Capri Global Capital Ltd Management Discussions

Economic Review

Global Economy Overview1

The global economy showed resilience in CY24, achieving a growth rate of 3.3% despite challenges from geopolitical conflicts, trade tensions and shifts in monetary policy. However, the recovery remains uneven with advanced economies growing at a modest 1.8% while emerging markets and developing economies (EMDEs) outperformed growing at 4.3%. The manufacturing sector faced headwinds globally, while services sector growth remained relatively robust, particularly in finance and technology. Global headline inflation continued its downward trajectory, declining from 6.6% in CY23 to 5.7% in CY24. However, inflation trends varied across regions- advanced economies moved closer to their target inflation rates while emerging markets faced persistent inflationary pressures due to currency depreciation and supply chain disruptions. The tightening of global financial conditions and elevated borrowing costs impacted developing economies and made capital access more expensive for businesses and financial institutions. Central banks across major economies have begun cautious policy easing with expectations of further rate cuts in 2025, which could support liquidity conditions and spur private investments.

Outlook

Despite ongoing challenges and economic turbulence, the outlook for CY25 and beyond remains cautiously optimistic. Global GDP is projected at 2.8% in CY 2025 and 3.0% in CY 2026, supported by resilient consumer demand and strategic policy adjustments. Inflationary pressures are expected to ease further, with global headline inflation easing to 4.3% in CY25. Central banks in major economies are likely to adopt cautious monetary easing strategies that will influence global liquidity conditions. While lower interest rates may provide some relief to emerging markets, capital flows could remain volatile amid uncertainty over global trade policies.

Structural reforms, targeted fiscal policies and improved financial integration will be crucial in ensuring stability. With a calibrated approach to policy responses, economies with strong domestic demand and stable fiscal frameworks are better positioned to navigate global uncertainties and sustain growth momentum.

Indian Economy

Indias economy continued to demonstrate resilience amid global uncertainties, with GDP growth estimated at 6.5% in FY25.2 The expansion was supported by strong domestic consumption, a robust services sector and steady investment activity. Indias digital and financial infrastructure growth facilitated greater financial inclusion which enhanced credit accessibility for businesses and individuals. Although urban consumption exhibited a plateauing trend, rural consumption remained robust supported by strong agricultural performance. Government-led capital expenditure temporarily slowed ahead of the General Elections but is expected to accelerate in the latter half of FY25, supported by a controlled fiscal deficit of 4.4% of GDP, ensuring room for increased spending.3 The government is expected to meet its fiscal deficit target of 4.4% for FY26 through aggressive disinvestment and monetisation of assets. The Reserve Bank of India maintained a vigilant stance on inflation while supporting growth. Headline inflation eased to 3.3%, primarily due to a moderation in food inflation. Monetary policy measures played a crucial role in maintaining liquidity and supporting economic activity. The RBIs repo rate cut of 50 basis points to 6.0%, along with a CRR reduction to 4%, injected liquidity into the system, easing borrowing costs and improving credit availability. Foreign direct investment (FDI) remained strong, particularly in manufacturing, financial services and other key sectors. Measures like Open Market Operations and Variable Rate Reverse Repo auctions further addressed liquidity concerns, ensuring a stable financial environment conducive to private sector growth.4

Outlook

Looking ahead, Indias growth trajectory is expected to remain strong, driven by rising consumer demand, improved investment activity and policy support. The Union Budget has given significant income tax relief to salaried individuals, which will significantly boost urban spending. The 8th Pay Commission by the Government of India will also act as a tailwind to catalyse overall consumption. The retail inflation is also showing signs of easing, which will strengthen the economy as a whole. On the demand side, household consumption is expected to improve, while prospects of fixed investment remain bright. There is an upturn in the private capital expenditure (CapEx) cycle, gradually improving business sentiments, healthy balance sheets of banks and corporates and the governments continued thrust on capital expenditure. RBIs prudent monetary measures, such as Cash Reserve Ratios (CRR) cuts, Open Market Operations (OMOs), Variable Rate Reverse Repo (VRRR) auctions, are expected to address tight liquidity conditions in the banking system, while providing I1.5 trillion liquidity booster.5 Easing inflationary pressures and accommodative monetary policies are expected to boost credit flow which will support both businesses and individuals. With macroeconomic stability in place, the economy is well-positioned to sustain its growth momentum.

