UGRO Capital Posts Strong Q4 Earnings, Records 26% YoY Net Profit Growth and 51% YoY Income Increase

UGRO Capital Reports Strong Financial Performance for Q4 FY26

UGRO Capital, a leading financial services company, announced its financial performance for the March-ended quarter (Q4) and the full fiscal year (FY26) on Monday. The company reported a Q4 profit after tax (PAT) of ₹51.1 crore, marking a 26% increase from ₹40.5 crore in Q4 FY25. This growth was driven by a structural shift towards higher-yield on-book assets, which contributed to a 51% year-on-year increase in net total income to ₹348 crore during the quarter.

For the full year FY26, UGRO reported a PAT of ₹174.8 crore, up 21% year-on-year. Net total income for the year stood at ₹1,067 crore, reflecting a 31% YoY growth. The company's Emerging Market LAP vertical closed FY26 with assets under management (AUM) of ₹3,581 crore, registering a 12% quarter-on-quarter growth.

Key Highlights of Q4 FY26 Performance

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Vintaged branches (more than 12 months old) achieved disbursements of ₹0.68 crore per month, approaching the management's target of ₹0.80–0.85 crore per month. After one full quarter of execution, the company said all five objectives outlined in early February are on track. These objectives include executing ₹200–220 crore in annualised cost savings, maintaining capital adequacy without raising fresh equity, and transitioning to an annuity-led return on assets (ROA) of 3.0–3.5% by FY29.

The share of focused verticals increased from 32% to 38% of AUM—marking the fastest quarterly shift on record. Disbursements under the Prime Intermediated segment were discontinued from February 7, 2026. Shachindra Nath, Founder & Managing Director, UGRO Capital, expressed excitement about the company's pivot towards serving Bharat extensively to solve the problem of MSME credit at the bottom of the pyramid.

UGRO Capital's share price has staged a strong comeback this month, gaining 38.1%, and is on track to end a three-month losing streak. The stock had declined a cumulative 53.3% during this period. Although the shares have recovered recently, they are still down 63% from their record high of ₹310.65 apiece. In terms of annual performance, the stock delivered negative returns over the past two calendar years, declining 22.7% in 2024 and 14.35% in 2025. So far this year, it has lost around 36% of its value.

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