Ugro Capital Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Ugro Capital Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
UGRO Capital reported Q1'FY27 consolidated results reflecting its business realignment toward Emerging Market secured lending and Embedded Merchant Finance via GROx, with these two segments now comprising 46% of total AUM versus 32% in December 2025. Total AUM stood at INR 15,013 crores, interest income was INR 363 crores, and portfolio yield rose to 18.1%, while co-lending and direct assignment income declined to INR 75 crores as planned. Management also discussed the pending NCLT-approved merger of Profectus Capital into UGRO and reduced quarterly operating expenses to approximately INR 119 crores from INR 217 crores in the prior quarter.
Numbers mentioned
Total AUM: INR 15,013 crores (Q1 FY27)
p. 5
“Total AUM at the end of the quarter stood at INR 15,013 crores, while net disbursements during the quarter were INR 2,551 crores, representing growth of approximately 59% year-on-year.”
Anuj Pandey, page 5 of the filed PDF · View the filing
Emerging Market and Embedded Merchant Finance share of AUM: 46% (June 2026)
p. 5
“Together, Emerging Market LAP and Embedded Merchant Finance now have AUM of approximately INR 6,899 crores and represents 46% of our total AUM compared to 32% in December '25.”
Anuj Pandey, page 5 of the filed PDF · View the filing
Emerging Market LAP AUM: INR 3,896 crores (June 2026)
p. 5
“Emerging Market LAP AUM has increased from INR 3,581 crores in March to INR 3,896 crores in June, representing a quarter-on-quarter growth of approximately 9%.”
Anuj Pandey, page 5 of the filed PDF · View the filing
GROx AUM: INR 3,003 crores (June 2026)
p. 6
“GROx AUM increased from INR 2,280 crores in March to INR 3,003 crores in June '26, representing growth of approximately 32% quarter-on-quarter.”
Anuj Pandey, page 6 of the filed PDF · View the filing
Interest income: INR 363 crores (Q1 FY27)
p. 7
“Interest income was INR 363 crores, up 19% year-over-year, though this was down 13% quarter-over-quarter.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Portfolio yield: 18.1% (Q1 FY27)
p. 7
“Crucially, portfolio yield rose to 18.1%.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Co-lending and direct assignment income: INR 75 crores (Q1 FY27)
p. 7
“Co-lending and direct assignment income was INR 75 crores.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Total income: INR 535 crores (Q1 FY27)
p. 7
“Total income achieved was INR 535 crores, which was up 27% year-over-year.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Finance costs: INR 289 crores (Q1 FY27)
p. 7
“Finance costs stood at INR289 crores.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Cost of borrowing: 10.14% (Q1 FY27)
p. 7
“Our cost of borrowing was down 41 bps year-over-year and stood at 10.14%.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Quarterly operating expenses: approximately INR 119 crores (Q1 FY27)
p. 7
“In line with our strategic alignment plan, our quarterly operating expenses have now reduced to approximately INR 119 crores from INR 217 crores in Q4’FY26.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Credit cost: INR 66 crores (Q1 FY27)
p. 7
“Credit cost was at INR 66 crores. This is contained at 1.7% of average AUM.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
GNPA on AUM: 2.6% (Q1 FY27)
p. 7
“GNPA on AUM was a healthy 2.6% versus 2.5% at March '26.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Collection efficiency: 98% (Q1 FY27)
p. 8
“The total collection efficiency was 98% for this quarter.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
Pre-tax ROA: 2.6% (Q1 FY27)
p. 8
“Our pre-tax ROA, which stood at 2.6% and the reported PAT basis, ROA is 2.8%, with the difference driven by the one-time reversal.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
ROE: 9.2% (Q1 FY27)
p. 8
“ROE stood at 9.2%.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
Net worth: INR 2,976 crores (Q1 FY27)
p. 8
“Net worth is at INR 2,976 crores, and our leverage stood at 3.6x.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
Capital adequacy: 21% (Q1 FY27)
p. 8
“Capital adequacy on UGRO standalone basis is at 21%.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
Liquidity position: INR 1,864 crores (Q1 FY27)
p. 8
“We closed the quarter with a strong liquidity position of about INR 1,864 crores, providing adequate financial flexibility to support future growth.”
Shilpa Bhatter, page 8 of the filed PDF · View the filing
Monthly disbursement milestone: INR 1,000 crores (July 2026)
p. 3
“In July 2026, the combined momentum of our Emerging Market branch network and GROx platform enabled UGRO to cross INR 1,000 crores of monthly disbursement for the first time in our history.”
