Capri Global: How the NBFC Is Scaling Safely with a ₹55,000 Cr AUM Target While Others Slow Down

Synopsis: In a cautious NBFC cycle, Capri Global Capital is scaling with intent. Backed by strong growth, a secured lending model, and rising fee income, the company is targeting ₹55,000 crore AUM by FY28, without compromising on profitability.

While much of the NBFC sector is turning cautious amid tighter liquidity and rising credit risks, one mid-sized lender is taking a different approach, scaling with intent while maintaining a disciplined, secured lending framework. Instead of chasing short-term growth, the focus remains on building a structurally resilient business that can compound steadily even in a challenging environment.

With a market capitalisation of ₹19,216 crores, the shares of Capri Global Capital are trading at ₹199 apiece in today’s market session, up by 2.50%, and the stock has delivered a return of 17.98% over the past month, and is just 4.8% below its 52-week high of ₹209

Growth Backed by Strong Operating Performance

At a time when much of the NBFC sector is moderating growth due to tighter liquidity and higher funding costs, Capri Global Capital is delivering strong operating momentum.

For Q4 FY26, the company reported net sales of ₹1,385 crore, up 44.67% year-on-year from ₹957 crore. Net profit grew 59.12% to ₹283 crore, while EBITDA rose 45.02% to ₹902 crore. Earnings per share increased to ₹2.94 from ₹2.15 in the same period last year. These numbers indicate that growth is being supported by both scale and improved profitability.

The ₹55,000 Crore Target — Ambitious or Credible?

Management has guided for ₹55,000 crore in AUM by FY28, implying a roughly 23% CAGR from current levels over two years. Before taking this at face value, the historical track record deserves scrutiny. Capri Global’s 5-year AUM CAGR stands at 53%. In that context, a 25% forward CAGR is not aspirational; it is actually a deceleration from what the company has already delivered. The target is credible. The more important question is whether it can be achieved without compromising the quality of the book, as they primarily give out only secure loans.

Secured Lending as the Core Strategy

A key differentiator in this growth story is the company’s focus on secured lending. Notably, the loan book is entirely backed by collateral, making it a 100% secured portfolio, an important factor in managing downside risk.

The company primarily serves retail borrowers, MSMEs, and small business owners, with a strong presence in segments like gold loans, affordable housing, and MSME financing. These are segments where credit demand remains strong, but risk management becomes critical.

By building its portfolio around secured assets, the company improves recoverability and limits credit losses, even as it scales. Rather than chasing high-yield unsecured growth, the focus remains on stability and asset quality, allowing for expansion without compromising risk discipline.

Co-Lending Driving Fee Income

Approximately 40% of the company’s gold loan AUM sits in co-lending arrangements with partner banks. While this compresses headline yields, it has significantly boosted fee-based income. Fee income now contributes close to 30% of total revenues, one of the highest ratios in the sector, drawing from co-lending fees, car loan processing, and insurance distribution.

This is an important structural positive. But it also introduces a dependency risk; if partner banks pull back from co-lending arrangements, a meaningful portion of fee income and AUM growth could be disrupted. The 40% co-lending concentration in gold loans specifically is a number worth monitoring in future quarters.

Profitability Remains a Priority

Despite strong growth, management has emphasised that profitability will not be compromised. Net interest margins are around 9.2%, and the company is targeting return on assets (ROA) of about 4% in the near term, with a medium-term range of 4–4.5%. Return on equity (ROE) is guided at 16–18%, even after factoring in the impact of a recent ₹2,000 crore QIP. This indicates a focus on quality of earnings rather than just scale, an important distinction in lending businesses.

The path to 16–18% ROE requires the gold loan expansion, the co-lending fee income, and the new branch network to all perform simultaneously. Any one of these underdelivering, gold price correction, co-lending pullback, or branch ramp-up delays could push the ROE timeline out.

Gold Loans and Portfolio Mix

With gold prices being wildcard, management acknowledged that a price decline would have an impact. However, the key growth driver is geographic expansion; the company currently operates around 1,000 gold loan branches. If gold prices remain stable, management expects overall AUM growth of 25–30% annually.

The long-term portfolio target is for gold loans to stabilise at around 50% of AUM, with affordable housing, MSME lending, and construction finance each contributing 15–18%. This balanced mix is designed to reduce concentration risk while keeping the high-margin gold segment as the core growth engine.

Market Takeaway

This is not a story of aggressive, risk-driven expansion; it is a story of controlled scaling. Capri Global Capital is growing in a challenging environment, but with a clear emphasis on secured lending, diversified revenue streams, and profitability discipline. The ₹55,000 crore AUM target reflects ambition, but the execution framework reflects caution.

The key monitorable going forward will be whether the company can sustain this balance as it scales. Because in lending, growth can be achieved quickly, but sustaining it without compromising asset quality is what defines long-term success.

About the Company and Finanacials

Capri Global Capital is a diversified NBFC focused on secured retail and MSME lending, with a strong presence across MSME loans, gold loans, construction finance, and affordable housing. The company is operating 1,429 branches across India and has an employee count of 13,000 as of March 2026, with an AUM of ₹36,623 crore.

Year-on-Year Analysis: The company’s Assets Under Management (AUM) grew to ₹36,623 crore in FY26 from ₹22,860 crore in FY25, reflecting a 60% YoY growth. Operating Profit nearly doubled to ₹1,446 crore from ₹734 crore, registering a 97% YoY increase, and PAT came out to ₹948 crore from ₹478 crore, up 98% YoY.

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