Capri Global Capital (NSE: CGCL) launches Auto Pay for gold loans as stock trades near 52-week low

Capri Global Capital Limited (NSE: CGCL) has launched an Auto Pay facility for its gold loan segment in a strategic move to bolster digital repayment capabilities and enhance customer convenience. The new feature, announced on June 6, 2025, allows loan EMIs to be automatically debited from registered bank accounts, reducing payment friction and operational delays.

The announcement comes at a critical juncture for the non-banking financial company, which has seen rapid growth in its gold loan portfolio over FY25. However, despite this operational momentum, Capri Loans’ stock closed marginally lower at ₹153.00 on Friday, hovering just above its 52-week low of ₹150.51, even as trading volumes crossed ₹242 crore on the NSE. The stock remains part of the NIFTY 500 and is tracked closely by institutional and retail participants alike.

Why did Capri Global Capital launch Auto Pay for gold loan customers?

The Auto Pay feature has been positioned as a customer-centric digital enhancement that automates gold loan repayments through standing instructions. It eliminates the need for manual payments or in-branch visits and ensures timely EMI deductions from linked bank accounts. The feature is expected to drive better repayment discipline, lower delinquencies, and improve user satisfaction.

Ravish Gupta, Business Head for Gold Loans at Capri Global Capital, said the offering is part of the company’s broader vision to create a “phygital ecosystem”—one that blends human-led service with digital convenience. According to him, Auto Pay addresses a long-standing challenge in secured retail lending: frequent missed payments due to forgetfulness or operational barriers, especially in semi-urban and rural markets.

This launch builds on Capri Loans’ existing digital initiatives, including an AI-powered WhatsApp chatbot that enables gold loan customers to check dues, make payments, and download documents anytime, without physical intervention.

How important is gold lending to Capri Loans’ growth strategy?

Gold loans have become the fastest-growing segment for Capri Global Capital. According to its latest quarterly financials, the gold loan book rose 130.4% year-on-year to ₹8,042 crore in Q4 FY25, up from ₹3,491 crore in the same quarter last year. This outpaced all other product lines, including MSME loans, construction finance, and affordable housing.

The Auto Pay feature directly complements this surge, especially as Capri Loans continues to expand its branch footprint across high-growth, credit-starved regions in Northern and Western India. The company’s gold loan strategy hinges on combining competitive interest rates with tech-enabled servicing tools to capture underbanked segments.

With more than 7 lakh live customer accounts and 1,111 branches as of March 2025, the company’s expanding footprint offers both the reach and scale required for mass adoption of features like Auto Pay.

Why is the stock under pressure despite fintech upgrades and strong earnings?

Capri Loans shares closed at ₹153.00 on June 6, 2025, a decline of 0.65% from the previous session. The counter traded between ₹151.60 and ₹159.07 during the day, with a delivery volume of 68.15%, suggesting long-term investor participation despite near-term caution.

The stock has fallen sharply from its 52-week high of ₹236.25, and currently trades at a P/E ratio of 26.55 with a market capitalisation of ₹12,624 crore. While earnings momentum remains intact, the stock’s muted response to recent triggers—such as the Auto Pay rollout and Q4 results—suggests broader concerns around valuations, macro tightening, and sectoral headwinds for NBFCs.

Notably, the adjusted price band for CGCL is ₹123.20 to ₹184.80, and with high annualised volatility at 57.31%, the market appears to be waiting for stronger triggers before a re-rating.

What did Capri Global Capital achieve in Q4 FY25?

Though the Auto Pay feature is the latest development, Capri Loans’ performance in Q4 FY25 serves as a foundational strength. The company reported consolidated Assets Under Management (AUM) of ₹22,857 crore, growing 46% year-on-year. Disbursements reached ₹8,389 crore for the quarter, up 41% YoY.

Net profit (PAT) for Q4 FY25 stood at ₹178 crore, a 115% increase YoY and 39% sequential growth. For the full year FY25, PAT came in at ₹479 crore—up 71% YoY—supported by margin expansion, strong co-lending contributions, and improved cost structures. Net interest income for the year reached ₹1,332 crore, reflecting a 35% increase over FY24.

Operational efficiency improved significantly, with the cost-to-income ratio falling to 54.8% in Q4FY25 from 70.5% a year earlier. The company also recorded a robust Return on Equity (RoAE) of 16.9% and Return on Assets (RoAA) of 3.6%, underscoring disciplined capital deployment.

How does the Auto Pay feature align with CGCL’s digital strategy?

The Auto Pay facility is not an isolated initiative—it is emblematic of CGCL’s broader digital transition. The company is steadily converting operational workflows, customer interfaces, and collections into tech-enabled processes. This approach is not only driving scale but also reducing risk in customer servicing.

In FY25, Capri also scaled its WhatsApp chatbot services, digitised document management, and upgraded its co-lending infrastructure with 12 bank partners. The result: co-lending AUM rose to ₹4,079 crore, accounting for 17.8% of the total portfolio. The tech backbone is enabling faster disbursals, lower collection costs, and smoother compliance—all of which are critical to scaling in underserved regions.

According to founder and Managing Director Rajesh Sharma, the company’s goal is to reach ₹50,000 crore in AUM by FY28 with a sustainable RoAE of 16–18%. He noted that digital transformation, particularly in high-yield products like gold loans and co-lending, is essential to achieving this target.

How is Capri Loans managing risk and capital adequacy?

The company continues to maintain strong asset quality. Gross Stage 3 NPAs declined to 1.5% in Q4FY25 from 1.9% the previous year. Net Stage 3 ratio also improved to 0.9%, supported by a 41.7% provision coverage ratio. Credit costs for FY25 declined to 0.63%, down from 0.79% in FY24—reflecting analytics-led underwriting and better borrower segmentation.

Capital adequacy remains strong, with a standalone Capital Adequacy Ratio (CAR) of 22.8%. The affordable housing subsidiary, Capri Global Housing Finance Limited (CGHFL), reported an even higher CAR of 26.9%, reinforcing the group’s conservative capital management framework.

What’s next for CGCL and its fintech roadmap?

Looking ahead, Capri Global Capital is expected to continue doubling down on digital repayment and servicing tools. The Auto Pay feature could see extensions into MSME and construction finance portfolios. Analysts are also watching for potential integrations with UPI autopay, cross-sell automation in insurance, and enhanced analytics for delinquency prediction.

Investor sentiment may improve as more evidence emerges around reduced collection costs and higher customer stickiness in the gold loan segment. The high delivery volumes seen on June 6, despite the price decline, suggest accumulating interest from long-term participants.

If CGCL can sustain margin expansion while tightening operational execution through tech, a re-rating could follow—especially in the context of rising NBFC digitisation across the board.