Ugro Capital Limited (UGROCAP)
₹81.85 -1.91% last close, 16 Oct
Q2 FY27 results
📅 Next results: 05 Nov 2026 (board meeting)Ugro Capital Limited's board meets on 5 Nov 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Ugro Capital's net interest income was ₹208 Cr, and net profit ₹67.9 Cr.
| Q1 FY27 (₹ Cr) | Value | YoY | QoQ |
|---|---|---|---|
| Net interest income | ₹208 | — | -35.6% |
| Operating profit | ₹61.5 | — | — |
| Net profit | ₹67.9 | — | +33.1% |
| EPS (₹) | 4.44 | — | +35.0% |
UGROCAP delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 38.09% of the UGROCAP shares traded on NSE were taken to delivery, against the stock's own 20-session average of 59.5%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 51.4% · 63.9% · 74.5% · 26.6% · 38.1%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Ugro Capital's Investment and Borrowing Committee approved the allotment of up to 1,000 senior, unsecured, rated, listed USD-denominated non-convertible bonds aggregating up to $10 million (approx. ₹83-84 crore). The bonds have a face value of $10,000 each and carry a floating coupon rate of Term SOFR plus 450 basis points, payable semi-annually. The instrument has a 48-month tenure maturing on September 27, 2030, and will be listed on the India International Exchange IFSC Limited. Principal repayment will occur in four equal instalments beginning 30 months from the pay-in date.
- Allotment of up to 1,000 foreign currency bonds aggregating up to $10,000,000 on private placement
- Coupon set at Term SOFR plus 450 basis points per annum, paid semi-annually
- Tenure of 48 months maturing on September 27, 2030, with repayment in 4 equal instalments starting at month 30
- Proposed for listing on the India International Exchange IFSC Limited
UGRO Capital has approved the private placement allotment of 1,37,000 senior, secured, rated, listed Non-Convertible Debentures (NCDs) aggregating to ₹137 crore. The NCDs carry a coupon rate of 9.75% per annum, payable monthly, with a tenure of 13 months maturing on October 30, 2027. The issuance is secured by a pledge over equity shares owned by the company and represents ~4.8% of UGRO's net worth of ₹2,845 crore. The instruments will be listed on the Wholesale Debt Market segment of BSE Limited.
- Allotment of 1,37,000 senior secured NCDs totaling ₹137 crore
- Coupon rate fixed at 9.75% per annum payable monthly
- Tenure of 13 months with redemption date on October 30, 2027
- Default interest structured at 2% per annum over the coupon rate on unpaid dues
- Secured by a first ranking, exclusive pledge over equity shares owned by UGRO
UGRO Capital equity shareholders have approved the Scheme of Amalgamation with Profectus Capital Private Limited with an overwhelming 99.9983% majority at the NCLT-convened meeting held on 22 September 2026. A total of 6,14,11,482 votes were polled across 15,52,88,323 total outstanding shares (39.55% turnout). The merger is a strategic move aimed at absorbing Profectus Capital's assets, previously targeted to add Rs 3,468 crore to AUM. Final integration remains subject to NCLT sanction and subsequent regulatory filings.
- Scheme of Amalgamation with Profectus Capital approved with 99.9983% votes in favour
- Only 1,071 votes (0.0017%) voted against the special resolution
- Total votes polled stood at 6,14,11,482 out of 15,52,88,323 outstanding shares (39.55% turnout)
- Promoter group polled 100% of their 44,77,061 shares entirely in favour of the merger
UGRO Capital conducted NCLT-convened meetings on September 22, 2026, where equity shareholders, secured creditors, and unsecured creditors approved the Scheme of Amalgamation with Profectus Capital Private Limited with the requisite majority. Among unsecured creditors, votes representing INR 503.28 Cr (99.984% of total vote value) voted in favor of the scheme. The transaction will absorb Profectus Capital, which brings an estimated INR 3,468 Cr in AUM to UGRO Capital's existing loan portfolio. Final approval remains subject to the sanction of the Mumbai Bench of the NCLT.
