UGRO Capital Reports Q4 FY26 PAT of ₹51.1 Crore; Full-Year PAT Reaches ₹174.8 Crore
UGRO Capital Limited today announced its financial results for the quarter and year ending March 31, 2026. The company reported a Profit After Tax (PAT) of ₹51.1 crore for Q4 FY26, marking a 26% increase compared to ₹40.5 crore recorded in Q4 FY25.For the full financial year (FY26), UGRO recorded a PAT of ₹174.8 crore, representing a 21% year-on-year growth. The total Net Total Income for the full year stood at ₹1,067 crore, up 31% year-on-year.
Financial and Operational Snapshot
Consolidated Assets Under Management (AUM) for UGRO Capital stood at ₹15,334 crore as of March 31, 2026. The Emerging Market LAP vertical closed FY26 with an AUM of ₹3,581 crore, exhibiting a 12% quarter-on-quarter growth. Meanwhile, the Embedded Finance platform reached an AUM of ₹2,280 crore, representing a 27% QoQ increase and serving approximately 2.5 lakh active merchant customers.The company highlighted that all five structural objectives communicated on February 7, 2026, are currently on track. These objectives include reorienting the business toward its high-yield focus verticals (Emerging Market LAP and Embedded Finance), executing annualised cost savings of ₹200-220 crore, sustaining capital adequacy without incremental equity, and transitioning to an annuity-led Return on Assets (ROA) of 3.0% - 3.5% by FY29.
The focused vertical mix saw the fastest quarterly shift on record, moving from 32% to 38% of AUM. Notably, Prime Intermediated disbursements were stopped from February 7, 2026.
Detailed Financial Performance
UGRO Capital's performance metrics show significant growth across several operational segments:| Particulars | Q4'FY26 | Q4'FY25 | YoY | FY26 | FY25 | YoY |
|---|---|---|---|---|---|---|
| AUM (₹ Cr) | 15,334 | 12,003 | 28% | 15,334 | 12,003 | 28% |
| Net Disbursements (₹ Cr) | 2,137 | 2,436 | (12%) | 7,742 | 7,651 | 1% |
| Total Income (₹ Cr) | 631.7 | 412.4 | 53% | 2,021 | 1,442 | 40% |
| Net Total Income (₹ Cr) | 348.0 | 231.2 | 51% | 1,067 | 814.1 | 31% |
| PAT (₹ Cr) | 51.1 | 40.5 | 26% | 174.8 | 143.9 | 21% |
Note: FY26 and Q4'FY26 are consolidated figures. FY25 and Q4'FY25 are standalone figures.
Asset Quality and Capital Health
The company's balance sheet remains robust, with key metrics indicating stability and strong capitalization.| Asset Quality Indicator | Value |
|---|---|
| GNPA | 2.50% |
| NNPA | 1.60% |
| Provision Coverage Ratio | ~45% |
| Stage1AUM | 93.10% |
| Stage2AUM | 4.40% |
| Stage3AUM | 2.50% |
| EMLAP GNPA | 1.20% |
| Embedded Finance GNPA | 1.70% |
| Collection Efficiency | 98% |
In terms of capital, the company reported a Capital Adequacy Ratio (CRAR) of 21.20%, a Net Worth of ₹2,906 Cr, and a Leverage of 3.7x.
Future Focus and Management Commentary
Speaking on the results, Shachindra Nath, Founder & Managing Director, stated that UGRO Capital is pivoting to extensively serve the MSME sector, aiming to bridge the credit gap at the bottom of the pyramid. He noted that the existing branch network is now generating cost-effective earnings, with mature branches averaging ₹0.68 Cr per month in disbursements.The management affirmed the progress across the five key commitments:
| February 2026 Commitment | FY29 Target | Q4'FY26 Delivery | Status |
|---|---|---|---|
| Shift portfolio to high-yield focus verticals (EM LAP + Embedded Finance) | 85% of AUM by FY29 | Focus mix: 32% to 38% (Fastest quarterly shift on record) | ON TRACK |
| Annualised cost reduction across sales, credit and branches | ₹220 Cr annualised run rate | ₹200-220 Cr executed | ON TRACK |
| Running down Prime Intermediated portfolio | 15 - 20% p.a. rundown pace | Disbursements stopped from Feb 7, 2026 | ON TRACK |
| No incremental equity for three years | No dilution through FY29 | CRAR 21.2% (Dec-25: 20.8%); Net Worth ₹2,906 Cr; leverage 3.7x | ON TRACK |
| Transition to annuity-led ROA | 3.0 - 3.5% steady-state ROA by FY29 | Q4 ROA: 2.1% | ON TRACK |
UGRO Capital, which is India's MSME DataTech lending platform and was listed in July 2018, addresses the ₹30 lakh crore MSME credit gap through its 317 Emerging Market branches and its MyShubhLife merchant-embedded finance platform.
UGROCAP Stock Price Movement
Ugro Capital Limited shares today slipped by 1.77% to settle at ₹112.23, marking a weaker session for the financial services firm. The stock traded within an intraday range of ₹110.42 to ₹117.5, closing on a substantial volume of 764,476 shares.Source:
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