The December 2025 quarter marked the company's strongest performance on record across multiple metrics, with net sales reaching an all-time high of ₹1,220.31 crores, representing a sequential growth of 8.82% over September 2025's ₹1,121.37 crores. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income climbed to ₹794.66 crores, up from ₹743.54 crores in the preceding quarter. The company's ability to maintain operating margins above 67% whilst scaling operations demonstrates strong operational leverage in its lending business.
For the nine-month period ending December 2025, Capri Global Capital has accumulated net profits of ₹666.34 crores, nearly doubling the ₹300.78 crores reported in the corresponding period of the previous fiscal year. This exceptional growth trajectory positions the company well ahead of its full-year FY2025 profit of ₹478 crores, achieved with three months still remaining in the current fiscal year.
Financial Performance: Margin Expansion Drives Profitability
Capri Global Capital's third-quarter financial performance reveals a company firing on all cylinders. Net sales of ₹1,220.31 crores in Q3 FY26 represented sequential growth of 8.82% and a remarkable year-on-year expansion of 48.67%. The company has demonstrated consistent quarterly momentum, with revenue growing from ₹717.66 crores in June 2024 to the current quarter's record levels—a 70% increase over just six quarters.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin |
|---|---|---|---|---|---|
| Dec'25 | 1,220.31 | +8.82% | 255.44 | +8.24% | 21.54% |
| Sep'25 | 1,121.37 | +11.71% | 236.00 | +34.93% | 21.74% |
| Jun'25 | 1,003.78 | +4.85% | 174.90 | -1.60% | 17.92% |
| Mar'25 | 957.33 | +16.63% | 177.74 | +38.77% | 19.42% |
| Dec'24 | 820.83 | +9.20% | 128.08 | +32.07% | 15.89% |
| Sep'24 | 751.69 | +4.74% | 96.98 | +28.08% | 13.17% |
| Jun'24 | 717.66 | — | 75.72 | — | 10.73% |
The quality of earnings has improved substantially, with profit after tax margins expanding from 10.73% in June 2024 to 21.54% in the latest quarter—a doubling of profitability metrics. This margin expansion reflects both operational efficiency gains and improved asset quality across the lending portfolio. Operating profit margins (excluding other income) have remained robust at 67.01% in Q3 FY26, demonstrating the company's ability to manage operating expenses effectively despite aggressive growth.
Interest costs rose to ₹431.37 crores in Q3 FY26 from ₹405.89 crores in the previous quarter, reflecting the company's expanding borrowing base to fund loan book growth. Despite higher interest expenses, the company maintained healthy net interest spreads, with profit before tax climbing 8.35% sequentially to ₹340.28 crores. Employee costs surged 22.08% quarter-on-quarter to ₹278.68 crores, indicating aggressive hiring to support business expansion, though this remains manageable given the strong revenue growth trajectory.
Capital Efficiency: Moderate Returns Amidst Rapid Growth
Capri Global Capital's return on equity (ROE) stands at 10.74% as of the latest reporting period, a metric that places the company in the moderate efficiency category for NBFCs. Whilst this represents a reasonable return on shareholder capital, it lags behind industry leaders such as Manappuram Finance (14.95% ROE) and IIFL Finance (14.17% ROE). The company's average ROE over recent periods stands at 9.10%, reflecting the capital-intensive nature of its rapid expansion phase.
Capital Structure Concerns
Leverage Alert: Capri Global Capital operates with a debt-to-equity ratio of 2.52, indicating moderate leverage typical of NBFCs but requiring close monitoring. The company's net debt to equity has averaged 2.52 over recent periods, reflecting its reliance on borrowed funds to drive loan book growth. With current liabilities standing at ₹16,636.64 crores as of March 2025, the company's ability to maintain asset quality whilst managing this leverage will be critical to sustaining profitability.
The company's return on capital employed (ROCE) improved to 11.27% in the latest period, suggesting that management is extracting reasonable returns from the capital deployed in the business. However, the gap between ROCE and cost of borrowing remains modest, leaving limited room for margin compression. The balance sheet reveals shareholder funds of ₹4,304.10 crores as of March 2025, up from ₹3,836.57 crores a year earlier, demonstrating healthy internal capital generation to support growth.