Industry Overview

Indias Financial Services Industry

Indias financial services industry continues to achieve significant growth, propelled by rapid technological evolutions, regulatory reforms and a focus on financial inclusion. In FY25, the sector continued to showcase resilience with declining Gross Non-Performing Assets (GNPAs) reaching a 12-year low of 2.6% and considerable improvement in profits.6 As of March 2025, Indias Financial Inclusion Index (FI-Index) rose to 67 from 53.9 in March 2021, highlighting significant progress in nationwide expansion of banking services. A key driver of this achievement is the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, which has enabled the opening of over 540 million bank accounts. This initiative has played a pivotal role in integrating previously unbanked population into the formal financial system, elevating bank account penetration from 53% to nearly 80%.

The Union Budget 2025 introduced transformative measures for the Banking, Financial Services and Insurance sector. Key initiatives include raising the Foreign Direct Investment (FDI) limit in insurance to 100%, expanding credit guarantees for MSMEs and introducing the Grameen Credit Score framework to improve rural credit access. The revamped Central KYC Registry is set to streamline compliance processes while the establishment of a Partial Credit Enhancement Facility aims to bolster the corporate bond markets. These reforms align with the governments vision of fostering financial inclusion and enhancing ease of doing business.

Non-Banking Financial Sector (NBFCs)

The Non-Banking Financial Companies (NBFCs) sector in India has evolved into a critical pillar of the financial ecosystem, complementing banks by catering to underserved segments such as micro, small and medium enterprises (MSMEs), rural borrowers and first-time credit seekers. As of FY25, NBFCs collectively manage assets exceeding I50 trillion, with a substantial presence in areas like housing finance, microfinance, consumer lending and vehicle financing. Their ability to offer customised financial products and faster loan disbursals has made them indispensable in bridging the credit gap in India. Co-lending partnerships with banks and fintech companies have further expanded their reach while mitigating risks. Despite their growth, NBFCs face adversities such as rising delinquencies in unsecured loans, tightening regulatory norms and higher funding costs. However, the sector remains resilient due to its focus on innovation and diversification. The governments supportive policies such as increased credit guarantees for MSMEs and refinancing windows for NBFCs are expected to augment liquidity and sustain growth in priority sectors like green finance and infrastructure development.

Key Opportunities for NBFCs in India

Financial Inclusion and Rural Credit Expansion

NBFCs have an exclusive opportunity to amplify their impact in rural and semi-urban areas by catering to the underserved population, including MSMEs, small businesses and first-time borrowers. In addition, prospective recognition of NBFCs under priority sector lending can further empower them to influence inclusive growth.

Green Finance and Sustainability

Indias advancement for sustainability offers opportunities for NBFCs to finance renewable energy projects, electric vehicles and other eco-conscious initiatives. Green financing is emerging as a key growth area, buttressed by government incentives and heightened consumer insight. .

Digital Transformation

The adoption of AI-driven credit scoring, digital lending platforms and advanced data analytics is enabling NBFCs to amplify their presence while improving operational efficiency. Incorporation of advanced digital resources in collections, fraud management and customer acquisition are facilitating NBFCs tap into new markets and streamline operations.

Co-Lending Partnerships

Collaborations with banks and fintech companies are creating new opportunities for NBFCs to scale operations while sharing risks. Co-lending frameworks allow NBFCs to access bank funding while leveraging their expertise in niche markets, such as MSMEs and microfinance.

Diversification of Funding Sources

The development of an enhanced corporate bond market and mechanisms for market-making can reduce dependence on bank funding. Tax-free infrastructure bonds and partial credit enhancement programmes are also expected to provide long-term funding opportunities for NBFCs.

Consumer Credit Growth

Ascending disposable incomes among Indias growing middle class is augmenting demand for personal loans, vehicle loans and consumer durable financing. Segments like retail credit are forecasted to grow at a Compound Annual Growth Rate (CAGR) of 13–15%, providing sustained opportunities for NBFCs.7

Challenges

Tightening Regulatory Environment

The Reserve Bank of India has implemented stringent regulations to strengthen transparency and reduce systemic risks in the NBFC sector. Measures such as tighter asset classification norms and enhanced capital adequacy requirements aimed at reinforcing the sectors stability have elevated compliance costs and operational complexities for NBFCs.

