1. At a Glance
Welcome to the Capital India Finance Ltd (CIFL) circus — where the act involves juggling lending, fintech, and forex, all while making investors gasp with“is that profit or illusion?”The ₹1,200 crore smallcap NBFC has seen more plot twists in a year than a daily soap. Once known for real estate lending, it now wears multiple hats: SME finance, education loans, forex remittances, and even prepaid card ventures.
As ofQ2 FY26, the company delivered a quarterly revenue of ₹131 crore but also booked a loss of ₹54 crore — until it pulled off a Houdini move with anexceptional gain of ₹10,638.06 lakh (₹106.38 crore)from selling its home-loan subsidiary. Result: H1 PAT magically became ₹37.81 crore.
Stock at ₹30.8 (down 12.6% in 3 months) trades at aP/B of 1.79,P/E not meaningful,ROCE 6.34%, andROE barely 0.3%. The only constant? Promoters holding a solid72.8%, perhaps to keep the ship from floating into fintech oblivion.
But wait — why is an NBFC dabbling inwholesale bank notes? Because this is Capital India Finance, where “diversification” is another word for “let’s try everything once.”
2. Introduction
Every once in a while, the Indian NBFC world produces a company that’s not just lending money — it’s lendingsurprises. Capital India Finance Ltd is that glorious example.
Founded in 1994, it began like a typical non-banking finance company — lending against property, funding SMEs, and doing some structured deals. Then it caught the fintech bug, the forex fever, and the prepaid card obsession. Today, it runs forex counters, loans for students, SME machinery finance, and even vendor invoice funding — because why should Bajaj Finance have all the fun?
The last few quarters have been… dramatic. Losses in double digits, an RBI intervention here, a divestment there, and then a ₹266.53 crore home-loan subsidiary sale to Weaver Services Pvt Ltd — which, of course, brought the company a one-time joyride gain of ₹106 crore.
It’s like a Bollywood climax — one huge “exceptional item” that saves the day just before the credits roll. But underneath the temporary sparkle lies a serious question: can CIFL turn operational performance around, or is it forever stuck in the remittance-and-other-income lane?
3. Business Model – WTF Do They Even Do?
Capital India Finance Ltd isn’t your typical NBFC. It’s an“integrated financial services platform”(that’s corporate-speak for “we do everything”).
Let’s decode their lineup like a police interrogation chart:
- SME Secured Loans:The bread and butter — funding small and medium businesses. Collateral-heavy, risk-heavy, but at least straightforward.
- Equipment Finance:For SMEs that want to upgrade from jugaad machines to actual equipment.
- Loan Against Property (LAP):The good old mortgage-based lending. High ticket, long tenure, and currently, not-so-high margins.
- Supply Chain & Vendor Finance:Fancy names for giving short-term loans to suppliers and distributors without collateral.
- Education Loans:Because student debt is the new emotional trauma.
- Forex & MTSS Business:Authorized Dealer (Category-II) under RBI — meaning CIFL handles inward money transfers viaWestern Union, and trades in foreign bank notes.
- Prepaid Payment Instruments (PPI):Operated through subsidiaries like Rapipay — selling prepaid cards and payment services.
In short: CIFL is like a buffet — SME finance, fintech, forex, remittance, and education loans. You name it, they probably have a department for it.
The catch? Too many dishes, not enough chefs. And judging by the profit margins, the kitchen needs an audit.
4. Financials Overview
Let’s put the numbers through the magnifying glass — or rather, the microscope.
| Metric (₹ Cr) | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 131 | 143 | 123 | -8.4% | +6.5% |
| EBITDA | -27 | 22 | 22 | -223% | -222% |
| PAT | 45 (after exceptional gain) | 1 | -6 | +4,400% | +850% |
| EPS (₹) | 1.15 | 0.08 | -0.07 | +1,338% | NA |
Without the exceptional gain, PAT would have stayed negative — but hey, accounting
magic works wonders.
Commentary:The quarterly numbers read like a bad relationship — revenue falling, EBITDA turning red, but a one-time gain saving the love story. Theinterest coverage ratio of 0.33tells you the company’s profits can’t even fully cover its interest expenses — that’s like paying EMI with your next EMI.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s apply the three holy valuation metrics: P/E, EV/EBITDA, and DCF — purely foreducationalpurposes.
1. P/E MethodEPS (TTM): ₹1.08Industry P/E: ~21.2→ Theoretical fair value range = ₹22 to ₹45
2. EV/EBITDA MethodEV/EBITDA: 25.4If we assume normalized EBITDA of ₹60 Cr (TTM):→ EV ≈ 25.4 × 60 = ₹1,524 CrSubtract debt (₹700 Cr) → Equity Value ≈ ₹824 Cr→ Fair Value per share = ₹21–₹25
3. DCF SnapshotAssume 10% annual growth for 5 years, discount rate 12% —→ Fair range: ₹28–₹40
Conclusion (Educational Only):📘Fair Value Range: ₹22 – ₹40Disclaimer: This range is for educational analysis only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Grab popcorn. The last few months were a full-blown fintech telenovela:
- Sold its Home-Loan Arm:In August 2025, CIFL soldCapital India Home Loans Ltdto Weaver Services Pvt Ltd for ₹266.53 crore. That deal brought in an exceptional profit of ₹106.38 crore. Cue fireworks.
- Executive Vice Chairman Appointed:RBI approvedSurender Ranaas Executive Vice Chairman (Nov 2025). The man now has three years to pull a fintech miracle.
- NCDs Issued:₹50 crore Non-Convertible Debentures raised in November 2025 — because, why not borrow more?
- Dividend Declared:₹0.02 per share at the AGM. Enough to buy a Parle-G, not much else.
- NSE Listing (April 2025):Finally listed on NSE, making it easier for more people to watch this roller coaster live.
So, what’s cooking? A corporate rebrand with a dash of restructuring and a whole
