Capri Global Targets 15% ROE, Rs 600 Crore Profit In FY26
Managing Director and Chief Executive Officer Rajesh Sharma said that the company is betting on its investment in technology to enhance efficiency and reduce underwriting costs.
Non-banking finance company Capri Global Capital expects to achieve a return on equity of 11% in FY25 and improve it to 15% in FY26, driven by strong growth, technology investments, and branch expansion. The company is targeting profitability of Rs 600 crore next year and plans to add 200 to 250 branches, Managing Director and Chief Executive Officer Rajesh Sharma told NDTV Profit.
“This year, we landed at about 40% plus growth. This is not something new. If you look at the trend in the lending business, the second half is always better. Our data science and technology investments are starting to grow. I think our likely ROE will be in the range of 11%. But next year, if all goes well, we should be in the range of about 15%, and our profitability should be in the range of Rs 600 crore,” Sharma said.
According to the top executive, the company is betting on its investment in technology to enhance efficiency and reduce underwriting costs. “We have set up a tech centre with more than 125 engineers and 25 data scientists. The total infrastructure cost is in the range of Rs 100 crore. This covers our technology system and sales app. Since our entire underwriting is backed by data-driven guidance, it will become less expensive, and the credit cost will come down. That is where the confidence is coming from,” he explained.
Capri Global currently operates around 1,066 branches and aims to expand further, adding up to 250 branches in the new fiscal. “In the coming year, we want to add another 200 to 250 branches. We are lending to a segment where banks are not lending. And we see there is a huge gap in all these products. We're still running less than 2% market share, within that region. So there's a huge runway available to us,” he added.
The company’s product offerings currently feature MSME loans, construction finance, indirect lending (loans to other NBFCs), housing loans and gold loans.
“Our entire lending is collateral secured, so there is nothing unsecured. As far as distribution is concerned, we have a separate car loan company where we distribute car loans as a free income product through our partner banks. We also distribute insurance products across our clients and non-customers as well,” Sharma said.
Shares of Capri Global Capital rose 8.4% to touch an intraday high of Rs 178.79 apiece on the NSE on Friday. The stock was seen trading 4.29% higher at Rs 171.97 on the NSE at 2:14 am, while the benchmark Nifty50 was down 0.38% at 23,503.1 points.