Liquidity Constraints

NBFCs continue to face liquidity pressures due to limited access to low-cost funding. Despite RBIs liquidity-boosting measures such as Cash Reserve Ratio (CRR) cuts and Open Market Operations (OMOs), smaller NBFCs often struggle to secure funding at competitive rates. This challenge is exacerbated during periods of tight monetary policy or economic uncertainty.

Asset Quality Concerns

The sector has been grappling with escalating non-performing assets, particularly in segments like MSME lending and unsecured retail loans. The economic slowdown and inflationary pressures have strained borrowers repayment capacities, further elevating delinquency rates.

Dependence on Wholesale Borrowing

NBFCs heavy reliance on wholesale borrowing from banks and capital markets makes them vulnerable to fluctuations in interest rates and market conditions. The recent rise in bond yields has further escalated borrowing costs for the sector.

MSME Sector of India

The Micro, Small and Medium Enterprises (MSME) sector is a cornerstone of Indias economy, contributing approximately 46% to total exports. With nearly 60 million enterprises employing over 250 million people, the sector plays a pivotal role in job creation, entrepreneurship and industrial development. The Union Budget 2025 allocated I221.4 billion to the MSME Ministry, a significant increase from previous years. Initiatives like the Udyam Registration Portal and Trade Receivables Discounting System (TReDS) expansion have improved formalisation and liquidity for MSMEs.8

Despite its pivotal contributions, the sector faces challenges such as delayed payments, rising input costs and limited access to formal credit. To address these issues, the government has implemented reforms like mandating payment timelines for large corporations under the Samadhaan portal and introducing digital credit assessment models through public sector banks. Export-oriented MSMEs have also benefited from trade facilitation measures under the Export Promotion Mission, contributing to a significant rise in exports from I3.95 trillion in FY21 to I12.39 trillion in FY25. The number of exporting MSMEs ascended from 52,849 in FY21 to 1.73 Lakh in FY25, reflecting their growing integration into global value chains.

Looking ahead, the Union Budget 2025 provides an optimistic outlook for the sector by raising investment and turnover limits for MSME classification by 2.5 times and 2 times respectively to augment scalability while retaining benefits. Enhanced credit guarantees of up to I100 million per enterprise is expected to unlock I1.5 trillion in additional credit over five years. The introduction of MSME credit cards with limit up to I5 Lakh and targeted support for green manufacturing align with Indias sustainability goals. These measures are expected to augment investments, technological adoption and export competitiveness while strategically positioning MSMEs as key contributors to Indias economic growth.10

Government Initiatives for the MSME Industry in India

The Indian government has introduced several initiatives in FY25 to bolster the MSME sector recognising its crucial role in propelling employment, exports and inclusive economic growth.

Credit Guarantee Scheme for MSMEs

A revamped credit guarantee scheme was launched to provide collateral-free loans to MSMEs. The scheme offers a guarantee cover of up to I1 billion per borrower for term loans used to acquire machinery and equipment. This initiative aims at easing credit constraints and facilitate capital investments in the sector.

Mudra Loan Enhancement

The loan limit under the Mudra Tarun category was increased from I10 Lakh to I20 Lakh for entrepreneurs who have successfully settled prior loans. This enhancement is anticipated to empower small businesses and encourage entrepreneurship.

Trade Receivables Discounting System (TReDS)

To augment the availability of working capital, the turnover threshold for mandatory onboarding of buyers on the TReDS platform was reduced from I5 billion to I2.5 billion. This initiative incorporates more companies into the ecosystem, enabling MSMEs to unlock cash flow by converting trade receivables into liquid funds.

