Focus vertical AUM mix
38%
+5pp QoQ
EM LAP and embedded finance now 38% of total AUM, up from 33% last quarter.
UGROCAPITAL
Financial Services
15 May 2026
Ugro Capital Ltd — Q4 FY26
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).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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%.
Key Numbers
Embedded finance AUM
₹2,280 crore
+27% QoQ
Embedded finance AUM grew 27% quarter-on-quarter to ₹2,280 crore.
Branch productivity (vintage >12 months)
₹68 lakh/month
Approaching target of ₹80 lakh/month
Vintage branches (>12 months) disbursing ₹68 lakh/month, nearing management target.
Cost of borrowings
10.16%
-45bps YoY
Cost of borrowings improved 45 bps YoY to 10.16%, fifth consecutive quarterly improvement.
Management Guidance
Focus verticals to reach 85% of AUM by FY29
EM LAP and embedded finance will constitute 85% of total AUM by FY29, up from 38% in Q4 FY26.
Management guidance growthAnnualized opex reduction to ₹490 crore in FY27
Consolidated opex (Ugro + Profectus) to reduce from ~₹750 crore to ₹490 crore in FY27, a saving of ~₹220 crore.
Management guidance marginsNo incremental equity through FY29
Growth will be funded entirely from internal accruals; no new equity issuance planned.
Management guidance otherSteady-state ROA of 3-3.5% by FY29
Target ROA of 3-3.5% by FY29, with negligible contribution from co-lending and direct assignment income.
Management guidance marginsKey Risks
Credit cost may rise as embedded finance portfolio seasons
Management expects GNPA for embedded finance to reach 4-4.5% as cohorts mature, which could increase overall credit costs.
medium · analyst_questionAUM growth may remain flattish during transition
As the prime book runs down and focus verticals grow, total AUM may stay flat for FY27, potentially disappointing growth-focused investors.
medium · analyst_questionCost savings may not fully flow to bottom line
Management cautioned that the ₹220 crore opex reduction will not directly translate to profit due to portfolio rundown and revenue mix shift.
low · management_commentaryCompetition could pressure yields in focus segments
High yields in EM LAP and embedded finance may attract competitors, potentially compressing margins over time.
medium · analyst_questionNotable 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.
Frequently Asked Questions
What was Ugro Capital's revenue in Q4 FY26?
Ugro Capital reported revenue of ₹628 Cr in Q4 FY26, representing a +51% change compared to the same quarter last year.
What guidance did Ugro Capital management give for FY27?
Focus verticals to reach 85% of AUM by FY29: EM LAP and embedded finance will constitute 85% of total AUM by FY29, up from 38% in Q4 FY26. Annualized opex reduction to ₹490 crore in FY27: Consolidated opex (Ugro + Profectus) to reduce from ~₹750 crore to ₹490 crore in FY27, a saving of ~₹220 crore. No incremental equity through FY29: Growth will be funded entirely from internal accruals; no new equity issuance planned. Steady-state ROA of 3-3.5% by FY29: Target ROA of 3-3.5% by FY29, with negligible contribution from co-lending and direct assignment income.
What are the key risks for Ugro Capital in FY27?
Key risks include Credit cost may rise as embedded finance portfolio seasons — Management expects GNPA for embedded finance to reach 4-4.5% as cohorts mature, which could increase overall credit costs.; AUM growth may remain flattish during transition — As the prime book runs down and focus verticals grow, total AUM may stay flat for FY27, potentially disappointing growth-focused investors.; Cost savings may not fully flow to bottom line — Management cautioned that the ₹220 crore opex reduction will not directly translate to profit due to portfolio rundown and revenue mix shift.; Competition could pressure yields in focus segments — High yields in EM LAP and embedded finance may attract competitors, potentially compressing margins over time..
Did Ugro Capital meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Ugro Capital Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.