1. At a Glance
UGRO Capital is that ambitious NBFC kid in class who doesn’t want to sit quietly at the back bench. Market cap of about ₹2,143 Cr, stock price hovering around ₹138, and trading at 0.85x book value — which tells you the market is still not fully convinced about the “DataTech lending revolution” pitch. Over the last 3 months, the stock is down ~14%, which is the market’s polite way of saying: “Beta, numbers dikhao, PowerPoint nahi.”
Latest Q3 FY26 results show AUM at ₹15,454 Cr (+40% YoY) and PAT of ~₹46 Cr for the quarter, but the same quarter also saw EPS crash to ₹0.41, reminding investors that NBFC growth stories come with EMI-level patience requirements. ROE is still a modest ~8%, debt-to-equity is a chunky 3.28, and interest coverage at 1.21x is… let’s say, breathing but not jogging.
So the big question before we proceed: is UGRO a misunderstood fintech-NBFC hybrid… or just another lender with fancy dashboards and real-world credit risk?
2. Introduction
UGRO Capital sells a dream — that India’s MSME credit gap can be solved using data, AI, ML, APIs, and enough acronyms to make a McKinsey consultant emotional. Founded with the idea of sector-focused lending, UGRO doesn’t want to lend to everyone. It wants to lend to everyone important — micro enterprises, light engineering, electrical equipment makers, food processors, auto ancillaries, and a few others who collectively keep GDP ticking but banks ghosting.
Between FY23 and FY24, AUM jumped from ~₹6,000 Cr to ~₹9,000 Cr, and by Q3 FY26 it has crossed ₹15,000 Cr, partly organic, partly helped by acquisitions like Profectus Capital and MyShubhlife. That’s fast growth — the kind that excites equity investors and gives risk managers mild insomnia.
But here’s the thing: lending businesses are judged less by how fast they grow, and more by what breaks when growth slows. So while UGRO’s topline story is flashy, the
bottom-line volatility and rising leverage keep analysts sharpening their red pens.
Before we crown it the next Bajaj Finance (spoiler: market hasn’t), let’s decode what UGRO actually does.
3. Business Model – WTF Do They Even Do?
At its core, UGRO is an MSME-focused NBFC, but wrapped in a tech-first narrative.
It operates across 9 sectors, broken into 200+ subsectors, using what it calls a sectoral credit underwriting approach. Translation: instead of “one-size-fits-all loans”, they tweak credit models for each industry.
Products on the Menu:
- Secured business loans
- Unsecured business loans
- Machinery loans
- Micro enterprise loans
- Supply chain financing
- Embedded finance products
The Tech Stack (aka The Buzzword Buffet):
- GRO Plus – Uber for DSAs
- GRO Chain – Invoice-based supply chain lending
- GRO Xstream – Co-lending with banks & NBFCs
- GRO X – Embedded finance APIs
- GRO Score 3.0 – AI/ML-driven credit scoring
Sounds impressive, right? It is — on slides.
In practice, UGRO still makes money the old-fashioned way: borrow at ~10.7%, lend higher, pray NPAs behave. Tech helps scale faster and assess risk better, but credit cycles don’t read pitch decks.
So far, asset quality is holding. But the balance sheet is getting heavier — which brings us to numbers.
4. Financials Overview
| Metric | Latest Qtr (Dec FY26) | YoY Qtr (Dec FY25) | Prev Qtr (Sep FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 408.88 | 371.12 | 455.40 | +10.2% | -10.2% |
| Financing Profit (₹ Cr) | -15.77 | 51.62 | 69.46 | NA | NA |
| PAT (₹ Cr) | 6.38 | 37.51 | 43.31 | -83.0% | -85.3% |
| EPS (₹) | 0.41 | 3.18 | 3.71 | -87% | -89% |
