UGRO Capital Limited, a prominent player in the financial services sector, has successfully raised Rs. 100 crore through the issuance of unlisted Commercial Papers (CPs). The company's Investment and Borrowing Committee approved the allotment on November 13, 2025, marking a significant move in its financial strategy.

Key Details of the Commercial Paper Issuance

Issuance Highlights

The Commercial Papers were issued at a discounted price of Rs. 4,61,894 per unit, against a face value of Rs. 5 lakh. This pricing resulted in total issue proceeds of Rs. 92.38 crore for UGRO Capital. The CPs are set to mature in one year, with the redemption scheduled for November 13, 2026, at a total value of Rs. 100.00 crore.

Regulatory Compliance

In adherence to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, UGRO Capital has informed the stock exchanges about this development. The company has also made the information available on its official website, ensuring transparency for its stakeholders.

Market Implications

This CP issuance by UGRO Capital indicates the company's ability to attract short-term funding. The move could potentially enhance the company's working capital position and support its near-term initiatives.

UGRO Capital , a DataTech NBFC focused on MSME lending, has announced its financial results for Q2 FY26, showcasing robust growth and strategic initiatives aimed at strengthening its market position.

Key Financial Highlights

The company's Assets Under Management (AUM) reached ₹12,226.00 crore, marking a 20% year-on-year increase. Despite a 9% decrease in net disbursements for Q2 FY26, UGRO Capital's total income surged by 35% to ₹461.00 crore, with Profit After Tax (PAT) growing by 22% to ₹43.30 crore.

Strategic Focus Areas

Emerging Market Expansion

UGRO Capital has completed its planned expansion in the Emerging Market (EM) vertical, with 303 branches across 13 states contributing 25% to the total AUM. The company is now shifting focus from expansion to improving branch-level productivity and profitability.

Embedded Finance Growth

The company's embedded finance platform, MyShubhLife (MSL), has shown significant traction:

• AUM reached ₹1,270.00 crore within four quarters
• Serving over 1.5 lakh small retailers
• Q2 FY26 disbursements stood at ₹713.00 crore

Capital and Liability Strengthening

UGRO Capital raised ₹535.00 crore in equity capital, earmarked for the acquisition of Profectus Capital. The company's total borrowings increased to ₹8,088.00 crore, with the cost of borrowing improving to 10.37%, a 38 bps year-on-year reduction.

Asset Quality and Collection Efficiency

• GNPA at 2.4% of AUM
• 93% of assets in Stage-1
• 100% total collection efficiency in Q2 FY26

Management Commentary

Shachindra Nath, Founder and Managing Director of UGRO Capital, stated, "Q2'FY26 marked a period of strategic recalibration and operational steadiness. With the Emerging Market network now at 303 branches and the Embedded Finance platform scaling rapidly, UGRO is entering a phase of structural profitability improvement."

Future Outlook

UGRO Capital is poised for sustained growth with its diversified product offerings and strong focus on data-driven lending. The company's strategic initiatives, including the expansion of its Emerging Market presence and the scaling of its Embedded Finance platform, are expected to drive profitability and market share in the coming quarters.

As UGRO Capital continues to leverage its DataTech capabilities and expand its reach in the MSME lending space, it remains well-positioned to capitalize on the growing credit demand in this sector.