Godrej Capital, the non-banking finance arm of Godrej Industries Group, is targeting profit before tax of Rs 175 crore in the current financial year. The company turned profitable in the financial year 2024 with a profit of Rs 56 crore.
Godrej Capital is also looking to list in the next four years
Godrej Capital, the non-banking finance arm of Godrej Industries Group, is targeting profit before tax of Rs 175 crore in the current financial year. The company turned profitable in the financial year 2024 with a profit of Rs 56 crore.
Speaking to media in the national capital, Manish Shah, Managing Director and CEO at Godrej Capital, said that the company will foray into the affordable housing segment by the end of this year. "Our loan book was at Rs 13,000 crore as of September 1. By the end of this financial year, we should be around Rs 17,000 crore," he said.
Its loan book is expected to grow to Rs 30,000 crore by March 2026. Godrej Capital has two separate offerings: housing finance and loans for small businesses. Of the total Rs 13,000 crore loan book, small businesses constitute Rs 8,000 crore while the remaining is in the housing business.
Post the introduction of affordable housing loans, Shah said the momentum will pick up in the growth of the loan book. He added that after it reaches a certain size, Godrej Capital would look to list. "For a company like ours, it would make sense to list because of regular fund requirements," he said. The company might hit the bourses in the next three to four years.
Godrej Capital is present in 40 cities across the country right now and the presence will increase to 100 cities in the next four years. The company's loan book is expected to grow to Rs 50,000 crore by the end of the financial year 2028.
Loans to small businesses will be about two thirds of the loan book as the company feels it's a space where it can offer differentiated services. Shah said, "There is a great opportunity in the small business segment. We have not found the right opportunities in consumer loans. "
To keep pace with other competitors, the company also plans to invest Rs 300 crore to enhance its digital capabilities. Its bid to expand in smaller towns and villages in the country will also lead to partnerships with other NBFCs through the co-lending model.