Capri Global Capital Ltd Management Discussions

Global economy

The global economic growth remained stagnant at 3.2-3.3% in 2024 and moderated slightly to 3.0-3.2% in 2025, as the effects of the war in the Middle East were largely offset by accelerated demand-driven momentum in the global technology cycle, powered by advances in artificial intelligence (AI) and its adoption. The impact has varied widely across countries - energy exporters outside the

conflict zone benefited from favourable terms of trade, while economies integrated into the technology value chain saw stronger activity even where they were energy importers, whereas energy importers with limited participation in the technology upturn, a group that includes many low-income countries, experienced weaker activity.

Advanced economies witnessed a marginal increase in growth,

remaining broadly stable at 1.5-1.7% in both 2024 and remained modest at average 1.5% in 2025 (per IMF), while emerging market and developing economies also held steady at 4.2% in 2024 and 2025.

Global inflation moderated sharply in 2025, to 4.1-4.2% from 5.8% in 2024, continuing the multi-year disinflation trend that had been in place since the beginning of 2024.

Regional growth (%)	2024	2025
World output	3.5	3.5
Advanced economies	1.5-1.7	1.5
Emerging and developing economies	4.2	4.2

(Source: IMF, OECD un.org)

Performance of the major economies, 2025

United States: GDP growth of 2.1% in 2025 compared to 2.8% in 2024.	China: GDP growth was 5.0% in 2025 and 2024.	United Kingdom: GDP growth was 1.3% in 2025 compared to 1.0% in 2024.	Japan: GDP growth was 1.1% in 2025 compared to (0.2)% in 2024.	Germany: GDP growth was 0.2% in 2025 compared to a (0.5)% in 2024.

(Source: IMF April 2026 Outlook, World Bank)

01-103	Corporate Overview	104-240	Statutory Reports	241-499

Financial Statements

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook report adopted a reference forecast instead of a conventional baseline, assuming the war remains contained in duration, intensity, and reach, with disruptions easing by mid-2026, in line with commodity futures as of March 10, 2026.

Under this reference view, global growth is projected at 3.1% in 2026 and 3.2% in 2027. Global inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in 2027.

The Russia-Ukraine war, ongoing since 2022, continued

to contribute to geopolitical uncertainty, disrupting trade flows and influencing commodity prices, supply chains and global financial conditions. The West Asia conflict further heightened uncertainty across energy markets and international trade.

For Capri Global, prolonged geopolitical tensions can have indirect implications for the operating environment, particularly through their impact on inflation, interest rates, liquidity and economic activity. Volatility in these factors may affect the cash flows and repayment capacity of MSMEs, self-employed borrowers and other customers, while changes in funding conditions could influence the cost of capital. At the same time, Indias resilient domestic economy and continued demand for MSME finance, affordable housing and gold-backed credit provide structural growth opportunities. Capri Global remains focused on prudent underwriting, portfolio monitoring, diversified funding and disciplined capital management to navigate such uncertainties.

(Source: OECD Interim Economic Outlook, IMF, World Economic Forum, Federal Reserve, Bank of England, European Central Bank, Bank of Japan)

Indian economy

The Indian economys real GDP grew at 7.7% in FY 25-26, compared to 6.5% in 2025. This growth was driven by strong consumption and increasing

investments, reaffirming Indias position as the fastest-growing major economy.

Indias Real GDP at Constant Prices was estimated at RS.323 Trillion in FY 25-26, compared with H299 Trillion in FY 2024-25.

Growth of the Indian economy

Metric	FY23	FY24	FY25	FY26
Real GDP growth (%)	7.0*	7.2	6.5	7.7
E: Estimated. Note: FY24 figure restated under new base year 2022-23. (Source: MoSPI) * The FY23 figure (7.0%) is from the old base year series (2011-12) as the new series back-data for FY23 will only be available after December 2026.
Growth of the Indian economy quarter by quarter, FY 25-26
	Q1FY26	Q2FY26	Q3FY26	Q4FY26
Real GDP growth (%)	6.7	8.4	7.8	7.8

Note: Q2 revised upward from 8.2% and Q3 from 7.35% under the new base year 2022-23 series released February 27, 2026. Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY 25-26, with full-year CPI estimated at an exceptionally low 2.1%.

This created room for 125 basis points of cumulative rate cuts, supporting consumption and investment.

However, macro stability was accompanied by currency volatility. The Indian rupee depreciated sharply by 9.88% during FY 25-26 - its steepest fall since FY 11-12 - touching

RS.94.83 against the US dollar. This reflected global capital flows, a strong dollar environment, and geopolitical uncertainties.

Capital flows and market behaviour

Foreign portfolio investors remained risk-averse, withdrawing a record RS.1.8 Trillion during FY 25-26 - the largest outflow in 36 years. However, strong domestic institutional inflows of RS.8.50 Trillion provided a crucial counterbalance, highlighting the growing maturity and depth of Indias domestic capital markets.

