Capri Global lifts operating margin as profit more than doubles
Revenue growth outpaced costs, while interest expense rose +17.62% QoQ; management also outlined a branch-led AUM expansion plan.
Filed 27 Jul 2026, 19:17 IST · after market close · Capri Global Capital Ltd (CGCL)
Key takeaways
- Consolidated operating margin rose 4.04 percentage points YoY to 68.54% as revenue growth of +57.05% outpaced expense growth of +39.17%.
- Consolidated net profit grew +102.05% YoY to Rs 353.38 cr despite interest expense rising +48.87%.
- Capri Global's 68.54% operating margin was 5.86 percentage points above the 62.68% median of 24 Financial Services peers.
Price around the results
Revenue growth widened the operating spread
Capri Global reported consolidated revenue growth of +57.05% YoY and +13.83% QoQ, with operating profit rising +66.90% and +20.11%, respectively. Expenses grew more slowly than revenue in both comparisons, at +39.17% YoY and +2.18% QoQ, supporting the margin expansion. Other income contributed only 1.01% of pre-tax profit, so the profit increase was not materially driven by non-operating income.
Margin recovered after two quarters of decline
Operating margin rose 3.59 percentage points QoQ and 4.04 percentage points YoY to 68.54%, reversing the decline from 66.31% in Q2FY26 to 64.95% in Q4FY26. Interest expense still increased +17.62% QoQ and +48.87% YoY, showing that funding costs grew alongside the business. The tax rate rose 0.63 percentage points QoQ and 0.85 percentage points YoY, so the doubling of net profit was not flattered by a lower tax rate.
Margin stayed above peers; market response is pending
The company's 68.54% operating margin was 5.86 percentage points above the 62.68% median among 24 Financial Services peers that have reported the quarter. After its eight most recent results, the stock rose once and fell seven times, with a median absolute move of 3.89%, a generally negative and sizeable historical response. These results were filed after market close, so there is no immediate market reaction to assess.
Management links growth to branches, funding and fees
Management said the company raised Rs 12,710 million through NCDs and CPs in Q1FY27, received consolidated new bank sanctions of Rs 38,680 million, and added five lenders to take its lender base above 40. The company said it plans to open 750-800 branches over the next two years and is targeting AUM of Rs 650 billion by FY28 and more than Rs 1,250 billion by FY31. Management also said it is working to diversify borrowings, expand co-lending, increase fee income through insurance and car-loan distribution, and deploy Agentic AI tools; it targets RoAE of 19.0%-21.0% and RoAA of 4.2%-4.7%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,576 cr | ₹1,385 cr | +13.83% | +57.05% |
| Other income | ₹5 cr | ₹3 cr | +75.84% | +284.55% |
| Expenses | ₹496 cr | ₹485 cr | +2.18% | +39.17% |
| Operating profit | ₹1,081 cr | ₹900 cr | +20.11% | +66.90% |
| Operating margin (%) | 68.54% | 64.95% | — | — |
| Interest | ₹586 cr | ₹499 cr | +17.62% | +48.87% |
| Depreciation | ₹29 cr | ₹31 cr | -6.03% | +16.59% |
| Profit before tax | ₹470 cr | ₹373 cr | +25.99% | +104.33% |
| Tax | ₹117 cr | ₹90 cr | +29.23% | +111.60% |
| Net profit | ₹353 cr | ₹283 cr | +24.95% | +102.05% |
| EPS (₹) | ₹3.67 | ₹2.94 | +24.83% | +79.02% |
Operating margin of 68.54% compares with a Financial Services sector median of 62.68% across 24 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company raised ₹12,710 million through NCDs and CPs in Q1 FY27.
- New bank sanctions in Q1 FY27 stood at ₹38,680 million on a consolidated basis.
- The company added five new lenders in Q1 FY27 and has a total lender base of more than 40.
Guidance & outlook
- The company targets AUM of ₹650 billion by FY28 and over ₹1,250 billion by FY31, growing at a 28%-30% CAGR.
- The company targets consistent RoAE of 19.0%-21.0% and RoAA of 4.2%-4.7%.
Expansion
- The company plans to open 750-800 new branches over the next two years.
- The company plans to open branches across Telangana, Karnataka, Tamil Nadu, Andhra Pradesh, Orissa and Uttar Pradesh.
New initiatives
- The company plans to implement Agentic AI tools to improve efficiency, productivity and customer experience.
- The company plans to scale insurance, car loan distribution and other new verticals to increase fee income.
- The company plans to diversify borrowings by raising NCDs and CPs, widening its lender base and reducing funding costs.
- The company plans to strengthen and grow its co-lending partnerships.
What to watch
- Whether operating margin remains at or above 68.54% after its 3.59 percentage-point QoQ rebound.
- Whether interest expense growth eases from +17.62% QoQ and +48.87% YoY.
- Whether new bank sanctions build on Rs 38,680 million in Q1FY27 as the company executes its branch expansion plan.