Housing Finance Industry

The housing finance industry in India is a key facilitator of economic growth, providing individuals and families with access to affordable credit for homeownership. The sector has witnessed sustained growth, fuelled by factors such as accelerated urbanisation, ascending disposable incomes and government initiatives aimed at addressing the housing deficit. According to the Ministry of Housing and Urban Affairs, Indias urban population is anticipated to reach 600 million by 2036, which will augment the demand for housing and related financing solutions. The industry comprises banks, Housing Finance Companies (HFCs) and Non-Banking Financial Companies, each catering to different customer segments. A significant portion of the demand in this sector arises from the affordable housing segment, supported by the governments flagship Pradhan Mantri Awas Yojana (PMAY) under the Housing for All mission. This initiative has incentivised both developers and lenders to focus on low and middle-income households. The Union Budget 2025 has allocated funds for constructing 30 million additional houses under the PM Awas Yojana, covering both rural and urban areas. This includes PM Awas Yojana Urban 2.0, which targets to mitigate the housing needs of 10 million urban poor and middle-class families with an investment of I10 trillion. The scheme will also provide interest subsidies to make home loans more affordable.11 HFCs and NBFCs have carved a niche by catering to the underserved segments comprising self-employed individuals, who often face challenges in accessing credit from traditional banks. Factors such as low interest rates, increased government spending on infrastructure and rising disposable incomes have further augmented the industrys growth. The focus on affordable housing has created considerable opportunities for lenders to expand their portfolios while contributing to social development.

Construction Finance

The construction finance industry in India is a key facilitator of the real estate sector, providing developers with the funding required to execute residential, commercial and infrastructural projects. Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) have emerged as crucial players in this space, offering tailored financial solutions to developers. These institutions cater to niche markets such as affordable housing projects and smaller residential developments, which are often underserved by traditional banks. The Indian real estate market is envisioned to reach USD 1 trillion by 2030 and is expected to contribute ~15.5% to the world GDP by 2047.12 The demand for construction finance has been boosted by the governments focus on affordable housing, urban infrastructure development and private sector participation. The Union Budget 2025 has allocated a record Rs.11.11 trillion for infrastructure development, marking an 11.1% increase over the previous year. This allocation prioritises key sectors such as transportation, urban development and rural infrastructure, with a focus on reinforcing resource allocation and economic growth. To support state-led infrastructure projects, Rs.1.5 trillion has been earmarked for interest-free loans to states, enabling them to enhance their capital investments.13 Furthermore, tax incentives for affordable housing developers have been extended to stimulate greater private sector participation. Urban infrastructure development remains a priority, with continued investment in initiatives such as the Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT 2.0). These efforts aim to improve urban living standards and further drive demand for construction finance.

Gold Loans

The gold loan industry in India is one of the fastest-growing segments in the financial services sector, driven by the cultural and economic importance of gold as a household asset. India being the second-largest consumer of gold globally, with a vast reserve has made gold loans an accessible and preferred financial product for individuals seeking short-term credit. In FY25, the industry continued its robust growth trajectory, the organised gold loan market is estimated to exceed 10 trillion by 2025 and further ~15 trillion by 2027.

The industry is characterised by its simplicity, quick disbursal process and minimal documentation requirements, making it attractive to rural and semi-urban borrowers. NBFCs have been instrumental in expanding the reach of gold loans to underserved regions by leveraging their extensive branch networks and customer-centric models. The gold loan market is projected to grow at a compound annual growth rate (CAGR) of 14-15% between FY26 and FY27, driven by increasing penetration in rural areas, rising gold prices and growing acceptance of formal credit channels.

Car Loan Distribution

The car loan distribution industry in India has experienced significant growth. The market size is estimated to be USD 26.58 billion in 2025 and is expected to reach USD 40.28 billion by 2030.15 This growth is driven by increasing aspirations for vehicle ownership, rising disposable incomes and a growing preference for personal mobility. In FY25, the sector benefited from a combination of favourable macroeconomic conditions, improved consumer sentiment and government initiatives aimed at boosting the automotive sector. Indias automotive market was valued at USD 121.5 billion in 2024 and is expected to reach USD 247.4 billion by 2033, growing at a CAGR of 7.13%.16 The Indian automotive market, being one of the largest globally, serves as a catalyst for the car loan segment. With the shift toward electric vehicles (EVs) and the growing demand for used cars, the scope for car loan distribution has expanded significantly. Passenger vehicle posted higher ever sales in FY25 and grew by 2% as compared to FY24, reaching approximately 4.3 million units, with financing playing a crucial role in facilitating purchases.17 Financial institutions, including Non-Banking Financial Companies, banks and fintech players, are leveraging technology to streamline loan origination and improve customer experiences.

