Event Participants
Executives
5
Divya Sweta, Hardik Doshi, Kishore Lodha, Rajesh Sharma, Sanjeev Srivastava
Analysts
10
Gupta (SS Family Office), Kiran Shah (KSA Shares), Lakshmi Hingorani (Share India Securities), Nivedita Chaudhuri (ICICI Securities), Pehel Sharma (Dedhia Group), Ruchi Baghel (Kokum Bank), Santosh Shetty (Lgcy Capital), Siddharth (SK Securities), Soumya Raghuvanshi (Securities), Suhani Singh (Ross Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated AUM | ₹40,112 crores | +62% YoY, +10% QoQ; customer base exceeding 7.6 lakh, retail-led and granular |
| Disbursements | ₹11,114 crores | +31% YoY; driven by growing customer base and widening distribution network |
| Gold loan AUM | ₹19,179 crores | +111% YoY, +13% QoQ; gold in custody 20.2 tonnes (+6% QoQ), active customers +11% QoQ |
| MSME AUM | ₹6,779 crores | +24% YoY; disbursements ₹616 crores (+32% YoY); UP branches scaling at ₹18-20 crore/month |
| Housing AUM | ₹7,815 crores | +42% YoY; self-employed customers now ~75% of AUM, supporting yield improvement |
| Construction finance AUM | ₹6,332 crores | +40% YoY; 291 active projects, average ticket ₹41 crore; granular, escrow-based book |
| Co-lending & DA AUM | ₹8,126 crores | +74% YoY, +4% QoQ; 20% of total AUM; CLM 1 migration slowed QoQ volumes |
| GNPA / NNPA | 1.1% / 0.6% | Top quartile among peers; gold GNPA 0.3%; CF GNPA rose 0.3%→0.7% QoQ on one account |
| Stage 2 ratio | 3.8% | vs 2.8% in Q4 FY26; +₹385 crore QoQ, of which gold +₹373 crore on ~4% QoQ gold price decline |
| Credit cost | ₹62 crores; 0.7% of avg assets | +16% QoQ; in line with historical average of 0.6-0.8% |
| Provision coverage ratio | 43.3% (consolidated); 75% (CF) | CF PCR raised; includes management overlay buffer |
| Net interest income | ₹736 crores | +79% YoY; driven by strong loan book growth and margin expansion |
| Non-interest income | ₹217 crores | +28% YoY; 23% of net total income; insurance distribution net income ₹42 crores |
| Pre-provision operating profit | ₹532 crores | +171% YoY; margin expansion + operating efficiency |
| PAT | ₹353 crores | +102% YoY; highest ever quarterly profit |
| ROAA / ROAE | 4.1% / 19.1% | vs 3.2% / 13.0% a year ago |
| Blended yield / Spread | 17.0% / 7.8% | Yield up on higher share of high-yield products; spread up on gold yield improvement and lower cost of borrowings |
| Cost-to-income | 44.2% | vs 49.4% in Q4 FY26; opex flat QoQ (only +156 employees) |
| CRAR | 24.7% (CGCL) / 27.8% (CGHF) | Healthy headroom to support growth across segments |
| Leverage / Liquidity | 3.7x / ₹4,037 crores | Long-tenure liabilities vs short-medium assets; ALM surplus in all buckets |
Geographic & Segment Commentary
Gold Loans: AUM at ₹19,179 crores (+111% YoY, +13% QoQ) despite gold price correction; collateral in custody up to 20.2 tonnes and active customers +11% QoQ. Branch network steady at 1,000 branches with productivity rising to ₹19 crore per branch (vs ₹17 crore prior quarter). GNPA at 0.3%, LTV at disbursement ~71%. 400 new branches planned by December 2026 with focus on southern and eastern India.
MSME: AUM ₹6,779 crores (+24% YoY) with disbursements of ₹616 crores (+32% YoY). Branches opened in UP in Q3 FY26 are scaling to ₹18-20 crore disbursement per month. Footprint expanding into Telangana and Karnataka with 16 branches operational from Q3 FY27. Micro-LAP (MicroLoan) business growing steadily with data science-based sourcing thresholds (diary and bureau scorecards) disqualifying non-eligible customers upfront.