Shachindra Nath, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Combined Emerging Market and Embedded Merchant Finance share of AUM — 85% of AUM · FY29
stated firmly by Shachindra Nath
p. 4
“The duo will scale to 85% of our AUM by FY29.”
Shachindra Nath, page 4 of the filed PDF · View the filing
Annualized operating cost reduction — approximately INR 220 crores
stated firmly by Shachindra Nath
p. 4
“Our plan to take out approximately INR 220 crores of annualized operating cost is already in place.”
Shachindra Nath, page 4 of the filed PDF · View the filing
FY27 opex run rate — about INR 490 crores · FY27
stated firmly by Shilpa Bhatter
p. 7
“This represents an annualized run rate near our FY27 guidance of about INR 490 crores of opex.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
AUM growth without incremental equity — through FY29
stated firmly by Shachindra Nath
p. 4
“Basis this strategy, we are confident that UGRO can achieve its planned growth without incremental equity through FY29.”
Shachindra Nath, page 4 of the filed PDF · View the filing
FY27 closing AUM — flat · FY27
stated conditionally by Shachindra Nath
p. 8
“We expect the current financial year the AUM to remain flat.”
Shachindra Nath, page 8 of the filed PDF · View the filing
Emerging Market asset growth — 25% CAGR · through FY29
stated firmly by Shachindra Nath
p. 8
“If you look at FY29, what we have said that our Emerging Market asset would grow roughly at around 25% CAGR.”
Shachindra Nath, page 8 of the filed PDF · View the filing
GROx platform growth — 25% CAGR · through FY29
stated firmly by Shachindra Nath
p. 8
“We have also guided that our GROx platform, which is merchant lending, would also grow at 25% CAGR.”
Shachindra Nath, page 8 of the filed PDF · View the filing
Defocused Prime portfolio runoff — 20%
stated firmly by Shachindra Nath
p. 8
“we have said that our defocused portfolio, which is the Prime business, would run down at 20%.”
Shachindra Nath, page 8 of the filed PDF · View the filing
Co-lending and direct assignment income share — 4% · next 11 quarters
stated as an aspiration by Shachindra Nath
p. 10
“we would like this to be 4% in the end of the next 12 quarters or now 11 quarters.”
Shachindra Nath, page 10 of the filed PDF · View the filing
Merger completion timeline — by Q4, possibly Q3
stated conditionally by Shachindra Nath
p. 12
“I think on the timeline of the merger, on the outer side, we expect the merger to get completed by the month of Feb.”
Shachindra Nath, page 12 of the filed PDF · View the filing
Post-merger capital adequacy — 23%-24%
stated conditionally by Shilpa Bhatter
p. 12
“On a merged basis, we should be about 23%, 24%.”
Shilpa Bhatter, page 12 of the filed PDF · View the filing
Emerging Market LAP peak GNPA — 3%-3.5%
stated conditionally by Anuj Pandey
p. 11
“So, in the Emerging Market LAP business, the peak delinquencies are projected to be around 3.5%-4% when the average month on books starts actually crossing 18 months.”
Anuj Pandey, page 11 of the filed PDF · View the filing
Embedded Finance GNPA ceiling — not beyond 3%
stated conditionally by Anuj Pandey
p. 11
“We are quite confident that it will hold. It should not go beyond 3%, while we had projected higher.”
Anuj Pandey, page 11 of the filed PDF · View the filing
EM LAP credit cost guidance — 1.5% to 2%
stated firmly by Shachindra Nath
p. 12
“Yes. Yes, that's true.”
Shachindra Nath, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said AUM would remain flat this year on a reported basis but on-balance sheet assets would grow, with FY29 growth guidance previously given by segment.
Answered by Shachindra Nath
Asked by Amit Mehendale: What is the expected closing AUM and ROE for FY27 and FY28?
p. 8
“We expect the current financial year the AUM to remain flat.”
Shachindra Nath, page 8 of the filed PDF · View the filing
Management explained the decline is largely due to reduced on-balance sheet AUM and said current quarter income should be treated as the base going forward.
Answered by Shachindra Nath
Asked by Neel Advani: How much of the sequential interest income decline is from reversal versus timing of disbursements, and when will it turn positive?
p. 9
“Reduction of roughly around INR 30 crores is on account of predominantly the reduced AUM.”
Shachindra Nath, page 9 of the filed PDF · View the filing
Management said broadly yes, subject to variability from foreclosure levels.
