Finance - NBFC · Founded 1994 · www.capitalindia.com · BSE 530879 · NSE CIFL · ISIN INE345H01024
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Business
Capital India Finance Ltd. (CIFL) operates as a Non-Banking Financial Company (NBFC) in India. Its core business involves providing a range of financial services, primarily focused on lending. The company typically caters to various segments including corporate finance, structured finance, and potentially SME (Small and Medium-sized Enterprises) lending. CIFL generates revenue primarily through net interest income earned on its loan portfolio, as well as fees from advisory and financial services. Its business model relies on borrowing funds from banks, financial institutions, and capital markets, and then lending these funds at higher interest rates, managing the interest rate spread and credit risk.
Revenue Mix
While specific revenue breakdowns are not publicly detailed in the prompt, NBFCs like CIFL often operate across several lending segments. Typical segments could include:
Corporate Finance: Providing structured credit solutions, working capital loans, and term loans to mid-sized and large corporations.
Structured Finance: Tailored financial solutions for specific projects or assets, often involving complex financial instruments.
Real Estate Finance: Lending to developers for various real estate projects (residential, commercial, plotted development).
SME Lending: Providing financial assistance to small and medium enterprises for their business expansion, working capital, or asset acquisition needs.
The primary source of revenue for CIFL, like most NBFCs, would be net interest income from its loan book.
Industry
The Indian finance industry, particularly the NBFC sector, is highly diverse and competitive. It includes large, diversified NBFCs, specialized players, and numerous smaller entities. The sector is regulated by the Reserve Bank of India (RBI). CIFL operates within this competitive landscape, contending with commercial banks and other NBFCs for clients and funding. Its positioning is likely as a mid-sized to smaller NBFC that aims to carve out niches in corporate and structured finance, often by offering more flexible and customized solutions compared to larger banks, or by catering to segments underserved by traditional banking.
MOAT
For a company like CIFL, durable competitive advantages (moats) can be challenging to establish in the fragmented Indian NBFC sector. Potential advantages could include:
Niche Expertise: Specialization in complex structured finance or specific corporate lending segments where larger banks may be less agile.
Relationship-based Lending: Strong relationships with clients and borrowers built over time, leading to repeat business and deeper understanding of borrower needs.
Efficient Underwriting & Risk Management: Superior ability to assess and price risk in its chosen segments, leading to better asset quality.
Agility & Flexibility: Being smaller than large banks, CIFL can often offer quicker turnaround times and more customized solutions, which can be attractive to specific client segments.
However, CIFL is unlikely to possess scale advantages in funding costs or a dominant brand presence compared to leading financial institutions.
Growth Drivers
Key factors that could drive CIFL's growth over the next 3-5 years include:
Economic Growth: Robust growth in the Indian economy generally fuels credit demand across corporate and SME segments.
Increased Credit Demand: Rising capital expenditure by corporates and growth in the real estate sector can drive demand for structured and corporate finance.
Financial Inclusion Gaps: Ability to tap into segments or geographies underserved by larger banks and NBFCs.
Technology Adoption: Leveraging technology for efficient credit assessment, faster loan processing, and improved customer experience, potentially leading to lower operational costs and better reach.
Strategic Expansion: Expanding into new high-growth segments or geographies where it can leverage its expertise.
Risks
Capital India Finance Ltd., like other NBFCs, faces several inherent risks:
Asset Quality Deterioration: Non-Performing Assets (NPAs) can rise due to economic downturns, sector-specific challenges (e.g., real estate slowdown), or poor credit underwriting, directly impacting profitability and capital.
Liquidity Risk: Inability to raise funds at competitive rates or roll over existing debt, particularly during periods of tight credit markets, can severely impact operations.
Interest Rate Risk: Mismatches in asset and liability tenors or adverse movements in interest rates can compress Net Interest Margin (NIM).
Regulatory Risk: Tightening of RBI regulations concerning capital adequacy, provisioning norms, or asset classification can increase compliance costs and restrict lending operations.
Competition: Intense competition from banks and larger NBFCs can lead to pressure on lending rates and margins.
Funding Cost Risk: Reliance on wholesale funding sources can expose the company to volatility in interest rates and market sentiment.