Fixed assets stood at ₹341.43 crores as of March 2025, relatively modest for a company of this scale, reflecting the asset-light nature of the lending business. Investments declined to ₹160.42 crores from ₹216.23 crores a year earlier, as the company likely redeployed capital towards higher-yielding loan assets. Cash and cash equivalents reached ₹1,506 crores by March 2025, providing adequate liquidity to manage near-term obligations and fund growth opportunities.
Growth Trajectory: Scaling at Breakneck Speed
Capri Global Capital's growth story is one of remarkable acceleration. The company has delivered a five-year sales compound annual growth rate (CAGR) of 40.29%, placing it amongst the fastest-growing NBFCs in the country. Operating profit (EBIT) has grown at a slightly lower but still impressive 35.75% CAGR over the same period, indicating some margin pressure as the company scales.
Long-Term Growth Fundamentals
The company's net sales have surged from ₹716 crores in FY2020 to ₹3,247 crores in FY2025—a 4.5x increase in just five years. This aggressive expansion has been accompanied by improving profitability, with profit after tax climbing from ₹161 crores to ₹478 crores over the same period. The company's ability to maintain this growth trajectory whilst improving margins demonstrates strong execution capabilities and favourable market positioning in its target segments.
The company's loan book expansion is evident in the balance sheet dynamics, with current assets growing from ₹1,155.10 crores in March 2024 to ₹1,982.51 crores in March 2025. This 71.7% year-on-year growth in current assets, primarily comprising loans and advances, underscores the company's aggressive disbursement strategy. Current liabilities have grown in tandem, rising from ₹11,370.90 crores to ₹16,636.64 crores, reflecting increased borrowings to fund asset growth.
Cash flow dynamics reveal the capital-intensive nature of this growth phase. Operating cash flow remained negative at ₹4,311 crores in FY2025, driven by a ₹4,722 crores increase in working capital as the company deployed funds into loan assets. This was more than offset by financing cash flows of ₹5,118 crores, demonstrating strong access to capital markets. The company closed FY2025 with ₹1,506 crores in cash, up from ₹639 crores a year earlier, providing a comfortable liquidity cushion.
Peer Comparison: Competitive Positioning in the NBFC Landscape
Capri Global Capital occupies a unique position in the NBFC peer group, trading at a price-to-earnings ratio of 24.11x—significantly lower than peers such as Poonawalla Fincorp (92.58x) and Tata Investment Corporation (88.50x), but higher than Cholamandalam Financial Holdings (13.85x). This valuation reflects market recognition of the company's strong growth trajectory, tempered by concerns about sustainability and capital efficiency.
| Company | P/E (TTM) | P/BV | ROE % | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Capri Global | 24.11 | 2.59 | 9.10 | 2.52 | 0.11% |
| Poonawalla Fin | 92.58 | 3.28 | 4.86 | 3.64 | — |
| Tata Inv. Corpn. | 88.50 | 0.98 | 1.15 | 0.00 | — |
| Chola Financial | 13.85 | 2.26 | — | 12.91 | 0.08% |
| Manappuram Fin. | 55.78 | 1.97 | 14.95 | 3.02 | 0.68% |
| IIFL Finance | 18.11 | 1.79 | 14.17 | 4.53 | 0.73% |
The company's price-to-book value ratio of 2.59x sits at the higher end of the peer group, exceeded only by Poonawalla Fincorp's 3.28x. This premium valuation appears justified by Capri Global's superior growth rates, though the 9.10% ROE trails behind Manappuram Finance and IIFL Finance, both of which deliver returns above 14%. The market is essentially pricing in expectations of ROE expansion as the company matures and achieves greater operating leverage.
