Reports AUM of INR 12,226 Cr, up 20% and PAT for H1’FY26 at INR 77.4 Cr, up 18% (YoY)
STABLE QUARTER DRIVEN BY STRATEGIC RECALIBRATION, EMBEDDED FINANCE SCALE-UP, AND COMPLETION OF EMERGING MARKET BRANCH EXPANSION
Key Highlights
- AUM: INR 12,226 crore, up 20% YoY
- Net Disbursement: INR 1,789 crore in Q2’FY26; INR 3,388 crore in H1’FY26
- Total Income: INR 461 crore in Q2’FY26, up 35% YoY; INR 883 crore in H1’FY26, up 37% YoY
- PAT: INR 43.3 crore in Q2’FY26, up 27% QoQ / 22% YoY; INR 77.4 crore in H1’FY26, up 18% YoY
- GNPA / NNPA: 2.4% / 1.5% on AUM; provision coverage ratio at 47%; Stage-1 Assets: Stable at 93% of the AUM, indicating high asset quality.
- Off-book AUM: 43% of AUM, across 16 co-lending and 40+ fintech partnerships
- CRAR: 25.4%, ensuring strong capital headroom
- Rating Update: India Ratings updated its long-term ratings to IND A+ / Rating Watch with Positive Implication and Crisil updated its long term ratings to Crisil A/ Rating Watch with Developing Implications
- Total Collection Efficiency: 100% in Q2’FY26 (up from 96% in Q2’FY25).
Mumbai, November 7, 2025: UGRO Capital Limited, a DataTech NBFC focused on MSME lending, announced its financial results for the quarter and half-year ended September 30, 2025. Over the past three years, UGRO has consistently added approximately INR 3,000 crore to its AUM annually. With the proposed acquisition of Profectus Capital expected to contribute an additional INR 3,000 crore inorganically this year, the Company recalibrated its disbursal volumes to optimise liability requirements and moderate future borrowing costs. Following signs of over-leverage in parts of the unsecured segment, UGRO has curtailed throughput rates from 30% to 20% and tightened underwriting filters. This prudent approach aligns with the prevailing macro headwinds in the small-ticket MSME segment.
Emerging Market (EM) Business: Poised for Steady-State Profitability
UGRO’s Emerging Market (EM) (Small ticket Loan Against Property for Micro Enterprises) business continues to be a key growth driver, with 303 branches across 13 states and AUM of INR 2,997 crore, contributing 25% of total AUM. 29 branches have already reached INR 1 crore+ monthly productivity, generating stable profits. 86 branches are expected to mature within 12 months, and 188 branches within 18 months. With the physical network build-out complete, UGRO’s focus has shifted from expansion to branch-level productivity, risk calibration, and profitability improvement, establishing the foundation for long-term operating leverage.
Embedded Finance (MSL Platform): Scaling through Digital Ecosystems
UGRO’s embedded finance business through its MyShubhLife (MSL) platform continues to gain strong momentum. AUM reached INR 1,270 crore within four quarters, serving 1.5 lakh+ small retailers. Q2’FY26 disbursements stood at INR 713 crore, with a healthy monthly run rate of INR 200 crore. The platform addresses a $20+ billion credit gap in small retail and micro-merchant segments.
| Particulars | Q2 FY26 | Q1 FY26 | Growth (Q-o-Q) | H1 FY26 | H1 FY25 | Growth (Y-o-Y) |
| AUM | 12,226 | 12,081 | 1% | 12,226 | 10,157 | 20% |
| Net – Loans originated / Disbursement | 1,789 | 1,599 | 12% | 3,388 | 3,118 | 9% |
| Total Income | 461 | 422 | 9% | 883 | 644 | 37% |
| Finance cost | 219 | 205 | 7% | 424 | 279 | 52% |
| Net Total Income | 243 | 216 | 12% | 459 | 365 | 26% |
| Operating Expenses | 137 | 121 | 14% | 258 | 195 | 32% |
| Credit cost | 44 | 48 | -7% | 92 | 93 | -1% |
| PBT | 61 | 48 | 27% | 109 | 93 | 18% |
| Tax | 18 | 14 | 27% | 32 | 27 | 18% |
| PAT | 43 | 34 | 27% | 77 | 66 | 18% |
Leave a Reply