Ugro Capital Ltd

Q2 FY26Finance

Ugro Capital Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹89

Market cap₹1.4K Cr

P/E10.4

Updated23 Aug 2026

Read4 min read

The short version

UGRO Capital expects steady AUM growth of around INR3,500 crores at consolidated level by end of FY26, slightly higher than prior years' INR3,000 crores annual addition. UGRO Capital aims for steady-state Return on Assets (ROA) of about 4% and Return on Equity (ROE) between 16% to 18% within the next 2 years (Page 8).

From Ugro Capital Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

UGRO Capital expects steady AUM growth of around INR3,500 crores at consolidated level by end of FY26, slightly higher than prior years' INR3,000 crores annual addition.
They target 20% to 25% AUM growth for FY27, continuing the strong growth trajectory.
Expansion of emerging market branches is complete, now focusing on improving branch productivity and profitability.
Micro enterprises business branches aim to increase disbursement levels, with many branches poised to reach INR1 crore monthly disbursement.
Embedded finance platform MyShubhLife is scaling rapidly, addressing a $20 billion credit gap, aiding growth.

2 more points management made on revenue & sales performance

Profitability & Margins

UGRO Capital aims for steady-state Return on Assets (ROA) of about 4% and Return on Equity (ROE) between 16% to 18% within the next 2 years (Page 8).
Current ROA is around 2% to 2.5%, showing room for improvement as profitability initiatives mature (Page 8).
Profit after tax (PAT) rose 22% year-on-year to INR43 crores in Q2 FY26, and total income grew 35% YoY, reflecting growth momentum (Page 4).
Asset under Management (AUM) expected to grow ~20-25% annually, with a target of INR18,000 to 20,000 crores over next 1-2 years, supporting earnings growth (Page 9).

2 more points management made on profitability & margins

See what Ugro Capital Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

UGRO Capital completed its expansion phase, notably adding 90 emerging market branches in H1 FY26, reaching a total of 303 branches across 13 states.
The company is focusing on branch-level productivity and profitability rather than further branch expansion.
The Profectus Capital acquisition, adding approximately INR3,000 crores to AUM, was entirely funded through internal accruals, reflecting strong cash flow and disciplined capital management.
The management plans calibrated growth to optimize liability requirements and borrowing costs, with no immediate need for additional capital raising for the next 18-24 months at current run rates.

2 more points management made on capital expenditure plans

Top-ranked in Finance

Ranked on what management guided this quarter

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4₹358 Cr

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5₹1.5L Cr

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Rank buckets describe management commentary on revenue and margin. Not investment advice, and not a forecast of returns.

Fundraising & Capital Structure

UGRO recently raised subordinated debt from the debt capital market with a coupon of 11.65% and maturity of 5.5 years, qualifying as Tier 2 capital as per RBI guidelines.
The company raised INR535 crores of equity in October 2025 specifically for the Profectus acquisition.
Management indicated that on the current capital basis, the company can support AUM growth up to around INR18,000-20,000 crores without raising additional capital.
Any future capital raising will be calibrated based on business growth and profitability improvements to limit shareholder dilution.
UGRO aims to improve profitability and return ratios to boost market valuation and reduce the need for dilutive capital raises.

2 more points management made on fundraising & capital structure

See what Ugro Capital Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The transcript does not provide specific information on UGRO Capital Limited's current or expected order book or pending orders. The discussion mainly focuses on: - Asset Under Management (AUM) growth and targets (around INR16,500 crores in FY26 and INR18,000-19,000 crores in FY27). - Disbursement trends and branch expansion. - Capital raising, including equity and CCDs.

2 more points management made on order book & pipeline

What Ugro Capital's management said in earlier quarters

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Frequently Asked Questions

What were Ugro Capital Ltd Q2 FY26 results?

What is Ugro Capital Ltd share price analysis?

Ugro Capital Ltd currently shows a neutral. The stock trades at a P/E of 10.4 with a market cap of ₹1,449 Cr. Investors should review the full earnings analysis for detailed insights.

Is Ugro Capital Ltd planning capital expenditure?

UGRO Capital completed its expansion phase, notably adding 90 emerging market branches in H1 FY26, reaching a total of 303 branches across 13 states.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.