Indias market capitalisation declined 8% year on year in FY 25-26 to RS.384.75 Trillion from RS.413.07 Trillion in FY 24-25, marking the sharpest drop since FY 22-23. On the last trading day of the year, the BSE Sensex fell 7%, or 5,467 points, compared with a rise of 5.10%, or 3,763 points, in the same period last year, while the Nifty 50 declined 5%, or 1,200 points, against a gain of 5.34%, or 1,192 points, in the corresponding period. The downturn was largely driven by the West Asia conflict and concerns around potential tariff measures under US President Donald Trump, which weighed on global investor sentiment.

Gold prices surged 64 to 67% during FY 25-26 reflecting global risk aversion and safe-haven demand.

Indias net direct tax collections rose 5.12% y-o-y to H23.4 Trillion in FY 25-26, though this fell short of the Revised Estimate of H24.2 Trillion by approximately RS.800 Billion. Corporate tax collections came in at 10.99 Trillion against a target of RS.11.09 Trillion, while personal income tax (including STT) stood at RS.12.41 Trillion against a target of RS.13.12 Trillion - the larger of the two misses, partly reflecting the income tax relief extended to the middle class in the Union Budget 2025-26

Banking sector

Real Gross Value Added (GVA), which measures economic output excluding taxes and subsidies, grew 7.9% in FY 25-26, compared with 7.3% in FY 24-25. At current prices, nominal GVA rose 9.1% to RS.314.87 Trillion from H288.54 Trillion a year earlier.

The tertiary services sector remained a key growth driver, expanding by 9.1% in FY 25-26 and increasing its share in nominal gross value added to 54.3% from 52.8% in FY 24-25, supported by broad-based momentum across segments.

During FY 25-26, financial, real estate, IT and professional services grew by 9.9%, while trade, hotels, transport, communication and broadcasting recorded a strong 10.1% growth, and public administration and other services expanded by 5.8%.

The secondary sector grew 8.8%, accelerating from 8.0% in the previous year, driven by manufacturing alongside construction growth of 6.1% . This combination of services-led scale and manufacturing acceleration is shaping a more balanced and resilient economic structure.

Consumption and investment

During FY 25-26, Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) maintained above-7% growth, reflecting a well- balanced demand composition across household spending and investment activity.

Growth catalysts Policy-led consumption boost:

The Union Budget FY 26-27s tax relief measures - particularly income tax exemptions up to RS.1.2 million are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8 th Pay Commission, though expected to be implemented from FY 27-28, is already shaping consumer sentiment, creating a forward consumption impulse.

Industry overview

Indias financial services industry

The financial services sector enables savings, lending, investments, insurance, and risk management across the economy. In India, it is being reshaped by rising domestic savings, strong capital markets, fintech adoption, and rapid digitalisation, creating a more resilient and competitive ecosystem.

The sector is projected to nearly double profits by FY 29-30, with NBFCs growing at 16% annually. Growth is driven by retail credit, wealth management, digital payments, and insurance.

Life insurance assets under management have crossed RS.93.48 Trillion, making insurance one of the largest institutional investor pools. Private credit reached H0.84

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth

focus: The Union Budget maintains fiscal discipline while prioritizing infrastructure, MSME support, skilling, and innovation- key levers for long-term productivity.

Outlook

Despite a challenging global environment, India continues to demonstrate strong economic resilience and is expected to remain the worlds fastest- growing major economy, with the World Bank projecting growth of around 6.6% in FY 26-27.

Growth is being supported by robust domestic demand, resilient consumption, policy reforms and demographic advantages. While risks from energy prices and global demand persist, strong macroeconomic fundamentals, rising investments and expanding trade linkages position India as a key driver of global growth over the medium term.

(Source: Upstox, Economic Times, India Today, 5paisa, Livemint, The Logical India)

Trillion in RS.1 2025, up 53% YoY, reflecting strong demand and investor confidence.

Digital transformation remains central, with the banking and investment services industry expected to spend RS.1.4 Trillion on IT in 2025, focused on digital infrastructure, cybersecurity, and customer experience. Initiatives like the Digital Rupee and efforts

Financial

Statements

to internationalise the Indian Rupee continue to strengthen technological capability and global integration.

The financial services industry has seen major achievements in the recent past:

¦ In FY 25-26, Indias demat accounts reached a record 225 Million, supported by a 22% rise in new accounts in October driven by IPO activity and strong retail participation, reflecting deeper equity market engagement.

¦ In FY 25-26, private equity (PE) and venture capital (VC) investments stood at RS.4.02 Trillion across 1,350 deals.

¦ Cross-border UPI transactions have grown sharply, rising from 180 in FY 21- 22 and 144 in FY 22-23 to 37,060 in FY 23-24, and over 7,55,000 in FY 24-25, and with transaction value exceeding RS.314 Trillion in FY 25-26.

Indias financial services sector is being strengthened by rising capital inflows, expanding insurance penetration, growing retail participation, and rapid digital adoption. Supported by ongoing reforms and innovation, the sector is becoming more inclusive, efficient, and globally competitive, positioning India as a key driver of financial growth and wealth creation.

