Capri Global Capital FY26 Annual Earnings Summary

Management noted increased slippages in MSME loans from Madhya Pradesh and is toning down disbursements in that state.

An analyst raised concerns about rising delinquencies in the microloan segment; management acknowledged the risk and is slowing growth until technology rollout is complete.

Credit cost increased to ₹81 crore in Q1 from ₹18 crore in Q4, driven by higher stage 1 and stage 2 provisions, which could persist if asset quality deteriorates.

Management guided credit cost at 80-90 bps, up from historical ~70 bps, citing conservatism and micro-loan growth. If asset quality deteriorates, credit costs could exceed guidance.

MSME gross NPA reduction from 4.3% to 3.1% was largely due to ₹79 crore ARC sale. Excluding that, NPA levels were flat QoQ, indicating underlying stress remains.

A sharp correction in gold prices could trigger margin calls and increase provisioning, though portfolio LTV of 60% provides a buffer.

The CEO appointed in Q2 resigned within 4 months, citing entrepreneurial aspirations. Management downplayed the impact, but the short tenure may signal internal issues.

New RBI co-lending guidelines effective Jan 2026 may cause temporary slowdown in co-lending volumes for a couple of quarters as existing contracts expire and technology integration is completed.

Sharp decline in gold prices could increase LTVs and require margin calls or auctions, though management believes a 10-15% crash in a single day is unlikely.

New co-lending guidelines (CLM 2.0) may alter economics. Management expects no impact, but transition risks remain if banks adjust terms.

Banks offer gold loans at sub-10% rates vs NBFCs at 15-18%. While management claims different customer segments, rate differential could pressure growth.

Higher government borrowing could increase overall interest rates, potentially raising Capri Global's cost of funds and compressing spreads.