1. At a Glance

There’s fintech. There’s NBFC. And then there’sU GRO Capital— a company that looked at both and said, “Why not be both, but with a PhD in Excel formulas?”

As ofQ2 FY26, U GRO Capital flaunts anAUM of ₹12,226 crore, ahalf-year PAT of ₹77.4 crore, and a brand-new toy in its cart — the₹3,000 crore acquisition of Profectus Capital. Because apparently, growing 35% annually wasn’t enough; they wanted to grow horizontally too.

The stock sits at₹177, giving it amarket cap of ₹2,475 crore, aP/E of 15.9x, and aPrice-to-Book of 0.84x— a discount so deep, even DMart would blush. But let’s not get too excited; theROE is a modest 8.26%andROCE at 11%, because scaling fintech dreams costs real money.

Over the last quarter, revenue jumped37.9% YoY to ₹455 crore, while PAT grew21.9% to ₹43.3 crore. The company’s GNPA remains controlled at~2%, proving that while MSMEs may default on sleep, they’re mostly paying their EMIs.

So, is U GRO a sleeping fintech beast or just another NBFC dressed in data science jargon? Grab your GRO Score 3.0 (AI/ML-powered, obviously), and let’s investigate.

2. Introduction

Remember when lending used to be about knowing your borrower, visiting their shop, and smelling the sweat on their factory floor? U GRO Capital replaced all that with machine learning, dashboards, and an app that probably has more data points than your Tinder profile.

Founded with a dream to bridge India’s MSME credit gap, U GRO Capital believes thatdata is the new collateral. Their pitch: small businesses deserve smarter credit. Their problem: every other NBFC in India thinks the same thing.

Still, they’ve pulled off a commendable hustle — a5-year CAGR of 68% in salesand49% in profits. AUM grew from ₹6,000 crore in FY23 to ₹9,000 crore in FY24, and now ₹12,226 crore in FY26. That’s the kind of compounding even your SIPs envy.

But the road isn’t without bumps. With only2.25% promoter holding(Poshika Advisory LLP and Shachindra Nath), the company feels more like a venture-backed startup than an old-school NBFC. Meanwhile, FIIs hold nearly29%, which means the “smart money” is watching — though sometimes, smart money can be very patient before panicking.

And yes, the nameU GROsounds like motivational advice — but make no mistake, they’ve actually beengrowingat fintech speed while sweating under NBFC regulations.

3. Business Model – WTF Do They Even Do?

U GRO Capital is not your average lender handing out cash from behind a mahogany desk. It calls itself a“DataTech Lending Platform”, which in normal English means: “We use a lot of data and buzzwords to lend money.”

They target eight key sectors —Micro Enterprises, Light Engineering, Electrical Equipment, Food Processing, Auto Components, and a few “Others” (because every Excel sheet needs a miscellaneous column).

Their products are split like a well-balanced thali:

• Secured Business Loans (23%)– the paneer tikka of the menu, safe and solid.
• Unsecured Business Loans (23%)– spicy, risky, but fun.
• Micro Enterprise Loans (13%)– the startup snacks.
• Machinery Loans (13%)– the steel-and-sweat segment.
• Partnership & Alliances (12%),Supply Chain Financing (7%), andOthers (9%)— the garnish of fintech innovation.

Their secret sauce is theGRO ecosystem:

• GRO Plusfor intermediated sourcing,
• GRO Chainfor automated supply chain finance,
• GRO Xstreamfor co-lending,
• GRO Xfor embedded finance,
• and the grand finale:GRO Score 3.0, a credit algorithm powered by AI/ML. (Because no one trusts Excel formulas anymore unless they’re machine-learned.)

With127 micro branches,23 prime branches, and500+ GRO partners, they’ve spread like samosa stalls — visible in Tamil Nadu (17%), Rajasthan (16%), and Gujarat (10%).

4. Financials Overview

Annualized EPS = ₹3.71 × 4 = ₹14.84 → P/E ≈ 177 / 14.84 =11.9x

So technically, Screener’s 15.9x is a bit high — maybe they didn’t use the GRO Score calculator.

Commentary:Revenue up, profit up, NPAs