UGRO Capital Sees Significant Growth in Q1FY26

Mumbai: UGRO Capital has announced a 12% year-on-year increase in net profit, reaching Rs. 34.1 crore for the quarter ended June 30, 2025. This growth is attributed to higher income and stable portfolio quality, which helped offset tighter underwriting and slower loan origination.

Financial Highlights

Total income saw a remarkable 40% growth to Rs. 421.8 crore, while net total income rose by 31% to Rs. 216.5 crore. The company's assets under management stood at Rs. 12,081 crore, marking a 31% increase from the previous year.

Expansion and Asset Quality

UGRO Capital expanded its branch network to 309 and anticipates reaching around 346 by September. The embedded finance segment surpassed Rs. 1,000 crore in AUM, with Rs. 582 crore disbursed through partners like PhonePe and BharatPe. Asset quality remained steady, with gross NPAs at 2.5% and net NPAs at 1.7%.

Strategic Moves

The company advanced its Rs. 1,400 crore all-cash acquisition of Profectus Capital and raised Rs. 381 crore via a rights issue. A Rs. 911 crore preferential issue is currently underway. Capital adequacy was reported at 22.4%, significantly above the regulatory minimum.

Shachindra Nath, founder and managing director, highlighted the company's cautious approach to underwriting to limit exposure to leveraged borrowers and its focus on secured lending. Momentum is expected to improve from the second quarter as seasonal factors diminish.