Insurance

The insurance industry in India is a critical component of the financial services sector, providing risk mitigation and financial security to individuals and businesses. It has witnessed robust growth over the past decade, driven by rising awareness, increasing disposable incomes and government initiatives aimed at enhancing insurance penetration. Despite these advancements Indias insurance penetration remains relatively low at 3.7% in FY24, signifying immense potential for growth.18 In FY25, the industry experienced steady expansion, fuelled by rising demand for health insurance, increased penetration of life insurance products and the adoption of digital distribution channels. The industry is broadly divided into life insurance and general insurance segments. The life insurance segment continues to dominate, accounting for nearly 70% of total premiums, while the non-life segment is witnessing accelerated growth due to increased demand for health and motor insurance products.

The governments flagship schemes, such as Ayushman Bharat and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), have played a pivotal role in expanding coverage to underserved populations. The Insurance Regulatory and Development Authority of India (IRDAI) has played a pivotal role in fostering growth through regulatory reforms. Aligned with the Government of Indias vision for financial inclusion and reform acceleration, IRDAI has set a goal to achieve ‘Insurance for All by 2047, to ensure coverage for citizens while enhancing the global appeal of the Indian insurance sector. The governments focus on universal health coverage under Ayushman Bharat and the anticipated launch of new pension-linked insurance products will further drive growth.20

Company Overview

Capri Global Capital Limited (CGCL) is a prominent Non-Banking Financial Company (NBFC) in India, offering a diversified portfolio of financial products and services to promote financial inclusion. The Company commenced its NBFC operations in 2011 and has since built a strong presence across key lending segments, including MSME loans, affordable housing finance, gold loans and construction finance. As of FY25, the Company operates through an extensive network of 1,111 branches, with a focus on expanding its reach in rural and semi-urban areas. The Company remains resolutely focussed on empowering underserved communities through innovative financial solutions and contributing to Indias economic progress. The Companys co-lending partnerships with leading banks have further reinforced its position in the financial ecosystem while ensuring efficient risk-sharing mechanisms.

MSME Loans

CGCL has established itself as a key player in the MSME lending space, focusing on providing secured loans to micro, small and medium enterprises. This segment aligns with the Companys mission of promoting financial inclusion by catering to underserved entrepreneurs and small business owners. The introduction of Micro LAP (small-ticket secured loans) has further diversified CGCLs MSME portfolio targeting self-employed borrowers in rural and semi-urban areas. With a well-structured approach to lending and a robust risk management framework, CGCL continues to fortify its presence in this critical sector.

In FY25, the MSME portfolio stood at I52,789.37 million, supported by strong disbursement momentum and continued traction in core geographies. The segment catered to over 37,000+ customers, maintaining a granular, secured loan book with an average ticket size of I1.32 million. The business demonstrated strong fundamentals, with a portfolio yield of 15.4% and a conservative loan-to-value ratio of 51.7%.

The Company remained focused on self-employed non-professionals, who comprised 97% of the customer base. Leveraging its strong understanding of micro-markets and branch-led sourcing model, CGCL aims to deepen its MSME presence further, supported by calibrated network expansion and co-lending partnerships.

Housing Finance

Through its subsidiary Capri Global Housing Finance (CGHFL), the Company is committed to supporting the governments ‘Housing for All initiative. The affordable housing segment primarily serves lower and middle-income families, with a focus on self-employed individuals who form a significant portion of the portfolio. By leveraging digital platforms for credit assessment and customer on boarding, CGHFL has elevated operational efficiency while maintaining a granular loan book. The Companys expansion entry into new markets ensures that affordable housing finance remains a fundamental element of its growth strategy.

In FY25, the housing finance AUM stood at I52,019 million with YoY growth of 23.6%. The Company served over 35,000+ customers during the year with a consistent focus on the self-employed segment, which comprised 69% of the book. The average ticket size stood at I1.4 million and over 62.4% of customers had formal income documentation.

CGHFL maintained a well-diversified geographic footprint with operations across 7 states and union territories through a network of 141 branches. The portfolio delivered a yield of 12.7%, supported by risk-calibrated pricing and an emphasis on smaller-ticket, secured lending. Technology-led sourcing, digital onboarding and a granular customer acquisition strategy have enabled CGHFL to maintain strong asset quality while expanding reach.

Gold Loan

The gold loan segment has emerged as one of the proliferating verticals, supported by an extensive branch network across ten states and union territories. This business addresses customers seeking short-term credit against gold collateral, with high liquidity and quick disbursals. The Companys co-lending partnerships with leading banks further boosted this segment, exposing the Company to a wider customer base while maintaining asset quality. CGCL plans to further extend its presence in existing markets while moderately expanding its branch network.

