UGRO Capital Limited delivered robust financial results for the quarter and nine months ended December 31, 2025. According to reports from CNBC TV18, the company's net profit after tax (PAT) stood at ₹46.3 crore for Q3 FY26, representing a 23% increase year-on-year, while total income for the quarter was ₹506.4 crore, up 32% YoY. For the nine-month period, PAT reached ₹123.7 crore, demonstrating consistent growth momentum across the fiscal year. The company's Pre-Provision Operating Profit (PPOP) grew 15% YoY to ₹108.8 crore, indicating underlying operational strength before provisioning.
The company's Assets Under Management (AUM) reached ₹15,454 crore as of December 31, 2025, marking a significant 40% growth compared to the same period last year. As reported by CNBC TV18, UGRO reported net disbursements of ₹2,217 crore in Q3 FY26, up 6% YoY, and ₹5,605 crore in the nine-month period, up 7% YoY. This growth in disbursements indicates strong business momentum and market demand for the company's lending solutions.
UGRO maintained stable asset quality metrics during the quarter, according to CNBC TV18 reports. The company's gross and net non-performing assets stood at 2.2% and 1.4% of total AUM respectively, while the provision coverage ratio was maintained at 45%. Collection efficiency was strong at 99% in Q3 FY26, up from 96% in the prior year's quarter, highlighting effective recovery mechanisms. However, Gross Non-Performing Assets (GNPA) marginally increased to 2.2% from 2.1% YoY, though Net Non-Performing Assets (NNPA) improved to 1.4% from 1.5% YoY, indicating some improvement in asset quality metrics.
Despite strong AUM growth, UGRO's financial leverage increased significantly to 3.8x from 3.1x in the previous year, as reported by The Economic Times. While this fuels AUM growth, it also amplifies risk. The cost of borrowings remained stable at 10.24%, supported by a diversified lender base comprising 57% Banks, 23% DFIs, and 9% NBFCs. The absence of explicit forward-looking guidance on revenue growth or margin bands in management commentary poses potential concerns for investors seeking clearer directional cues for upcoming quarters.
The company highlighted significant growth in its Emerging Market business, which now contributes around 21% of consolidated AUM, supported by over 300 branches and an AUM of ₹3,199 crore. As reported by CNBC TV18, UGRO's Embedded Finance platform, MSL, reached an AUM of ₹1,798 crore within five quarters, serving over 1.85 lakh customers through partnerships with platforms such as PhonePe and BharatPe. This diversified business model and digital platform expansion demonstrate the company's successful diversification strategy.
In December 2025, UGRO completed the acquisition of Profectus Capital, which is now a wholly-owned subsidiary, as reported by CNBC TV18. The company stated it will focus on integrating the acquired platform while maintaining portfolio discipline. UGRO Capital is listed on NSE and BSE and provides data-driven lending solutions for MSMEs across India, using AI/ML-based credit scoring and multiple distribution channels. The company has launched an Environmental & Social Management System (ESMS), aligning with global best practices and enhancing investor confidence in sustainable financing practices.
