UGRO Capital Limited announced strong financial performance for the quarter and nine-month period ended December 31, 2025, driven by rapid scale-up in high-yield MSME lending segments, steady asset quality, and disciplined portfolio management.
The data-tech focused NBFC reported assets under management (AUM) of Rs 15,454 crore as of December 2025, marking a 40 per cent year-on-year increase. The growth was led by continued expansion in its Emerging Market and Embedded Finance businesses, which remain central to the company’s long-term strategy of building a technology-led MSME financing platform.
During the third quarter of FY26, UGRO Capital posted a consolidated profit after tax of Rs 46.3 crore, reflecting a 23 per cent year-on-year increase. Total income for the quarter rose 32 per cent to Rs 506.4 crore, supported by higher loan disbursements, improved portfolio mix and rising demand across MSME segments. Net disbursements during the quarter stood at Rs 2,217 crore, while cumulative disbursements for the nine-month period reached Rs 5,605 crore.
Asset quality remained stable, with gross non-performing assets at 2.2 per cent and net NPAs at 1.4 per cent of total AUM. Provision coverage remained healthy at 45 per cent, supported by a robust collections framework and prudent risk management practices.
A key strategic development during the quarter was the completion of UGRO Capital’s acquisition of Profectus Capital in December 2025, which is now a wholly owned subsidiary. The company is focused on integrating the acquired platform while maintaining portfolio discipline and operational consistency.
UGRO’s Emerging Market business continued to deepen its footprint, with AUM of Rs 3,199 crore, accounting for approximately 21 per cent of consolidated assets. The segment is supported by a network of over 300 branches, with a renewed focus on improving branch productivity and maintaining portfolio quality.
The company’s Embedded Finance platform, MSL, delivered strong traction, reaching an AUM of Rs 1,798 crore within just five quarters. The platform has served more than 1.85 lakh customers and continues to expand through partnerships with digital ecosystems, enabling granular and scalable credit delivery to MSMEs.
For the nine months ended December 31, 2025, UGRO Capital reported a consolidated profit after tax of Rs 123.7 crore, reflecting consistent operating performance amid a focus on sustainable growth and credit discipline.
With its technology-driven lending model, diversified sourcing channels and expanding distribution footprint, UGRO Capital continues to strengthen its position as a leading MSME-focused NBFC, aligned with its long-term goal of addressing India’s small business credit gap through data-led innovation.
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