Ugro Capital Ltd

📈 UGRO Capital Q1 FY27: AUM Hits ₹15,013 Cr, High-Yield Segments Now 46% of Book

- UGRO Capital crossed INR 1,000 crores of monthly disbursement for the first time in July 2026.

- Total AUM stood at INR 15,013 crores as of June 2026, with net disbursements of INR 2,551 crores in Q1'FY27, a 59% year-on-year growth.

- Combined contribution of Emerging Market secured lending and Embedded Merchant Finance (GROx) increased to 46% of total AUM in June 2026 from 32% in December 2025.

- The company plans to reduce annualized operating costs by approximately INR 220 crores; quarterly operating expenses reduced to INR 119 crores in Q1'FY27 from INR 217 crores in Q4'FY26.

- Income from co-lending and direct assignment declined to INR 75 crores in Q1'FY27 from INR 155 crores in Q4'FY26, now representing 14% of total income.

- Emerging Market LAP AUM grew 9% quarter-on-quarter to INR 3,896 crores, with portfolio yield of approximately 18.5% and GNPA of 2.1%.

- GROx (Embedded Merchant Finance) AUM grew 32% quarter-on-quarter to INR 3,003 crores, with portfolio yield of approximately 26% and GNPA of 2.1%.

- Total interest income was INR 363 crores, up 19% year-over-year, though down 13% quarter-over-quarter due to foreclosures in the Prime Intermediated portfolio.

- Cost of borrowing improved by 41 bps year-over-year to 10.14%, with 66% of borrowings beyond 3 years tenure.

- Credit cost was contained at 1.7% of average AUM; GNPA on AUM was 2.6%.

- Pre-tax ROA stood at 2.6%, while reported PAT basis ROA was 2.8%; ROE was 9.2%.

- Liquidity position was strong at INR 1,864 crores; net worth stood at INR 2,976 crores with leverage at 3.6x.

- Capital adequacy on a standalone basis is 21%; post-merger with Profectus Capital, it is expected to be 23-24%.

- The merger of Profectus Capital into UGRO has received stock exchange approval and is filed with NCLT, expected to be completed by Q4'FY27.

- Management expects AUM to remain flat in FY27, with growth driven by Emerging Market LAP and GROx, targeting 25% CAGR each, while the defocused Prime portfolio runs down at 20-25%.