Over 90% of branches have achieved 50 million AUM per branch

The gold loan segment posted strong traction in FY25, with AUM reaching I80,422 million with YoY growth of 130.4%. With an average ticket size of I0.13 million and a yield of 19.9%, the segment delivered superior returns and rapid scalability. CGCLs sharp focus on efficient disbursals, co-lending partnerships and mass-market outreach helped establish gold loans as the Companys fastest-growing vertical.

Construction Finance

The Companys construction finance business primarily focuses on residential projects within the affordable housing sector. By maintaining a granular portfolio with smaller ticket sizes, the Company mitigates risks while supporting real estate developers in rapidly expanding major urban centres like Bengaluru, Hyderabad, MMR, Pune, NCR and Ahmedabad etc. This segment continues to benefit from sustained demand in the real estate sector and a healthy pipeline of affordable housing projects.

In FY25, CGCLs construction finance portfolio stood at I41,329 million, with YoY growth of 57.7%. The Company primarily focused on funding mid-sized residential projects in fast-growing Urban and Tier 1 cities. With a calibrated approach to average ticket size of I146.6 million and borrower profile, the Company maintained a granular, low-risk book. The segment delivered a healthy yield of 17.3%, supported by strong project selection, conservative underwriting and close on-ground monitoring. CGCL continues to back the affordable housing ecosystem while balancing growth with asset quality.

Car Loan Distribution

CGCL operates its car loan distribution business through its wholly-owned subsidiary, Capri Loans Car Platforms Pvt. Ltd., with a pan-India presence across 814 locations in 31 states and union territories. The Company collaborates with multiple banks and financial institutions for car loan origination and is exploring opportunities in used car financing. This segment supports CGCLs strategy of generating high-quality fee income.

In FY25, CGCLs car loan distribution business scaled well, with originations reaching I1,05,519 million and maintaining an average ticket size of I1.05 million. Strong digital integration and pan-India presence helped strengthen customer acquisition and operational throughput.

Insurance

CGCL has partnered with 18 insurance companies to distribute life, health and general insurance products across its customer base. This segment is an important contributor to the Companys non-interest income strategy, leveraging its extensive branch network to offer customised insurance solutions tailored to customer needs.

CGCLs insurance distribution vertical continued to support its non-interest income strategy in FY25, with total premium mobilised at I 1,289 million. Through strategic partnerships with 18 insurers, the Company distributed life, health and general insurance products tailored to customer profiles. With ~406,000 policies issued during the year, the segment leveraged CGCLs growing branch footprint and customer base to drive cross-sell opportunities and enhance customer lifetime value.

Co-Lending

Co-lending has become a significant growth driver for CGCL and enabling it to expand its portfolio while sharing risks with partner banks. With partnerships across Eleven leading banks, the Company leverages co-lending frameworks for products like MSME loans, affordable housing finance and gold loans. This approach ensures efficient capital utilisation and high ROE accretion.

Financial Performance

Consolidated Financial Review

( I in Million)

Particulars	2025	2024
Revenue from Operations	32,475.00	23,129.32
Other Income	33.36	13.40
Total Income	32,508.36	23,142.72
EBITDA	20,086.29	12,907.02
Profit Before Tax	6,333.18	3,656.40
Profit After Tax	4,785.33	2,794.06
Earnings Per Share (I)	5.80	3.39
Cash Flow from Operations	(43,116.35)	(36,985.65)

Key Financial Ratios

Particulars	2025	2024	Change
Interest Coverage Ratio	1.51	1.46	3.78%
Current Ratio	1.73	1.47	17.74%
Debt Equity Ratio	3.70	2.76	34.07%
Operating Profit (EBITDA) Margin (%)	61.79%	55.77%	2.84%
Net Profit Margin	14.72%	12.07%	2.65%
Return on Net Worth (%)	11.12%	7.28%	3.84%

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous Financial Year) in key financial ratios

Debt Equity Ratio

The Debt Equity Ratio increased to 3.70 in FY 2025 from 2.76 in the previous year, reflecting a rise of 34.07%. This increase is primarily attributable to a 50.21% growth in total debt compared to the previous year, while shareholders equity grew by only 12.04%. The disproportionate growth in debt relative to equity has led to the higher ratio.