Answered by Anuj Pandey
Asked by Neel Advani: Is the current DA income the run rate for the year?
p. 10
“Yes, broadly, that would be the run rate, but it is also a function of how much foreclosures happen on our off book.”
Anuj Pandey, page 10 of the filed PDF · View the filing
Management said delinquency trends are within anticipated ranges as the book seasons.
Answered by Anuj Pandey
Asked by Neel Advani: Is the GNPA trend in EM LAP and Embedded Financing running ahead of the internal model?
p. 11
“So, the projection is well within what we had anticipated as the book seasons.”
Anuj Pandey, page 11 of the filed PDF · View the filing
Management expects completion by around Q3 or Q4 and post-merger capital adequacy near 23-24%.
Answered by Shachindra Nath
Asked by Neel Advani: What is the merger timeline with NCLT and post-merger capital adequacy?
p. 12
“But otherwise, prior to the fourth quarter, it would definitely get completed.”
Shachindra Nath, page 12 of the filed PDF · View the filing
Management said no, citing vintage requirements, collection infrastructure economics, and income reversal concerns.
Answered by Anuj Pandey
Asked by Rishi: Is management considering selling the DSA-led Prime portfolio as one block, like Profectus was acquired?
p. 12
“Rishi, no, we are not considering selling off that completely as a portfolio.”
Anuj Pandey, page 12 of the filed PDF · View the filing
Management attributed it to proxy advisory firm objections over an enabling variable pay resolution, not any actual increase in fixed pay.
Answered by Shachindra Nath
Asked by Rishi: Why did some shareholder resolutions receive low support recently?
p. 13
“It was note which got created as a confusion and certain proxy advisory firms, which wrote against that without really understanding the depth of the resolution.”
Shachindra Nath, page 13 of the filed PDF · View the filing
Management said buybacks are not possible for NBFCs under Companies Act leverage rules, and a dividend policy change is being considered but not yet decided.
Answered by Shachindra Nath
Asked by Rishi: What are RBI guidelines on share buybacks for NBFCs, and would management consider a dividend?
p. 16
“With respect to buyback, unfortunately, buyback for NBFCs is not possible at all.”
Shachindra Nath, page 16 of the filed PDF · View the filing
Management named credit risk in the focused smaller-ticket verticals and cost of borrowing as key areas of focus.
Answered by Anuj Pandey
Asked by Ritesh Khandelwal: What are the top three risks management is monitoring?
p. 17
“So broadly from the credit risk perspective, it continues to be the biggest risk which we are cognizant about.”
Anuj Pandey, page 17 of the filed PDF · View the filing
Management cited branch productivity ramp-up, credit risk from expanding into longer-tenure embedded finance loans, and faster-than-expected portfolio runoff as key execution risks.
Answered by Shachindra Nath
Asked by Kamal: What are the main execution risks to the self-funded growth thesis beyond the near term?
p. 18
“Third technically is the runoff. We have presumed runoff of roughly around 20% odd.”
Shachindra Nath, page 18 of the filed PDF · View the filing
Risks flagged
Credit risk in smaller-ticket focused verticals requiring careful monitoring of early warning signals
p. 17
“Both our focused verticals are to the relatively smaller size customers and hence we have to be very, very careful on monitoring the early warning signals.”
Anuj Pandey, page 17 of the filed PDF · View the filing
Faster-than-expected runoff of the Prime portfolio increasing income reversal and pressuring the P&L
p. 18
“But obviously, if the runoff is very, very fast, then as I explained earlier, the reversal of income is also much higher, and that put pressure on our total P&L.”
Shachindra Nath, page 18 of the filed PDF · View the filing
Credit risk from expanding Embedded Finance into longer-tenure, larger-ticket loans
p. 18
“Whenever you do that, there is a potential of credit risk going up and that's why we have to be a little tight and make sure that while we do that and increase our volume on the Embedded Finance side, we don't see big impact on the credit side.”
Shachindra Nath, page 18 of the filed PDF · View the filing
Concentrated state, geography, and sector-wise risk requiring ongoing monitoring
p. 17
“but smaller concentrated, state, geography, sector-wise risk, we keep monitoring.”
Anuj Pandey, page 17 of the filed PDF · View the filing
Higher DSA cost from increased foreclosures in Prime Intermediated portfolio
p. 7
“Therefore, this quarter, foreclosures of the Prime Intermediated DSA-led vertical was higher, leading to increased DSA cost.”
Shilpa Bhatter, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.