UGRO Capital Q2 FY27 AUM ₹15,019 Cr, Focus Mix 53%

Total Assets Under Management (AUM) stood at ₹15,019 Cr as of 30th September 2026.
Net disbursement for Q2'FY27 was ₹3,159 Cr, achieving record monthly disbursements exceeding ₹1,000 Cr for each month in the quarter.
The mix of focused business AUM (Emerging Market LAP + GROx) increased to 53% from 32% as of December 2025.
Key drivers: Strategic shift to high-yielding focused products, complete build-out of 317 Emerging Market branches across 13 states, and scaling of the tech-led GROx platform.

Emerging Market LAP: AUM of ₹4,268 Cr (28% of total), +10% QoQ growth. Portfolio yield ~18.4%, GNPA 2.0%. Q2 disbursement was ₹692 Cr.
Embedded Merchant Finance (GROx): AUM of ₹3,661 Cr (25% of total), +22% QoQ growth. Portfolio yield ~26%, GNPA 1.4%. Q2 disbursement was ₹2,253 Cr. Active customers ~4.1 lakh.
De-focused book (Prime Intermediated): AUM of ₹7,090 Cr (47% of total), running down at 13% QoQ. GNPA 3.9%.
Explanation of changes: Growth was driven by the strategic realignment announced in February 2026 to exit lower-yielding products and focus on EM LAP and GROx.

Revenue (Total Income): ₹578.4 Cr for Q2'FY27 (QoQ +8%, YoY +25%).
EBITDA: Not explicitly stated. PPOP (Pre-Provision Operating Profit) was ₹155.1 Cr for Q2'FY27.
PAT: ₹50.7 Cr for Q2'FY27 (YoY +17%). H1'FY27 PAT was ₹118.6 Cr.
EPS: Not specified.
Margins: Portfolio yield was 18.7% in Q2'FY27 (+108 bps YoY). Net Total Income margin was 11.8% of average on-book AUM.
YoY/QoQ comparison: Q2 PBT was ₹68.3 Cr (QoQ +11%, YoY +12%). Q2 PAT saw a QoQ decrease of 25% due to a higher tax expense vs a tax credit in Q1.
Drivers of financial performance: Higher-yielding portfolio mix, increased share of recurring interest income (69% of total income in H1 pro forma), and significant cost reduction.
Comparison to market estimates: Not provided.
Key Risks: Disclosed risks include the seasoning of new vintages impacting credit costs and the execution of the portfolio transition.

Net Debt/Equity: Leverage reported at 3.6x. Net worth was ₹3,029 Cr.
Reserves: Other equity was ₹2,876 Cr.
Current Assets/Liabilities: Cash and Bank Balance was ₹1,480 Cr. Financial liabilities were ₹11,166 Cr.
Working Capital/Leverage Metrics: CRAR was 18.8%.
Financial Health Insights: A predominantly long-term liability book (~68% beyond three years) mitigates refinancing risk.

Capital Expenditure: Not specified.
Free Cash Flow: Not specified.
Operating Cash Flow: Not specified.
Net Debt Movement: Not specified.
Investment Rationale: Focus on scaling the two high-yield verticals (EM LAP and GROx) without new equity for three years, funded by internal accruals.

Investments in Innovation: Tech-led, fully-automated underwriting and collections on the GROx platform. Data-tech empowering MSME lending.
Expected impact on growth: GROx AUM grew 2x in 4 quarters. EM LAP branch productivity target is ₹0.80-0.85 Cr/month (blended).
Strategic Rationale: Transition to an annuity-led, high-yielding book to achieve a steady-state ROA of 3.0-3.5% by FY29.

Macro/Industry Trends: Presentation focuses on the company-specific transition rather than broad industry trends.
Impact on Company: The strategic pivot is a response to the internal learning that the previous off-balance sheet model's economics were dependent on loans running to full maturity, which did not materialize as expected.

Strategic Outlook: Management is confident in achieving the strategic objectives (85% focus AUM, 3.0-3.5% ROA) within defined timelines by FY29.
FY Guidance: Growth guidance is EM LAP at 20-30% and GROx at 35-40% p.a. Full-year FY27 opex guidance is ~₹490+ Cr. No new equity dilution planned through FY29.
Market Share Targets: Not specified.
Risks and Opportunities: The key variable is controlling credit cost as new vintages season. The Profectus merger is expected to reduce income statement volatility.

Social Impact: An independent report highlighted that 42% of borrowers were first-time formal credit users (83% for women). 58% reported revenue increases post-UGRO loan. Every ₹1 deployed generates ~₹2.17 of social & economic value (SROI 2.17x).
The portfolio aligns with SDGs 3 (Health), 4 (Education), 9 (Industry), and 10 (Reduced Inequalities).