Net Profit Margin %

The Net Profit Margin increased from 12.07% in FY 2024 to 14.72% in FY 2025, reflecting a 2.65 percentage point improvement. This was primarily driven by a 71.27% increase in net profit, outpacing the 40.47% growth in revenue. The improved margin demonstrates better cost control, operational efficiency, and stronger profitability.

Business Outlook

After a strong performance in FY25, Capri Global is gearing up for its next phase of growth with a clear strategy and renewed focus. The Company expects continued traction in the gold loan segment, driven by higher branch productivity and deeper customer engagement. It also aims to step up growth in MSME and housing finance by entering new markets, sharpening its underwriting approach and leveraging digital channels to reach more self-employed borrowers. The car loan distribution business is set to remain a steady contributor, backed by expanding partnerships with banks and auto dealers.

At the same time, the Company will continue investing in technology, boosting branch efficiency and strengthening co-lending relationships. With a solid capital base and a diversified loan mix, Capri Global is well-positioned to deliver sustainable and inclusive growth across its key markets.

Human Resource

CGCL recognizes that its people are the foundation of its success and remains committed to fostering a culture of innovation, collaboration, and continuous learning. The Company has made significant strides in strengthening its workforce, which now stands at over 11,000 employees - a growth aligned with with CGCLs strategic focus on scaling operations across its business verticals.

In FY25, CGCL placed a strong emphasis on employee engagement and productivity enhancement. The Company introduced several initiatives to up skill its workforce, including targeted training programmes on advanced digital tools and customer-centric service delivery. The launch of the Pragati Sales App and other tech-driven platforms has empowered employees with real-time data and insights, enabling informed decision – making and driving operational efficiency. Additionally, the introduction of AI-driven recruitment tools such as HireRight has streamlined the hiring processes, ensuring fairness, speed and quality in talent acquisition. CGCL continues to prioritise employee well-being through comprehensive benefits programmes and performance-linked incentives that foster a culture of accountability and excellence. By equipping teams with cutting-edge tools and a supportive work environment, the Company is enabling its people to deliver superior customer experiences while upholding high operational standards.

Information Technology

Technology remains at the heart of the Companys strategy as it continues to evolve into a digitally driven NBFC. In FY25, CGCL achieved full stabilisation of its advanced tech platforms introduced in the previous year. These include the Loan Origination System (LOS) for MSME and home loans, Swarnim for gold loans and FlexCube, an Oracle-developed Loan Management System (LMS). These systems have facilitated end-to-end digitisation of the loan lifecycle which substantially improves turnaround times and enhances customer satisfaction. The Company also launched several AI-driven initiatives during the year. Tools such as Data Genie, which provides real-time actionable insights for decision-makers and AI-Dost Chatbot offering multilingual 24/7 customer support, have elevated both internal efficiency and customer engagement. The deployment of advanced collection dashboards combined with AI/ML models for early delinquency detection has improved collection efficiency while maintaining asset quality.

CGCLs focus on leveraging technology encompasses risk management and credit evaluation. The Capri Loans App for customer engagement and CollectXpress for collections management have streamlined operations while refining user experience.

Risk Management

Effective risk management is critical for the Company to sustain its growth and ensure financial stability. The Company has implemented a robust Enterprise Risk Management (ERM) framework that integrates risk identification, assessment and mitigation across all business functions. CGCLs risk management strategy is governed by a dedicated Risk Management Committee and overseen by the Board of Directors to ensure alignment with regulatory requirements and best practices. The Company leverages advanced technology, including AI-driven analytics and real-time dashboards to monitor risks proactively and maintain asset quality.

