Ugro Capital delivered exceptional financial performance in the June 2026 quarter, with standalone net profit surging 78% to ₹607 crore compared to ₹341 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a significant improvement in the company's bottom-line performance during the quarter ended June 2026. The company also reported Profit Before Tax (PBT) increased 28% year-on-year to ₹61.5 crore, demonstrating strong operational performance across key metrics.
The technology-led embedded merchant finance platform, GROx disbursed ₹1,853 crore in Q1 FY27, establishing itself as the primary growth engine for the company. As reported by Business Standard, GROx's asset under management (AUM) grew 32% quarter-on-quarter to ₹3,003 crore as of June 30, 2026, with over 60,000 loans disbursed monthly. The platform maintains strong asset quality with a gross non-performing asset (GNPA) ratio of 2.1% and yield of approximately 26%. Together with Emerging Market LAP, GROx now constitutes 46% of the total AUM mix, up from 32% in December 2025, moving toward an 85% target by FY29.
The company's sales revenue increased modestly by 0.82% to ₹417.41 crore in Q1 FY2026, up from ₹414.00 crore in the same quarter of the previous fiscal year. As reported by Business Standard, this marginal revenue growth of approximately ₹3.41 crore demonstrates the company's ability to maintain steady top-line performance despite challenging market conditions. Return on Assets (ROA) improved to 2.8% from 2.1% in Q4FY26, while Return on Equity (ROE) rose to 9.2% from 7.1%, indicating enhanced profitability metrics across the business.
Asset quality strengthened sequentially with the Gross Stage 3 ratio declining to 2.75% from 3.66%, and the Net Stage 3 ratio improving to 1.71% from 2.24%, as reported by Business Standard. The company maintained a robust balance sheet with a Capital to Risk-Weighted Assets Ratio (CRAR) of 21.0% and cash reserves of ₹1,864 crore. Operating profit margin (OPM) improved to 64.68% in the June 2026 quarter compared to 62.44% in the corresponding quarter of the previous year. The company has fully achieved its planned ₹220 crore annualised cost optimisation, with quarterly operating expenses falling 42% to ₹118.5 crore.
The divergence between stable total AUM (up 24% YoY to ₹15,013 crore) and surging profitability highlights the success of the portfolio mix shift toward higher-yielding verticals. As reported by Business Standard, the company completed the build-out of its Emerging Market branch network, now comprising 317 branches across 13 states supported by more than 2,500 employees. Branch productivity is projected to rise from ₹0.62 crore in Q1FY27 to ₹0.80–0.85 crore as the network matures. The company expects no requirement for additional equity through FY29, aiming for a steady-state ROA of 3.0–3.5% by FY29.
