Capri Global Capital Ltd Q3 FY26 Earnings Analysis

- Capri Global Capital Limited targets annual AUM growth of 25% to 30% by FY28, with AUM expected to reach INR 32,000 crores by FY26-end and INR 42,000 crores by FY27-end. - Profit After Tax (PAT) is projected to increase from INR 850 crores in FY26 to INR 1,200 crores in FY27; PAT for FY28 is not yet projected. - The company plans significant branch expansion, including reaching 995 gold loan branches by March 2026 and adding about 200 total branches across products in upcoming quarters. - Revenue growth is supported by a diversified portfolio: gold loans (~40% share), MSME, affordable housing, and construction finance segments. - Non-interest income streams (e.g., insurance distribution, co-lending fees) are growing strongly, with a 97% YoY increase in Q2 FY26. - Technology investment and geographical expansion (including southern India) underpin growth and operational efficiency. - Management expects to maintain sustainable returns: ROE of 16%-18% and ROA of 4%-4.5% over time.

- AUM expected to grow from INR 32,000 crores in FY26 to INR 42,000 crores in FY27, implying a 30%-35% CAGR. - PAT guidance: INR 850 crores for FY26 and INR 1,200 crores for FY27; PAT not projected beyond FY27 yet. - Target sustainable ROE of 16% to 18% and ROA of 4% to 4.5% by FY28. - Operating expense rising due to employee addition and incentives but cost-to-income ratio improves to 49% indicating operational efficiency gains. - Spread expected to improve to around 7.2% due to lower cost of funds and operational efficiencies. - Technology investments and geographical expansion support scalable growth. - Annualized AUM growth guidance of 25%-30% over medium term.

- The company invested INR 29 crores in technology during the quarter, focusing on AI-driven initiatives to enhance asset quality and recovery. - Key technology investments include a digital auction platform, AI-based bureau analytics for smarter credit decisions, and real-time analytics capabilities for proactive portfolio monitoring. - Upgrades in cybersecurity and compliance were emphasized to support the expanding digital footprint. - No explicit mention of other current or future capital expenditure beyond technology investments. - The company is expanding its branch network aggressively, adding around 200 branches in the next two quarters, which implies ongoing capital allocation for branch expansion. - Capital adequacy is strong (standalone CAR at 32.9%), supported by an equity infusion of INR 2,000 crores in Q1 FY26, providing ample headroom for growth and strategic investments. - No specific strategic investments beyond branch expansion and technology enhancement were detailed.

- Capri Global Capital Limited successfully completed maiden public issuance of secured rated listed redeemable non-convertible debentures (NCDs) for INR 400 crores, which was oversubscribed across investor categories. - The company plans increased borrowing from alternative sources including public bond issuances, ECB, foreign currency loans, and mutual funds. - By end of FY27, the share of finances from non-bank sources is expected to significantly increase. - Current cost of funds is ~9.6%; expected to reduce by 30-40 bps gradually over the next 2-3 quarters due to MCLR reduction and better funding mix. - No specific mention of future equity fundraising in the transcript. - The focus is on diversifying borrowing sources and reducing cost of funds through debt instruments rather than equity.

The transcript does not explicitly mention the current or expected order book or pending orders for Capri Global Capital Limited. However, related insights from the call include: - The company is focusing on expanding its loan book across segments like gold loans, MSME, affordable housing, and construction finance. - Significant AUM growth targets set: INR 32,000 crores by FY26 end and INR 42,000 crores by FY27 end. - Construction finance AUM grew 48% YoY to INR 4,969 crores, funding 286 active residential projects. - Expansion plans include increasing branches and loan book across segments, indicating healthy loan demand. - Co-lending forms 20% of total AUM, showing diversified credit sourcing. No direct information on order book or pending orders is provided in the transcript.