Profit rose 59.11% YoY, but quarterly margin slipped again
Costs grew faster than revenue sequentially, while a 0.75-percentage-point tax-rate decline supported the profit increase.
Filed 30 Apr 2026, 19:54 IST · after market close · Capri Global Capital Ltd (CGCL)
Key takeaways
- Consolidated net profit rose +59.11% YoY as revenue grew +44.67% and interest expense grew a slower +39.23%.
- Operating margin narrowed 0.17 percentage points QoQ to 64.95% as expenses grew +14.03%, faster than revenue at +13.49%.
- The stock gained +4.66% after the results, an unusual positive direction versus seven declines in the last eight result reactions.
Price around the results
Q4 profit growth outpaced the revenue increase
Capri Global Capital reported consolidated net profit growth of +59.11% YoY and +10.71% QoQ. Revenue rose +44.67% YoY, broadly matching the +44.50% increase in expenses, while interest expense grew +39.23%. Other income contributed only 0.72% of pre-tax profit, so reported earnings were not materially reliant on it.
Sequential margin decline extends from the Q2 peak
Operating margin narrowed 0.17 percentage points QoQ because expenses grew +14.03%, ahead of revenue growth of +13.49%; interest expense also increased +15.59%. The tax rate fell 0.75 percentage points QoQ and 0.35 percentage points YoY, which supported net profit growth relative to pre-tax profit. Margin has now declined for two consecutive quarters from 66.31% in Q2FY26 to 65.12% in Q3FY26 and 64.95% in Q4FY26.
Margin remains above the reported financial-services peer median
Capri Global's 64.95% operating margin was 5.54 percentage points above the 59.41% median for the 52 Financial Services peers that had reported the quarter. The comparison shows that the sequential compression has not removed the company's margin advantage against this reported peer set.
Management outlines expansion and funding priorities
Management said it is targeting AUM of Rs 550 billion by FY28 and over Rs 1,000 billion by FY32, with a stated growth range of 25%-30% CAGR. The company said it plans to add 750-800 branches over the next two years and use Agentic AI tools for efficiency, productivity and customer experience. Management also said it plans to diversify borrowings through NCDs and CPs, widen its lender base and strengthen co-lending partnerships.
Positive reaction contrasts with its recent result history
The stock rose +4.66% on the reaction day, with trading volume at 4.5 times the reference level. That move was above the recent median absolute reaction of 3.89%, but its positive direction was atypical: only one of the last eight result reactions was up, while seven were down.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,385 cr | ₹1,220 cr | +13.49% | +44.67% |
| Other income | ₹3 cr | ₹5 cr | -47.15% | +273.61% |
| Expenses | ₹485 cr | ₹426 cr | +14.03% | +44.50% |
| Operating profit | ₹900 cr | ₹795 cr | +13.21% | +44.76% |
| Operating margin (%) | 64.95% | 65.12% | — | — |
| Interest | ₹499 cr | ₹431 cr | +15.59% | +39.23% |
| Depreciation | ₹31 cr | ₹28 cr | +9.11% | +7.43% |
| Profit before tax | ₹373 cr | ₹340 cr | +9.62% | +58.39% |
| Tax | ₹90 cr | ₹85 cr | +6.34% | +56.14% |
| Net profit | ₹283 cr | ₹255 cr | +10.71% | +59.11% |
| EPS (₹) | ₹2.94 | ₹2.66 | +10.53% | +36.74% |
Operating margin of 64.95% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.66% | +4.15% |
| Next session | +4.66% | — |
| 5 sessions | +2.64% | +3.40% |
| 15 sessions | +1.68% | — |
| 30 sessions | +17.03% | — |
Volume on the results session was 4.50× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Capri Global targets ₹550 billion AUM by FY28 and over ₹1,000 billion by FY32, growing at a 25%-30% CAGR.
- Capri Global targets RoAE of 16.0%-18.0% and RoAA of 4.0%-4.5% by FY28.
- The company is targeting a 5% annual reduction in energy use.
Expansion
- The company plans to open 750-800 new branches over the next two years.
New initiatives
- The company plans to implement Agentic AI tools to improve efficiency, productivity and customer experience.
- The company plans to customize products for underserved, high-growth markets and diversify revenue.
- The company plans to cross-sell loan products and expand fee-income verticals including insurance and car-loan distribution.
- The company plans to diversify borrowings through NCDs and CPs, widen its lender base and strengthen co-lending partnerships.
Competition
- Capri Global's market share in the MSME loan segment is below 0.5%.
- Capri Global's market share in housing loans is 0.5%.
- Capri Global's market share in micro-LAP loans is 0.5%.
What to watch
- Whether operating margin holds above 64.95% after its second consecutive quarterly decline.
- Whether expenses continue to grow faster than revenue after the +14.03% versus +13.49% QoQ gap.
- Progress against management's stated plan to add 750-800 branches over the next two years.