Non-banking financial sector (NBFCs)

The non-banking financial sector provides credit and financial services without a full banking licence, expanding access to finance across retail, MSME, vehicle, housing and microcredit segments. The sector comprises NBFCs, HFCs, MFIs and other specialised lenders that complement the banking system.

NBFCs are expected to deliver 12-18% AuM growth in FY 25-26, although recovery in the microfinance segment is likely to remain gradual amid asset quality pressures. Looking ahead, NBFC- retail AuM growth (excluding HFCs) is projected at 17-19% in FY 25-26 and 16-18% in FY 26-27, supported by strong performance in gold loans, vehicle finance and personal loans. The sector is expected to require RS.4.1-4.3 Trillion of incremental funding in FY 26-27, while maintaining healthy profitability of 2.3-2.5%. Retail AuM grew 17-19% in FY 25-26, despite macroeconomic uncertainties.

The Union Budget 2026 proposes restructuring Power Finance Corporation and Rural Electrification Corporation to improve scale and efficiency, while positioning NBFCs as key enablers of the Viksit Bharat vision through enhanced credit disbursement, technology adoption, stronger balance sheets and improved capital mobilisation.

Key opportunities for NBFCs in India

Bharat markets access: Over 51% of Indias 63 Million registered small businesses operate in Tier 2 and smaller cities, facing acute credit scarcity that NBFCs address via alternative assessments. NBFCs MSME lending grew at a 32% CAGR from FY 23-24, outpacing banks, with AuM projected to exceed RS.5.3 Trillion by FY 25-26. A RS.58.9 Trillion MSME credit gap persists, particularly in rural areas, enabling NBFCs to drive inclusion.

Climate finance: Power-financing NBFCs renewable loan books exceeded H2 Billion for top five players, with 19% CAGR. Government schemes like eGPS offer up to RS.50 Million loans for green tech in MSMEs, with automated approvals. Indias net- zero 2070 target boosts demand for solar, green hydrogen, and BESS financing.

Tech-led expansion: NBFCs use 100% digital KYC and AI underwriting to process high loan volumes fast, cutting approval times from days to minutes while managing risk at scale. FY 2526 earnings depict enterprisewide AI in underwriting, fraud detection, and collections. This lowers costs and scales reach to new segments without heavy infrastructure.

Co-lending and embedded finance: Embedded finance

market is valued at US$ 24.03 Billion in 2026, expected to reach US$ 33.69 Billion by 2030 (8.8% CAGR), with NBFC- fintech partnerships key. NBFC- platform integrations use account aggregators for better underwriting.

Diversified funding: Securitisation volumes hit RS.1.87 Trillion in FY 2526 (2% YoY growth), with NBFCs at 65% share. FY 25-26 alone surged to RS.490 Billion (NBFCs 92%). PTCs dominate at 63% of volumes.

Retail credit: NBFC credit reached RS.48 Trillion in FY 24-25 (13.9%), expected to reach RS.74-77 Trillion by FY 27-28 (15-17% CAGR). Retail segments grow fast: MSME 2729%, personal 22-24%; overall credit 13.7-14.3% in FY 25-26, led by retail/MSME. AuM crossed RS.50 Trillion in FY 24-25, to RS.70 Trillion by FY 26-27.

Infrastructure and supply chain:

NBFCs expanded to 182 players in factoring, meeting MSME working capital needs beyond prior 20% share.

Economy formalization: Digital payments hit H261 Trillion in FY 2425, driven by UPI, GST, and fintech, widening formal credit base.

This boosts long-term demand as businesses enter formal ecosystems.

(Source: Wright research, Care ratings, Economic Times, Powerline, Outlook business, Research and markets, ICRA)

Structural pressures and the sectors response

Challenge	Description	Mitigation
Evolving regulations	Stricter RBI norms have increased compliance and governance requirements for NBFCs.	Strengthen governance, compliance systems and RegTech capabilities.
Funding and liquidity	Dependence on market borrowings exposes NBFCs to funding cost and liquidity risks.	Diversify funding sources, maintain liquidity buffers and improve credit ratings.
Asset quality pressures	Stress in unsecured retail, MSME and microfinance portfolios may impact collections.	Enhance underwriting, risk monitoring and provisioning practices.
Refinancing risk	Reliance on wholesale funding increases refinancing and interest rate exposure.	Strengthen ALM, extend liability maturities and increase secured borrowings.
Competitive intensity	Competition from banks, fintechs and large NBFCs is compressing margins.	Focus on niche segments, operational efficiency and differentiated offerings.
Technology and cybersecurity	Digitalisation increases exposure to cyber and data privacy risks.	Invest in cybersecurity, fraud prevention and data governance frameworks.

MSME sector of India

The MSME sector is a key contributor to Indias socioeconomic development, supporting GDP growth, exports, employment generation and entrepreneurship, particularly across semi-urban and rural regions.

With 63.4 Million units spread across the country, the MSME sector contributes around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.