Management & Ownership
In the Indian NBFC sector, the quality and integrity of promoters and management are paramount, as they are crucial for setting the strategic direction, managing risk, and attracting capital. For CIFL, promoter holding is typically significant, which can provide stability but also concentrate control. The management team's experience in financial services, particularly in credit assessment, risk management, and fundraising, is critical for navigating the complexities of the NBFC business and ensuring sustainable growth and asset quality.
Outlook
Capital India Finance Ltd. operates in a dynamic Indian financial sector that offers growth opportunities driven by the country's economic expansion and persistent demand for credit. The company's ability to identify and profitably serve niche segments, coupled with efficient risk management and a robust funding strategy, will be key to its success.
The bull case would see CIFL effectively capitalizing on credit demand in its chosen segments, maintaining strong asset quality, managing its cost of funds, and expanding profitably. The bear case involves heightened competition leading to margin compression, unexpected deterioration in asset quality due to economic headwinds or specific sector risks, and challenges in raising capital at favorable rates, which are common risks for mid-tier NBFCs. Overall, CIFL's future performance will largely depend on its execution capabilities, prudent risk management, and the overall stability of the Indian economy and financial markets.
| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 167 | 158 | 143 | 135 | 122 | 126 | 131 | 147 | 125 | 128 |
| Other Income | 2 | 1 | 2 | 0 | 2 | 0 | 1 | 1 | 3 | 1 |
| Total Income | 170 | 159 | 144 | 135 | 124 | 126 | 132 | 148 | 128 | 129 |
| Total Expenditure | 140 | 133 | 121 | 110 | 100 | 104 | 158 | 124 | 102 | 104 |
| Operating Profit | 30 | 26 | 24 | 25 | 24 | 22 | -26 | 24 | 26 | 25 |
| Interest Expense | 25 | 26 | 17 | 19 | 19 | 20 | 20 | 22 | 22 | 25 |
| Depreciation | 7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 8 |
| Profit Before Tax | -2 | -8 | -1 | -2 | -3 | -6 | 52 | -6 | -4 | -8 |
| Provision for Tax | 2 | -1 | 1 | 1 | 0 | 0 | 6 | -1 | -1 | 1 |
| Profit After Tax | -4 | -6 | -2 | -3 | -3 | -6 | 46 | -5 | -3 | -10 |
| Adjustments | 5 | 5 | 5 | 3 | 2 | 3 | -1 | 2 | 3 | 6 |
| Profit After Adjustments | 1 | -2 | 3 | 1 | -1 | -3 | 45 | -3 | -0 | -3 |
| Adjusted Earnings Per Share | 0 | -0 | 0.1 | 0 | -0 | -0.1 | 1.2 | -0.1 | -0 | -0.1 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Revenue | 26 | 60 | 179 | 318 | 530 | 652 | 683 | 546 | 528 | 531 |
| Other Income | 0 | 0 | 0 | 0 | 2 | 5 | 6 | 4 | 5 | 6 |
| Total Income | 26 | 60 | 179 | 318 | 532 | 657 | 688 | 550 | 533 | 537 |
| Total Expenditure | 11 | 31 | 127 | 265 | 477 | 624 | 562 | 456 | 483 | 488 |
| Operating Profit | 15 | 28 | 53 | 54 | 55 | 33 | 126 | 94 | 49 | 49 |
