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Revenue
₹628 Cr
verification pending
Revenue YoY
51%
reported change
EBITDA
Pending
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Ugro Capital reported Q4 FY26 revenue of ₹628 crore, up 51% YoY, driven by strong growth in focus verticals (EM LAP and embedded finance) which now constitute 38% of AUM (vs 33% last quarter). PAT grew 26% YoY, but included a one-time restructuring cost of ₹25 crore. The company is executing a strategic pivot away from the intermediated prime book, which is running down as planned, while focus verticals grow at ~25% CAGR. Management reiterated FY29 targets: 85% AUM in focus verticals, opex reduction from ₹750 crore to ₹490 crore in FY27, and steady-state ROA of 3-3.5%. Key risk: credit costs may rise as the unsecured embedded finance portfolio seasons, though management expects them to stay around 2%.
Colored figures show movement against the previous available record.
Guidance to track
- EM LAP and embedded finance will constitute 85% of total AUM by FY29, up from 38% in Q4 FY26.
- Consolidated opex (Ugro + Profectus) to reduce from ~₹750 crore to ₹490 crore in FY27, a saving of ~₹220 crore.
- Growth will be funded entirely from internal accruals; no new equity issuance planned.
- Target ROA of 3-3.5% by FY29, with negligible contribution from co-lending and direct assignment income.
Risks flagged
- Management expects GNPA for embedded finance to reach 4-4.5% as cohorts mature, which could increase overall credit costs.
- As the prime book runs down and focus verticals grow, total AUM may stay flat for FY27, potentially disappointing growth-focused investors.
- Management cautioned that the ₹220 crore opex reduction will not directly translate to profit due to portfolio rundown and revenue mix shift.
- High yields in EM LAP and embedded finance may attract competitors, potentially compressing margins over time.
Key quotes
- The business we have chosen... are not driven by the global macro. They are driven by whether a small business owner in Rajasthan or Telangana can access formal credit.
- We do not need new capital. We do not need rates to fall. We need branches to mature and they will.
- For the first time since Ugro's start, this company is now generating capital not consuming it.
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