- Scheme of Amalgamation of Profectus Capital into UGRO Capital approved by equity shareholders and creditors on September 22, 2026
- Unsecured creditors approved the scheme with 99.984% of total vote value (INR 5,03,27,64,000 in favor vs INR 8,00,000 against)
- Twelve out of 15 voting unsecured creditors (80% by count) supported the amalgamation resolution
- Acquisition adds approximately INR 3,468 Cr in AUM and expands footprint in school and MSME financing
UGRO Capital Limited has allotted 300 Commercial Papers (CPs) on September 17, 2026, raising ₹14.66 crore against a total redemption value of ₹15.00 crore. The instruments have a tenure of 96 days and are set to mature on December 22, 2026. The CPs carry a face value of ₹5,00,000 each and were issued at ₹4,88,563.50 apiece. Relative to the company's net worth of ₹2,845 crore, this short-term borrowing represents ~0.52%, reflecting routine liquidity and working capital management.
- Allotment of 300 Commercial Papers with face value of ₹5,00,000 each
- Total issue value is ₹14,65,69,050 against redemption value of ₹15,00,00,000
- Issued at ₹4,88,563.50 per security for a 96-day tenure
- Maturity and redemption date set for December 22, 2026
UGRO Capital has raised ₹380 crore by issuing 38,000 senior, secured, rated, listed NCDs to FMO (the Dutch entrepreneurial development bank). This represents FMO's third investment in three years, raising its cumulative commitment to ₹890 crore and UGRO's total development finance borrowings past ₹1,300 crore. The 5-year debt instrument equals ~13.4% of UGRO's net worth (₹2,845 crore) and will fund women-led, youth-led, rural MSMEs, and green projects.
- Raised ₹380 crore via 38,000 senior secured 5-year NCDs fully subscribed by FMO
- FMO cumulative investment in UGRO reaches ₹890 crore across three transactions
- Total development finance and impact capital raised crosses ₹1,300 crore from 11+ institutions
- Emerging Market and GROx portfolios accounted for 46% of total AUM as of June 30, 2026
- GROx platform disbursed ₹1,853 crore in Q1 FY27, with AUM reaching ₹3,003 crore (+32% QoQ)
UGRO Capital Limited has approved the allotment of commercial papers with an aggregate issue value of ₹24.30 crore and a redemption value of ₹25.00 crore. The securities carry a short tenure of 118 days, maturing on January 05, 2027. Each security has a face value of ₹5,00,000 and was issued at a discounted price of ₹486,016. Compared to the company's net worth of ₹2,845 crore, the issuance represents a modest ~0.85%, reflecting routine short-term working capital management.
- Issue value of ₹24,30,08,000 against a total redemption value of ₹25,00,00,000
- Short-term tenure of 118 days, allotted on 09th September 2026 and maturing on 05th January 2027
- Face value of ₹5,00,000 per security at an issue price of ₹486,016
- Issuance is proposed to be listed, with Yes Bank Limited acting as the Issuing and Paying Agent (IPA)
UGRO Capital Limited has approved the allotment of 38,000 senior, secured, rated, listed NCDs with a face value of ₹1,00,000 each, raising an aggregate of ₹380 Cr via private placement. The debentures carry a semi-annual coupon of 10.20% p.a. with a 5-year tenure maturing on August 28, 2031. Principal repayment is structured in 5 equal semi-annual instalments starting from August 2029, secured by a minimum 1.1x asset cover over identified receivables. The ₹380 Cr issue represents approximately 13.4% of the company's net worth (₹2,845 Cr) and will support ongoing lending operations.
- Allotted 38,000 senior secured NCDs aggregating to ₹380 Cr on private placement basis
- Coupon fixed at 10.20% per annum, payable semi-annually
- 5-year tenure with final maturity on August 28, 2031, listed on BSE Wholesale Debt Market
- Repayment in 5 instalments between August 2029 and August 2031, backed by 1.1x asset coverage
- Default interest specified at 2.0% per annum over the coupon rate
UGRO Capital has published newspaper notices convening separate meetings for Equity Shareholders, Secured Creditors, and Unsecured Creditors on September 22, 2026. The meetings are being held pursuant to an NCLT order dated August 6, 2026, to approve the Scheme of Amalgamation with Profectus Capital Private Limited. The cut-off date to determine voting eligibility is September 15, 2026, with remote e-voting scheduled from September 19 to September 21, 2026.