Housing Finance: AUM ₹7,815 crores (+42% YoY); demand resilient across affordable housing. Southern India expansion (Andhra Pradesh, Telangana, Karnataka) with 30+ branches added in the last quarter is scaling to ₹65 crore disbursement per month, improving yield via self-employed mix (~75% of AUM).
Construction Finance: AUM ₹6,332 crores (+40% YoY) across 291 projects; average ticket ₹41 crore with outstanding ticket ~₹20 crore. Book remains granular, secured, and diversified across metro/tier-1 cities with rigorous due diligence and escrow-based cash flow management. One account slipped to NPA in Q1 with 70% provisioning.
Co-lending & Direct Assignment: AUM ₹8,126 crores (+74% YoY, +4% QoQ) accounting for 20% of total AUM. Volume slowed as partner banks migrate to CLM 1 model under new co-lending guidelines; SBI has moved, tech integration completed for new arrangements. Income from co-lending/DA at ₹65 crores (-8% YoY) on lower disbursal volumes.
Car Loan Distribution: Originations of ₹3,282 crores (+43% YoY) across 13 partner banks; platforms scalable for distribution of other products. Management prioritizes unit economics over volume growth; used car loan pilot planned.
Insurance Distribution (Capri Care): Net income of ₹42 crores in Q1; launched 14 life and general insurance products with leading insurers; expanded as open market distribution platform beyond the lending ecosystem, with growing PSP network.
Company-Specific & Strategic Commentary
AI & Technology: Collaborated with OpenAI to deploy enterprise-grade generative AI across key business functions, aiming to become an AI-native lender. Platform analyzed 6.7 lakh customer calls and recorded 2.64 lakh geo-tagged field visits in Q1. Chronos collection engine deployed across entire portfolio; omnichannel throughput tripled to 529 messages/minute with campaign execution time cut 53%. ~90% of inbound payments are digital (93%+ in MSME/housing), 35% of MSME/housing collections tech-managed, and ~70 million API transactions processed monthly—creating a compounding data advantage.
Liability Diversification: Re-established $1 billion Global Medium Term Note (GMTN) program for access to offshore dollar bond markets. Capital market borrowings (NCDs + CPs) now ~10% of borrowing mix; raised ₹3,860 crores from banks and ₹1,271 crores from NCDs/CPs in Q1; added 5 new lender relationships (40+ active).
Brand & Geographic Expansion: Onboarded actor Nayantara as brand ambassador to build brand presence in South India. Total branch network at 1,433 locations; ~400 new branches planned for FY27, all to be operational by December 2026.
Employee Productivity: AUM per employee improved to ₹3.4 crores vs ₹1.8 crores a year earlier, with employee base up only 14% YoY—demonstrating operating leverage from technology investments.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| AUM | ₹50,000 crores FY27; ₹65,000 crores FY28 (revised upward from ₹47,000 crores FY27) | 30%+ CAGR; quarterly additions of ₹3,000-3,500 crores, with H2 quarters heavier |
| ROAE | 19-21% consistently by FY28 | Q1 FY27 at 19.1%; sustainable despite 400-500 branch additions per year |
| ROAA | 4.2-4.7% by FY28 | Q1 at 4.1%; driven by margin expansion and technology-led operating leverage |
| Branch expansion | 400 branches by December 2026 (150 by Q2, balance 250 by Q3) | Revised upward from earlier 350 gold branches; plan on track |
| Gold loan yield | Further 50-75 bps improvement expected | Smaller-ticket strategy and redesigned incentive plan driving yield |
| Cost-to-income | Maintain 44-45% over next 12-18 months | New branch expenses offset by higher volumes from vintage branches |
| Spread | ~7.8%, moving toward ~8% when gold mix crosses 52-53% | Stable funding costs; favorable product mix |
| Cost of funds | Stable for remaining FY27 | Diversification via GMTN, NCDs, CPs, institutional refinancing to reduce bank borrowing share |
| Gold loan mix | ~55% of AUM in medium term | Strategic portfolio mix target |
Risks & Constraints
| Risk | Context |
|---|---|
