This article first appeared on GuruFocus .
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Capri Global Capital Ltd ( BOM:531595 ) reported a significant increase in profit after tax, reaching Rs. 353 crore, a 102% year-on-year growth.
-
The company's consolidated Assets Under Management (AUM) grew by 62% year-on-year, reflecting strong business momentum.
-
Gold loans saw a remarkable 111% year-on-year growth, indicating robust demand and effective branch productivity.
-
The company has successfully collaborated with OpenAI to enhance its technology capabilities, aiming to build an AI-native lending institution.
-
Capri Global Capital Ltd ( BOM:531595 ) maintained a strong capital adequacy ratio, providing room for growth across business segments.
Negative Points
-
The macroeconomic environment was described as soft due to global geopolitical uncertainties and volatile capital markets.
-
There was an increase in gross stage 2 assets, particularly in the gold loan segment, which could indicate potential risk exposure.
-
The cost of borrowing remains a concern, with limited scope for reduction in the near term despite diversification efforts.
-
The MSME portfolio's growth has been relatively slower, attributed to prioritizing gold loans and branch profitability.
-
The company faces challenges in maintaining leadership stability, with some leadership transitions noted in recent years.
Q & A Highlights
-
Warning! GuruFocus has detected 9 Warning Signs with BOM:531595.
-
Is BOM:531595 fairly valued? Test your thesis with our free DCF calculator.
Q: Can you explain the increase in Stage 2 assets and the reasons behind it? A: Out of the INR 385 crore increase in Stage 2 assets, INR 10 crore was from MSME, INR 15 crore from housing, and a decrease of INR 13 crore in construction finance. The gold loan segment saw an increase of INR 373 crore, primarily due to lower gold prices affecting valuations. - Rajesh Sharma, Managing Director
Q: What is the impact of weak monsoon on microfinance and marginal farmers, and how does it affect your growth strategy? A: A weaker monsoon may lead microfinance and marginal farmers to seek loans to cover cash gaps. We anticipate a steady growth of 25% in our book, with additional growth from new branches. - Rajesh Sharma, Managing Director
Q: Could you provide an update on your branch expansion plans, particularly for gold loan branches? A: We plan to add 150 branches in the next quarter and another 250 by Q3, totaling 400 branches by December 2026. This expansion is on track to meet our strategic goals. - Rajesh Sharma, Managing Director
Q: How do you view the current yield on gold loans, and do you expect any changes? A: We have shifted focus to smaller ticket sizes, which has improved yields to around 18.6%. We anticipate further improvement by 50 to 75 basis points in the next quarter. - Rajesh Sharma, Managing Director
Q: With the recent volatility in gold prices, how do you plan to manage the risk in your gold loan portfolio? A: Gold loans are short-term, and we have automated systems for margin calls and auction notices if LTV breaches 85%. Despite price fluctuations, we do not foresee significant risks to asset quality. - Rajesh Sharma, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
