Highlights

• UGRO Capital reported Q4 FY26 PAT growth of 26% year-on-year.
• Full-year FY26 PAT increased 21% with total income rising 31%.
• Assets under management expanded 28% to ₹15,334 crore in FY26.

UGRO Capital Limited (NSE:UGROCAP) reported Q4 FY26 PAT of ₹51.1 crore, compared to ₹40.5 crore in Q4 FY25, reflecting a 26% increase. Net Total Income for the quarter rose 51% year-on-year to ₹348 crore. The increase was supported by a shift toward higher-yield on-book assets.

For the full year FY26, PAT stood at ₹174.8 crore, up 21% compared to ₹143.9 crore in FY25. Net Total Income for the year reached ₹1,067 crore, marking a 31% rise. Total income also increased to ₹2,021 crore from ₹1,442 crore in the previous year.

AUM Growth and Portfolio Mix Shift

The company’s Assets Under Management (AUM) stood at ₹15,334 crore as of March 31, 2026, reflecting a 28% increase year-on-year. The Emerging Market LAP segment reported AUM of ₹3,581 crore, while Embedded Finance AUM reached ₹2,280 crore.

The company continued to shift its portfolio toward high-yield segments. The share of focused verticals increased from 32% to 38% of AUM within one quarter. Disbursements in the Prime Intermediated portfolio were stopped from February 7, 2026, as part of the strategic transition.

Asset Quality and Capital Position

UGRO Capital reported GNPA of 2.50% and NNPA of 1.60%. Provision coverage stood at around 45%, while Stage 1 assets accounted for 93.10% of AUM. Collection efficiency was reported at 98%.

On the capital side, the company maintained a CRAR of 21.20% and net worth of ₹2,906 crore. Leverage stood at 3.7x. Portfolio yield was reported at 17.50%, while cost of borrowings stood at 10.16%.

Strategic Execution and Business Realignment

The company outlined five structural objectives in February 2026, focusing on portfolio shift, cost optimisation, and return metrics. After one quarter, all objectives were reported to be on track.

The company aims to increase the share of high-yield verticals to 85% of AUM by FY29. It also targets annualised cost savings of ₹200–220 crore and a steady-state ROA of 3.0–3.5% by FY29.

Commenting on the performance, Shachindra Nath said, “We are excited to pivot with our full force to serving Bharat extensively - to solve the problem of MSME credit at the bottom of the pyramid, which is where the real gap exists and where we have spent three years building the right capability.

The branch network is now working for us. Every branch that matures adds earnings without adding cost. Mature branches are at INR 0.68 Cr/month disbursement and 156 sub-6-month branches are queued behind them as the next leg of annuity growth. UGRO will compound from its existing footprint. All five commitments we made in February are on track, and we will deliver on them”

Technical Summary

Ugro Capital Limited (NSE:UGROCAP) is trading near ₹112.30, up around 0.06%, and continues to remain above the 51-day SMA near ₹109.82, while the 14-day RSI near 61.02 points. Immediate support is placed in the ₹100.00–90.00 zone, while resistance is seen near the ₹120.00–140.00 range.

Source: TradingView

Key Risks

• Rising credit costs may impact profitability and asset quality metrics.
• Dependence on MSME segment exposes business to economic cycles.
• Higher borrowing costs may affect margins and lending spreads.
• Execution risks in portfolio transition toward high-yield segments.

Summary

UGRO Capital reported growth in FY26 earnings supported by higher income and AUM expansion. The company is shifting its portfolio toward high-yield segments while maintaining asset quality and capital levels. Strategic objectives announced earlier in the year are progressing as planned, with focus on improving return ratios and cost structure over the medium term.

FAQs

1. What is UGRO Capital’s FY26 PAT performance?
   UGRO Capital reported FY26 PAT of ₹174.8 crore, reflecting a 21% increase compared to the previous financial year.
2. How much AUM did the company report in FY26?
   The company reported total AUM of ₹15,334 crore as of March 31, 2026, marking a 28% year-on-year growth.
3. What are the company’s strategic priorities?
   UGRO Capital is focusing on high-yield segments, cost savings, and improving return ratios by FY29 through portfolio realignment.