- NCLT-ordered meetings for shareholders and creditors scheduled for September 22, 2026
- Scheme of Amalgamation to merge Profectus Capital Private Limited into UGRO Capital Limited
- Cut-off date for voting eligibility set as September 15, 2026
- Remote e-voting window runs from September 19, 2026 (9:00 AM) to September 21, 2026 (5:00 PM)
- Notices published in Financial Express (English) and Loksatta (Marathi)
UGRO Capital Limited has dispatched notices to convene NCLT-ordered meetings of its Equity Shareholders, Secured Creditors, and Unsecured Creditors on September 22, 2026. The meetings are convened pursuant to the NCLT Mumbai Bench order dated August 6, 2026, to vote on the proposed Scheme of Amalgamation of Profectus Capital Private Limited into UGRO Capital. The merger aligns with UGRO's strategic roadmap to absorb Profectus Capital's loan book (representing ~INR 3,468 Cr AUM). Cut-off dates for voting rights have been fixed as June 30, 2026 for equity holders and March 31, 2026 for creditors.
- NCLT Mumbai Bench issued order on 6th August 2026 directing the convening of separate meetings.
- Shareholder and creditor meetings are scheduled to be held virtually on 22nd September 2026 (starting from 10:30 AM IST).
- Cut-off date for equity shareholder eligibility is 30th June 2026; creditor cut-off date is 31st March 2026.
- The Scheme covers the amalgamation of Profectus Capital Private Limited into UGRO Capital Limited under Sections 230-232 of the Companies Act, 2013.
UGRO Capital Limited's Investment and Borrowing Committee approved the allotment of Commercial Papers (CPs) on August 17, 2026. The company raised an aggregate issue value of ₹48,902,700 (₹4.89 crore) against a total maturity/redemption value of ₹5,00,00,000 (₹5.00 crore). The CPs carry a 91-day tenure maturing on November 16, 2026, with an issue price of ₹489,027 per security (face value ₹5,00,000). Given the small scale relative to UGRO's Jun 2026 quarterly revenue of ₹534.63 crore, this represents routine liquidity and working capital management.
- Allotment of Commercial Papers raising an issue value of ₹48,902,700 (₹4.89 Cr)
- Redemption value set at ₹5,00,00,000 (₹5.00 Cr) maturing on 16th November 2026
- Short-term tenure of 91 days with face value of ₹5,00,000 issued at ₹489,027 per security
- Yes Bank Limited appointed as the Issuing and Paying Agent (IPA)
UGRO Capital Limited has dispatched notices to convene separate NCLT-convened meetings for its Equity Shareholders, Secured Creditors, and Unsecured Creditors on September 22, 2026. The meetings are called to consider and approve the Scheme of Amalgamation between Profectus Capital Private Limited and UGRO Capital Limited pursuant to the NCLT Mumbai order dated August 6, 2026. Remote e-voting will take place from September 19, 2026, to September 21, 2026, with an equity voting cut-off date of September 15, 2026. This represents a formal procedural advancement toward completing the integration of Profectus Capital.
- Separate meetings of Equity Shareholders, Secured Creditors, and Unsecured Creditors scheduled for Tuesday, 22nd September 2026 via VC/OAVM.
- Remote e-voting window opens on 19th September 2026 at 9:00 AM IST and closes on 21st September 2026 at 5:00 PM IST.
- Cut-off date for e-voting eligibility set to 15th September 2026 for equity shareholders (31st March 2026 for creditors).
- Meetings convened pursuant to directions issued by the NCLT Mumbai Bench order dated 6th August 2026.