In FY 25-26 more than 78.3 Million MSMEs, employing around 345 Million people, were registered on the Udyam Registration Portal. The Union Ministry of Micro, Small, and Medium Enterprises has received an allocation of H231.68 Billion in FY 25-26 Union

Budget, reflecting a 4.6% increase compared to the FY 24-25 Budget.

The Union Budget for FY 25-26 has raised the investment limits for MSMEs by 2.5 times and doubled the turnover thresholds. Specifically, the new limits are as follows:

¦ For micro-enterprises, the investment limit is now H2.80 Cr, with a turnover limit of RS.112.2 Million.

¦ For small enterprises, the investment limit has been set at H271.1 Million, and the turnover limit is RS.1,075.1 Million.

¦ For medium enterprises, the investment limit is now RS.1,346.2 Million, while the turnover limit stands at RS.5,384.7 Million.

Registered MSMEs in India in FY 25-26 (as on November 20, 2025)

¦ Medium enterprise - 0.1%

¦ Medium enterprise - 99.3%

¦ Small enterprise -0.7%

Financial allocation to the MSME sector

The Union Budget 2026-27 proposed a three-pronged approach to support MSMEs with equity, liquidity, and professional support to help them grow as Champions. It also removed the RS.1 Million per consignment cap

on courier exports to boost small businesses, artisans, and startups.

Under the Pradhan Mantri Mudra Yojana (PMMY), as of April 2025, RS.36.54 Trillion has been sanctioned through 532.7 Million loans, supporting SME entrepreneurs, especially from marginal sections.

The RAMP scheme (2022) has benefitted 0.4 million MSMEs, with women-owned enterprises accounting for over 38% of registered MSMEs, reflecting a strong push toward inclusive entrepreneurship.

Source: Ministry of Micro, small & Midium Enterprises

The Credit Guarantee Scheme for Micro and Small Enterprises (CGSME) enhances access to collateral-free credit by offering guarantees to lending institutions. Complementing this, the Labour Codes aim to formalise employment, simplify compliance, strengthen social security, and improve workplace safety, thereby reducing MSME operational burdens.

MSMEs have emerged as a key pillar of the Indian economy, driving employment, supporting rural industrialisation, promoting balanced regional development, and strengthening industrial linkages with large enterprises.

Government initiatives for the MSME industry in India

Three-pronged approach to help MSMEs grow as champions under first Kartavya: Under equity support measures, a dedicated RS.100 Billion SME Growth

Fund has been announced to generate future champions by incentivizing enterprises based on defined eligibility criteria. In addition, the Self-Reliant India (SRI) Fund, established in 2021, will be increased with H20 Billion to sustain support for micro enterprises and ensure continued access to risk capital. Notably, the SRI Fund has assisted 682 MSMEs by way of investment worth RS.154.42 Billion. Under liquidity support, H0.7 million+ Cr has already been unlocked for MSMEs through the TReDS platform.

3 kartavyas outlining the Union Budget 2026

Accelerate and sustain economic growth along with building resilience to volatile global dynamics.	Fulfill aspirations of people and build their capacity.	Ensure that every family, community, region and sector has access to resources, amenities & opportunities.

Source: Ministry of Finance

The Prime Ministers Employment Generation Programme (PMEGP):

PMEGP continues to support entrepreneurship through margin money subsidies linked to bank credit. Till FY 25-26, the scheme has assisted 1.071 million + micro enterprises with subsidies of H292.49 Billion, generating estimated employment for 8.7 Million+ people.

MSME Champions Scheme: The

MSME Champions Scheme aims to enhance the competitiveness of MSMEs by improving processes, reducing inefficiencies, and supporting growth in domestic and international markets.

The scheme comprises three components: MSME-Sustainable (ZED), MSME Competitive (LEAN) and MSME-Innovative (Incubation, Design and IPR), promoting quality, productivity, and innovation across enterprises.

Under the ZED Certification Scheme, 2,71,373 MSMEs registered and 1,92,689 enterprises obtained certification. Under the LEAN Scheme, 32,077 MSMEs registered and 31,987 enterprises adopted the Lean pledge, demonstrating their commitment to productivity enhancement and operational excellence.

Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE): A Credit Accessibility Breakthrough, the CGSME provides credit guarantees for credit facilities extended by Member Lending Institutions to MSEs without collateral security or third-party guarantees. 2.9 Million guarantees have been approved worth RS.3.77 Trillion. The ceiling of guaranteed coverage has been enhanced to RS.100

Housing finance industry

The sector comprises banks, Housing Finance Companies (HFCs), and Non-Banking Financial Companies (NBFCs), each targeting distinct market segments. While banks dominate overall mortgage lending, HFCs and NBFCs have strengthened their presence by serving underserved groups such as self-employed borrowers and customers in semi-urban and smaller cities. Competition has also intensified in affordable and non-premium housing loans, with larger banks increasingly entering these segments.

