Financial Performance FY 2025-26
Capital Trust Limited (also referred to as Credent Capital Limited) reported significant financial stress for the year ended March 31, 2026. The company posted a net loss of ₹4,682.47 lakhs, a sharp reversal from the net profit of ₹111.09 lakhs in FY25. Total income declined 55.9% to ₹4,235.68 lakhs from ₹9,600.03 lakhs, with interest income falling 63.8% to ₹2,206.77 lakhs. The gross loan portfolio contracted substantially to ₹3,285.47 lakhs from ₹8,846.50 lakhs, reflecting the company's strategic reduction in lending operations.
Strategic Business Shift
The company is executing a strategic pivot from predominantly unsecured MSME lending to secured lending with focus on gold loans. This shift responds to significant stress in rural MSME and microfinance portfolios, rising delinquencies, and collection efficiency declines of 300-600 basis points industry-wide. The company has operationalized six dedicated gold loan branches and launched 'Capital Trust Gold Loan' as a digitally enabled, branch-led offering. Additionally, the company entered business correspondent arrangements with Small Finance Banks for asset-light growth where credit cost is borne by partner institutions.
Capital Structure & Rights Issue
The company completed a Rights Issue of 170,099,202 equity shares at ₹14 per share, raising approximately ₹2,381.39 lakhs to strengthen its capital base. This altered the promoter shareholding structure, with Yogen Khosla's stake increasing to 36.96% while Moonlight Equity Private Limited's holding decreased to 17.17%. Despite the challenging environment, the company maintained a strong Capital to Risk-weighted Assets Ratio (CRAR) of 34.98%, with Tier-I CRAR at 34.81%.
Asset Quality & Risk Management
Gross NPAs stood at ₹199.08 lakhs (6.06% of gross advances) with net NPAs at 4.19%. The provision coverage ratio was 30.80%. The company maintains a robust risk management framework addressing credit risk (through location selection and credit bureau checks), operational risk, portfolio concentration risk across 10 states, and gold loan-specific risks with conservative LTV ratios. The company is exposed to credit risk, liquidity risk, and interest rate risk, with ₹35.71 lakhs exposure to variable rate borrowings.
Regulatory Compliance & Corporate Governance
The company, a Base Layer Non-Banking Financial Company registered with RBI, maintains compliance with RBI NBFC Master Directions, Companies Act, 2013, and SEBI Regulations. The board comprises 6 directors with 4 independent directors (67%). Certain undisputed statutory dues remain outstanding for more than six months, including Provident Fund (₹4.16 lakhs), ESI (₹1.10 lakhs), and GST (₹3.99 lakhs). Disputed liabilities include Income Tax demand of ₹216.13 lakhs and various GST demands totaling ₹22.19 lakhs.
Future Outlook & Operations
The company is focused on scaling its gold loan business through branch expansion while leveraging partnership models for asset-light growth. It will maintain strong risk management practices and optimize capital efficiency through its secured lending focus while navigating the challenging rural credit environment with a cautious approach. No dividend was recommended for FY 2025-26 due to losses incurred.