With a market capitalisation of ₹16,457.64 crores, Capri Global Capital ranks sixth amongst its peer group, reflecting its status as a mid-sized player in the NBFC sector. The company's debt-to-equity ratio of 2.52 is lower than several peers, including Cholamandalam Financial Holdings (12.91x) and IIFL Finance (4.53x), suggesting relatively conservative leverage for its stage of growth. The minimal dividend yield of 0.11% indicates management's preference for reinvesting profits to fuel expansion rather than returning cash to shareholders.
Valuation Analysis: Premium Pricing Raises Eyebrows
At the current market price of ₹171.05, Capri Global Capital trades at a trailing twelve-month P/E ratio of 24.11x, representing a modest premium to the NBFC industry average of 22x. However, the company's proprietary valuation assessment grades it as "Very Expensive," reflecting concerns that current multiples may not be sustainable given the underlying fundamentals and execution risks inherent in rapid expansion.
The company's PEG ratio of 0.27x suggests that despite the "Very Expensive" valuation grade, the stock may actually be attractively priced relative to its growth rate. With a five-year EBIT growth CAGR of 35.75%, the PEG ratio well below 1.0 indicates the market may not be fully pricing in the company's growth potential. This disconnect between absolute valuation metrics and growth-adjusted valuations creates an interesting analytical puzzle for investors.
The stock has traded in a wide range over the past year, touching a 52-week high of ₹231.70 in October 2025 before retreating 26.18% to current levels. The 52-week low of ₹150.60 provides a floor 13.58% below the current price. The company's book value per share stands at ₹48.05, implying the current market price of ₹171.05 represents a 3.56x premium to book value—a multiple that demands sustained high returns on equity to justify.
Enterprise value multiples paint a similar picture, with EV/EBITDA at 12.68x and EV/EBIT at 13.23x. These multiples are reasonable for a high-growth NBFC but leave limited room for disappointment. The EV/Sales ratio of 8.26x appears elevated compared to mature NBFCs, reflecting the market's expectations for continued rapid expansion. Any slowdown in growth or deterioration in asset quality could trigger multiple compression.
Shareholding Pattern: Institutional Confidence Builds
The shareholding pattern of Capri Global Capital reveals a significant shift in ownership structure during FY2026, with promoter holding declining from 69.87% in March 2025 to 59.92% by December 2025. This 9.95 percentage point reduction occurred primarily in the June 2025 quarter and represents a substantial dilution of promoter stake, though notably without any pledging of shares—a positive signal regarding financial health.
| Shareholder Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter Holding | 59.92% | 59.95% | 59.95% | 69.87% | -0.03% |
| FII Holding | 4.50% | 4.83% | 4.72% | 0.98% | -0.33% |
| Mutual Fund | 6.55% | 6.48% | 6.17% | 1.65% | +0.07% |
| Insurance | 12.02% | 12.19% | 12.44% | 12.86% | -0.17% |
| Other DII | 1.54% | 1.62% | 1.92% | 0.01% | -0.08% |
| Non-Institutional | 15.47% | 14.93% | 14.81% | 14.63% | +0.54% |
The reduction in promoter holding was accompanied by a dramatic increase in institutional participation. Foreign institutional investors (FIIs) increased their stake from 0.98% in March 2025 to 4.50% by December 2025, representing a near five-fold increase. Mutual fund holdings similarly surged from 1.65% to 6.55%, whilst insurance company holdings remained relatively stable at 12.02%. Total institutional holdings now stand at 24.61%, a substantial vote of confidence from sophisticated investors.
The most recent quarter (December 2025) showed marginal changes, with FII holdings declining 0.33 percentage points to 4.50% and insurance holdings dropping 0.17 percentage points. Mutual funds, however, continued to accumulate, adding 0.07 percentage points. The increase in non-institutional holdings by 0.54 percentage points to 15.47% suggests growing retail investor interest, though this also increases volatility risk given the typically shorter investment horizons of retail participants.
Key promoter entities include Capri Global Holdings Private Limited with 41.10% and promoter Rajesh Sharma holding 18.82%. The absence of any promoter pledging is a significant positive, eliminating concerns about forced selling in adverse market conditions. With 64 FIIs and 17 mutual funds now invested in the company, the shareholder base has become increasingly diversified and institutionalised.
