Capri Global Q2 FY27 Results (NSE: CGCL)
Signal: Earnings grew
The read
The trajectory remains earnings-positive: Q2FY27 total income grew 60.9% YoY and PAT grew 66.9% to ₹3,533.14 million, with PAT also up 12.5% QoQ. However, impairment expense rose 252.0% YoY to ₹701.06 million and operating cash flow was negative ₹42,362.21 million in H1FY27, so the next thesis checkpoint is whether rapid loan growth converts into cash without deterioration from the current 1.26% GNPA and 0.85% NNPA.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,403.01 Cr | +60.9% | +13.3% |
| Net profit | ₹353.31 Cr | +66.9% | |
| EPS | ₹3.67 | +66.8% | |
| EBIT margin | 0 |
P&L walk
Q2FY27 total income increased to ₹14,030.11 million, up 60.9% YoY and 13.3% QoQ; PAT rose 66.9% YoY to ₹3,533.14 million despite impairment expense increasing 252.0% YoY to ₹701.06 million.
Key positives
- Total income reached ₹14,030.11 million, up 60.9% YoY and 13.3% QoQ, with interest income up 70.0% YoY to ₹12,244.70 million.
- PAT increased 66.9% YoY to ₹3,533.14 million and 12.5% QoQ, while basic EPS rose 66.8% YoY to ₹3.67.
- Employee benefits and other expenses rose 33.1% YoY to ₹3,155.81 million, materially slower than total income growth.
- Asset quality remained contained at 1.26% GNPA and 0.85% NNPA, with CAR at 22.72%.
Key concerns
- Impairment on financial instruments rose 252.0% YoY to ₹701.06 million and 77.9% QoQ, materially outpacing income growth.
- Operating cash flow was negative ₹42,362.21 million in H1FY27 versus negative ₹15,950.69 million in H1FY26, primarily reflecting a ₹51,589.88 million increase in loans.
- Finance costs rose 67.9% YoY to ₹5,195.67 million, faster than the 60.9% increase in total income.
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