UGRO Capital has received a certified NCLT order to convene meetings for the merger of its wholly-owned subsidiary, Profectus Capital Private Limited (PCPL). The merger, with an appointed date of April 1, 2026, will consolidate PCPL's ₹3,468 Cr AUM into UGRO's books. The NCLT has directed that meetings for equity shareholders, secured creditors, and unsecured creditors be held within 90 days of the August 6, 2026 order. This consolidation is a strategic move to scale UGRO's MSME lending platform and fulfill RBI-mandated conditions.
- Merger consolidates Profectus Capital's ₹3,468 Cr AUM into UGRO Capital
- NCLT order dated August 6, 2026, mandates stakeholder meetings within 90 days
- Appointed date for the amalgamation is fixed as the opening of business on April 1, 2026
- Profectus is a wholly-owned subsidiary; its equity shareholder meeting has been dispensed with by the NCLT
- UGRO's net worth of ₹2,845 Cr will be the base for the consolidated entity
UGRO Capital reported a 59% YoY growth in net disbursements to Rs 2,551 Cr for Q1 FY27, with total AUM reaching Rs 15,013 Cr. The company is executing a strategic pivot toward high-yield Emerging Market and Embedded Merchant Finance segments, which now comprise 46% of AUM (up from 32% in Dec '25), with a target of 85% by FY29. A major cost-rationalization plan is underway to remove Rs 220 Cr in annualized operating expenses. The merger with Profectus Capital has moved to the NCLT stage, which will involve a non-cash accounting adjustment to net worth but is expected to improve future ROE predictability.
- Monthly disbursement crossed the Rs 1,000 Cr milestone for the first time in July 2026.
- Total AUM reached Rs 15,013 Cr as of June 30, 2026, with net disbursements of Rs 2,551 Cr in Q1.
- Annualized operating cost reduction of approximately Rs 220 Cr is currently being implemented.
- High-yield focus segments increased their AUM share to 46% from 32% in December 2025.
- Collection efficiency improved to 100% in Q2 FY26 (prior period) with 93% of assets in Stage 1.
UGRO Capital has received a formal order from the NCLT Mumbai Bench to convene meetings of its equity shareholders and creditors within 90 days to approve the merger of its wholly-owned subsidiary, Profectus Capital Private Limited (PCPL). PCPL is a significant entity with a paid-up capital of ₹750.30 cr and an AUM of ₹3,468 cr. The merger, with an appointed date of April 1, 2026, aims to consolidate the group's MSME lending operations into a single entity. This is a key step in the company's strategy to scale its AUM and streamline its corporate structure.
- NCLT directs meetings of shareholders and creditors to be held within 90 days of the August 6, 2026 order
- Profectus Capital (PCPL) has a substantial paid-up share capital of ₹750.30 cr compared to UGRO's ₹154.71 cr
- The merger integrates PCPL's ₹3,468 cr AUM into the parent entity's balance sheet
- Appointed date for the amalgamation is fixed as the opening of business hours on April 1, 2026
- UGRO Capital's net worth stands at ₹2,845 cr, providing a strong base for the consolidated entity
Financial Performance
Revenue Growth by Segment
Assets Under Management (AUM) grew 33% YoY to INR 12,003 Cr in FY25 and reached INR 12,226 Cr by Q2 FY26 (up 20% YoY). The MyShubhLife platform segment reached an AUM of INR 1,270 Cr within 4 quarters.
Geographic Revenue Split
Operations span 12 states with 200+ branches. Emerging Market branches (Tier 3 and beyond) contribute INR 2,073 Cr to AUM, representing approximately 17% of the total portfolio.
Profitability Margins
Profit After Tax (PAT) grew 21% YoY to INR 144 Cr in FY25 from INR 119 Cr in FY24. Return on Managed Assets (ROMA) stood at 1.2% for FY25 and moderated to 1.0% (annualized) in Q1 FY26.
EBITDA Margin
Pre-provisioning operating profit to average managed assets (PPOP/AMA) stood at 3.1% in FY25, declining from 3.4% in FY24 due to higher operating expenses and cost of funds.