Stock Performance: Momentum Stalls Despite Strong Fundamentals
Capri Global Capital's stock performance presents a stark contrast between long-term wealth creation and recent underperformance. Over a ten-year horizon, the stock has delivered a staggering 1,950.26% return, vastly outpacing the Sensex's 230.47% gain and generating alpha of 1,719.79 percentage points. This exceptional long-term performance underscores the company's successful transformation and growth trajectory over the past decade.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | +2.24% | +0.80% | +1.44% |
| 1 Month | -5.26% | -2.93% | -2.33% |
| 3 Months | -17.17% | -2.62% | -14.55% |
| 6 Months | -8.09% | +0.87% | -8.96% |
| YTD | -6.43% | -3.55% | -2.88% |
| 1 Year | -3.31% | +7.08% | -10.39% |
| 2 Years | -27.90% | +15.53% | -43.43% |
| 3 Years | -3.68% | +38.14% | -41.82% |
| 5 Years | +98.39% | +77.57% | +20.82% |
| 10 Years | +1,950.26% | +230.47% | +1,719.79% |
However, recent performance has been disappointing. The stock has declined 3.31% over the past year, underperforming the Sensex's 7.08% gain by 10.39 percentage points. The two-year and three-year returns paint an even grimmer picture, with the stock down 27.90% and 3.68% respectively, whilst the broader market rallied. This underperformance has also extended to sector comparison, with Capri Global trailing the NBFC sector's one-year return of 20.10% by a substantial 23.41 percentage points.
The three-month performance has been particularly brutal, with the stock plunging 17.17% compared to the Sensex's modest 2.62% decline. This sharp correction from the October 2025 highs reflects a combination of profit-booking after the strong run-up, concerns about valuation sustainability, and potentially some sector-specific headwinds affecting NBFC stocks. The stock's high beta of 1.35 amplifies market movements, contributing to the elevated volatility.
Technical indicators suggest a stock in consolidation mode. The current price of ₹171.05 sits below all key moving averages—5-day (₹172.05), 20-day (₹179.45), 50-day (₹182.84), 100-day (₹187.91), and 200-day (₹180.18)—indicating persistent selling pressure. The overall technical trend has shifted to "Sideways" as of January 29, 2026, following a period of "Mildly Bearish" sentiment. Weekly MACD remains bearish, though monthly indicators show some bullish divergence, suggesting potential for stabilisation.
Investment Thesis: Quality Company at Crossroads
Capri Global Capital's investment thesis rests on four key pillars: valuation, quality, financial trend, and technical positioning. The company's proprietary Mojo Score stands at 68 out of 100, placing it in the "HOLD" category—a rating that reflects both the company's strong operational performance and the challenges posed by current market dynamics and valuation concerns.
The valuation parameter receives a "Very Attractive" rating despite the overall "Very Expensive" grade, reflecting the company's growth-adjusted metrics. With a PEG ratio of 0.27x and price-to-book value of 2.59x against an ROE of 10.74%, the stock offers reasonable value for investors with a multi-year horizon willing to look past near-term volatility. The disconnect between absolute and relative valuation metrics creates opportunity for patient capital.
Quality assessment comes in at "Average," reflecting the company's solid but not spectacular return on equity of 9.10% and moderate leverage of 2.52x debt-to-equity. The company's five-year sales CAGR of 40.29% and EBIT growth of 35.75% demonstrate strong execution capabilities, but the relatively low ROE suggests room for improvement in capital efficiency. High institutional holdings of 24.61% provide validation of the business model and management quality.
"Capri Global Capital exemplifies the classic growth-versus-valuation dilemma: exceptional operational performance meets stretched near-term multiples, creating opportunity for those willing to look beyond quarterly volatility."
The financial trend parameter shines brightest, rated "Outstanding" based on Q3 FY26 results that saw record highs across net sales (₹1,220.31 crores), operating profit (₹794.66 crores), and net profit (₹255.44 crores). The company's ability to consistently deliver double-digit sequential growth whilst expanding margins demonstrates strong operational momentum. Nine-month FY2026 profits of ₹666.34 crores already exceed full-year FY2025 performance with a quarter remaining.
