CP Capital Q2 profit jumps 175% as fair-value gains rise

CP Capital Limited reported standalone profit after tax of Rs 22.557 crore for the quarter ended 30 September 2026, up 175% from Rs 8.1972 crore a year earlier, as revenue from operations rose 131% to Rs 34.973 crore and net fair-value gains on investments reached Rs 21.0762 crore.

How did CP Capital perform in Q2?

CP Capital’s standalone profit after tax rose to Rs 22.557 crore in the quarter ended 30 September 2026 from Rs 8.1972 crore in the quarter ended 30 September 2025. Profit before tax increased to Rs 29.5727 crore from Rs 10.9103 crore, while total tax expense rose to Rs 7.0157 crore from Rs 2.7131 crore.

The increase in profit accompanied a larger rise in revenue than expenses. Total revenue, including other income, was Rs 35.294 crore in Q2 FY27, compared with Rs 15.4422 crore in Q2 FY26, while total expenses increased to Rs 5.7213 crore from Rs 4.5319 crore. Basic and diluted earnings per share were Rs 12.40, against Rs 4.50 a year earlier, with a face value of Rs 10 per share.

CP Capital also reported a sequential increase in standalone profit after tax from Rs 11.4801 crore in the quarter ended 30 June 2026. Revenue from operations increased from Rs 19.3741 crore in the preceding quarter, although the September-quarter figure included a Rs 21.0762 crore fair-value gain, compared with Rs 3.3601 crore in June.

What drove CP Capital’s revenue increase?

The fair-value movement was the main driver of CP Capital’s year-on-year revenue increase. Net gain on fair-value changes was Rs 21.0762 crore in Q2 FY27, compared with a net loss of Rs 1.50 lakh in Q2 FY26; the gain exceeded the overall Rs 19.8586 crore increase in revenue from operations.

Interest income, CP Capital’s other major reported operating-income line, declined to Rs 12.2717 crore from Rs 13.4797 crore a year earlier. Rental and infrastructure income fell to Rs 74.51 lakh from Rs 97.29 lakh, while fees and commission income increased to Rs 85.66 lakh from Rs 67.68 lakh. Dividend income was Rs 2.34 lakh in Q2 FY27, whereas none was reported in the comparable quarter.

This mix means the 131% increase in reported operating revenue was not repeated across every underlying income line. Excluding fair-value changes, the disclosed interest, rental and infrastructure, fees and commission, and dividend income totalled Rs 13.9021 crore in Q2 FY27, compared with Rs 15.1465 crore in Q2 FY26.

CP Capital recorded other income of Rs 32.10 lakh in Q2 FY27, broadly unchanged from Rs 32.78 lakh a year earlier. Including other income, total revenue rose by Rs 19.8518 crore year on year, while the difference between total revenue and revenue from operations was Rs 32.10 lakh in the latest quarter.

How did costs and tax affect CP Capital’s Q2 profit?

CP Capital’s total standalone expenses increased to Rs 5.7213 crore in Q2 FY27 from Rs 4.5319 crore a year earlier, below the increase in total revenue. Finance costs were Rs 3.0118 crore, up from Rs 2.3252 crore, and impairment on financial instruments was Rs 37.67 lakh, compared with a reversal of Rs 9.24 lakh in the prior-year quarter.

Employee benefits expense declined to Rs 62.59 lakh from Rs 82.52 lakh, while depreciation and amortisation were Rs 51.00 lakh compared with Rs 50.91 lakh. Other expenses rose to Rs 1.1928 crore from Rs 63.74 lakh, while fees and commission expense fell to Rs 41,000 from Rs 27.72 lakh.

Tax expense was Rs 7.0157 crore in Q2 FY27, versus Rs 2.7131 crore a year earlier. The current-tax charge fell to Rs 1.4574 crore from Rs 3.0009 crore, but deferred tax changed to an expense of Rs 5.5583 crore from a deferred-tax credit of Rs 28.78 lakh. That movement in deferred tax increased the total reported tax charge.

What do CP Capital’s half-year results show?

CP Capital’s standalone profit after tax for the half year ended 30 September 2026 was Rs 34.0371 crore, up from Rs 16.0665 crore in the corresponding half year. Revenue from operations increased to Rs 54.3471 crore from Rs 30.411 crore, and profit before tax rose to Rs 44.9318 crore from Rs 21.3118 crore.

The half-year net gain on fair-value changes was Rs 24.4363 crore, compared with Rs 1.40 lakh in the corresponding prior-year period. Interest income declined to Rs 26.2437 crore from Rs 27.0182 crore, rental and infrastructure income fell to Rs 1.461 crore from Rs 2.2564 crore, and fees and commission income increased to Rs 2.1827 crore from Rs 1.1224 crore.

For the half year, finance costs rose to Rs 5.1768 crore from Rs 3.7085 crore and impairment on financial instruments was Rs 51.86 lakh, compared with a reversal of Rs 9.24 lakh. Total tax expense more than doubled to Rs 10.8947 crore from Rs 5.2453 crore, including deferred-tax expense of Rs 9.2695 crore.

What changed in CP Capital’s balance sheet and cash flow?

CP Capital’s standalone assets were Rs 710.9621 crore at 30 September 2026, up from Rs 646.0964 crore at 31 March 2026. Cash and cash equivalents rose to Rs 161.9621 crore from Rs 2.4545 crore, loans declined to Rs 258.0754 crore from Rs 406.7454 crore, and investments increased to Rs 191.4095 crore from Rs 139.0229 crore.

Standalone borrowings increased to Rs 112.4184 crore at 30 September from Rs 87.6782 crore at the preceding financial year-end. Total equity increased to Rs 582.2266 crore from Rs 548.1896 crore, including other equity of Rs 564.0337 crore compared with Rs 529.9967 crore at 31 March 2026.

The standalone cash-flow statement showed Rs 167.4847 crore of net cash generated from operating activities during the half year ended 30 September 2026. A Rs 148.1514 crore decrease in loans was the largest working-capital movement, while net investment purchases used Rs 27.9503 crore and net borrowings provided Rs 24.7456 crore. The standalone auditor reviewed the unaudited results and did not express an audit opinion.

Conclusion

CP Capital’s September-quarter standalone profit growth reflected a Rs 21.0762 crore fair-value gain alongside higher reported operating revenue. Interest income and rental and infrastructure income were lower year on year, while expenses and tax expense increased, showing that the quarter’s earnings mix differed materially from the comparable period.

The principal matter to watch in subsequent results is the movement in the fair value of investments, which was Rs 24.4363 crore for the first half and was identified as a gain in the cash-flow reconciliation. CP Capital’s 30 September balance sheet also reported Rs 161.9621 crore of cash and cash equivalents, Rs 258.0754 crore of loans and Rs 112.4184 crore of borrowings for comparison with later disclosures.