The company maintained healthy year-on-year growth and a stable risk profile, while strengthening structural growth drivers such as branch expansion in Emerging Markets, scaling in Embedded Finance, and advancing the Profectus Capital acquisition and ongoing equity fundraising, per the URGO Capital press release.

Continuing its journey towards becoming the largest small business financing institution driven by data and technology, the company reported Assets Under Management (AUM) of ₹12,081 crore as of 30 June 2025, reflecting a 31% YoY growth.

The Emerging Market Business continued to expand, with 309 operational branches and a plan to reach approximately 346 branches by September 2025.

The Embedded Finance platform surpassed ₹1,000 crore in AUM; Q1 disbursements were ₹582 crore, with significant contributions from partners such as PhonePe and BharatPe.

Simultaneously, the company progressed its ₹1,400 crore all-cash acquisition of Profectus Capital (shareholder approval received; change-of-control and related approvals underway) and continued its capital raising programme (₹381 crore rights issue completed; ₹911 crore preferential issue in progress), thereby further strengthening the balance sheet for quality growth, stated the press release.

Total debt was ₹7,586 crore as of 30 June 2025, with CRAR at 22.4%, and the off-book share at 42%, supported by co-lending and direct assignment flows. The partner ecosystem remains extensive and data-linked, with 17 Co-lending partners, over 50 lenders, and more than 770 GRO partners and Green anchor partners, enabling tailored credit for over 2 lakh MSMEs across India.

In terms of financials, total income for Q1 FY26 stood at ₹421.8 Cr, up 40% YoY and 2% QoQ; Net Total Income was ₹216.5 Cr, up 31% YoY and PAT was ₹34.1 Cr, up 12% (YoY). Portfolio quality remained stable with GNPA/NNPA at 2.5%/1.7% on total AUM.

Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “Q1 was a quarter marked by discipline. In line with our risk guardrails, we tightened underwriting and moderated originations where borrower leverage was high. Despite this, the portfolio remained resilient across our nine key sectors, achieving 31% YoY AUM growth with stable asset quality. We maintained our focus on developing new growth engines such as Emerging Market distribution, Embedded Finance partnerships, and the Profectus acquisition. With capital actions underway and approvals advancing, we are well positioned for the next stage of high-quality growth."

UGRO reported a disbursement of ₹1,599 crore in Q1 FY26. The first quarter of any financial year is seasonally weaker, and by design, the company prioritised discipline over pace. Underwriting filters were tightened, particularly on borrower leverage, leading to calibrated originations.

Draft co-lending guidelines issued in April temporarily impacted volumes; however, the effect was mitigated by higher direct assignments and ongoing liability diversification. As the Emerging Market network approaches full deployment and embedded-finance channels strengthen, momentum is expected to pick up from Q2, while maintaining asset quality at the forefront, according to the press release.

Urgo Capital Ltd

UGRO Capital Q1 results: The company reports AUM of ₹12,081 crore, reflecting a 31% YoY growth