Ugro Capital Limited has released the audio recording of its earnings conference call, providing investors with a detailed discussion of the company’s unaudited financial results for the quarter ended June 30, 2026. The recording covers both standalone and consolidated performance metrics and is now available for public access on the company’s official website. This disclosure ensures transparency regarding Ugro Capital's Q1FY26 performance, allowing stakeholders to review management commentary alongside the reported numbers.

The conference call took place on August 5, 2026, shortly after the announcement of the quarterly results. In compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Ugro Capital submitted the link to the audio recording to both the Bombay Stock Exchange and the National Stock Exchange of India. This regulatory filing serves as a formal record of the investor communication process.

Accessing the Earnings Call

Investors and analysts can access the full audio recording through the company’s investor relations portal. The link is categorized under 'Investor Downloads' and specifically under the 'Earnings Call Recordings' subcategory. This centralized repository allows users to review historical earnings calls and current quarter discussions efficiently.

Regulatory Compliance and Disclosure

The submission was signed by Satish Kumar Chelladurai, the Company Secretary and Compliance Officer of Ugro Capital Limited. The digital signature confirms the authenticity of the document dated August 5, 2026. By making the recording publicly available, the company adheres to standard market practices for post-result investor engagement.

The availability of this recording is particularly relevant for investors seeking context behind the financial figures reported for Q1FY26. While the filing itself does not contain the numerical results, it directs users to the primary source of management interpretation and operational updates provided during the live session. Investors are advised to cross-reference the audio commentary with the official financial statements filed separately with the exchanges.

Ugro Capital reported a 78% year-on-year surge in standalone net profit to ₹607 million for Q1FY27, driven by the rapid scaling of its embedded merchant finance platform, GROx. The non-banking financial company (NBFC) recorded revenue from operations of ₹4.2 billion, up from ₹4.1 billion in the corresponding period last year. This performance marks the first full quarter of execution following the strategic realignment announced in February 2026, which shifted focus toward higher-yielding, scalable lending verticals.

GROx Drives Disbursement Growth

The technology-led embedded merchant finance platform, GROx (formerly MyShubhLife), emerged as the primary growth engine, disbursing ₹1,853 crore in the quarter alone. With over 60,000 loans disbursed monthly, GROx’s asset under management (AUM) grew 32% quarter-on-quarter to ₹3,003 crore as of June 30, 2026. The portfolio maintains strong asset quality with a gross non-performing asset (GNPA) ratio of 2.1% and a yield of approximately 26%. Across the company, total net disbursements rose 59% year-on-year to ₹2,551 crore.

Emerging Market Network Stabilizes

Ugro Capital completed the build-out of its Emerging Market branch network, now comprising 317 branches across 13 states supported by more than 2,500 employees. No further incremental branch investments are planned, with future growth expected from improved productivity. Branch productivity is projected to rise from ₹0.62 crore in Q1FY27 to ₹0.80–0.85 crore as the network matures. The Emerging Market business disbursed ₹592 crore, taking its AUM to ₹3,896 crore, up 9% quarter-on-quarter, with a GNPA of 2.1%.

Asset Quality and Profitability

Asset quality strengthened sequentially, with the Gross Stage 3 ratio declining to 2.75% from 3.66%, and the Net Stage 3 ratio improving to 1.71% from 2.24%. Overall GNPA remained stable at 2.6%. Profit Before Tax (PBT) increased 28% year-on-year to ₹61.5 crore. Return on Assets (ROA) improved to 2.8% from 2.1% in Q4FY26, while Return on Equity (ROE) rose to 9.2% from 7.1%. The company maintains a robust balance sheet with a Capital to Risk-Weighted Assets Ratio (CRAR) of 21.0% and cash reserves of ₹1,864 crore.

Strategic Realignment Progress

The company has fully achieved its planned ₹220 crore annualised cost optimisation, with quarterly operating expenses falling 42% to ₹118.5 crore. The lower-yielding Prime lending portfolio reduced by 14% during the quarter. Together, Emerging Market LAP and GROx now constitute 46% of the total AUM mix, up from 32% in December 2025, moving toward an 85% target by FY29. Ugro Capital expects no requirement for additional equity through FY29, aiming for a steady-state ROA of 3.0–3.5% by FY29.

What the Numbers Show

The divergence between stable total AUM (up 24% YoY to ₹15,013 crore) and surging profitability highlights the success of the portfolio mix shift. While overall AUM growth is moderate, the transition from lower-yield Prime loans to higher-yield GROx and Emerging Market loans has expanded margins significantly. The 42% drop in operating expenses alongside a 28% rise in PBT demonstrates that the cost optimization measures are directly translating into bottom-line gains, validating the shift toward an annuity-led earnings model.