Access to housing finance has deepened, with the share of

Construction finance

The construction finance industry plays a vital role in supporting Indias real estate and infrastructure sectors by providing capital for residential, commercial and infrastructure projects. The sector has evolved significantly in recent years, driven by tighter bank lending norms, greater participation by NBFCs and HFCs, and sustained public capital expenditure. These institutions have expanded their presence in affordable housing, structured finance and last-mile funding, addressing segments often underserved by traditional banks.

Indias construction market is projected to grow by 11.2% to H25.31

Million from RS.50 Million. A special provision for MSEs promoted by transgender entrepreneurs has been introduced, providing a 10% concession in guaranteed fees and enhanced guarantee coverage of 85%.

PM Vishwakarma Scheme:

The PM Vishwakarma Scheme provides end-to-end support to artisans across 18 traditional trades through training, financial

housing loans to GDP rising to 11% in FY 24-25. Outstanding individual housing loans have more than tripled to RS.3.7 Million at the end of March 2025 from RS.1 Million a decade ago. Demand is largely driven by the affordable housing segment, supported by government initiatives such as Pradhan Mantri Awas Yojana- Urban (PMAY-U) and PMAY- Gramin. As of November 2025, about 12.21 Million affordable houses had been sanctioned under PMAY-U, with 9.6 million delivered, advancing the Housing for All objective.

Government support through Union Budget allocations

Trillion in 2026. Having recorded a 14.2% CAGR during 2021-2025, the market is expected to grow at a CAGR of 8.8% during 2026-2030, reaching approximately RS.39.10 Trillion by 2030 from H22.77 Trillion in 2025.

Credit growth to the commercial sector has remained robust, with NBFCs and HFCs contributing significantly to incremental lending. Portfolio growth among NBFC-HFC players has remained in the mid-teens range, supported by stable asset quality and improved underwriting practices.

Government spending continues to underpin sector growth. The FY2027 budget estimate provides

assistance, and market access. Over 2 Million artisans are being supported under the scheme.

As of 1 December 2025, 3 million beneficiaries had registered, of which 2.31 Million had been trained, including 0.77 Million who completed basic skill training in 2025. The scheme also enables online marketing via e-commerce platforms to improve domestic and international market access. and schemes like PMAY-U 2.0 (launched in 2024 for low- and middle-income households) has further strengthened momentum, along with interest subsidies, priority-sector lending classification, and infrastructure status for affordable housing projects, improving affordability and access to credit.

Overall, the housing finance industry continues to play a key role in social and economic development by bridging housing demand and credit supply, supported by evolving demographics and policy measures. for a 9% increase in public capital expenditure to RS.12 Trillion, while allocation to the Ministry of Road Transport and Highways has increased by 8% to H2.94 Trillion, compared with H2.72 Trillion in FY2026 RE, supporting National Infrastructure Pipeline projects.

Affordable housing remains a key demand driver through PMAY, alongside urban initiatives such as Smart Cities Mission and AMRUT 2.0. Supported by urbanisation, infrastructure development and increasing formalisation, the construction finance sector remains well positioned for sustained growth.

Gold loans

The gold loan industry has emerged as one of the fastest- growing segments of Indias financial services sector, supported by the countrys deep- rooted affinity for gold and the large stock of household gold assets. In FY 25-26, the organised gold loan market, comprising banks and NBFCs, is estimated to have crossed RS.15 Trillion, reflecting sustained double-digit growth. The market is projected to approach RS.30 Trillion by FY 27-28, driven by higher gold prices, deeper rural penetration

Car loan distribution

The car loan distribution industry in India continues to expand alongside the countrys growing automotive ecosystem. Rising disposable incomes, urbanisation, improved road infrastructure and increasing preference for personal mobility have supported strong demand for vehicle financing, making auto loans a significant contributor to retail credit growth.

The Indian car loan market was valued at RS.3,630 Billion in 2025 and is projected to grow from RS.3,870 Billion in 2026 to RS.5,330 Billion by 2031, registering a CAGR of 6.62% during 2026-2031.

Insurance

Indias insurance sector has witnessed significant growth, with the domestic market expanding at CAGR of 17% over the past two decades. It is projected to reach RS.19.3 Trillion by FY 25-26. This growth has been driven by increased awareness, favourable regulatory changes, and greater participation from the private sector.

Indian insurance sector, an integral part of the financial system, plays a significant role in the economy by providing protection against mortality, property and casualty risks,

and increasing formalisation of lending channels.

Gold loans continue to gain popularity due to quick processing, minimal documentation, and lower credit risk, enabling rapid disbursals against pledged jewellery. The segment remains particularly relevant in rural and semi-urban markets where access to formal credit is limited.

NBFCs have played a key role in expanding the market through extensive branch networks and

Favourable monetary policies, digital onboarding and wider use of alternative credit assessment tools are expected to further expand access to formal vehicle financing.

In FY 25-26, passenger vehicle sales remained resilient at approximately 4.2-4.4 Million units, with 75-80% of new vehicle purchases financed through loans, highlighting the importance of credit availability in sustaining automobile demand. Banks, NBFCs and fintech lenders are increasingly leveraging digital underwriting, instant KYC encouraging savings, and providing long-term funds for infrastructure development and other long-gestation projects. During FY 24-25, the sector issued 418.4 Million policies, collected premiums of RS.11.9 Trillion, paid claims of RS.8.36 Trillion, and reported assets under management of RS.74.4 Trillion. The total reinsurance market in India stood at RS.1.12 Trillion in 2024-25.

