The company’s shares have staged a strong comeback this month, gaining 38.1%, and are on track to end a three-month losing streak, during which they had declined a cumulative 53.3%. (Image: Pixabay )AI Quick ReadUGRO Capital announced its financial performance for the March-ended quarter and the full fiscal year FY26 on Monday. The company reported a Q4 profit after tax (PAT) of ₹51.1 crore, marking a 26% increase from ₹40.5 crore in Q4 FY25. 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 year FY26, UGRO reported a PAT of ₹174.8 crore, up 21% year-on-year. Net total income for the year stood at ₹1,067 crore, reflecting a 31% YoY growth.
Its Emerging Market LAP vertical closed FY26 with assets under management (AUM) of ₹3,581 crore, registering a 12% quarter-on-quarter growth. Vintaged 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, according to the company’s earnings filing.
In early February, UGRO outlined five structural objectives to reorient its business towards two high-yield focus verticals—Emerging Market LAP and Embedded Finance—while gradually running down the Prime Intermediated portfolio.
These include executing ₹200–220 crore in annualised cost savings, maintaining capital adequacy without raising fresh equity, and transitioning to an annuity-led return on assets (ROA) of 3.0–3.5% by FY29.
After one full quarter of execution, the company said all five objectives are on track. The share of focused verticals increased from 32% to 38% of AUM—marking the fastest quarterly shift on record. Disbursements under the Prime Intermediated segment were discontinued from February 7, 2026, its filing showed.
Shachindra Nath, Founder & Managing Director, UGRO Capital, said, “We 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, which is where the real gap exists and where we have spent three years building the right capability."
"The branch network is now working for us. Every branch that matures adds earnings without adding cost. 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. UGRO will compound from its existing footprint. All five commitments we made in February are on track, and we will deliver on them," Shachindra Nath further added.
The company’s shares have staged a strong comeback this month, gaining 38.1%, and are on track to end a three-month losing streak, during which they had declined a cumulative 53.3%.
The stock had come under severe selling pressure after hitting a record high of ₹310.65 apiece, which later led to a prolonged correction.
Although the shares have recovered recently, they are still down 63% from that peak. In terms of annual performance, the stock delivered negative returns over the past two calendar years, declining 22.7% in 2024 and 14.35% in 2025. So far this year, it has lost around 36% of its value.
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