UGRO Capital FY26 PAT ₹174.8 Cr, Board Approves ₹3,000 Cr NCDs
[UGRO Capital](https://scanx.trade/company/ugro-capital-ltd) reported audited financial results for FY26 with quarterly PAT of ₹51.1 crore, up 26% year-on-year, and full-year PAT reaching ₹174.8 crore, a 21% increase. Net Total Income grew 51% to ₹348 crore in Q4FY26 and 31% to ₹1,067 crore for the full year. Assets under management stood at ₹15,334 crore as of March 31, 2026. The Board approved ₹3,000 crore NCD issuance, re-appointment of Shachindra Nath as Vice Chairman and Managing Director for five years, and appointment of new statutory auditors. The 33rd AGM is scheduled for May 29, 2026.
*this image is generated using AI for illustrative purposes only.
UGRO Capital released its audited financial results for the quarter and year ended March 31, 2026, reporting quarterly profit after tax of ₹51.1 crore, representing a 26% increase over ₹40.5 crore in Q4FY25. Full-year FY26 PAT reached ₹174.8 crore, up 21% year-on-year from ₹143.9 crore in FY25. The statutory auditors issued an unmodified opinion on the financial results.
Quarterly and Annual Financial Performance
The company demonstrated strong revenue growth with Net Total Income expanding 51% year-on-year to ₹348 crore in Q4FY26. For the full year FY26, Net Total Income stood at ₹1,067 crore, representing 31% year-on-year growth from ₹814.1 crore in FY25. Assets under management reached ₹15,334 crore as of March 31, 2026, up 28% from ₹12,003 crore in the previous year.
| Financial Metric | Q4FY26 | Q4FY25 | YoY Change | FY26 | FY25 | YoY Change |
|---|---|---|---|---|---|---|
| AUM | ₹15,334 Cr | ₹12,003 Cr | +28% | ₹15,334 Cr | ₹12,003 Cr | +28% |
| Total Income | ₹631.7 Cr | ₹412.4 Cr | +53% | ₹2,021 Cr | ₹1,442 Cr | +40% |
| Net Total Income | ₹348.0 Cr | ₹231.2 Cr | +51% | ₹1,067 Cr | ₹814.1 Cr | +31% |
| PAT | ₹51.1 Cr | ₹40.5 Cr | +26% | ₹174.8 Cr | ₹143.9 Cr | +21% |
| ROA | 2.10% | 2.40% | -30 bps | 2.10% | 2.40% | -30 bps |
Strategic Realignment Progress
The company successfully executed its pivot strategy announced on February 7, 2026, with focus verticals comprising Emerging Market LAP and Embedded Finance reaching 38% of total AUM, up from 32% in December 2025. This represents the fastest quarterly shift on record as the company transitions toward high-yield focus verticals while running down the Prime Intermediated portfolio.
| Strategic Objective | FY29 Target | Q4FY26 Achievement | Status |
|---|---|---|---|
| Focus Verticals Mix | 85% of AUM | 38% (vs 32% Dec-25) | On Track |
| Prime Intermediated Rundown | 15-20% p.a. | Disbursements stopped Feb 7 | On Track |
| Cost Savings | ₹220 Cr annualised | ₹200-220 Cr executed | On Track |
| Capital Adequacy | No equity through FY29 | CRAR 21.20% | On Track |
| Steady-state ROA | 3.0-3.5% by FY29 | Q4 ROA 2.10% | On Track |
Board Approvals and Corporate Governance
The Board of Directors at its meeting held on April 20, 2026, approved several key resolutions. The company authorized the issuance of Non-Convertible Debentures aggregating up to ₹3,000 crore on a private placement basis, with the Investment and Borrowing Committee empowered to approve issuances from time to time within the approved limit.
The Board recommended the re-appointment of Mr. Shachindra Nath (DIN: 00510618) as Vice Chairman and Managing Director for a five-year period effective from June 22, 2026, to June 21, 2031, subject to shareholder approval. Additionally, the Board approved the appointment of M/s G.P. Kapadia & Co., Chartered Accountants (Firm Registration No. 104768W), as statutory auditors for a three-year term covering financial years 2026-27, 2027-28, and 2028-29, following the completion of tenure of M/s Sharp & Tannan Associates.
Asset Quality and Capital Position
The company maintained stable asset quality metrics with Gross NPA at 2.50% and Net NPA at 1.60%. Focus verticals demonstrated superior asset quality with Emerging Market LAP GNPA at 1.20% and Embedded Finance GNPA at 1.70%. Capital adequacy remained strong with CRAR at 21.20% and leverage at 3.7x, supporting the company's commitment to sustain growth without incremental equity through FY29.
| Asset Quality Metrics | Performance | Capital Metrics | Position |
|---|---|---|---|
| GNPA | 2.50% | CRAR | 21.20% |
| NNPA | 1.60% | Net Worth | ₹2,906 Cr |
| Stage 1 AUM | 93.10% | Leverage | 3.7x |
| Collection Efficiency | 98% | Portfolio Yield | 17.50% |
The Board approved convening the 33rd Annual General Meeting on May 29, 2026. UGRO Capital operates 317 branches across 13 states with approximately 321,000 active loans as of March 2026.
Historical Stock Returns for UGRO Capital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.10% | +17.74% | +17.16% | -38.52% | -42.07% | -1.52% |
How will UGRO Capital's aggressive pivot strategy impact its competitive positioning in the emerging market LAP and embedded finance segments by FY29?
What potential challenges could arise in achieving the ambitious target of 85% focus verticals mix while maintaining current asset quality standards?
How might the ₹3,000 crore NCD authorization influence UGRO's funding costs and market expansion plans in the current interest rate environment?
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