UGRO Capital Announces FY26 Results: Total Income Surpasses ₹1,840 Crore

UGRO Capital Limited (NSE: UGROCAP), a data-tech NBFC specialized in MSME lending, has released its audited standalone financial results for the quarter and full fiscal year ended March 31, 2026. The company demonstrated significant scale-up in its operations, driven by a surge in interest income and successful execution of its co-lending partnerships.

The results reflect UGRO's strategic evolution into a "Capital-Lite" model, leveraging technology to facilitate credit for small businesses across India.

Annual Financial Performance (FY26 vs. FY25)

The full-year audited results highlight the company's rapid growth trajectory:

Total Income: Jumped to ₹1,840.40 crore, a 27.6% increase from the ₹1,441.85 crore reported in FY25.

Interest Income: Grew significantly to ₹1,272.93 crore, up from ₹958.80 crore in the previous year, reflecting a robust expansion of the loan book.

Net Profit (PAT): Stood at ₹113.37 crore for the year, compared to ₹143.93 crore in FY25. The bottom line was impacted by higher finance costs and increased operating expenses related to the integration of recent acquisitions and branch expansion.

Earnings Per Share (EPS): Basic EPS for the year was ₹9.13, compared to ₹15.52 in the prior fiscal.

Quarterly Momentum (Q4FY26)

The final quarter showed a strong recovery in profitability compared to the preceding quarter:

Quarterly Net Profit: Reported at ₹29.55 crore, a massive sequential increase from the ₹6.38 crore recorded in Q3FY26.

Total Revenue from Operations: Reached ₹487.96 crore, driven by a notable gain of ₹122.54 crore on the derecognition of financial instruments-a result of active co-lending and securitization.

Strategic Pillar: The "Capital-Lite" Co-Lending Model

UGRO Capital's performance is increasingly defined by its GRO Xstream platform, which enables it to originate loans and share them with larger banking partners.

Why this matters for UGRO:

Fee-Based Income: By managing loans for other banks, UGRO earns recurring servicing fees without keeping the entire risk on its own balance sheet.

Asset Light Growth: This allows the company to grow its Assets Under Management (AUM) much faster than its own equity would typically allow.

Derecognition Gains: The ₹380 crore annual gain from "derecognition of financial instruments" highlights the volume of loans transferred to partners, freeing up capital for fresh lending.

Expense Profile and Asset Quality

Finance Costs: Annual finance costs rose to ₹902.54 crore (from ₹627.77 crore), reflecting the higher interest rate environment and increased borrowings to fund growth.

Impairment Provisions: The company maintained a prudent approach with an impairment charge of ₹208.61 crore for the year, ensuring a healthy buffer against potential MSME credit stress.

Employee Benefits: Rose to ₹275.27 crore, as the company expanded its "Emerging Market" branch network to over 300 locations.

Shares of Ugro Capital Ltd was last trading in BSE at Rs. 111.93 as compared to the previous close of Rs. 114.94. The total number of shares traded during the day was 42956 in over 731 trades.

The stock hit an intraday high of Rs. 116.80 and intraday low of 110.53. The net turnover during the day was Rs. 4909002.00.

Source : Equity Bulls

Keywords

UgroCapital INE583D01011 NBFC Q4FY26 Q4FY2026 FY26 FY2026 ResultUpdate