The government and the insurance regulator have enabled policy frameworks and structural reforms to further growth and insurance accessibility.

specialised operating models, while banks have increased their presence, enhancing competition and pricing transparency. The industry is expected to grow at a CAGR of 25-30% during FY 26- FY28, supported by rising gold prices, digital loan services small business liquidity needs and financial inclusion initiatives, although regulatory norms on loan-to-value ratios will remain an important consideration. verification and end-to-end online processing to improve customer experience and reduce disbursal timelines.

Key growth drivers include the rising adoption of electric vehicles supported by the FAME India Scheme, rapid expansion of the used-car financing market and increasing credit penetration across rural and semi-urban regions. Despite sensitivity to interest rates and fuel prices, the sector remains well positioned for steady growth.

Foreign Direct Investment in the insurance sector has been raised to 100%, a new reinsurer was registered last year, and the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 provides for the formation of a Policyholders Education and Protection Fund, aligns data protection with the Digital Personal Data Protection Act, 2023, and enhances IRDAIs regulatory powers.

Capri Global Capital Limited

Annual Report FY 2025-26

Company overview

Capri Global Capital Limited (CGCL) is a well-established NBFC in India, focused on strengthening financial inclusion through MSME financing, affordable housing loans, gold loans, and construction finance. The Company began NBFC operations in 2011 and has since built a strong

MSME loans

Capri Global has built a strong presence in MSME lending through secured financing solutions for micro, small, and medium enterprises, aligned with its focus on financial inclusion for underserved entrepreneurs and small business owners.

The launch of Micro LAP and other small-ticket secured loans has strengthened its MSME portfolio, particularly for selfemployed borrowers in rural and semi-urban markets. Supported by a structured lending approach and robust risk management, the Company continues to reinforce its position in this segment.

Housing finance

Through its subsidiary, Capri Global Housing Finance Limited, the Company supports the Governments Housing for All vision by providing affordable housing finance to lower- and middle-income households, particularly self-employed borrowers. Leveraging digital credit assessment and onboarding capabilities, the business has built a diversified loan portfolio while expanding into new markets, making affordable housing finance a key growth driver.

In FY 25-26, the housing finance AuM stood at RS.74,469 Million, reflecting year-on-year growth presence across key lending segments.

As of FY 25-26, CGCL operates a nationwide network of more than 1,429 branches, with continued expansion across rural and semi-urban markets to serve underserved and emerging customer segments through

In FY 25-26, the MSME portfolio reached RS.64,859 Million, supported by strong disbursement momentum and continued traction in core geographies. The segment served more than 54,849 customers and maintained a granular, secured loan book with an average ticket size of approximately RS.1.2 Million. Portfolio quality remained stable, reflected in a yield of 16.7% and a prudent loan-to-value ratio of 52%.

The customer base continues to be predominantly selfemployed non-professionals, accounting for nearly 97% of borrowers. Leveraging its deep

of 43%. During the year, the business served more than 46,000 customers, with the selfemployed segment accounting for around 74% of the portfolio. The average ticket size was approximately RS.1.52 Million, while over 76.5% of borrowers had informal income documentation.

Capri Global Housing Finance Limited maintained a diversified geographic presence across eleven states and union territories through a network of 159 branches. The portfolio generated a yield of 13.2%, supported by risk-calibrated pricing and an emphasis customer-centric financial solutions.

Co-lending partnerships with leading banks further enhance its ability to scale lending operations while ensuring balanced risksharing and disciplined portfolio management. understanding of local markets and a branch-led sourcing model, Capri Global aims to further expand its MSME presence through calibrated network growth and continued co-lending collaborations with banking partners. 74,469 housing finance on smaller-ticket, secured lending. Technology-enabled sourcing, digital onboarding processes and a granular customer acquisition strategy have helped the company expand its reach while maintaining asset quality.

Gold loan

The gold loan business has become a key growth driver for Capri Global, supported by an extensive branch network across ten states and union territories. The segment provides quick, collateral-backed financing through rapid loan disbursals, while co-lending partnerships with leading banks enhance customer reach, portfolio quality and risk management. The Company continues to strengthen its presence in existing markets while selectively expanding its branch network.

In FY 25-26, the gold loan portfolio recorded strong momentum, with AuM rising to RS.169,646 Million, representing year-on- year growth of 111%. The segment maintained an average ticket size of approximately H0.17 Million and generated a yield of 17.8%. 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 to become the fastest- growing business vertical for Capri Global.

Construction finance

The construction finance business of Capri Global focuses on funding affordable housing projects through a granular portfolio with relatively small-ticket exposures. The Company supports developers across key urban markets including Bengaluru, Hyderabad, Mumbai Metropolitan Region, Pune, National Capital Region and Ahmedabad, benefiting from sustained demand for affordable housing and a healthy project pipeline.

