UGRO Capital Limited has reported strong growth in the first quarter of FY27, driven by the rapid expansion of its embedded merchant finance platform, GROx, continued customer acquisition and progress on its strategic business realignment.
During Q1 FY27, GROx disbursed Rs 1,853 crore and processed more than 60,000 loans every month. The platform’s assets under management (AUM) increased 32 per cent quarter-on-quarter to Rs 3,003 crore as of June 30, 2026, while maintaining a portfolio yield of around 26 per cent and a gross non-performing asset (GNPA) ratio of 2.1 per cent.
The platform now serves around 3.4 lakh active customers, with new borrowers being added every month through its fully digital lending process. Across the company, net disbursements rose 59 per cent year-on-year and 19 per cent quarter-on-quarter to Rs 2,551 crore.
UGRO Capital also completed the expansion of its Emerging Market branch network, which now consists of 317 branches across 13 states supported by more than 2,500 employees. The business disbursed Rs 592 crore during the quarter, taking its AUM to Rs 3,896 crore, up 9 per cent quarter-on-quarter. Together, the Emerging Market LAP and GROx portfolios accounted for 46 per cent of the company’s total AUM mix.
For Q1 FY27, the company reported profit before tax (PBT) of Rs 61.5 crore, up 28 per cent year-on-year, while profit after tax (PAT) stood at Rs 67.9 crore, including the benefit of a one-time deferred tax reversal. Total AUM increased 24 per cent year-on-year to Rs 15,013 crore, with overall GNPA remaining stable at 2.6 per cent and collection efficiency at 98 per cent. Return on assets improved to 2.8 per cent and return on equity to 9.2 per cent.
The company said the strategic realignment announced in February 2026 continued to progress, with focus shifting from lower-yield Prime lending sourced through third-party intermediaries to the higher-yield embedded merchant finance business through GROx and the branch-led Emerging Market LAP business. Focused businesses now account for 46 per cent of AUM, while quarterly operating expenses declined 42 per cent to Rs 118.5 crore following the planned cost optimisation.
In July 2026, UGRO Capital also recorded its highest-ever monthly disbursement of more than Rs 1,000 crore, reflecting continued momentum across its lending businesses.
Shachindra Nath, Founder and Managing Director, UGRO Capital, said, “Q1 FY27 shows our strategy compounding exactly where we said it would. Our embedded merchant finance lending platform, GROx, disbursed over Rs 1,850 crore in a single quarter and now serves more than 3.4 lakh active customers. Our Emerging Market network of 317 branches is fully built and stable, and every maturing branch is now adding earnings without adding cost.”
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