💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 40.47% YoY to INR 3,250.83 Cr in FY25. Construction Finance AUM grew 57.7% YoY to INR 4,132.9 Cr. Gold Loan AUM surged 130.4% YoY to INR 8,042.2 Cr. Housing Finance (CGHFL) revenue increased 24.55% to INR 606.88 Cr. Car loan originations reached INR 10,551.9 Cr in FY25, with Q2 FY26 originations growing 14% YoY to INR 283 Cr.

Geographic Revenue Split

Operations are highly concentrated in North and Western India. The top three states contribute approximately 83% of the MSME portfolio, 77% of Construction Finance, 66% of Housing Loans, and 54% of Gold Loans as of March 31, 2025.

Profitability Margins

Consolidated PAT increased 71.27% YoY to INR 478.52 Cr in FY25, with net profit margins improving by 2.65 percentage points as profit growth outpaced revenue growth. Standalone NIM improved to 10.85% in FY25 from 9.94% in FY24. CGHFL PAT declined 13.71% to INR 61.87 Cr due to increased operational investments.

EBITDA Margin

Not explicitly disclosed as EBITDA %, but Interest Coverage Ratio improved to 1.50x in FY25 from 1.44x in FY24, indicating stronger core earnings relative to interest obligations. Net gain on derecognition of financial instruments (co-lending) contributed significantly to profitability.

Capital Expenditure

Primary capital of INR 2,000 Cr was raised through a Qualified Institutions Placement (QIP) in June 2025 to fund AUM expansion. The company is investing in digital transformation and AI-driven analytics to improve branch productivity, where 90% of branches have already achieved INR 5 Cr AUM per branch.

Credit Rating & Borrowing

Infomerics Ratings reaffirmed credit ratings. Standalone Total CRAR was 34.39% as of June 2025, well above regulatory requirements. Borrowings increased 31% YoY to INR 15,576.81 Cr in FY25 to support a 46% growth in AUM.

⚙️ Operational Drivers

Raw Materials

Capital (Debt and Equity) is the primary 'raw material'. Borrowings represent 78% of the total liability mix as of FY25. Cost of funds is managed through a mix of bank loans, NCDs (INR 400 Cr public issue), and co-lending partnerships.

Import Sources

Domestic capital markets and Indian commercial banks. The company has tie-ups with 13 partner banks for car loan distribution and 11 banks for co-lending arrangements.

Key Suppliers

Major lenders include public and private sector banks such as Canara Bank, Punjab National Bank, and Standard Chartered. Insurance partners include 18 insurers for third-party distribution.

Capacity Expansion

Branch network expanded to 803 branches in FY25. The company aims to reach an AUM of INR 50,000 Cr by FY28 (from INR 22,860 Cr in FY25) and INR 100,000+ Cr by FY33, implying a 25-30% CAGR.

Raw Material Costs

Interest expense is the primary cost, with total debt rising 49.6% YoY to INR 15,576.81 Cr in FY25. Gearing increased to 3.67x in FY25 from 2.71x in FY24 to leverage the balance sheet for higher returns.

Manufacturing Efficiency

Branch productivity is the key efficiency metric; 90% of branches reached the INR 5 Cr AUM milestone. Gold loan segment yields 19.9% with an average ticket size of INR 0.013 Cr, reflecting high-velocity scalability.

Logistics & Distribution

Distribution costs are reflected in the 29% YoY increase in operating expenses. The car loan origination model is 'asset-light', generating fee income without balance sheet risk.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

Aggressive expansion of the Gold Loan vertical (130% growth in FY25) and MSME lending. Leveraging a capital-light co-lending model with 11 banks to boost RoE. Diversifying into Merchant Banking and Wealth Management via two new subsidiaries incorporated in July 2025. Targeting 16-18% RoAE by FY28 through digital-led customer acquisition and cross-selling insurance to a 454K+ customer base.

Products & Services

MSME loans, affordable housing loans, construction finance for residential projects, gold loans, car loan origination services, and insurance policies (life, health, general).

Brand Portfolio

Capri Global, Capri Loans, Capri Global Housing Finance Limited (CGHFL), Capri Loans Car Platform.

New Products/Services

Merchant Banking (Category I) and Wealth Management services launched via new subsidiaries in Q2 FY26. Used car financing is also being explored to augment the car loan distribution vertical.

Market Expansion

Expansion into Tier 1 and fast-growing urban centers like Bengaluru, Hyderabad, and Ahmedabad for Construction Finance. Pan-India disbursement goals through co-lending tie-ups.

Market Share & Ranking

Positions as a top corporate distributor for new car loans in India. Gold loan segment is identified as the fastest-growing vertical within the company.

Strategic Alliances

Co-lending partnerships with 11 banks; corporate selling arrangements with 13 banks for car loans; distribution tie-ups with 18 insurance companies.

🌍 External Factors

Industry Trends

The NBFC sector is shifting toward co-lending and digital-first models. CGCL is positioning itself as a 'phygital' player, combining 803 branches with AI-driven sourcing to capture the self-employed borrower segment which is growing at 20%+ industry-wide.

Competitive Landscape

Competes with specialized Gold Loan NBFCs, Housing Finance Companies, and traditional banks. Competitive edge lies in the ability to offer multiple products (Gold, MSME, Housing) through a single branch network.

Competitive Moat

Moat built on a diversified product mix and an asset-light distribution model (Car loans/Co-lending). The network of 1,111 consolidated branches and 11 bank partnerships creates a high barrier to entry for smaller NBFCs. Sustainability is supported by a 99th percentile ESG score in Business Ethics.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and MSME sector health. Affordable housing demand is linked to government schemes like PMAY, which CGHFL actively supports.

Consumer Behavior

Shift toward digital loan processing and demand for 'affordable' credit in Tier 2/3 cities. CGCL is responding by leveraging digital channels to reach self-employed borrowers.

Geopolitical Risks

Limited direct exposure as operations are domestic; however, global inflationary pressures could impact domestic interest rates and borrowing costs.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with RBI norms for Systemically Important Non-Deposit Taking NBFCs and NHB regulations for CGHFL. Capital adequacy (34.39%) is significantly above the 15% regulatory minimum.

Environmental Compliance

Received an ESG score of 71 from S&P Global (99th percentile in some categories). ESG framework is integrated into the core principle of 'Financial Inclusion'.

Taxation Policy Impact

Maintains a high 79% disclosure rate for tax strategy as per S&P Global ESG standards. Effective tax rate is in line with Indian corporate standards.

Legal Contingencies

Not disclosed in the provided documents. The company maintains a 'Unclaimed Suspense Account' for 60,000 shares as per statutory requirements.

⚠️ Risk Analysis

Key Uncertainties

Asset quality seasoning in the rapidly expanded Gold Loan book (130% growth). Potential for 10-15% impact on profitability if regional economic shocks hit the top 3 states where 83% of MSME loans are concentrated.

Geographic Concentration Risk

High: Top 3 states constitute ~83% of MSME and ~77% of Construction Finance portfolios.

Third Party Dependencies

High dependency on 11 co-lending banks and 13 car loan partner banks for fee-based income and capital-efficient growth.

Technology Obsolescence Risk

Mitigated by active investment in Generative AI and digital underwriting; however, failure to keep pace with fintech competitors could erode the MSME market share.

Credit & Counterparty Risk

Gross Stage 3 assets improved to 1.3% in Q2 FY26 from 1.53% in FY25. Exposure is largely secured by collateral (Gold, Property, or Construction projects), ensuring minimum credit loss.