UGRO Capital Limited, a prominent MSME financing company, has reported robust growth in its Assets Under Management (AUM) for the quarter ended June 30. The company's AUM reached Rs 12,081.00 crores, marking a significant 31% year-over-year increase.

Financial Performance

UGRO Capital posted impressive financial results:

• Total income grew by 40% YoY to Rs 421.80 crores
• Profit after tax (PAT) increased by 12% YoY to Rs 34.10 crores
• Net total income rose by 31% YoY to Rs 216.50 crores

The company maintained its asset quality with a Gross Non-Performing Asset (GNPA) ratio of 2.5% and a Net NPA ratio of 1.7%.

Strategic Acquisition

UGRO Capital announced a significant all-cash acquisition of Profectus Capital for Rs 1,400.00 crores. This strategic move is expected to:

• Add Rs 3,468.00 crores to UGRO's AUM
• Expand presence to 7 new states with 28 additional branches
• Strengthen the company's secured asset mix
• Accelerate UGRO's journey towards becoming India's largest MSME lender

Business Expansion

The company has made substantial progress in expanding its business operations:

• Emerging Markets business expanded to 286 operational branches
• Embedded Finance crossed the milestone of Rs 1,000.00 crores AUM
• MyShubLife platform achieved monthly disbursals of Rs 100.00-150.00 crores

Capital Raising

UGRO Capital has successfully raised capital to support its growth:

• Completed a Rs 381.00 crores rights issue
• Processing a Rs 911.00 crores preferential issue
• Total capital raising of approximately Rs 1,300.00 crores

These capital infusions have improved the company's capital adequacy ratio to 22.4%.

Future Outlook

UGRO Capital's management has set ambitious targets for the future:

• Medium-term AUM target of Rs 20,000.00 crores
• Expectation to achieve 4% steady-state Return on Assets (ROA) in 6-8 quarters

Shachindra Nath, Founder and Managing Director of UGRO Capital, commented on the results: "We have been maintaining that MSME financing in this decade is the largest credit opportunity in India. And for us, every quarter solidifies its base."

The company's focus on secured lending, with approximately 70% of its book being secured, positions it well to navigate potential market challenges.

Management Changes

UGRO Capital also announced the elevation of Anuj Pandey as the new CEO, recognizing his talent and contribution since the company's inception. This move is expected to strengthen the company's operational focus while allowing the founder to concentrate on strategic initiatives.

With its strategic acquisition, expanded branch network, and robust capital position, UGRO Capital appears well-positioned for continued growth in the MSME financing sector.

UGRO Capital Limited, a DataTech NBFC focused on MSME lending, has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported significant growth in its Assets Under Management (AUM), total income, and net profit.

Financial Highlights

• Assets Under Management (AUM) grew by 31% YoY to ₹12,081.00 crore
• Total income stood at ₹421.80 crore, marking a 40% increase year-on-year
• Net profit after tax (PAT) rose to ₹34.10 crore, up 12% from the previous year
• Net Total Income increased by 31% YoY to ₹216.50 crore

Operational Performance

UGRO Capital's performance in Q1 FY26 demonstrated resilience and growth across various parameters:

• Disbursements for the quarter reached ₹1,599.00 crore
• The company maintained a stable asset quality with Gross Non-Performing Assets (GNPA) at 2.5% and Net Non-Performing Assets (NNPA) at 1.7% of total AUM

Strategic Developments

The company made significant strides in its growth strategy:

1. Embedded Finance Growth: The Embedded Finance platform crossed ₹1,000.00 crore in AUM, with Q1 disbursements of ₹582.00 crore through partnerships including PhonePe and BharatPe.

2. Emerging Market Expansion: UGRO Capital expanded its branch network to 309 operational branches, with plans to reach approximately 346 branches by September 2025.

3. Capital Raise: The company completed a rights issue of ₹381.00 crore and is in the process of a ₹911.00 crore preferential issue to strengthen its balance sheet.

4. Strategic Acquisition: UGRO Capital is advancing with the all-cash acquisition of Profectus Capital Private Limited for ₹1,400.00 crore, having received shareholder approval.

Management Commentary

Shachindra Nath, Managing Director of UGRO Capital, commented on the results: "Q1 was a quarter of discipline. We tightened underwriting standards and moderated originations where borrower leverage was elevated, prioritizing discipline over pace during the seasonally softer first quarter."

Future Outlook

UGRO Capital remains focused on building its next engines of growth through Emerging Market distribution, Embedded Finance partnerships, and the Profectus acquisition. With capital actions underway and approvals progressing, the company is well-positioned for the next phase of high-quality growth in the MSME lending sector.