UGRO Capital Net Profit Jumps 23% In Q3 FY26 On Strong AUM Growth

UGRO Capital reported a strong financial performance for the quarter ended December 31, 2025, with net profit rising 23% year‑on‑year. The company recorded steady operational momentum supported by resilient asset quality.

Its DataTech‑driven lending model continued to expand across key business segments. UGRO stated that both consolidated AUM and net disbursements registered notable growth in the quarter, reflecting healthy demand across MSME segments.

Q3 FY26 Financial Performance and Profitability

UGRO Capital’s net profit for Q3 FY26 stood at ₹46.3 crore, marking a 23% YoY rise. Total income increased 32% YoY to ₹506.4 crore during the quarter. Profit for the nine‑month period reached ₹123.7 crore, underscoring the company’s sustained growth trajectory.

Net disbursements for Q3 FY26 grew 6% YoY to ₹2,217 crore, while cumulative nine‑month disbursements stood at ₹5,605 crore, reflecting a 7% increase. This performance highlights the benefits of UGRO’s data‑driven underwriting and diversified lending channels.

Strong AUM Growth Backed by Emerging Markets Business

Assets under management rose 40% YoY to ₹15,454 crore in Q3 FY26. The company’s Emerging Markets business contributed around 21% of consolidated AUM. This segment is supported by a network of more than 300 branches, with its AUM reaching ₹3,199 crore.

Rapid expansion in regional markets strengthened the company’s distribution footprint. The growth also indicates sustained credit demand from small enterprises across underserved geographies.

Asset Quality and Risk Management Indicators

UGRO Capital reported stable asset quality during the quarter. Gross NPAs stood at 2.2% of AUM, while net NPAs were at 1.4%. The provision coverage ratio remained at 45%, reflecting prudent risk provisioning.

These numbers indicate resilience in asset performance despite a broader environment of uneven credit conditions. Consistent risk discipline continues to support the company’s lending operations and portfolio stability.

Growth In Embedded Finance and Digital Lending Platforms

UGRO’s embedded finance platform, MSL, reached an AUM of ₹1,798 crore within five quarters. The business served more than 1.85 lakh customers through partnerships with platforms such as PhonePe and BharatPe.

This highlights the scale achieved in digital co‑lending and embedded finance partnerships. The company said that digital origination continues to play a key role in improving customer access and expanding credit penetration in MSME ecosystems.

Recent Acquisition and Strategic Integration

In December 2025, UGRO Capital completed the acquisition of Profectus Capital, making it a wholly owned subsidiary. The company noted that the near‑term priority will be the integration of the acquired business.

It also emphasised the importance of maintaining portfolio discipline during the consolidation phase. The acquisition is expected to strengthen UGRO’s market presence within specialised MSME lending verticals.

Read More: Bata India Share Price Rises After Q3 FY26 Earnings Results.

Conclusion

UGRO Capital posted a robust Q3 FY26 performance, supported by higher profits, AUM growth and stable asset quality. The company’s diversified lending model contributed to consistent disbursement momentum.

Its digital-first approach also aided customer acquisition across segments. Ongoing investments in embedded finance and the integration of Profectus Capital are expected to support further scale-up in MSME lending.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.