UGRO Capital delivered robust financial results for the December quarter, with net profit after tax (PAT) reaching ₹51.1 crore, marking a 26% year-on-year increase from ₹40.5 crore in Q4 FY25. According to reports from Live Mint, the company's net total income rose 51% year-on-year to ₹348 crore during the quarter, driven by a structural shift towards higher-yield on-book assets. For the full fiscal year FY26, UGRO reported a PAT of ₹174.8 crore, up 21% year-on-year, with net total income for the year standing at ₹1,067 crore, reflecting a 31% YoY growth.
The company has successfully pivoted towards its strategic focus areas, with the share of focused verticals increasing from 32% to 38% of AUM, marking the fastest quarterly shift on record. As reported by Live Mint, UGRO's Emerging Market LAP vertical closed FY26 with assets under management (AUM) of ₹3,581 crore, registering a 12% quarter-on-quarter growth. The company's vintage branches (more than 12 months old) achieved disbursements of ₹0.68 crore per month, approaching the management's target of ₹0.80–0.85 crore per month. Disbursements under the Prime Intermediated segment were discontinued from February 7, 2026, as part of the strategic reorientation.
According to Live Mint reports, Shachindra Nath, Founder & Managing Director, UGRO Capital, expressed confidence in the company's strategic direction, stating they are "excited to pivot with our full force to serving Bharat extensively to solve the problem of MSME credit at the bottom of the pyramid." The company outlined five structural objectives in early February, including executing ₹200–220 crore in annualised cost savings and transitioning to an annuity-led return on assets (ROA) of 3.0–3.5% by FY29. Nath emphasized that "mature branches are at ₹0.68 crore per month disbursement, and 156 sub-6-month branches are queued behind them as the next leg of annuity growth."
The company's shares have demonstrated strong recovery momentum, gaining 38.1% this month and are on track to end a three-month losing streak during which they had declined a cumulative 53.3%. As reported by Live Mint, the stock had previously come under severe selling pressure after hitting a record high of ₹310.65 apiece, leading to a prolonged correction. Despite the recent recovery, the shares are still down 63% from that peak, with annual performance showing negative returns of 22.7% in 2024 and 14.35% in 2025, though they have lost around 36% of their value so far this year.
