Capital Small Q1 FY27 Results (NSE: CAPITALSFB)
Signal: Earnings grew
The read
Q1FY27 PAT ₹41.3 Cr +29% YoY, in line with trend; NII growth 19% YoY aided by 22% advance growth and NIM expansion to 4.21%; asset quality improved (GNPA 2.47%, NNPA 1.14%); cost-to-income rose to 59.5% (from 58.2% in Q4FY26) on higher operating expenses; CRAR healthy at 21.58%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹314.3 Cr | 16.41% | 5.16% |
| Net profit | ₹41.3 Cr | 29.02% | |
| EPS | ₹9.09 | 28.39% | |
| EBIT margin | 20.47% |
P&L walk
NII grew 19% YoY to ₹22,860 lakh, driven by 22% advance growth; other income rose 11% to ₹8,570 lakh; operating profit (PPOP) grew 23% YoY to ₹6,435 lakh; PAT up 29% to ₹4,130 lakh; cost-to-income at 59.5%.
Segments
Retail Banking segment drives the group – revenue ₹26,335 lakh (84% of total), PBIT ₹5,944 lakh (74% of segment total); Wholesale Banking revenue up 9% QoQ to ₹3,816 lakh; Other Banking Operations PBIT up 46% QoQ to ₹1,412 lakh.
Key positives
- GNPA improved 7bps QoQ to 2.47% and NNPA improved 10bps to 1.14% – best in last 4 quarters
- NIM expanded 15bps YoY to 4.21%, driven by cost of deposits declining to 5.6% (vs 5.9% Q1FY26)
- Advances grew 22% YoY to ₹9,074 Cr, with MSME segment surging 49% YoY
- CASA ratio improved to 36.7% (from 34.7% in Q4FY26), aided by deposit growth of 16% YoY
Key concerns
- Cost-to-income ratio increased to 59.5% (from 58.2% in Q4FY26), as operating expenses grew 20% YoY vs revenue growth of 16%
- Provisions (other than tax) jumped 53% YoY to ₹884 lakh, though credit cost remains low at 0.31% annualized
- CRAR declined to 21.58% (from 22.31% in Q4FY26) due to asset growth; still comfortably above regulatory minimum
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