CP Capital Q1 FY27 Results (NSE: CPCAP)
Signal: Earnings grew
The read
The operating inflection is lower impairment expense—consolidated impairment fell to ₹14.19 lakh from ₹159.88 lakh YoY—lifting PAT to ₹1,331.29 lakh, but the trajectory is not yet clean because gross loan book fell to ₹394.2 crore from ₹442.12 crore and NNPA increased to 7.3% from 6.7% even as GNPA ratio improved to 8.9% from 18.76%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹21.98 Cr | +13.17% | +18.04% |
| Net profit | ₹13.31 Cr | +23.49% | |
| EPS | ₹7.32 | +23.44% | |
| EBIT margin | 0% |
P&L walk
Consolidated revenue rose to ₹2,197.53 lakh, +13.17% YoY and +18.04% QoQ; EBITDA increased to ₹20.5 crore, +36% QoQ, while PAT rose to ₹1,331.29 lakh, +23.49% YoY, helped by lower impairment but partly offset by higher finance costs and tax.
Segments
The Financing Division drove the group with ₹1,910.33 lakh of revenue and ₹1,612.19 lakh of segment result, while Infra contributed ₹284.34 lakh of revenue and ₹172.60 lakh of result; financing remained the dominant earnings engine at approximately 87% of segment revenue.
Key positives
- Consolidated PAT reached ₹1,331.29 lakh, +23.49% YoY and +45.70% QoQ, while EBITDA increased 36% QoQ to ₹20.5 crore.
- Gross NPA declined to ₹35.21 crore from ₹79.90 crore and GNPA ratio improved to 8.9% from 18.76%; 99.90% of residual NPAs are secured with approximately 2.5x collateral coverage.
- Standalone impairment expense fell to ₹14.19 lakh from ₹159.88 lakh YoY, materially improving earnings conversion.
- Debt-to-equity improved from 0.16x to 0.14x, leaving reported balance-sheet headroom for growth.
Key concerns
- Gross loan book declined to ₹394.2 crore from ₹442.12 crore, or approximately -10.8% sequentially, despite management stating that the loan book grew 5.6% QoQ in the investor note.
- Net NPA ratio increased to 7.3% from 6.7% even as gross NPAs fell, indicating that provisioning coverage or the residual stressed pool requires monitoring.
- Finance costs rose 71.54% YoY to ₹190.03 lakh on a consolidated basis, materially faster than revenue growth of 13.17% YoY.
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