Capital Expenditure
Not explicitly disclosed in INR Cr, but the company is funding a 100% acquisition of Profectus Capital via a rights issue of INR 381 Cr and CCD issuance of INR 911 Cr.
Credit Rating & Borrowing
Long-term bank loan facilities and NCDs are rated IND A+/Stable and CRISIL A/Stable. Blended liability interest cost stood at 10.6% as of March 2025.
Operational Drivers
Raw Materials
Debt Capital (INR 6,904 Cr) and Equity Capital (INR 2,426 Cr) serve as the primary 'raw materials' for lending operations.
Import Sources
Not applicable for financial services; funding is sourced from 59 domestic and international lenders.
Key Suppliers
Public Sector Banks contribute 28% of total funding as of March 31, 2025. Other sources include development financial institutions and ECBs.
Capacity Expansion
Current network of 200+ branches is planned to expand to 400 branches by March 2026, representing a 100% increase in physical capacity.
Raw Material Costs
Cost of funds (interest expense) is 10.6% of outstanding debt. The company aims to consolidate its 59-lender base to increase ticket sizes and lower borrowing costs.
Manufacturing Efficiency
Collection efficiency improved to 100% in Q2 FY26 from 96% in the previous year; 93% of assets are maintained in Stage 1.
Logistics & Distribution
Operating expenses to average managed assets stood at 3.6% in FY25, expected to remain elevated due to branch expansion plans.
Strategic Growth
Expected Growth Rate
25-30%
Growth Strategy
Growth will be achieved through the 100% acquisition of Profectus Capital (adding INR 3,468 Cr AUM), scaling the MyShubhLife digital platform (INR 200 Cr monthly disbursement), and doubling the branch network to 400 locations.
Products & Services
Secured Loans Against Property (LAP), Unsecured Business Loans, Machinery Finance, Supply Chain Finance, and School Financing.
Brand Portfolio
UGRO Capital, MyShubhLife, Profectus Capital.
New Products/Services
School financing is identified as a new INR 2,000 Cr medium-term profit pool opportunity following the Profectus acquisition.
Market Expansion
Geographic expansion into 3-4 new states and increasing branch count to 400 by March 2026.
Strategic Alliances
Partnerships with 70+ original equipment manufacturers (OEMs) for machinery financing and 59 lenders for co-lending and liability management.
External Factors
Industry Trends
Shift toward co-lending models (43% of AUM) and digital embedded finance. The industry is addressing a $20 billion credit gap in the small retail and micro-merchant space.
Competitive Landscape
Highly competitive MSME segment with significant price sensitivity on yields and competition from banks and other NBFCs.
Competitive Moat
Moat is built on a DataTech lending platform and a diversified distribution model (200+ branches and 70+ OEM partners), which are sustainable due to high entry barriers in proprietary data-tech integration.
Macro Economic Sensitivity
Sensitive to MSME sector overleverage; company responded to macro headwinds by tightening underwriting and reducing throughput by 10 percentage points.
Consumer Behavior
Increasing demand for digital credit ecosystems in the small retail space, served by the MSL platform.
Regulatory & Governance
Industry Regulations
Subject to RBI co-lending guidelines; uncertainties around new interpretations of these guidelines impact off-book strategy planning.
Environmental Compliance
Social Impact Report 2025 highlights AUM of INR 374 Cr in clean energy and INR 268 Cr in clean water and sanitation.
Risk Analysis
Key Uncertainties
Asset quality seasoning of the rapidly scaled loan book (GS III at 2.4%) and the ability to raise funds at competitive rates below the current 10.6%.
Geographic Concentration Risk
Portfolio is distributed across 12 states; expansion to 3-4 additional states is planned to further diversify geographic risk.
Third Party Dependencies
Significant dependency on co-lending partners and 70+ OEMs for sourcing 43% of AUM.
Technology Obsolescence Risk
Mitigated by continuous investment in technology infrastructure and the acquisition of the MyShubhLife digital credit ecosystem.
Credit & Counterparty Risk
Gross Stage III on own book is 2.4% (INR 217 Cr); 93% of assets are in Stage 1, indicating stable receivables quality.
