Any current/future new fundraising through debt or equity?

UGRO Capital raised ₹1,265 crores of capital in the current year and added around ₹500 crores to net worth, strengthening capital adequacy. With this capital raise, they expect to scale business sizably and improve profitability, targeting a doubling of profits from the current levels. The company aims to improve its credit rating and leverage better negotiating terms for borrowing costs, which should lead to reduced interest rates on debt. They are comfortable leveraging up to 5x in the next 12-18 months with the capital they currently have. No specific mention of immediate future fun

Any current/future capex/capital investment/strategic investment?

UGRO Capital is focusing on expanding its branch network, having increased physical locations from around 75 to approximately 210, with plans to reach 250 by year-end and around 400 next year. Significant investment has been made in technology and credit process understanding to support micro enterprise lending and geographic diversification. The company is heavily investing in new branch infrastructure, with expectations that operating leverage benefits from this will materialize in the next 8 to 9 months. No plans currently to bring in new strategic investors; UGRO values its existing shareh

Future growth expectations in sales/revenue/volumes?

UGRO Capital targets sustained growth driven by micro enterprises loan segment expansion from 10% to 30% of portfolio by FY26, aiming for higher volumes in lower-ticket secured loans. Loan origination hit a new base of ~INR 1,970 crores in Q2 FY25, supported primarily by branch expansion (from 75 to 210+ branches currently, targeting 400 branches by FY26). The mix is evolving with prime secured business volume remaining largely stable (~INR 150-200 crores), while micro enterprise loan volumes are expected to accelerate growth. Co-lending with banks will be diversified, with no single ban

Future growth expectations in earnings/operating earnings/profits/EPS?

UGRO aims to significantly increase profitability in the current year compared to the last, with a healthy run rate in the first two quarters of FY25. The company targets a steady-state Return on Assets (ROA) of 4% by FY26, up from the current ~2%, driven by the expansion of micro enterprise branches and higher-yielding micro secured business. Profit growth in the near term has been tempered by rising credit costs, which are expected to stabilize around 2% of AUM in the next 4-6 quarters. Operating leverage is evident with a declining cost-to-income ratio (53% this quarter down from 73%

Ugro Capital LtdQ2 FY25Finance

Ugro Capital Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹74.05P/E: 8.2Market Cap: ₹1.2K CrSector: Finance

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

UGRO Capital targets sustained growth driven by micro enterprises loan segment expansion from 10% to 30% of portfolio by FY26, aiming for higher volumes in lower-ticket secured loans.
Loan origination hit a new base of ~INR 1,970 crores in Q2 FY25, supported primarily by branch expansion (from 75 to 210+ branches currently, targeting 400 branches by FY26).
The mix is evolving with prime secured business volume remaining largely stable (~INR 150-200 crores), while micro enterprise loan volumes are expected to accelerate growth.
Co-lending with banks will be diversified, with no single bank or NBFC contributing more than 25% of total co-lending volumes going forward.
Off-balance sheet assets and co-lending are expected to constitute ~50% of business, contributing to growth with controlled credit costs.
Long-term vision expects AUM to double in 2-3 years, with sell-side analysts providing detailed growth projections.

Margin guidance

Category 2

UGRO aims to significantly increase profitability in the current year compared to the last, with a healthy run rate in the first two quarters of FY25.
The company targets a steady-state Return on Assets (ROA) of 4% by FY26, up from the current ~2%, driven by the expansion of micro enterprise branches and higher-yielding micro secured business.
Profit growth in the near term has been tempered by rising credit costs, which are expected to stabilize around 2% of AUM in the next 4-6 quarters.
Operating leverage is evident with a declining cost-to-income ratio (53% this quarter down from 73% in 2022), and breakeven times of new branches are improving, targeting 9-12 months.
Expected credit cost and borrowing costs reduction will further enhance profitability, with a 75 bps expected drop in borrowing cost over the next 6-10 quarters.
Overall, the company is on a trajectory for double-digit profit growth, with profitability expected to improve steadily as new branches mature and credit costs stabilize.

See what Ugro Capital Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

UGRO Capital raised ₹1,265 crores of capital in the current year and added around ₹500 crores to net worth, strengthening capital adequacy.
With this capital raise, they expect to scale business sizably and improve profitability, targeting a doubling of profits from the current levels.
The company aims to improve its credit rating and leverage better negotiating terms for borrowing costs, which should lead to reduced interest rates on debt.
They are comfortable leveraging up to 5x in the next 12-18 months with the capital they currently have.
No specific mention of immediate future fundraising plans via equity or debt, but the company views its current capital as sufficient to meet near-term growth and leverage goals.
The focus is on sustainable growth, operational scale, and improving capital efficiency rather than seeking new fundraising rounds at this stage.

Order book

Yes

The provided transcript does not explicitly mention current, expected, or pending order book details for UGRO Capital Limited. Instead, it focuses on loan origination, AUM growth, co-lending diversification, and other operational aspects. Key relevant aspects related to business momentum and loan pipeline: - UGRO achieved a record loan origination of INR 1,970 crores in Q2 FY25, signaling strong business growth. - Branch expansion from 75 to about 210-250 by end of the year and a target of 400 micro branches by FY26 supports future growth. - The loan origination run rate as of September was upwards of INR700 crores per month, expected to form the new base level for subsequent quarters. - