{"id":1185,"date":"2026-04-23T13:07:07","date_gmt":"2026-04-23T07:37:07","guid":{"rendered":"https:\/\/www.bullscreen.in\/news\/?p=1185"},"modified":"2026-04-23T13:07:08","modified_gmt":"2026-04-23T07:37:08","slug":"ugro-capital-q4-results-2026-profit-rises-21-as-strategic-shift-drives-strong-growth","status":"publish","type":"post","link":"https:\/\/www.bullscreen.in\/news\/ugro-capital-q4-results-2026-profit-rises-21-as-strategic-shift-drives-strong-growth\/","title":{"rendered":"Ugro Capital Q4 Results 2026: Profit Rises 21% as Strategic Shift Drives Strong Growth"},"content":{"rendered":"\n

Ugro Capital Limited<\/a> reported a solid performance in its Q4 results 2026, with profit after tax (PAT) rising 21% year-on-year to \u20b9174.8 crore, supported by a strategic shift toward high-yield lending segments.<\/p>\n\n\n\n

The company\u2019s total income grew 40% YoY to \u20b92,021.1 crore, driven by a 43% jump in interest income. Despite a marginal 1% quarter-on-quarter dip in assets under management (AUM) to \u20b915,334 crore, Ugro Capital maintained strong annual growth of 28%, reflecting stable business momentum during its portfolio realignment.<\/p>\n\n\n\n

In February 2026, the company initiated a strategic pivot focusing on \u201cFocus Verticals\u201d such as Emerging Market LAP and Embedded Merchant Finance. These segments increased their share in AUM from 32% to 38% within a single quarter, highlighting rapid execution.<\/p>\n\n\n\n

The Embedded Merchant Finance<\/a> business scaled sharply, growing sixfold in just 15 months to \u20b92,280 crore AUM, serving around 2.5 lakh active customers. Meanwhile, the Emerging Market LAP portfolio reached \u20b93,581 crore, contributing 23% of total AUM, supported by network expansion to 317 branches across 13 states.<\/p>\n\n\n\n

Operational efficiency also improved during the quarter. Ugro Capital undertook a cost realignment initiative expected to deliver \u20b9200\u2013220 crore in annual savings. Reported return on assets (ROA) stood at 2.1%, while adjusted ROA (excluding one-time costs) improved to 2.8%, indicating progress toward long-term profitability targets.<\/p>\n\n\n\n

Asset quality remained stable, with gross NPA at 2.5% and net NPA at 1.6%. Collection efficiency stayed strong at 98%, while the provision coverage ratio was maintained at 45%.<\/p>\n\n\n\n

On the funding side, the cost of borrowing declined by 45 basis points YoY to 10.16%. Capital adequacy remained robust at 21.2%, ensuring sufficient headroom for growth without requiring fresh equity over the next three years.<\/p>\n\n\n\n

The company also continued to strengthen its ESG positioning, with over 70% of borrowers being women and 17% of its AUM classified under green financing.<\/p>\n\n\n\n

Overall, the Q4 results 2026 reflect Ugro Capital\u2019s transition toward a more sustainable, high-yield, and annuity-driven business model, positioning it well for long-term growth in India\u2019s MSME lending space.<\/p>\n\n\n\n

<\/i><\/span>Key Financial & Operational Highlights (Q4 Results 2026) <\/h2>
<\/div><\/div>\n\n\n\n
Metric<\/th>Q4 FY26 \/ FY26<\/th>Growth \/ Change<\/th>Insight<\/th><\/tr><\/thead>
Total Income<\/td>\u20b92,021.1 Cr<\/td>\ud83d\udd3c +40% YoY<\/td>Strong revenue momentum<\/td><\/tr>
Interest Income<\/td>\u2014<\/td>\ud83d\udd3c +43% YoY<\/td>Core lending growth driver<\/td><\/tr>
Net Profit (PAT)<\/td>\u20b9174.8 Cr<\/td>\ud83d\udd3c +21% YoY<\/td>Healthy profitability<\/td><\/tr>
AUM<\/td>\u20b915,334 Cr<\/td>\ud83d\udd3c +28% YoY \/ \ud83d\udd3d 1% QoQ<\/td>Stable despite portfolio shift<\/td><\/tr>
ROA<\/td>2.1%<\/td>\u2014<\/td>Improved operational efficiency<\/td><\/tr>
Adjusted ROA<\/td>2.8%<\/td>\u2014<\/td>Excludes one-time costs<\/td><\/tr>
ROE<\/td>7.1%<\/td>\u2014<\/td>Moderate return profile<\/td><\/tr>
Adjusted ROE<\/td>9.6%<\/td>\u2014<\/td>Moving toward long-term targets<\/td><\/tr>
Cost Savings Target<\/td>\u20b9200\u2013220 Cr<\/td>\u2014<\/td>Efficiency-driven strategy<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/i><\/span>Business, Asset Quality & Strategic Metrics <\/h2>
<\/div><\/div>\n\n\n\n
Segment \/ Metric<\/th>Q4 FY26 Data<\/th>Key Takeaway<\/th><\/tr><\/thead>
Focus Verticals Share<\/td>38% of AUM<\/td>Up from 32% in one quarter<\/td><\/tr>
Emerging Market LAP AUM<\/td>\u20b93,581 Cr<\/td>23% of total AUM<\/td><\/tr>
Embedded Finance AUM<\/td>\u20b92,280 Cr<\/td>6x growth in 15 months<\/td><\/tr>
Customer Base<\/td>~2.5 Lakh<\/td>Rapid expansion<\/td><\/tr>
Branch Network<\/td>317 branches<\/td>Expanded across 13 states<\/td><\/tr>
GNPA<\/td>2.5%<\/td>Stable asset quality<\/td><\/tr>
NNPA<\/td>1.6%<\/td>Controlled credit risk<\/td><\/tr>
Collection Efficiency<\/td>98%<\/td>Strong recovery performance<\/td><\/tr>
Cost of Borrowing<\/td>10.16%<\/td>\ud83d\udd3d 45 bps YoY<\/td><\/tr>
Capital Adequacy (CAR)<\/td>21.2%<\/td>\u092e\u091c\u092c\u0942\u0924 balance sheet<\/td><\/tr>
Off-Book AUM<\/td>38%<\/td>Shift to annuity income model<\/td><\/tr>
Women Borrowers<\/td>70%+<\/td>Strong ESG focus<\/td><\/tr>
Green Portfolio<\/td>17% of AUM<\/td>Sustainable lending growth<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: https:\/\/www.bseindia.com\/xml-data\/corpfiling\/AttachLive\/ecbae8f0-f03d-410f-ab3f-fa1243d6dea1.pdf<\/a><\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Ugro Capital Limited reported a solid performance in its Q4 results 2026, with profit after…<\/p>\n","protected":false},"author":2,"featured_media":1188,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[259],"class_list":["post-1185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financials","tag-ugrocap"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/comments?post=1185"}],"version-history":[{"count":2,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1185\/revisions"}],"predecessor-version":[{"id":1187,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/posts\/1185\/revisions\/1187"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/media\/1188"}],"wp:attachment":[{"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/media?parent=1185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/categories?post=1185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bullscreen.in\/news\/wp-json\/wp\/v2\/tags?post=1185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}