSME loan book grew by 19% YoY. The company's diversified portfolio, which also includes construction finance, has been a key driver of this sustained growth momentum.

Profitability and Income Growth

Capri Global's profitability metrics showed remarkable improvement. The consolidated PAT nearly doubled to ₹255.44 crore for the quarter, compared to ₹128.08 crore in the corresponding quarter of the previous year. This surge was fueled by strong growth in core income streams. Net Interest Income (NII) increased by 48% YoY, supported by a healthy loan book and stable margins. Furthermore, the company's fee-based income witnessed exceptional growth, rising 124% YoY to ₹240 crore. This sharp increase in non-interest income highlights the success of its co-lending partnerships and other fee-generating activities, which contribute to higher-margin revenues.

Operational Efficiency and Expenses

While operating expenses saw a 47% YoY increase, this was in line with the company's business expansion, including the opening of new branches and investments in technology. More importantly, Capri Global demonstrated improved operational leverage. The Cost-to-Income ratio improved significantly, declining to 51.6% in Q3 FY26 from 58.2% in Q3 FY25. This improvement indicates that revenue growth is outpacing the growth in operational costs, leading to better efficiency and higher profitability as the business scales.

Key Financial Highlights (Q3 FY26 vs Q3 FY25)

Asset Quality Remains Strong

Despite the rapid pace of loan book expansion, Capri Global has maintained a strong focus on asset quality. The company reported a further improvement in its Gross and Net Stage 3 assets during the quarter. The ability to grow aggressively while simultaneously strengthening asset quality is a positive indicator of the company's robust underwriting and collection processes. This performance is particularly noteworthy in segments like MSME and affordable housing, which can present higher credit risks.

Management Outlook and Future Guidance

The management expressed confidence in the company's growth trajectory, supported by a comfortable capital adequacy position that provides ample room for further expansion without immediate need for capital infusion. Looking ahead, the company has provided ambitious guidance for fiscal year 2028. It aims to achieve an AUM of ₹50,000 crore, while targeting a Return on Average Assets (RoAA) between 4.0% and 4.5% and a Return on Average Equity (RoAE) in the range of 16-18%. This guidance signals a continued focus on profitable and sustainable growth.

Conclusion

Capri Global Capital's Q3 FY26 results demonstrate a strong all-around performance, characterized by rapid AUM growth, a near-doubling of profits, and improving operational efficiency. The diversified business model has allowed the company to capitalize on growth opportunities across high-yield segments like gold loans and affordable housing. With a healthy balance sheet and clear long-term targets, the company is positioned to continue its growth journey, though investors will closely monitor the sustainability of its asset quality and the execution of its ambitious FY28 goals.