Capri Global Capital targets ₹55,000 crore AUM by FY28; gold loans and co-lending drive profitability: Rajesh Sharma

Capri Global Capital is charting an ambitious growth course, with Managing Director Rajesh Sharma outlining targets of ₹55,000 crore in Assets Under Management by FY28 — a roughly 25% compounded annual growth rate from current levels. Speaking to ET Now, Sharma presented a detailed picture of a non-banking financial company that is balancing aggressive expansion with a disciplined focus on profitability.

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The company's net interest margins stand at a headline-grabbing 9.2%, but Sharma was quick to explain the mechanics behind the number. Gold loans now make up 46% of total AUM, and the company has deliberately accepted slightly lower yields in this segment to prioritise branch-level growth and customer acquisition.

A significant piece of this strategy is co-lending. Roughly 40% of Capri Global's gold AUM sits in co-lending arrangements with partner banks, where a portion of the yield benefit is passed on to customers. While this compresses headline yields, Sharma argues it has been transformative for fee income — which now accounts for nearly 30% of revenues, one of the highest ratios in the sector, drawing from co-lending fees, car loan processing, and insurance distribution.


Margin expansion, he noted, is more visible in MSME and construction finance segments rather than gold loans at this stage.

Q4 provisioning: Conservative, not concerning

One of the sharper questions Sharma addressed was the elevated credit costs in the fourth quarter of FY26. His explanation was straightforward — the company took a management overlay in response to the West Asia crisis as a precautionary measure, guided by the board's conservative stance.

Importantly, he stressed this was not a sign of underlying portfolio stress. Gross NPA and net NPA levels are at all-time lows, and the elevated provisioning reflects caution rather than deterioration. Whether this remains a one-off or persists will depend on how the geopolitical situation evolves.

Profitability targets: Structural, not cyclical

On the question of whether the recent profitability improvement can last, Sharma was direct. The company is targeting ROA of around 4% in the coming year, rising to a range of 4% to 4.5% over the next three years. ROE is being guided to 16% to 18% over the same period — this despite the dilutive impact of a ₹2,000 crore QIP that was recently completed.

Sharma made clear that growth will not be chased at the cost of margins. "We will not compromise ROA and ROE," he said, signalling a management culture that prioritises quality of earnings over top-line expansion.

Gold loan growth: Geography over gold prices

With gold prices a perennial wildcard, Sharma acknowledged that a price decline would have an impact on the segment. However, he pointed to geographic expansion as the key growth driver that makes the business less dependent on bullion levels. The company currently operates around 1,000 gold loan branches and plans to add approximately 1,200 more over the next three years.

If gold prices remain stable, Sharma expects overall AUM growth of 25% to 30% annually.

The long-term portfolio mix

Looking further ahead, Sharma outlined a target portfolio composition where gold loans stabilise at around 50% of AUM, with affordable housing, MSME lending, and construction finance each contributing 15% to 18%. This balanced mix is designed to reduce concentration risk while keeping the high-margin gold segment as the core growth engine.