Capital Trust Ltd

Financial performance

• FY2025-26 Total Income: ₹4,235.68 lakhs, down 55.9% YoY.
• Revenue from operations: ₹4,155.33 lakhs.
• EBITDA: ₹-2,416.03 lakhs.
• PBT: ₹-3,643.52 lakhs; PAT: ₹-4,682.47 lakhs.
• Impairment/write-offs: ₹1,233.28 lakhs, elevating credit costs.
• Total expenses: ₹7,879.20 lakhs; cost down 16.5% YoY.
• CRAR: 34.98%; Tier I: 34.81%.

Strategic pivot & business model

• Conscious reset to secured lending, with emphasis on gold loans.
• Shift from unsecured MSME lending toward secured products.
• Gold loan entry launched; six dedicated gold loan branches formed.
• Partnership-driven growth via BC and Lending-as-a-Service models.
• Strengthened risk management and asset-quality focus.

Gold loan operations

• Gold loan entry progressed; six branches operational.
• Gold loans are fully secured with lower credit risk.
• Hybrid model blends digital efficiency with on-ground processes.
• Digital onboarding, streamlined documentation, insured custody of gold.

Capital structure & fundraising

• Rights issue: 1,70,09,702 equity shares at ₹14; ₹2,381.39 lakhs raised.
• Net Debt to Equity: 0.58x; CRAR 34.98% (Tier I 34.81%).
• IEPF transfer of ₹2.76 lakh completed for 2017-18.

Governance & risk

• Board comprises six directors; four are independent.
• Independent directors furnished declarations; governance framework in place.
• Internal controls robust; no material weaknesses observed.
• Secretarial audit: no qualifications; external auditor replacement proposed.

Dividends & CSR

• Dividend policy exists; board may declare dividends; no guaranteed payout.
• Dividend declared for 2025-26: none.

Outlook & risks

• Macro headwinds in rural/ MSME lending persist; secured lending favored.
• Regulatory: RBI risk weights on unsecured lending and co-lending framework.
• Gold loan norms emphasize conservative LTV, due diligence, and auction procedures.

Executive update

• AUM grew 52% QoQ to ₹240 Cr.
• Gold loan disbursements crossed ₹20 Cr; 6 branches active; run-rate ₹5 Cr.
• Partner-led MSME loans originate from 250+ branches; run-rate ₹30 Cr.
• Risk mix improved: 72% secured/zero-risk; GNPA 2.7%; NNPA 0%.
• Three on-balance sheet lenders onboarded for gold loan book.
• PAT ₹0.20 Cr; second consecutive profitable quarter.

Financial performance

• Total Income ₹12.3 Cr; +28% QoQ.
• Total Expenses ₹12.2 Cr; +28% QoQ.
• PBT ₹0.1 Cr; PAT ₹0.2 Cr.
• Net Worth ₹61.7 Cr.
• AUM ₹239.6 Cr; +52% QoQ.
• Secured/No-Risk AUM ₹173.4 Cr.
• On-Book ₹28.8 Cr; Off-Book ₹210.7 Cr.
• Capital Adequacy 39.8%; Cost of Borrowing 15.7%.

Capital structure & funding

• FY26 balance sheet reset: external borrowings reduced; equity strengthened via rights issue.
• FY27 funding strategy: raise incremental term loans; maintain conservative leverage.
• Significant borrowing headroom; capacity to add secured term funding.

Growth & operations

• Gold Loans: 20-minute disbursal and release; RBI Directions aligned.
• Gold-Tech operating model: 100% cashless, AI checks, HO-controlled.
• MSME lending: hybrid-dual credit model; 250+ branches used for origination.

Executive Summary

• Q1FY27 PAT ₹0.20 Cr; profitability restored after FY26 turnaround.

AUM & Disbursements

• Total AUM grew 52% QoQ to ₹239.6 Cr (Own ₹29 Cr; Managed ₹211 Cr).
• Disbursements ₹111.6 Cr, up 24% QoQ.
• Secured/Gold AUM ₹34.7 Cr; +68% QoQ.
• Secured/Zero-Credit Risk AUM ₹173.4 Cr (72% of portfolio).
• Gross NPA 2.7%, Net NPA 0%.
• Leverage 0.6x; CRAR 40%.
• External borrowings ₹15.3 Cr.

Business Model & Growth Initiatives

• Two co-lending partners and three lenders onboarded for secured gold loan book.
• Six gold-loan branches operational; cumulative disbursements > ₹40 Cr; monthly run-rate ≈ ₹5 Cr.
• 250-branch MSME network monetised via partner balance sheets; monthly disbursement run-rate ≈ ₹30 Cr.
• Shift to secured own-book lending and partner-led MSME distribution.

Outlook & Guidance

• FY27 outlook: stronger capital position, low leverage; expand gold loan network and deepen partnerships.
• Plan to raise term borrowings for secured lending; maintain disciplined risk controls.

Board actions

• Board approves unaudited Q1 FY27 results for quarter ended 30 June 2026.
• Term of JKVS Co as statutory auditors completed.
• Recommend appointment of SGR & ASSOCIATES LLP as statutory auditors for five years, subject to members.
• Appointment from FY2026-27 to FY2030-31, subject to regulatory approvals.
• MD declared unmodified opinion on Standalone unaudited results for quarter ended June 30, 2026.
• Annexure A contains auditor appointment details.

Meeting Details

• Board meeting scheduled for Aug 12, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited quarterly results for quarter ended June 30, 2026, with Limited Review report.

Other Notes

• Trading window closed from July 01, 2026 until 48 hours after results are made public Aug 12, 2026.
• Notice of Board Meeting to be uploaded on the company's website.

Capital Trust Limited – Trading Window to remain closed from July 01, 2026 up to completion of 48 hours after the declaration of financial results of the company for the quarter ended on June 30, 2026.

Strategic Entry into Gold Loan Segment

• Capital Trust Limited (CTL) has entered the gold loan market as a new-age challenger.
• CTL operates over 250 branches, primarily in MSME lending before this expansion.
• The company built gold loan operations aligned with latest RBI guidelines and technology.
• CTL uses a modern, app-based, paperless branch model with centralized monitoring.
• Four gold loan branches are operational, including two in Gurgaon, with plans to expand in Delhi NCR.
• CTL has an active co-lending partnership with an NBFC and seeks more partnerships with banks.
• The gold loan business aims to improve balance sheet strength, asset quality, and capital efficiency.

Operational and Technology Investments

• CTL invested in modern branch infrastructure and advanced eight-layer security systems.
• Branches differ from traditional cage-style models to enhance customer experience and risk control.

Governance and Experience

• CTL leverages over 40 years of financial services experience and strong governance framework.

🗓️ Meeting Details

• Board meeting scheduled for February 14, 2026.

📊 Financial Results

• Consider and approve unaudited financial results for quarter ended December 31, 2025.
• Take on record limited review report for quarter ended December 31, 2025.