Capri Global Capital LtdQ1 FY27
Capri Global Capital Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹237P/E: 19.1Market Cap: ₹21.6K CrSector: Finance
Management growth scorecard
Revenue
Category 1
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
4 of 5 growth signals are positive — a strong management growth story.
Full analysisRevenue guidance
Category 1- →AUM growth target revised upward to INR65,000 crores by FY28, implying 30%+ CAGR.
- →Quarterly incremental AUM additions expected to be around INR3,000 to INR3,500 crores, with higher momentum in last two quarters.
- →Gold loan portfolio targeted to constitute about 55% of overall AUM in medium term, growing at a steady 25% annually assuming stable gold prices and branch expansion.
- →Branch expansion plan increased to 400 branches by December 2026, supporting geographic diversification and growth.
- →Car loan business growth to be measured with focus on profitability, with pilot launch of used car loans expected to improve margins over next couple years.
- →Further yield improvement anticipated, especially in gold loans, with potential lifting to around 8% blended spread when gold loans exceed 50% of portfolio.
- →Non-interest income streams like insurance and car loan distribution expected to contribute substantially to revenue growth.
Margin guidance
Category 3- →Capri Global Capital has revised its AUM guidance upwards to INR 65,000 crores by FY28, targeting a 30%+ CAGR.
- →The company expects a return on average equity (ROE) of 19%-21% and return on average assets (ROA) of 4.2%-4.7% by FY28.
- →Q1 FY27 saw the highest ever quarterly profit after tax of INR 353 crores, a 102% YoY increase.
- →Net interest income rose 79% YoY to INR 736 crores, driven by loan book growth and margin expansion.
- →Non-interest income grew 28% YoY to INR 217 crores, boosting recurring fee income.
- →Cost-to-income ratio expected to stabilize around 44%-45%, supporting profitability.
- →Branch expansion plans (400 new branches in FY27) will aid scale but operating leverage will keep costs efficient.
- →Margins and spreads are expected to stabilize around current levels (spread ~7.8%-8%).
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Fundraise plans
Yes- →During Q1 FY27, Capri Global raised INR 3,868 crores through bank borrowings and INR 1,271 crores from Non-Convertible Debentures (NCDs) and Commercial Paper (CP).
- →They added 5 new lender relationships, increasing active relationships to over 40.
- →The company is actively diversifying its borrowing mix, including public issuances of bonds, commercial paper, refinancing from institutions, and bank borrowings.
- →Plans to establish a Global Medium Term Note (GMTN) program to access offshore dollar bond markets are underway, dependent on market conditions.
- →Cost of funds is expected to remain stable for the remainder of FY27.
- →No mention of immediate equity fundraising in this quarter, focus is on diversified and long-tenure debt instruments for capital efficiency.
Order book
YesThe transcript does not explicitly mention details about Capri Global Capital Limited's current or expected order book or pending orders. The discussion primarily focuses on:
- Asset under Management (AUM) targets: INR50,000 crores for FY27 and INR65,000 crores for FY28.
- Robust loan disbursements totaling INR11,114 crores in Q1 FY27.
- Growth across lending segments, especially gold loans (111% YoY growth).
- Branch expansion plans, particularly adding 400 gold loan branches by December 2026.
- Strong portfolio growth supported by technology and customer base expansion.
No direct information on an order book or pending orders is provided in the transcript.
Capex plans
Yes- →Capri Global Capital is investing heavily in technology and digital transformation to enhance operational efficiency and customer experience.
- →AI integration is a key focus, including collaboration with OpenAI to deploy secured AI-powered tools for customer service, knowledge management, and operations across branches.
- →Plans to expand the branch network significantly, with an increased target to add 400 gold loan branches by December 2026, supporting geographic expansion primarily in Southern and Eastern India.
- →Investment in strengthening insurance distribution via the Capri Care digital platform, expanding product portfolio and distribution network.
- →Diversification of borrowing mix through capital market issuances such as non-convertible debentures, commercial paper, and plans to establish a USD 1 billion Global Medium-Term Note (GMTN) program for offshore borrowing.
- →Continuous investment in data science and AI capabilities to optimize collections and underwriting.
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