In FY 25-26, the construction finance portfolio reached RS.57,081 Million, reflecting year-on-year

growth of 38%. The Company concentrated on financing midsized residential developments across rapidly expanding urban and Tier-1 cities. With a calibrated approach to exposure levels- reflected in an average ticket size of around H202 Million and careful borrower selection, the portfolio has remained granular and relatively low risk. The segment generated a yield of 17.7%, supported strong project selection, conservative underwriting and close onground monitoring.

CGCL continues to back the affordable housing ecosystem while balancing growth with asset quality. Going forward, Capri Global remains committed to supporting the affordable housing ecosystem while maintaining a balanced approach to growth and asset quality.

Car loan distribution

Capri Global conducts its car loan distribution operations through its wholly owned subsidiary, Capri Loans Car Platforms Pvt. Ltd.

The business has established a pan-India presence across 821 locations spanning 30 states and union territories. The subsidiary works in partnership with multiple banks and financial institutions to originate new car loans, while also exploring opportunities in the used car loan origination segment. This vertical aligns with the Companys objective of generating stable, high-quality fee-based income.

In FY 25-26, the car loan distribution business witnessed strong growth, with loan originations reaching RS.119,097 Million and an average ticket size of around RS.1.08 Million. Strong digital integration and pan-India presence helped strengthen

Co-lending

Co-lending has emerged as an important growth enabler for Capri Global, allowing the Company to expand its lending portfolio while sharing credit risk with partner banks. Through partnerships with eleven leading banks, the Company utilises

Insurance

Capri Global has established partnerships with 20 insurance companies to distribute a range of life, health and general insurance products to its customers. This business forms an important component of the Companys strategy to strengthen noninterest income, leveraging its extensive branch network to provide insurance solutions suited to diverse customer requirements.

In FY 25-26, the insurance distribution vertical continued

co-lending structures across key products such as MSME loans, affordable housing finance and gold loans. This model supports efficient capital deployment while contributing to stronger return on equity.

to contribute to the Companys fee-based income stream, with total premiums mobilised amounting to H2,732 Million. Through collaborations with 20 insurers, the Company offered a portfolio of life, health and general insurance products aligned with customer needs. During the year, approximately 1,117,780 policies were issued, with the segment benefiting from Capri Globals expanding branch network and growing customer base to drive cross-selling opportunities and strengthen customer lifetime value.

Financial performance

Consolidated financial review		(Rs in Mn)
Particulars	2026	2025
Revenue from Operations	47,311.37	32,475.00
Other Income	108.72	33.36
Total Income	47,420.09	32,508.36
EBITDA	30,967.70	20,086.29
Profit Before Tax	12,574.09	6,333.18
Profit After Tax	9,491.52	4,785.33
Earnings Per Share (H)	10.15	5.80
Cash Flow from Operations	(87,277.75)	(43,116.35)

Key financial ratios

Particulars	2026	2025	Change
Interest Coverage Ratio	1.74	1.51	15.2%
Current Ratio	1.28	1.73	-26.0%
Debt Equity Ratio	3.35	3.62	-7.5%
Operating Profit (EBITDA) Margin (%)	65.31	61.79	352 bps
Net Profit Margin (%)	20.02	14.72	530 bps
Return on Net Worth (%)	13.33	11.34	199 bps

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

Current Ratio

The Current Ratio decreased to 1.28 in FY 25-26 from 1.73 in the previous year, reflecting a rise of Current Assets 27.5% and rise of Current Liabilities 71.2%.

Business outlook

Following a strong performance in FY 25-26, Capri Global is preparing for the next phase of its growth journey with a clearly defined strategy and sharpened execution focus. The Company anticipates sustained momentum in the gold loan business, supported by improved branch productivity and stronger customer engagement.

Growth in the MSME and housing finance segments is also

Human resources

CGCL recognizes that its employees are the cornerstone of its success and is committed to cultivating a culture of innovation, collaboration, and continuous learning. The workforce has grown to over 13,000 employees, reflecting CGCLs strategic focus on expanding operations across its business verticals.

Information technology

Technology remains central to CGCLs strategy as it moves toward becoming a fully digital NBFC. In FY 25-26, the Company stabilized key platforms including the Loan Origination System (LOS) for MSME and home loans, Swarnim for gold loans, and FlexCube (Oracle Loan Management System), digitising

Risk management

Effective risk management is central to CGCLs sustainable growth and financial stability.

The Company has implemented a comprehensive Enterprise Risk Management (ERM) framework to

Net Profit Margin %

The Net Profit Margin increased from 14.72% in FY 24-25 to 20.02% in FY 25-26, reflecting a 530 basis point improvement. This was primarily driven by a 98.35% expected to accelerate, driven by expansion into new markets, enhanced underwriting practices and increased use of digital platforms to reach a wider base of self-employed borrowers. The car loan distribution vertical is expected to remain a consistent contributor, supported by deeper collaborations with banking partners and automobile dealers.