| Gold price volatility | Gold prices corrected ~4% QoQ in Q1, driving ₹373 crores of the ₹385 crore stage 2 increase. Mitigants: 71% LTV at disbursement, automated margin call alerts, and auction notices at 85% LTV breach. Further price falls could temper growth, but management sees limited asset quality impact given short-tenure product and 1,000+ branch network. |
| Co-lending regulatory transition | New co-lending guidelines requiring CLM 1 model slowed co-lending growth to +4% QoQ and pulled co-lending/DA income down 8% YoY to ₹65 crores. SBI has migrated; other partner banks in process—near-term drag on capital-efficient growth until migration completes. |
| Construction finance slippages | One account slipped to NPA, lifting CF GNPA from 0.3% to 0.7% QoQ; provisioned at 70%. Historical recovery cycle of 6-9 months via project takeovers; ₹30 crores recovered from old NPA in Q1. DC cases (₹125 crores) are outside GNPA and remain standard. |
| Macro environment | Global geopolitical uncertainty, energy security, oil/gold price volatility, rupee appreciation, and volatile capital markets created a soft quarter backdrop. Management notes Indian economy remains resilient on GDP growth, consumption, and technology adoption. |
| Scale-up execution | 400 new branches by December 2026 and elevated leadership transitions were flagged by analysts. Management attributes moves to internal transfers (CFO, CRO, internal audit) to the HFC subsidiary for RBI compliance at ₹5,000 crore AUM threshold; business heads reported stable 7-10 years; no CEO position vacant. |
Q&A Highlights
Stage 2 Build-up & Coverage
- Question: Please split the ₹385 crore sequential stage 2 increase by segment; is it new origination or vintage seasoning? Why was coverage cut from 11.8% to 9.4% while the pool grew? (Kiran Shah, KSA Shares)
- Answer: Gold loan contributed ₹373 crores (gold prices declined ~4% QoQ), mSME +₹10 crores, housing +₹15 crores, while construction finance declined ₹13 crores. (Management)
Construction Finance Asset Quality
- Question: Is the ₹125 crore under DC (delayed construction) inside or outside the 0.7% CF GNPA? Is it real slippage or new norms? (Kiran Shah, KSA Shares)
- Answer: It is outside the CF GNPA; DC cases are not treated as NPA and remain standard. (Management)
- Question: What drove CF GNPA from 0.3% to 0.7% QoQ, and what is the outlook? (Siddharth, SK Securities)
- Answer: One account slipped into NPA with 70% provisioning; CF has a cycle where accounts recover in 6-9 months via project takeovers; ₹30 crores recovered from an old NPA this quarter. (Management)
Gold Loan: Demand, LTV & Price Risk
- Question: If monsoon is stronger, would gold loan demand decrease? (Ruchi Baghel, Kokum Bank)
- Answer: Weaker monsoons push marginal farmers toward gold loans to meet cash gaps; however, steady-state growth of ~25% from existing branches plus new branch additions will sustain growth. (Management)
- Question: What is the average gold loan LTV and the protection against gold price falls? (Lakshmi Hingorani, Share India Securities)
- Answer: LTV at disbursement is ~71%, providing a 29% cushion from a risk perspective. (Management)
- Question: How do you assess the impact of recent gold price correction on growth, yields, and asset quality? (Pehel Sharma, Dedhia Group)
- Answer: Automated margin call alerts and auction notices above 85% LTV are in place; last six months of volatility have not hurt asset quality; growth impact is limited given 1,000 existing branches plus expansion. (Management)
Branch Expansion & Gold Loan Yields
- Question: Earlier guidance was 350 gold branches; rollout appears modest. What is the update? (Suhani Singh, Ross Capital)
- Answer: 150 branches by end of Q2 and another 250 by Q3—total 400 branches (revised upward), all completed on or before December 2026. (Management)
- Question: Is the 18.6% gold loan yield sustainable or will competition moderate it? (Suhani Singh, Ross Capital)
- Answer: Strategy shifted to smaller ticket sizes with redesigned incentive plans; another 50-75 bps yield improvement is expected next quarter. (Management)
Funding Costs & Borrowing Diversification
