Company Overview & Q1FY27 Update

Strategic Shift & Business Model

Capital Trust Limited is a BSE & NSE listed NBFC with over 40 years of operating history and a distribution network of 250+ branches across 10 states. It has disbursed over ₹4,500 Crore to more than 12 Lakh clients. The company has executed a strategic repositioning from a legacy framework of unsecured MSME-led own-book lending (higher credit exposure, capital-intensive) to a future-ready framework focused on:

  • Secured Gold Loans: Incremental own-book lending focused on secured assets.
  • Partner-Led MSME Loans: Leveraging partnerships (BC and Co-lending) to scale without balance-sheet deployment, moving from full credit risk to zero-recourse and capped-FLDG architectures.

The existing 250+ branch network is repurposed for sourcing, servicing, and collections for both business lines.

Q1 FY27 Executive Update & Key Metrics

The quarter marked a transition from proving the turnaround (Q4FY26) to proving scalable growth.

  • Assets Under Management (AUM): ₹240 Crore, a 52% increase quarter-on-quarter (QoQ) from ₹158 Cr in Q4FY26 and a 44% increase year-on-year (YoY).
  • Quarterly Disbursement: ₹112 Crore, a 24% increase QoQ from ₹89 Cr in Q4FY26. Growth was contributed by both Gold and Partner-Led MSME lending engines.
  • Secured/Zero-Risk AUM: 72% of total AUM, a significant 30% point improvement QoQ from 56% in Q4FY26, indicating a materially improved risk mix.
  • Gold Loan Business: Cumulative disbursements exceeded ₹35 Crore across 6 dedicated branches, achieving a monthly disbursement run-rate of ~₹5 Crore.
  • Asset Quality: Gross NPA (90+ DPD) improved to 2.7% from 2.8% in Q4FY26 and 9.1% in Q1FY26. Net NPA remained at 0% since Q2FY26, supported by a provision cover of over 100%. Legacy unsecured MSME risks were stated to be fully recognized and provided for, with a technical write-off completed in Q4FY26.
  • Capital Adequacy: Stood at a strong 39.8%, a 14% improvement QoQ from 35.0% in Q4FY26, providing a significant buffer for future secured loan growth.
  • Total Income: ₹12.3 Crore, a 28% increase QoQ from ₹9.6 Cr in Q4FY26, driven by higher business volumes.
  • Profit After Tax (PAT): ₹0.20 Crore, marking the second consecutive operating profitable quarter. The PAT in Q4FY26 was a loss of ₹18.2 Cr, which included the impact of the technical write-off.
  • Cost of Borrowing: 15.7%, a slight decrease from 16.0% in Q4FY26.

Gold Loans - Detailed Operations

The Gold Loan product is the principal focus for incremental CTL own-book deployment. It is a branch-led, regulation-first product built to comply with the RBI's June 2025 Unified Gold Loan Directions.

  • Product: Features 20-minute disbursal and release promises. Average ticket size is ~₹1.8 Lakh, with most loans below ₹5 Lakh. Over 90% of loans fund livelihood activities.
  • Technology & Risk Controls (Gold-Tech Model): The operating model is described as 100% cashless and paperless. It employs a "Gold Shield" with 18 layers of AI-powered security. Key risk controls include:
  • Valuation Integrity: Four independent checks (Maker, Checker, AI Vision Third-Eye, Branch Manager) to determine the most conservative lending value.
  • Collateral Security & Custody: Utilizes AI Vision Purity Guard for independent purity assessment and AI Vision Security Guard for end-to-end custody tracking.
  • Funding: Three on-balance sheet lenders have been onboarded to fund the gold loan book.

MSME Loans - Detailed Operations

The Partner-Led MSME business utilizes the 250+ branch network as origination and servicing hubs for partners.

  • Product: Income-generating business loans with ticket sizes between ₹50,000 to ₹3,00,000, tenure of 18-36 months, and starting ROI of 26%. Repayment is digital followed by physical cash collection.
  • Scale: The monthly disbursement run-rate for this segment is ~₹30 Crore.
  • Target Clientele: Informal MSMEs and shopkeepers in rural and semi-urban areas who are new to organized credit and overlooked by formal institutions.

Financial Position (Q1 FY27)

  • Total Assets: ₹105.2 Crore (Q4FY26: ₹111.6 Cr).
  • Loan Portfolio (On-Book): ₹27.4 Crore (Q4FY26: ₹31.3 Cr).
  • Off-Book Portfolio: ₹210.7 Crore (Q4FY26: ₹125.2 Cr), a 68% increase, reflecting the growth in partner-led activities.
  • Borrowings: ₹33.4 Crore (Q4FY26: ₹39.9 Cr).
  • Net Worth: ₹61.7 Crore (Q4FY26: ₹61.5 Cr).
  • Liquidity: Cash and Cash Equivalents stood at ₹3.2 Crore (Q4FY26: ₹1.6 Cr).

FY27 Outlook & Strategy

The company's stated strategy for FY27 is to move from "Proof of Model to Proof of Scale." Key focus areas include:

  • Scaling Gold AUM by directing incremental own-book capital towards secured Gold Loan growth.
  • Raising term debt to utilize low leverage and strong capital adequacy.
  • Improving Gold branch productivity to reach mature monthly origination and profitability levels.
  • Scaling Partner-Led MSME by increasing utilization of the 250+ branch network across BC partnerships.
  • Further improving the risk mix by increasing the proportion of secured/zero-credit-risk AUM.
  • Sustaining profitability by converting growing AUM and fee income into consistent quarterly earnings.

Investor Relations Contacts

  • Vinod Raina, Chief Financial Officer (vinod.raina@capitaltrust.in)
  • Vahin Khosla, Joint-Managing Director (vahin.khosla@capitaltrust.in)