|
|
| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 2125.00 | ACUITE AA | Stable | Reaffirmed | - |
| Total Outstanding | 2125.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
|
Rating Rationale |
|
Acuité has reaffirmed its long-term rating of ‘ACUITE AA’ (read as ACUITE Double A) on the Rs. 2125.00 Cr. bank facilities of Capri Global Housing Finance Limited (CGHFL). The outlook is 'Stable'.
Rationale for the rating The rating action takes into consideration the sustained improvement in the earning profile, capital position and asset quality of Capri Global Group. The AUM of CGCL (consolidated) stood at Rs. 22,860.20 Cr. as on March 31, 2025 which saw a significant growth to a AUM of Rs 30,406.58 Cr. for 9MFY26. The company's PAT has also saw improvements from Rs. 478.53 Cr. in FY25 to a PAT of Rs 666.34 Cr. for 9MFY26. CGCL on a consolidated basis reported Net non-performing assets (NNPA) of 0.90 percent as on March 31, 2025, improving to 0.67 percent for 9MFY26. The rating continues to drive support from CGCL’s comfortable capitalization levels marked by networth of Rs. 4304.10 Cr. with a leverage at 3.70 times as on March 31, 2025 (consolidated). For 9MFY26, networth stood at Rs. 6927.20 Cr. with a leverage at 2.80 times for 9MFY26 (consolidated). CGCL’s (standalone) CRAR stood at 30.32 percent as of December 31,2025 (22.84 percent as on March 31, 2025). The company had a QIP equity raise of Rs. 2000 Cr. during Q1FY26 through investors which included Mutual Funds, Domestic and Foreign funds and insurance companies which has helped them augment their capital position. The rating also considers the AUM composition shifting towards more secured and safer assets like Gold Loan at 42 percent of the total AUM as of Q3FY26 & Housing finance Loan at 21.3 percent of total AUM as of Q3FY26 along with diversification of revenue into fees based services. The rating remains susceptible to the deterioration in asset quality majorly from the MSME and construction finance portfolio. Further, the rating also factors in moderate seasoning of the scaled-up loan book and its incremental contribution to the profitability indicators, high operating expenses on account of addition of new branches and susceptibility to risk inherent in the MSME and construction finance segment. Going forward, the group’s ability to profitably continue the scale-up in business, particularly the gold loan segment further, raising resources at competitive rates and maintenance of asset quality of its growing portfolio shall remain key monitorable. |
| About the Company |
| Capri Global Housing Finance Limited. (CGHFL) received certificate of registration from NHB on September 28, 2015, to commence operations as a Housing Finance Company. The company is a 100% subsidiary of Capri Global Capital Limited. (CGCL). The company started its operations from December 2015 which is based out of Mumbai. Mr Rajesh Sharma is the primary promoter of the group. |
| About the Group |
|
Capri Global Capital Limited (CGCL) is the flagship company of Capri Group which was incorporated in 1994 which is based in Mumbai. It is non- deposit taking systemically important non-banking finance company(NBFC-ICC) engaged in extending loans to MSMEs loans secured against property and construction finance. CGCL has a subsidiary Capri Global Housing Finance Limited (CGHFL). CGCL’s equity is listed on BSE and NSE with the promoter and promoter group holding ~60 percent as on December 31, 2025. CGCL is promoted by Mr. Rajesh Sharma (Managing Director) and the day-to-day operations are managed by the team led by Mr. Rajesh Sharma.
|
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has consolidated the business and financial risk profiles of Capri Global Capital Limited (Parent Company) and its wholly owned subsidiaries. This consolidation is in the view of the common promoters, shared brand name and strong financial and operation synergies. |
| Key Rating Drivers |
| Strength |
| Experienced management & healthy resources raising ability
Capri group, through its flagship company CGCL, forayed into lending business in 2010, primarily focusing towards wholesale lending and gradually shifted towards a retail book. The Group’s flagship company CGCL is listed on both BSE and NSE. Capri Group is promoted by Mr. Rajesh Sharma, with an experience of around three decades in financial services sector. CGCL has a board comprising of seven members with an experience of more than three to four decades in the banking, financial services, public administration sectors. The promoter group holds ~60 percent and the remaining 40 percent is held by public, which includes mutual funds, foreign portfolio investors, individuals, bodies corporate etc. CGHFL, the housing finance arm of Capri Group is a wholly owned subsidiary of CGCL. On a consolidated basis, CGCL’s Networth stood at Rs. 6,927.2 Cr. and AUM of Rs.30,406.58 Cr. as on December 31, 2025. CGCL’s (standalone) CRAR stood at 30.32 percent as on December 31, 2025 as against 22.84 percent as on March 31, 2025. The company had a QIP equity raise of Rs. 2000 Cr. during Q1FY26 through investors which included Mutual Funds, Domestic and Foreign funds and insurance companies which has helped them augment their capital position. The Group is moderately levered and its consolidated gearing stood at 3.70 times as on March 31, 2025, however the same has improved to 2.8 times as of December 31,2025. Sustained growth in AUM through focus diversification of portfolio Over the last few years, the group has been diversifying its portfolio towards granular MSME and housing loans and into gold loans. The Group’s portfolio comprises of four product verticals namely, loans to MSMEs which are secured against property, housing