| Interest Expense | 10 | 9 | 17 | 24 | 51 | 84 | 105 | 75 | 87 | 89 |
| Depreciation | 0 | 8 | 12 | 15 | 21 | 25 | 30 | 31 | 31 | 31 |
| Profit Before Tax | 4 | 11 | 24 | 15 | -18 | -85 | 1 | -12 | 37 | 34 |
| Provision for Tax | 2 | 5 | 10 | 9 | 3 | 2 | 8 | 1 | 5 | 5 |
| Profit After Tax | 3 | 7 | 14 | 6 | -21 | -87 | -6 | -13 | 32 | 28 |
| Adjustments | 0 | 0 | 3 | 4 | 18 | 45 | 18 | 15 | 7 | 10 |
| Profit After Adjustments | 3 | 7 | 17 | 10 | -3 | -42 | 12 | 2 | 39 | 39 |
| Adjusted Earnings Per Share | 1.1 | 0.2 | 0.4 | 0.2 | -0.1 | -1.1 | 0.3 | 0 | 1 | 1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -3% | -7% | 11% | 0% |
| Operating Profit CAGR | -48% | 14% | -2% | 0% |
| PAT CAGR | 0% | 0% | 40% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -48% | -9% | -5% | 21% |
| ROE Average | 5% | 1% | -3% | 3% |
| ROCE Average | 8% | 6% | 4% | 5% |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 132 | 508 | 521 | 563 | 621 | 606 | 623 | 628 | 673 |
| Minority's Interest | 0 | 0 | 5 | 34 | 73 | 51 | 37 | 25 | 17 |
| Borrowings | 7 | 6 | 40 | 122 | 122 | 81 | 536 | 588 | 551 |
| Current Liability | 15 | 159 | 153 | 325 | 810 | 1058 | 591 | 588 | 577 |
| Other Liabilities & Provisions | 3 | 4 | 2 | -6 | -7 | -11 | 4 | 13 | 17 |
| Total Liabilities | 156 | 676 | 721 | 1038 | 1619 | 1784 | 1791 | 1842 | 1836 |
| Loans | 0 | 0 | 0 | 0 | 0 | 0 | 1241 | 1296 | 1127 |
| Investments | 0 | 24 | 9 | 0 | 10 | 44 | 10 | 10 | 58 |
| Fixed Assets | 8 | 31 | 47 | 56 | 78 | 81 | 94 | 90 | 84 |
| Other Loans | 15 | 8 | 13 | 10 | 17 | 20 | 0 | 0 | 9 |
| Other Non Current Assets | 2 | 4 | 2 | 7 | 15 | 41 | 83 | 74 | 47 |
| Current Assets | 130 | 610 | 651 | 964 | 1501 | 1598 | 362 | 372 | 510 |
| Total Assets | 156 | 676 | 721 | 1038 | 1619 | 1784 | 1791 | 1842 | 1836 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 53 | 22 | 29 | 68 | 142 | 198 | 239 | 237 | 162 |
| Cash Flow from Operating Activities | -5 | -453 | 30 | -69 | -313 | -23 | 121 | -187 | -364 |
| Cash Flow from Investing Activities | -21 | -29 | 5 | -87 | -110 | -16 | 1 | -2 | 292 |
| Cash Flow from Financing Activities | -6 | 490 | -17 | 231 | 480 | 80 | -124 | 113 | 143 |
| Net Cash Inflow / Outflow | -32 | 8 | 19 | 74 | 56 | 41 | -2 | -75 | 70 |
| Closing Cash & Cash Equivalent | 22 | 29 | 68 | 142 | 198 | 239 | 237 | 148 | 223 |
| # | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 1.14 | 0.17 | 0.44 | 0.25 | -0.07 | -1.07 | 0.3 | 0.04 | 0.99 |
| CEPS(Rs) | 1.32 | 0.36 | 0.65 | 0.53 | 0.01 | -1.6 | 0.61 | 0.47 | 1.62 |
| DPS(Rs) | 0.14 | 0.08 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0 |
| Book NAV/Share(Rs) | 2.77 | 13.05 | 13.38 | 14.44 | 15.82 | 14.75 | 15.07 | 15.22 | 16.22 |
| Net Profit Margin | 10.71 | 10.93 | 7.73 | 1.91 | -3.91 | -13.36 | -0.94 | -2.38 | 6.05 |
| Operating Margin | 56.82 | 34.65 | 22.89 | 12.25 | 6.34 | -0.18 | 15.6 | 11.58 | 23.57 |
| PBT Margin | 17.03 | 18.8 | 13.58 | 4.63 | -3.32 | -13.11 | 0.19 | -2.18 | 7.01 |
