UGRO Capital's Lending Engine Scales Sharply in Q1 FY27; GROx Disburses Rs 1,853 Crore and Surpasses 3.4 Lakh Active Customers

UGRO Capital's Lending Engine Scales Sharply in Q1 FY27; GROx Disburses Rs 1,853 Crore and Surpasses 3.4 Lakh Active Customers​

UGRO Capital Limited reported robust financial results for the quarter ended June 30, 2026 (Q1'FY27), highlighting rapid scaling of its technology-led embedded merchant finance platform, GROx. The company noted that GROx disbursed Rs 1,853 crore in Q1'FY27, while the firm crossed 3.4 lakh active customers across both digital and physical lending segments.

The performance of the embedded merchant finance platform, GROx (formerly MyShubhLife), was highlighted as a key growth driver. In Q1'FY27, GROx disbursed Rs 1,853 crore. The Gross AUM of GROx reached Rs 3,003 crore as of June 30, 2026, marking a 32% increase quarter-on-quarter from the Rs 2,280 crore recorded on March 31, 2026.

The GROx portfolio maintained strong asset quality metrics, recording a portfolio yield of approximately 26% and a Gross NonPerforming Assets (GNPA) ratio of 2.1%. By integrating formal credit at the point of business need through partnerships with various digital platforms and e-commerce ecosystems, UGRO reinforced its scalable lending model.

Customer Base and Net Disbursements Surge​

UGRO Capital's customer base is rapidly expanding. GROx currently serves approximately 3.4 lakh active customers, supported by a fully digital, straight-through lending process that adds tens of thousands of borrowers monthly. This growing base supports the company’s objective of reaching 4.5 lakh active customers by FY29.

Across all lending businesses, net disbursements increased to Rs 2,551 crore for the quarter. This represents a 59% growth year-on-year and a 19% increase quarter-on-quarter, reflecting broad-based expansion in credit delivery.

Branch Network Completion Powers Emerging Market Lending​

UGRO also confirmed the completion of its physical infrastructure build-out. The company’s Emerging Market branch network is now fully built and stable, comprising 317 branches across 13 states and supported by a workforce exceeding 2,500 employees. With this network complete, no further incremental branch investments are planned, allowing future growth to be driven by improving productivity from the existing network.

The Emerging Market business disbursed Rs 592 crore during the quarter. This brought the AUM of the segment to Rs 3,896 crore, a 9% increase quarter-on-quarter. This portfolio recorded an approximate portfolio yield of 18.5% and a GNPA of 2.1%.

Collectively, the Emerging Market LAP and GROx portfolios currently account for 46% of the total AUM mix, up from 32% in December 2025.

Consolidated Financial Health and Strategic Realignment​

The company reported significant improvements in profitability. Profit Before Tax (PBT) stood at Rs 61.5 crore, marking a 28% rise year-on-year. The company achieved a Return on Assets (ROA) of 2.8% and a Return on Equity (ROE) of 9.2%.

Total AUM reached Rs 15,013 crore, demonstrating a 24% growth year-on-year. Overall GNPA remained stable at 2.6%, with collection efficiency measured at 98%, and the blended portfolio yield rising to 18.1%. The balance sheet remains robust, supported by a Capital to Risk Adjusted Ratio (CRAR) of 21.0%, a leverage ratio of 3.6x, and a liquidity buffer of Rs 1,864 crore in cash and cash equivalents.

The Q1'FY27 results represent the first full quarter of executing a strategic realignment announced in February 2026. This strategy involved discontinuing fresh disbursements in the lower-yielding Prime lending business sourced through third-party intermediaries, redirecting capital instead toward the higher yielding GROx platform and branch led Emerging Market LAP.

The planned annualised cost optimisation of Rs 220 crore was fully achieved, with quarterly operating expenses declining by 42% to Rs 118.5 crore. The Prime book was reduced by 14% during the quarter. With these efforts, UGRO aims for focused businesses to reach an 85% share of AUM by FY29.

Shachindra Nath, Founder and Managing Director of UGRO Capital, stated that Q1'FY27 validates the company’s strategy. He noted that GROx disbursed over Rs 1,850 crore in a single quarter and serves more than 3.4 lakh active customers. "These two focused verticals are the growth engines the February realignment was designed to unleash," Nath added, expressing confidence in reaching the FY29 target of 3.0 to 3.5 percent steady-state ROA through a self-sustained, annuity led earnings model.

UGROCAP Stock Price Movement​

Today, shares of Ugro Capital Limited slipped by 0.15% to close at ₹97.09. The stock saw substantial trading activity, recording a total volume of 779,761 shares during the session.