Technical positioning remains the weakest link, with the stock in "Sideways" trend and trading below all major moving averages. The 17.17% three-month decline and persistent selling pressure suggest the stock needs time to build a base before attempting a sustained recovery. However, the shift from "Mildly Bearish" to "Sideways" indicates selling pressure may be abating, potentially setting the stage for stabilisation.
Key Strengths & Risk Factors
KEY STRENGTHS
- Exceptional growth trajectory with 40.29% sales CAGR over five years
- Record quarterly performance in Q3 FY26 across all key metrics
- Margin expansion with PAT margins doubling from 10.73% to 21.54%
- Strong institutional participation at 24.61% with no promoter pledging
- Healthy liquidity with ₹1,506 crores cash as of March 2025
- Growth-adjusted valuation attractive with PEG ratio of 0.27x
- Ten-year returns of 1,950% demonstrate long-term wealth creation
KEY CONCERNS
- ROE of 10.74% lags behind industry leaders by 300-400 basis points
- Valuation graded "Very Expensive" with limited margin of safety
- Stock down 17.17% in three months with weak technical setup
- High leverage at 2.52x debt-to-equity requires careful monitoring
- Underperformance versus NBFC sector by 23.41% over one year
- High beta of 1.35 amplifies volatility in adverse market conditions
- Minimal dividend yield of 0.11% offers no income cushion
Outlook: What Lies Ahead
The outlook for Capri Global Capital hinges on the company's ability to sustain its exceptional growth trajectory whilst improving capital efficiency and navigating the challenges of a competitive NBFC landscape. With nine-month FY2026 profits already exceeding full-year FY2025 performance, the company appears well-positioned to deliver another year of strong earnings growth. The key question for investors is whether this growth can translate into sustained stock price appreciation.
POSITIVE CATALYSTS
- Continued loan book expansion driving revenue growth
- Further margin improvement from operating leverage
- ROE expansion towards 12-13% as business matures
- Increased institutional participation providing stability
- Technical base formation enabling upward re-rating
RED FLAGS TO MONITOR
- Asset quality deterioration impacting provisioning
- Margin compression from competitive pricing pressure
- Rising funding costs squeezing net interest margins
- Continued stock underperformance versus peers
- Any increase in promoter pledging or stake reduction
Near-term monitoring should focus on asset quality metrics, which remain undisclosed in the available data but are critical for any lending institution. The company's ability to maintain its current growth rate whilst keeping credit costs under control will determine whether the current valuation premium is justified. Investors should also watch for any signs of margin pressure as competition intensifies in the NBFC sector.
The technical setup suggests the stock needs time to stabilise and build a base before attempting a sustained move higher. A break above the 20-day moving average of ₹179.45 would signal renewed buying interest, whilst a breach of the 52-week low of ₹150.60 would raise concerns about further downside. Given the high beta of 1.35, the stock's performance will remain closely tied to broader market sentiment and NBFC sector trends.
The Verdict: Quality Growth Story Requires Patience
Score: 68/100
For Fresh Investors: Wait for technical stabilisation and a pullback towards ₹160-165 levels before initiating positions. The company's strong fundamentals and growth trajectory make it attractive for long-term portfolios, but current valuation and technical weakness suggest patience will be rewarded with better entry points.
For Existing Holders: Continue holding with a three-to-five-year investment horizon. The company's exceptional operational performance and improving institutional participation support the long-term thesis despite near-term volatility. Consider averaging up only on sustained breakout above ₹185 with improving technical indicators.
Fair Value Estimate: ₹195-200 (14% upside from current levels), achievable over 12-18 months as the company demonstrates sustained ROE improvement and the market re-rates growth prospects. This assumes maintenance of current growth trajectory and gradual improvement in capital efficiency metrics.
Note: ROCE = (EBIT - Other Income) / (Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results, and all investments carry risk of loss.
