Business Update Overview

This is a business update disclosure pursuant to Regulation 30 of SEBI LODR Regulations, 2015, detailing the scaling of Capital Trust Limited's technology-driven gold loan business from a pilot to an operational platform.

Gold Loan Business Performance and Scaling

  • The gold loan business was launched in October 2025 from two pilot branches in Aligarh and Prahladpur (Delhi).
  • It has now scaled to six dedicated gold loan branches.
  • The current monthly disbursement run-rate is ₹5–6 Crore.
  • Cumulative disbursements have exceeded ₹45 Crore across more than 1,800 customers.
  • Gold and secured loan Assets Under Management (AUM) stand at ₹35 Crore.
  • The first branch in Aligarh has disbursed over ₹19 Crore in its first eleven months and became profitable in its fourth month of operation.
  • The operational playbook and technology stack from Aligarh are being replicated across all six branches.

A-Eye Technology Platform & Risk Mitigation

The update focuses on the proprietary 'A-Eye' technology platform designed to mitigate the three inherent risks in gold lending:

1. Valuation Risk (A-Eye Valuation Guard)

  • Every ornament is assayed in front of the customer on camera and valued three times independently.
  • Two blind human valuations by testers on separate calibrated machines.
  • One independent AI (A-Eye) valuation of karat, weight, and value.
  • Any variance between the valuations is flagged before disbursal.
  • The Branch Manager confirms the final value, and Head Office reviews all data, gives final approval, and disburses the loan.
  • Valuers at a central hub supervise every assay live.

2. Custody Risk (A-Eye Security Guard)

  • Each sealed packet is tracked by A-Eye throughout its journey.
  • The system verifies packet numbers and placement before storage.
  • A continuous, time-stamped visual record covers the strong room and safe.
  • Any off-pattern access is flagged to Head Office in real-time.
  • Every packet is reconciled daily.
  • Before release, A-Eye confirms it is the same packet at the same weight.
  • Gold is handed back only after a live photo and Aadhaar match.
  • The technology sits within an 18-layer security architecture, including Head Office-controlled branch entry and strong room, automatic branch lockdowns, a remotely locked inner safe, intrusion detection, and silent panic alarms.

3. Cash Risk (Zero-Cash Branch Model)

  • Gold branches have no cash counters.
  • Every repayment is collected through the company's app.
  • Customers can top-up against pledged gold 24/7 from the app, with charges shown upfront and funds credited to their bank account.
  • The model is fully paperless, with every record digital and time-stamped.
  • The process is designed for 20-minute disbursal and 20-minute release.

Platform Operations and Partnerships

  • The technology platform connects four points of control: the branch, A-Eye, Head Office, and the customer app.
  • The same platform runs the company's two live gold loan co-lending partnerships, handling escrow flows, real-time tracking, reconciliation, and reporting digitally.
  • Every new branch goes live on the full technology stack from day one.

Funding

  • The gold loan business has received term loan sanctions from IDFC FIRST Bank and Shriram Finance.

Provisional Company-Wide Financial Snapshot (Q2FY27)

  • Provisional AUM stood at approximately ₹300 Crore, up from ₹239.6 Crore in Q1FY27.
  • Approximately 80% of AUM is secured or carries zero credit risk.
  • Gross NPA was approximately 2.5%.
  • Net NPA was 0.0%.
  • Debt to tangible net worth was below 1x.
  • These figures are unaudited and subject to Board approval.

Management Commentary

Vahin Khosla, Joint Managing Director, stated: "We built technology into the three places where risk sits in gold lending: valuation, custody and cash. A-Eye is an independent third eye on every ornament and every sealed packet. It values without staff input, watches custody round the clock and logs every step, while final approval and disbursement sit with Head Office. That is what allows us to replicate the Aligarh playbook branch after branch without diluting control."

Company Background

Capital Trust Limited is an NBFC listed on BSE and NSE, established in 1985. It has over 250 branches across 10 states and 74 districts and has disbursed over ₹4,500 Crore to more than 12 lakh clients. The company lends against gold on its own balance sheet and originates MSME loans through business correspondent partnerships.

Forward-Looking Statements & Disclaimer

The release contains forward-looking statements subject to risks and uncertainties. Q2FY27 figures are provisional and unaudited.