Ugro Capital Q2'FY27: Disbursement up 77% to ₹3,159 Cr, Profit up 17%
Ugro Capital reported Q2'FY27 results with disbursements up 77% to ₹3,159 crore, exceeding ₹1,000 crore monthly. Profit after tax rose 17% to ₹50.7 crore, and first-half profit grew 53% to ₹118.6 crore. The loan book reached ₹15,019 crore. The merger with Profectus Capital is set for a final NCLT hearing on 20 November 2026.
The strong financial results, strategic business transformation, and upcoming merger are material events that are likely to have a significant impact on the company's valuation and investor perception.
The company reported significant year-on-year growth in disbursements and profit, alongside cost reductions and successful strategic transformation, indicating positive business performance.
Ugro Capital Limited has reported its strongest lending quarter to date for Q2 FY27, with total disbursements reaching ₹3,159 crore, marking a 77% year-on-year increase and a 24% rise from the previous quarter. The company achieved a significant milestone by disbursing over ₹1,000 crore each month in July, August, and September. The loan book grew by 23% year-on-year to ₹15,019 crore.
The company's strategic reset, initiated nine months prior, is showing strong results, with its two primary growth engines, Emerging Market LAP and GROx embedded merchant lending, now constituting 53% of the loan book, up from 32%. Emerging Market LAP, focusing on small-ticket loans against property to MSMEs in smaller towns, grew 42% year-on-year to ₹4,268 crore, with an increasing average monthly disbursement per branch.
GROx, which lends to merchants through partners in the payment ecosystem, saw its Assets Under Management (AUM) nearly triple in a year to ₹3,661 crore, disbursing approximately ₹750 crore per month. Profit after tax for Q2 FY27 rose 17% year-on-year to ₹50.7 crore, while the profit for the first half of FY27 increased by 53% to ₹118.6 crore. Quarterly operating costs were reduced by 38% in two quarters, from ₹205 crore to ₹127 crore, alongside a rise in portfolio yield to 18.7%.
Asset quality remained steady, with Gross Non-Performing Assets (GNPA) at 2.7% and collection efficiency at 97%. The upcoming merger of Profectus Capital into Ugro Capital, with the NCLT final hearing scheduled for 20 November 2026, is expected to further stabilize reported profits and enhance capital adequacy to approximately 22%, enabling growth without further equity raises.
Mr. Shachindra Nath, Founder and Managing Director, commented that the company's data-driven lending approach is serving over four lakh small businesses, with a strong focus on smaller towns and merchants. He emphasized that the new business model is proving successful and aims to rebuild investor trust.
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Ugro Capital Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Ugro Capital Limited. Read the original for the full detail.