Transcript of the Earnings Call with Analysts held on 13th August 2025
UGROCAP · price
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Awaiting price reaction for this filing.
UGRO Capital reported Q1 FY'26 AUM of Rs. 12,081 crores, up 31% year-on-year, with PAT of Rs. 34.1 crores (+12% YoY) and total income of Rs. 421.8 crores (+40% YoY). Disbursements were Rs. 1,599 crores, lower sequentially by design as the company tightened underwriting in unsecured pockets (Rs. 186 crores vs peak Rs. 623 crores in Q2 FY'25). Asset quality held with GNPA at 2.5% and Net NPA at 1.7%, while credit cost of Rs. 47.7 crores improved from Q4 FY'25's Rs. 54.3 crores. The company raised Rs. 381 crores via rights issue and Rs. 911 crores via preferential allotment, lifting capital adequacy to 22.4%. The Rs. 1,400 crore Profectus Capital acquisition is progressing and will take combined AUM to ~Rs. 15,000 crores, with a medium-term goal of Rs. 20,000 crores. India Ratings revised UGRO to A+ with positive outlook.
Management acknowledged share price is below desired levels but laid out a clear path to 4% ROA over the next 6-8 quarters, driven by emerging market branch maturation, embedded finance scale-up, and cost of borrowing reduction. The Profectus acquisition strengthens the secured book and accelerates AUM growth, which is positive for long-term shareholders, though near-term dilution from capital raises may weigh on the stock.