| ROA(%) | 1.79 | 1.56 | 1.98 | 0.69 | -1.56 | -5.12 | -0.36 | -0.72 | 1.74 |
| ROE(%) | 41.36 | 2.53 | 2.7 | 1.13 | -3.52 | -14.66 | -1.11 | -2.21 | 5.21 |
| ROCE(%) | 10.67 | 5.3 | 6.4 | 5.19 | 3.04 | -0.08 | 7.08 | 4.07 | 7.77 |
| Price/Earnings(x) | 6.24 | 161.21 | 38.35 | 117.21 | 0 | 0 | 88.09 | 766.08 | 20.84 |
| Price/Book(x) | 2.58 | 2.07 | 1.27 | 2.01 | 1.58 | 1.23 | 1.75 | 2 | 1.28 |
| Dividend Yield(%) | 2.01 | 0.3 | 0.12 | 0.07 | 0.08 | 0.11 | 0.08 | 0.07 | 0 |
| EV/Net Sales(x) | -0.29 | 19.25 | 3.98 | 3.75 | 2.54 | 1.97 | 2.36 | 3.5 | 2.73 |
| EV/Core EBITDA(x) | -0.49 | 40.53 | 13.56 | 22.26 | 24.64 | 38.69 | 12.73 | 20.24 | 29.18 |
| Interest Earned Growth(%) | 0 | 128.6 | 201.05 | 77.62 | 66.42 | 22.96 | 4.76 | -19.99 | -3.32 |
| Net Profit Growth | 0 | 133.43 | 112.92 | -56.1 | -440.06 | -320.78 | 92.61 | -102.15 | 345.72 |
| EPS Growth(%) | 0 | -85.36 | 164.7 | -44.27 | -128.82 | -1401.79 | 128.02 | -86.72 | 2398.74 |
| Interest Coverage(x) % | 1.43 | 2.19 | 2.46 | 1.61 | 0.66 | -0.01 | 1.01 | 0.84 | 1.42 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 73.04 | 73.04 | 73.04 | 73.02 | 72.95 | 72.87 | 72.84 | 72.59 | 72.59 | 72.59 |
| FII | 0 | 0 | 0 | 0 | 0.13 | 0.28 | 0.08 | 0.06 | 0.03 | 0.02 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.03 |
| Public | 26.96 | 26.96 | 26.96 | 26.98 | 26.92 | 26.85 | 27.08 | 27.35 | 27.38 | 27.36 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 5.68 | 5.68 | 5.68 | 5.68 | 28.39 | 28.39 | 28.39 | 28.39 | 28.39 | 28.39 |
| FII | 0 | 0 | 0 | 0 | 0.05 | 0.11 | 0.03 | 0.02 | 0.01 | 0.01 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.01 |
| Public | 2.1 | 2.1 | 2.1 | 2.1 | 10.48 | 10.46 | 10.55 | 10.7 | 10.71 | 10.7 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 7.77 | 7.77 | 7.77 | 7.78 | 38.91 | 38.96 | 38.97 | 39.11 | 39.11 | 39.11 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -3% | -7% | +11% | — |
| Operating Profit CAGR | -48% | +14% | -2% | — |
| PAT CAGR | — | — | +40% | — |
| Share Price CAGR | -48% | -9% | -5% | +21% |
| ROE Average | +5% | +1% | -3% | +3% |
| ROCE Average | +8% | +6% | +4% | +5% |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 73.04 | 73.04 | 73.04 | 73.02 | 72.95 | 72.87 | 72.84 | 72.59 | 72.59 | 72.59 |
| FII | 0 | 0 | 0 | 0 | 0.13 | 0.28 | 0.08 | 0.06 | 0.03 | 0.02 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.03 |
| Public | 26.96 | 26.96 | 26.96 | 26.98 | 26.92 | 26.85 | 27.08 | 27.35 | 27.38 | 27.36 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 5.68 | 5.68 | 5.68 | 5.68 | 28.39 | 28.39 | 28.39 | 28.39 | 28.39 | 28.39 |
| FII | 0 | 0 | 0 | 0 | 0.05 | 0.11 | 0.03 | 0.02 | 0.01 | 0.01 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.01 |
| Public | 2.1 | 2.1 | 2.1 | 2.1 | 10.48 | 10.46 | 10.55 | 10.7 | 10.71 | 10.7 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 7.77 | 7.77 | 7.77 | 7.78 | 38.91 | 38.96 | 38.97 | 39.11 | 39.11 | 39.11 |
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