Risks	Description	Potential Impact	Mitigation Strategy
Credit Risk	Credit risk arises from the possibility of borrowers defaulting on their loan obligations. The Company caters to diverse clientele, including self-employed individuals and small businesses.	• Increased Non-Performing Assets (NPAs)..	The Company has implemented comprehensive mitigation strategies to address various risks identified in its operations. For credit risk, the Company follows thorough lending guidelines and a structured credit assessment process, including customer interactions, on-field inspections, credit bureau evaluations and appropriate loan-to-value ratios.
	Defaults could adversely impact asset quality and profitability.	• Higher provisioning requirements
	Liquidity risk refers to the inability to meet short-term financial obligations due to mismatches in asset-liability management (ALM). As an NBFC reliant on external borrowings, any disruptions in the availability of funding could impact the Companys ability to disburse loans or refinance existing obligations.	• Potential reputational damage due to loan recovery challenges.
		• Constraints on loan disbursements.	All loans are secured by mortgages with a unique first charge on collateral assets and a Fraud Control Unit assists in identifying potential fraud.
Liquidity Risk		• Increased borrowing costs due to market volatility.	To manage liquidity risk, the Company employs seasoned treasury professionals who oversee daily fund tracking, allocation and liquidity management.
			They provide quarterly reports to the Asset Liability Management Committee (ALCO). The Company focuses on obtaining long-term funds with 5-10 years of repayment from banks and financial institutions, supported by a strong Capital to Risk (Weighted) Assets Ratio (CRAR).
	Operational risks arise from potential failures in internal processes, systems or human errors that may disrupt business continuity or result in financial losses.	• Disruptions in service delivery that may affect customer satisfaction.	For operational risk, Capri Global has implemented a sophisticated operational oversight system with specialists overseeing internal regulatory frameworks and protocols.
Operational Risk		• Financial losses due to process inefficiencies.	Their underwriting and collection processes are agile, ensuring effective client interaction through swift feedback mechanisms.
Market Risk	Market risks arise from fluctuations in interest rates or changes in economic conditions that could impact borrowing costs or demand for loans.	• Reduced net interest margins due to rising borrowing costs.	To mitigate market risk, the Companys ALCO assesses and examines interest rate fluctuations. Their portfolio primarily consists of variable interest rates and their approach to managing interest risk is comprehensive and flexible to changing market situations.
		• Lower loan demand during economic downturns.
Regulatory & Compliance Risk	Non-compliance with evolving regulatory requirements could lead to penalties or reputational damage.	• Financial penalties and increased compliance costs.	The Company has a dedicated compliance department led by a senior executive to stay updated with regulatory changes and ensure adherence to all relevant rules and regulations. They comply with various norms and guidelines, supported by a robust internal audit and control mechanism.
		• Reputational damage might affect stakeholder confidence.
	The entry of new players and increased competition in the retail lending space could impact	• Pressure on pricing and margins due to competitive intensity.	To address competition risk, Capri Global designs bespoke financing options tailored to client needs.
Competition Risk	The Companys market share and profitability.	• Potential loss of customers to competitors offering better terms or faster service.	The Companys strategy, business and risk departments closely monitor global economic, sector and competitive developments, enabling prompt and well-informed strategic decisions.
	Dependence on digital platforms exposes The Company to risks related to data breaches,	• Loss of sensitive customer data can lead to reputational damage.	For technology and cybersecurity risk, the Company employs resilient information protection mechanisms, including state-of-the-art technology, regulatory protocols, data backup protocols and limited application entry. They maintain a remote Disaster Recovery Location and frequently revise and fortify security regulations for essential applications as part of their Business Continuity Strategy.
Technology & Cybersecurity Risk	cyberattacks or system failures.	• Financial losses due to system downtime or fraud.

Internal Controls

Our robust internal oversight mechanism facilitates the protection of assets and the attainment of peak efficiency across all tiers. We have established an internal regulatory structure tailored to the scale and sector of our operations. This framework encompasses policies, protocols and clearly outlined risk and control matrices, all of which are automated. We adhere to the most stringent credit assessment criteria and pertinent laws and regulations, guided by a resilient internal governance framework that bolsters both financial and transactional reporting processes. The Audit Committee conducts routine internal reviews to ensure adherence to exemplary standards. Periodically, internal auditors evaluate the effectiveness of our internal control mechanisms. Our statutory auditors are tasked with verifying and maintaining rigorous oversight over financial reporting.

Cautionary Statement

The statements outlined in this report delineate the Companys goals and forecasts, which could constitute forward-looking statements in accordance with relevant laws and regulations. Actual outcomes may significantly deviate from those articulated or inferred, contingent upon economic circumstances, governmental directives and other ancillary variables beyond the Companys influence. The Company bears no compulsion to publicly adjust, alter, or amend any forward-looking statements based on subsequent developments, disclosures, or occurrences.