Transcript of the Earnings Call with Analysts/Investors held on 09th February 2026
UGROCAP · price
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UGRO Capital reported consolidated AUM of ₹15,454 crores, up 40% year-on-year, driven largely by the Profectus acquisition completed in December 2025. Q3 FY26 consolidated profit after tax was ₹46 crores (23% YoY growth), while standalone PAT fell sharply to ₹6 crores from ₹43 crores due to direct assignment transactions being routed through Profectus. Portfolio quality remained stable with gross NPAs at 2.2%, net NPAs at 1.4%, and collection efficiency at 99%. Management announced a major strategic realignment, exiting low-yielding intermediated and DSA-led businesses to focus on two core segments: emerging market small-ticket loan against property (LAP) through 300+ branches and embedded merchant financing via MyShubhLife platform. The company has undertaken ₹220 crores of annualized cost rationalization, with about 50% already executed, expected to fully reflect in FY27.
The strategic shift toward higher-yielding, annuity-based income combined with cost rationalization is expected to improve return on assets over the next 8 quarters, though management avoided pinpointing a specific ROA target, suggesting near-term standalone profit volatility. Shareholders may see quality earnings improve, but should expect no fresh capital raise for 2-2.5 years as growth will be funded by internal accruals.