- Question: Cost of funds declined ~10 bps QoQ—what is the scope for further reduction in FY27? (Suhani Singh, Ross Capital)
- Answer: Costs will remain largely stable for the rest of FY27; diversification through the $1 billion GMTN program, NCDs, CPs, and institutional refinancing will reduce the bank borrowing share over time. (Management)
Portfolio Mix & Capital Allocation
- Question: What is the optimal gold loan mix and internal target, given gold is ~48% of AUM? (Soumya Raghuvanshi, Securities)
- Answer: Medium-term gold loan mix target is ~55%. (Management)
- Question: Why has the mSME share of AUM declined over recent quarters? (Soumya Raghuvanshi, Securities)
- Answer: Capital allocation prioritized gold loan branches to achieve profitability first; mSME growth was deliberately measured to maintain book quality. (Management)
AUM Growth Trajectory
- Question: Earlier FY27 target was ₹47,000 crores; now ₹65,000 crores for FY28—is FY27 also being revised, assuming ₹3,500 crores per quarter? (Nivedita Chaudhuri, ICICI Securities)
- Answer: FY27 is on course for ₹50,000 crores and FY28 for ₹65,000 crores; quarterly additions of ₹3,000-3,500 crores are realistic, with last two quarters typically stronger. (Management)
Leadership Stability & Succession
- Question: There have been elevated leadership transitions; when can we expect a long-term CEO? (Gupta, SS Family Office)
- Answer: Revenue-driving business heads are stable (7-10 years); recent moves were internal transfers (CFO, CRO, head of internal audit) to the HFC subsidiary to comply with RBI regulations at ₹5,000 crore AUM. There is no CEO position vacant and no plan to hire one. (Management)
Profitability: ROA/ROE, Spread, Cost-to-Income
- Question: When will 4.2-4.7% ROA and 19-21% ROE be delivered on a sustainable basis? (Santosh Shetty, Lgcy Capital)
- Answer: By FY28, confidently, despite remaining in expansion phase with 400-500 branches per year. (Management)
- Question: Is the 7.8% spread sustainable? (Pehel Sharma, Dedhia Group)
- Answer: Spread will remain in the 7.8-8% range; ~8% when the gold loan proportion crosses 52-53%. (Management)
- Question: What will happen to cost-to-income with significant branch expansion? (Pehel Sharma, Dedhia Group)
- Answer: Maintain 44-45% over the next 12-18 months; new branch costs are offset by higher volumes from old branches. (Management)
Car Loan Strategy & Overall Asset Quality Outlook
- Question: Car loan growth moderated—is this strategy (profitability over growth), demand weakness, or competition? (Santosh Shetty, Lgcy Capital)
- Answer: The business follows strict unit economics—no cash burn; growth is only pursued where profitable. Used car loan product will be piloted, improving margins over the next couple of years. (Management)
- Question: What is the asset quality outlook for the remaining quarters? (Siddharth, SK Securities)
- Answer: The book is 100% collateralized and secured; collection efficiency has been strong with a 525+ collection team and heavy technology investment. Internal benchmarks are GNPA ~2% and NNPA ~1%, current levels of 1.1%/0.6% are well below—no major surprises expected. (Management)
Key Takeaway
Capri Global Capital delivered its strongest quarter on record in Q1 FY27, with consolidated AUM up 62% YoY to ₹40,112 crores and PAT more than doubling to ₹353 crores (+102% YoY), driving ROAA of 4.1% and ROAE of 19.1%. Growth was led by gold loans (+111% YoY to ₹19,179 crores), ahead of housing (+42%), construction finance (+40%), and MSME (+24%). NII rose 79% YoY on a 17.0% blended yield and 7.8% spread, while cost-to-income improved 520 bps sequentially to 44.2% on branch productivity of ₹19 crore per branch and AI-driven collection digitization (90% of payments digital). Management raised FY28 AUM guidance to ₹65,000 crores with 19-21% ROAE and 4.2-4.7% ROAA, backed by 400 new branches by December 2026, a $1 billion GMTN program, and an OpenAI collaboration to build an AI-native lending institution. Key watch points: gold price volatility (stage 2 up ₹385 crores), co-lending CLM 1 migration, and construction finance slippages, though all carry identified mitigants.