finance, construction finance, gold loans and indirect lending to smaller NBFCs and MFIs. The company had forayed into the gold loan vertical during FY2023 as a conscious attempt to increase their focus towards diversification of the loan book. CGCL has 910 dedicated branches as of 9MFY26 which has helped them scale up the gold loan book to Rs 12,799.2 Cr. as against Rs 8042.2 Cr. (as on March 31, 2025) in a short span of time. The consolidated Asset Under Management (AUM) increased to Rs. 30,406.58 Cr. as on December 31, 2025 from Rs. 22,860.20 Cr. as on March 31, 2025. The growth in AUM was driven by growth across all product verticals but significant growth seen from the gold loan book. The Group has adopted cautious strategy towards its Construction Finance segment and intends to limit the exposure to Construction Finance to under 20 percent of AUM going forward. Under the construction finance vertical, the company majorly lends to small and medium sized developers with an average ticket size of Rs,7-10 Cr. amidst a range of Rs. 2 Cr. to Rs. 60 Cr. exposure towards a project. Acuité believes that the management’s philosophy of focusing on the retail segment and lending towards granular assets is likely to augur well from a risk standpoint. |
| Weakness |
| Susceptibility of asset quality to inherent risks in MSME segment and real estate sector
Capri Group has a presence in the lending space since 2010. The company’s primary focus of lending is MSME & Housing Finance segment which jointly contributes ~41 percent of the overall portfolio as on December 31, 2025.The Group primarily caters to borrowers who are self employed and are engaged in small businesses and trading activities. The cashflows of these borrowers are dependent on the overall economic activity in the region. The Gross NPAs in the MSME vertical stood at 3.94 percent as on March 31, 2025 and 2.95 percent for 9MFY26.Through its construction finance segment the company continues to be exposed to the vagaries of the real estate industry. Though these exposures are secured by way of an exclusive mortgage of immovable properties with an escrow mechanism. Additionally, a sustained slowdown in funding to the wholesale segment over the near to medium term may adversely impact the developer’s ability to complete the existing projects in a timely manner as well as launch new projects. Acuité has observed that the group’s initiated steps to take on granular exposures by focussing on housing finance. However, since MSME and Construction finance segments comprise considerable portion of the portfolio, the risk of slippage in asset quality will be a key monitorable. Moderate earning profile albeit improving On a consolidated basis, Capri Group’s profitability indicators have improved from FY2025 marked by Return on Average Assets (RoAA) at 2.67 percent as on March 31, 2025. However, the Operating Expenses to Earning Assets (Opex) stood at 6.75 percent as on March 31, 2025 with the Net Interest Margins (NIM) at 9.74 percent as on March 31, 2025. The group’s PAT levels have also improved from FY25 with a PAT of Rs 478.53 Cr. to a PAT of Rs 666.33 Cr. for 9MFY26. Going forward ability of the company to build its loan portfolio while improving its profitability and sustain the growth in its fee based income will remain a monitorable. |
| ESG Factors Relevant for Rating |
| Capri Global Capital Limited (CGCL) belongs to the Non-Banking Financial Companies (NBFC) sector which complements bank lending in India. Some of the material governance issues for the sector are policies and practices with regards to business ethics, board diversity and independence, compensation structure for board and KMPs, role of the audit committee and shareholders’ rights. On the social aspect, some of the critical issues for the sector are the contributions to financial inclusion and community development, sustainable financing including environmentally friendly projects and policies around data privacy. The industry, by nature has a low exposure to environmental risks. CGCL has been focusing on extending loans to MSMEs loans secured against property and construction finance. The Capri group board comprises of five members with an experience of more than three to four decades in the banking, financial services, public administration sectors. The group companies maintains adequate disclosures with respect to the various board level committees mainly audit committee, nomination and renumeration committee along with stakeholder management committee. The group companies also maintains adequate level of transparency with regards to business ethics issues like related party transactions, investors grievances, litigations, and regulatory penalties for the group, if relevant. In terms of its social impact, CGCL is actively engaged in community development programmes through its CSR activities. |
Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
|
| Potential triggers (individual or collective) for a downward rating action: |
|
| Liquidity Position |
| Adequate |
| CGCL has adequately matched asset liability profile with no negative cumulative mismatches in the maturity buckets based on ALM as on December 31, 2025. The liquidity including cash and cash equivalents stood at Rs 4274.4 Cr. as on December 31, 2025 on a consolidated level. |
| Outlook: Stable |
| |
| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
| Key Financials (Consolidated) | ||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Any Other Information |
| None |
| Applicable Criteria |
|
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on complexity levels of the rated instrument |
|
| |
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||
|
||||||||
|
Contacts |
About Acuité Ratings & Research |
