UGRO Capital Ltd, India’s first NBFC startup, is progressing on its strategic pivot towards high-yield segments, with Emerging Market LAP (loan against property) and Embedded Finance rising to 38% of assets under management (AUM) from 32% within a quarter.
Emerging Market LAP AUM increased from ₹3,199 crore to ₹3,581 crore, while Embedded Merchant Finance grew from ₹1,798 crore to ₹2,280 crore, with about 2.5 lakh active merchant customers. Consolidated AUM stood at ₹15,334 crore, with capital adequacy at 21.2%.
Structured objectives
The company had, on February 7, 2026, outlined five structural objectives, including reorienting its portfolio mix, running down the Prime Intermediated business, achieving ₹200–220 crore in annualised cost savings, maintaining capital adequacy without fresh equity, and transitioning to an annuity-led return on assets (ROA) of 3–3.5% by FY29.
UGRO Capital said all five objectives remain on track after a full quarter of execution.
Portfolio shift gains momentum
The company discontinued disbursements under the Prime Intermediated portfolio from February 7, marking a decisive step in rebalancing towards higher-yield segments.
The increase in the share of focus verticals represents the fastest quarterly shift in portfolio mix for the company, indicating early traction in strategy execution.
Branch-led growth model
UGRO Capital, Founder & Managing Director Shachindra Nath, said the company is strengthening its focus on MSME lending, particularly in underserved segments.
He said the branch network is beginning to deliver operating leverage, with mature branches contributing incremental earnings without additional cost.
Mature branches are currently delivering disbursements of about ₹68 lakh per month, with 156 branches under six months of operation expected to drive the next phase of annuity-led growth.
Financial performance and outlook
UGRO Capital reported a net profit of ₹51 crore for the fourth quarter, up 26% year-on-year, while net total income rose 51% to ₹348 crore, supported by a shift towards higher-yield on-book assets.
For the full year, profit after tax increased over 21% to ₹175 crore, while net total income rose over 31% to ₹1,067 crore.
Nath said the company will continue to scale its existing footprint and address credit gaps in the MSME segment, while maintaining discipline on profitability and capital, with all strategic commitments on track.