In parallel, the Company will continue to invest in technology,

In FY 25-26, the Company focused on strengthening employee engagement and productivity through targeted initiatives. Training programs on advanced digital tools and customer-centric service were rolled out, while platforms like the Spark Sales App enabled real-time data access for better decision-making and the end-to-end loan lifecycle and improving turnaround time and customer experience.

Al-led initiatives such as Data Genie enable real-time decisionmaking insights, while the Al-Dost Chatbot provides 24/7 multilingual customer support, enhancing engagement and efficiency. Advanced AI/ML-based identify, assess, and mitigate risks across all business functions, with oversight from a dedicated Risk Management Committee and the Board, ensuring regulatory compliance and best practices.

increase in net profit, outpacing the 45.87% growth in revenue. improve operational efficiency across its branch network and further strengthen its co-lending partnerships. Supported by a strong capital position and a diversified lending portfolio, Capri Global remains well placed to pursue sustainable and inclusive growth across its key markets. efficiency. AI-based recruitment tools such as HireRight improved hiring speed, quality, and fairness. These efforts, supported by strong employee benefits and performance-linked incentives, helped build a culture of accountability and high service standards.

collection dashboards support early delinquency detection, strengthening asset quality.

Moreover, tools like the Capri Loans App and CollectXpress have streamlined customer engagement, credit processes, and collections, improving operational efficiency and risk management.

AI-powered analytics and realtime dashboards further enable proactive risk monitoring and help maintain strong asset quality.

Credit risk

Liquidity risk

Operational risk

Meaning: Risk arising from borrowers potentially defaulting, particularly selfemployed individuals and small businesses.

Impact: Higher NonPerforming Assets (NPAs), increased provisioning requirements, and reputational impact due to recovery challenges.

Mitigation: Robust lending guidelines, structured credit assessment (customer interactions, on-field inspections, credit bureau checks), secured lending with first-charge collateral, and a Fraud Control Unit to detect irregularities.

Meaning: Risk of inability to meet short-term financial obligations due to asset- liability mismatches. Impact: Constraints on loan disbursements and higher borrowing costs.

Mitigation: Daily liquidity tracking, quarterly Asset Liability Management Committee (ALCO) reviews, focus on long-term borrowings (5-10 years), and strong Capital to Risk- Weighted Assets Ratio (CRAR) maintenance.

Meaning: Risk of internal process failures, system errors, or human mistakes disrupting operations. Impact: Service disruptions, reduced customer satisfaction, and financial losses from inefficiencies. Mitigation: Strong operational oversight, agile underwriting and collection processes, robust internal controls, and continuous process improvements.

Market risk

Meaning: Risk arising from interest rate fluctuations or macroeconomic changes affecting costs and demand.

Impact: Reduced Net Interest Margins (NIM) and lower loan demand during downturns. Mitigation: Active Asset Liability Management Committee (ALCO) monitoring of interest rates and flexible management of a predominantly variable-rate portfolio.

Regulatory and compliance risk

Technology and cybersecurity risk

Meaning: Risk of noncompliance with evolving laws and regulations.

Impact: Financial penalties and reputational damage affecting stakeholder trust.

Mitigation: Dedicated compliance team, adherence to regulatory norms, strong internal audit systems, and control mechanisms.

Meaning: Risk arising from dependence on digital systems, including cyberattacks or system failures.

Impact: Data breaches, financial losses, fraud, and system downtime.

Mitigation: Strong cybersecurity framework, regulatory compliance, data backups, restricted access controls, Disaster Recovery (DR) sites, periodic DR drills with defined RTO/RPO, and continuous security reviews.

Competition risk

Meaning: Risk from entry of new players and heightened competition in retail lending. Impact: Pricing pressure, margin compression, and potential customer loss.

Mitigation: Tailored financing solutions, continuous market monitoring, and coordinated strategy across business and risk teams.

Strategic and business continuity risk

Meaning: Risk from unforeseen events or external shocks impacting long-term strategy.

Impact: Disruption to growth plans and potential revenue loss.

Mitigation: Business Continuity Planning (BCP), stress testing, diversification of revenue streams, and rapid response protocols.

Reputation risk

Meaning: Risk of negative publicity or stakeholder dissatisfaction affecting trust. Impact: Loss of customer confidence and adverse impact on partnerships and investor perception. Mitigation: Proactive communication, strong grievance redressal systems, ethical business practices, and ongoing stakeholder engagement.

Internal controls

Our internal oversight framework ensures asset protection and operational efficiency across all levels. It includes a regulatory structure aligned with the scale of business, supported by automated policies, defined

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 risk and control matrices, and stringent adherence to credit standards and applicable laws.

A strong governance framework reinforces financial and transactional reporting. The Audit Committee conducts regular 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 internal reviews, internal auditors assess control effectiveness periodically, and statutory auditors provide an additional layer of verification, ensuring robust oversight of financial reporting. to publicly adjust, alter, or amend any forward-looking statements based on subsequent developments, disclosures, or occurrences.