UGRO Capital Reports 27% Decline in Q4 Profit Amid Rising Income
UGRO Capital Q4 PAT slides 27% YoY to Rs 30 cr
Business Standard
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UGRO Capital's standalone net profit fell by 27.1% year-on-year to ₹29.55 crore in Q4 FY26, despite total income rising 23.4% to ₹509.04 crore. On a consolidated basis, net profit increased 26% to ₹51.1 crore, driven by a shift towards higher-yield assets.
- 01Standalone net profit decreased by 27.1% to ₹29.55 crore in Q4 FY26.
- 02Total income rose by 23.4% to ₹509.04 crore during the same period.
- 03Consolidated net profit increased by 26% to ₹51.1 crore.
- 04Assets under management reached ₹15,334 crore, up from ₹12,003 crore.
- 05UGRO Capital aims to address MSME credit gaps in India.
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UGRO Capital reported a 27.1% decline in standalone net profit, amounting to ₹29.55 crore for the fourth quarter of FY26, compared to ₹40.54 crore in the same quarter last year. Despite this drop, the company's total income surged by 23.4% to ₹509.04 crore. Profit before tax also fell slightly by 2.27% to ₹41.69 crore. On a consolidated basis, UGRO Capital saw a 26% increase in net profit, reaching ₹51.1 crore, driven by a 51% rise in total income to ₹348 crore. This growth was attributed to a strategic shift towards higher-yield assets. The company's assets under management (AUM) climbed to ₹15,334 crore, up from ₹12,003 crore a year earlier, while net disbursements dropped to ₹2,137 crore from ₹2,436 crore. UGRO Capital reported a gross non-performing asset (GNPA) ratio of 2.50% and a net non-performing asset (NNPA) ratio of 1.60%. The company is focused on enhancing its services to micro, small, and medium enterprises (MSMEs) in India, leveraging its extensive branch network and data analytics capabilities. Shares of UGRO Capital increased by 2.07% to ₹114.25 on the Bombay Stock Exchange (BSE).
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The decline in standalone profit may affect investor confidence, while the increase in total income indicates robust operational growth. This could lead to more competitive lending rates for MSMEs, benefiting small businesses seeking financing.
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