Ugro Capital Ltd

UGRO Capital's Strategic Shift: EM-LAP & Embedded Finance to Drive 85% of AUM by FY29 📈

- Strategic shift to focus on Emerging Market Loan Against Property (EM-LAP) and embedded finance verticals, targeting these to constitute 85% of total AUM by FY29

- Targets steady-state ROA of 3-3.5% by FY29

- Annualized cost savings target of INR 220 crores

- Consolidated opex expected to reduce from INR 750 crores to INR 490 crores in FY27

- Net total income for Q4 grew 51% year-on-year and 34% quarter-on-quarter

- Interest income was INR 415 crores in Q4, up 57% year-on-year

- Cost of borrowings improved to 10.16%, down 45 bps year-over-year

- Embedded finance yields of 24-26%

- Consolidated AUM was broadly flat quarter-on-quarter at approximately INR 15,000 crores

- Focus verticals grew from 33% to 38% of total AUM in Q4 FY26

- EM-LAP AUM reached INR 3,581 crores with GNPA at 1.2%

- Embedded finance AUM (via MyShubhLife) grew to INR 2,280 crores with GNPA at 1.7%

- Asset quality showed GNPA at 2.5% and net NPA at 1.6%

- Capital adequacy stood at 21.2%

- Net worth was INR 2,906 crores

- Plans no incremental equity through FY29, funding growth from internal accruals