How has been the historical performance of Capital Small?

Revenue and Income Growth

Over the past seven years, Capital Small’s interest earned has shown a steady upward trajectory, rising from ₹346.29 crores in March 2019 to ₹908.50 crores by March 2025. This growth is underpinned by increases in income from investments and advances, with interest on advances and bills notably climbing from ₹241.68 crores to ₹718.70 crores during the same period. Other income streams have also contributed positively, supporting total income growth from ₹377.60 crores in 2019 to nearly ₹995 crores in 2025. Despite rising interest expended costs, which increased from ₹211.15 crores to ₹498.30 crores, the net interest income has expanded significantly, reaching ₹410.20 crores in the latest fiscal year.

Profitability and Margins

Capital Small’s operating profit before provisions and contingencies has more than quintupled since 2019, moving from ₹34.28 crores to ₹185.43 crores in 2025. This improvement is reflected in the operating profit margin, which has remained strong, hovering around 64.66% in the most recent year. Profit before tax has also seen a substantial rise, from ₹26.92 crores in 2019 to ₹175.13 crores in 2025, while profit after tax has increased from ₹19.41 crores to ₹131.65 crores. The company’s PAT margin has improved steadily, reaching 14.49% in 2025, indicating enhanced efficiency and cost management. Earnings per share have followed a similar pattern, rising from ₹6.82 in 2019 to ₹29.09 in 2025, signalling growing shareholder value.

Balance Sheet Expansion and Asset Quality

The company’s total assets have grown impressively from ₹5,329.88 crores in 2020 to over ₹10,114 crores in 2025, reflecting a near doubling in size within five years. Deposits have similarly increased, reaching ₹8,322.60 crores in 2025 from ₹4,446.62 crores in 2020, indicating strong customer confidence and funding stability. Advances have expanded from ₹3,308.31 crores to ₹7,090.39 crores, supporting the company’s core lending activities. Investments have also risen steadily, contributing to income diversification.

Asset quality metrics show a moderate increase in gross non-performing assets (NPAs), which rose from ₹33.96 crores in 2019 to ₹185.34 crores in 2025. However, the percentage of net NPAs has remained relatively stable around 1.3%, suggesting effective risk management despite the asset base expansion. The company’s reserves have more than tripled since 2019, reaching ₹1,294.89 crores, providing a solid cushion against potential credit losses.

Cash Flow and Operational Efficiency

Capital Small’s cash and cash equivalents have shown a positive trend, increasing from ₹382 crores in 2020 to ₹732 crores in 2025. The company has maintained a healthy operating profit margin excluding other income, consistently above 60%, which underscores operational efficiency. Provisions and contingencies have fluctuated but remain controlled relative to profit levels, supporting sustainable earnings growth. The company’s total expenditure has risen in line with business expansion, with employee costs and other operating expenses increasing steadily, reflecting investment in human resources and infrastructure.

Summary of Historical Performance

In summary, Capital Small has exhibited robust growth in income, profitability, and asset size over the last several years. The company’s ability to increase its net interest income and maintain strong profit margins has been complemented by a steady rise in shareholder funds and reserves. While asset quality has seen some pressure with rising NPAs, the stable net NPA ratio and growing reserves provide reassurance. The expansion in deposits and advances highlights the company’s growing market presence and customer base. Cash flow trends further support the company’s financial health, indicating prudent management of liquidity and operational costs.

Investors analysing Capital Small’s historical performance will note a consistent upward trajectory in key financial indicators, reflecting a well-managed growth strategy and improving returns. The company’s earnings per share and book value per share have both shown significant appreciation, enhancing shareholder wealth over time.

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