Capri Global Capital Ltd (CGCL.NSE), an Indian non-banking financial company focused on secured retail and MSME lending, reported its strongest quarterly performance on record for the quarter ended December 31, 2025, supported by rapid balance-sheet expansion, rising fee income, and operating leverage. The company has a market capitalization of about ₹17,280 crore. Its shares fell about 5% intraday after the results, reflecting broader investor caution toward NBFC stocks despite strong earnings growth. The stock is trading closer to the lower end of its 52-week range, having declined in recent months.
Results overview
Capri Global reported consolidated assets under management of ₹30,406 crore, up 47% year on year and about 12% sequentially, driven by growth across gold loans, affordable housing finance, and MSME lending.
Profit after tax nearly doubled, rising 99.4% year on year to ₹255 crore, aided by higher net interest income, a sharp increase in non-interest income, and improved cost efficiency.
Income, margins, and returns
Net interest income rose 47.8% year on year to ₹510 crore, supported by loan growth and a stable blended yield of 16.4%. Net interest margins improved, with spreads widening by 36 basis points to 7.0% from a year earlier.
Operating leverage remained a key driver of profitability. The cost-to-income ratio declined to 51.6% from 58.2% in the year-ago quarter. As a result, annualized return on average equity increased to 15.0%, while return on average assets rose to 4.0%, compared with 12.6% and 2.8%, respectively, a year earlier.
Business mix and segment performance
Growth was led by the gold loan portfolio, which expanded 80.2% year on year to ₹12,799 crore, accounting for the largest share of incremental AUM.
Affordable housing loans grew 39.6%, while MSME loans increased 19.5%, reflecting selective growth amid tighter credit conditions for small businesses.
Capri Global continued to expand its physical footprint, adding 107 branches during the quarter to take its total network to 1,331 branches. The company served more than 630,000 customers, supported by a workforce of 13,066 employees.
Fee income and diversification
Non-interest income rose 124% year on year to ₹240 crore, accounting for 32% of net total income, as the company scaled up fee-based businesses.
Co-lending continued to gain traction, with co-lending AUM accounting for 23.5% of consolidated AUM. Insurance distribution generated ₹34 crore of net fee income during the quarter through partnerships with 20 insurers.
The car loan origination business recorded ₹3,290 crore of originations, broadly in line with recent quarters.
Asset quality and capital position
Asset quality improved despite rapid growth. The gross Stage-3 ratio declined to 1.2%, down 49 basis points year on year, while the net Stage-3 ratio improved to 0.7%.
Capitalization remained strong, with a stand-alone capital adequacy ratio of 30.3%, providing headroom for growth. Consolidated equity stood at ₹6,927 crore at the end of December.
Strategy and funding initiatives
The board approved the establishment of a global medium-term note program of up to $1 billion, enabling the company to raise foreign-currency debt and diversify funding sources.
Capri Global also approved a ₹200 crore equity infusion into its wholly owned subsidiary, Capri Global Housing Finance Ltd, through a rights issue to support business expansion and working capital requirements.
Management reiterated medium-term targets, including AUM of ₹55,000 crore by FY28 and more than ₹1 trillion by FY32, implying a compound annual growth rate of 25%–30%.
Governance update
Separately, the company said Hardik Doshi will cease to be classified as senior management personnel effective January 29, 2026, following changes in internal reporting structures.
Sector context and competition
Capri Global operates in a competitive NBFC landscape alongside larger peers such as Bajaj Finance, Shriram Finance, and Muthoot Finance. While demand for secured retail credit remains resilient, the sector continues to face pressure from elevated funding costs and tighter liquidity conditions compared with banks, weighing on valuations of mid-sized lenders.
There were no reported analyst upgrades or downgrades linked to the results on the day of the earnings announcement.
Bottom line
Capri Global’s third-quarter performance highlights the benefits of scale, diversification, and operating leverage, with strong growth in assets, profitability, and fee income alongside stable asset quality. While near-term market sentiment toward NBFCs remains cautious amid funding and competitive pressures, the company’s capital position and execution track record position it to pursue its medium-term expansion targets.