Capri Global Capital Q1 FY27: Gold Loan AUM Doubles, PAT Jumps 102% as Margins Expand

Capri Global Capital, a non-bank lender that gives gold loans, home loans, and business loans primarily in smaller Indian cities, reported a 62% year-on-year surge in consolidated assets under management (AUM) to ₹40,112 crore for the quarter ended June 2026. The standout was its gold loan portfolio, which more than doubled to ₹19,179 crore and now accounts for nearly half of all loans. Net profit doubled to ₹353 crore, helped by wider lending spreads and a leaner cost structure. The numbers show a company successfully scaling its high-yield, branch-led model while keeping a tight grip on asset quality.

Gold Loans Power the AUM Engine

Gold loans have rapidly become Capri Global's largest and fastest-growing segment. The portfolio swelled from ₹9,105 crore a year ago to ₹19,179 crore, driven by aggressive branch additions and strong customer acquisition. Live gold loan accounts crossed 1 million, up from 658,000 a year earlier, while the average ticket size rose to ₹1.91 lakh. The company now holds 20.2 tonnes of gold as collateral, up from 16 tonnes.

Source: Company presentation

The gold loan branch network hit 1,000 by June 2026, up from 821 a year ago. Management had earlier outlined plans to add 750–800 new branches over two to three years, with a focus on southern states and Odisha . The strategy is to tap India’s vast unorganised gold loan market—only about 12% of household gold is formally financed—while using technology and a repeat-borrower base (55% of customers are repeat) to push branch productivity higher .

Margins Widen as Costs Stay in Check

The shift towards high-yield gold loans (segment yield 18.6% in Q1 FY27) and a declining cost of borrowings helped expand net interest margin (NIM) to 9.7%, up from 8.9% a year ago. Net interest income jumped 79% YoY to ₹736 crore.

Source: Company presentation

The cost-income ratio improved sharply to 44.2%, the lowest in the last five quarters. Operating expenses as a percentage of average total assets fell to 4.9%, matching the level of a year ago despite a much larger loan book. Management has consistently pointed to operating leverage from its maturing branch network and investments in AI-driven productivity tools as key drivers of efficiency .

Asset Quality Stays Resilient

Despite rapid growth, asset quality remained under control. Consolidated gross NPA stood at 1.1% and net NPA at 0.6% as of June 2026. The gold loan book, fully secured by physical collateral, had a gross NPA of just 0.3%. Even the MSME segment, which had seen some stress in earlier quarters, stabilised with gross NPA at 3.1%.

Source: Company presentation

Provision coverage on stage-3 assets improved to 43.2% from 41.2% in the previous quarter. Management has highlighted its use of data science and AI for early-warning signals and collections, and it lists “reduction in credit costs through data science & analytics” as a key lever for future return-on-equity expansion .

Co-lending and Fee Income Add Capital-Efficient Growth

Co-lending and direct assignment AUM stood at ₹8,508 crore, or 20.3% of consolidated AUM. This off-balance-sheet model allows Capri Global to earn spread and servicing fees while conserving capital. Co-lending income contributed ₹65 crore to non-interest income in Q1 FY27 .

The insurance distribution business, an asset-light fee stream, generated ₹42 crore in income for the quarter, up 66% YoY, through partnerships with 22 insurers. Car loan origination volumes rose 43% YoY to ₹3,283 crore, adding another ₹32 crore in net fees. Together, these fee lines are diversifying revenue and supporting return ratios .

Branch Network and Capital Position

The total branch network reached 1,433, including 1,000 dedicated gold loan branches. The company plans to open 750–800 more branches over the next two years, targeting underpenetrated states like Tamil Nadu, Karnataka, and Andhra Pradesh . Despite the expansion, capital adequacy remains comfortable at 24.7% (CRAR), well above the regulatory minimum, and the debt-to-equity ratio stood at 3.7x. Liquidity was strong at ₹6,873 crore in cash, investments, and undrawn lines .

The Q1 FY27 performance puts Capri Global within striking distance of its medium-term targets of 19–21% RoAE and 4.2–4.7% RoAA, with the gold loan engine and co-lending partnerships providing the thrust.

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Gold Loans Power the AUM Engine

Margins Widen as Costs Stay in Check

Asset Quality Stays Resilient

Co-lending and Fee Income Add Capital-Efficient Growth

Branch Network and Capital Position

Sources