Key Financial Figures

  • Profit Before Tax (PBT): ₹61.5 crore, up 28% year-on-year
  • Profit After Tax (PAT): ₹67.9 crore (including benefit of one-time deferred tax reversal following transition to new tax regime)
  • Return on Assets: 2.8%
  • Return on Equity: 9.2%
  • Total AUM: ₹15,013 crore, up 24% year-on-year
  • Gross NPA: 2.6%
  • Collection Efficiency: 98%
  • Blended Portfolio Yield: 18.1%
  • CRAR: 21.0%
  • Leverage: 3.6x
  • Liquidity Buffer: ₹1,864 crore in cash and cash equivalents
  • Quarterly Operating Expenses: ₹118.5 crore (declined 42%)

GROx Embedded Lending Platform Performance

  • Q1 FY27 Disbursements: ₹1,853 crore
  • Monthly Disbursement Rate: Over 60,000 loans per month
  • AUM as of June 30, 2026: ₹3,003 crore, up 32% quarter-on-quarter from ₹2,280 crore as of March 31, 2026
  • Active Customers: 3.4 lakh
  • Portfolio Yield: Approximately 26%
  • GNPA: 2.1%
  • Delivery Method: Through partnerships with payment ecosystems, digital platforms and e-commerce partners

Emerging Market Business Performance

  • Branch Network: 317 branches across 13 states
  • Workforce: More than 2,500 employees
  • Q1 FY27 Disbursements: ₹592 crore
  • AUM: ₹3,896 crore, up 9% quarter-on-quarter
  • Portfolio Yield: Approximately 18.5%
  • GNPA: 2.1%
  • Branch Productivity: ₹0.62 crore in Q1'FY27, expected to improve to ₹0.80–0.85 crore

Strategic Realignment Update

UGRO announced strategic realignment in February 2026 by discontinuing fresh disbursements in lower-yielding Prime lending business and redirecting capital towards:

1. Embedded Merchant Finance Lending through GROx

2. Branch-led Emerging Market LAP

Focused businesses now constitute 46% of AUM mix (up from 32% in December 2025), moving toward 85% FY29 target.

Prime book reduced by 14% during the quarter and is expected to run down at approximately 20% annually.

Expected growth rate for focused businesses: Around 25% CAGR

Cost optimization: ₹220 crore annualized cost optimization fully achieved

Equity requirements: No additional equity requirement expected through FY29

Future targets: Steady-state ROA target of 3.0–3.5% by FY29

Additional Milestones

  • Achieved highest ever monthly disbursement of over ₹1,000 crore in July 2026
  • Received stock exchange approval for Profectus Capital merger
  • Combined Emerging Market LAP and GROx portfolio account for 46% of total AUM mix

Management Commentary

Shachindra Nath, Founder and Managing Director, stated that the strategy is compounding as planned, with GROx scaling ahead of plan without compromising asset quality. The Emerging Market network is fully built and stable, with maturing branches adding earnings without adding cost. The company is confident of reaching FY29 target of 3.0 to 3.5 percent steady-state ROA.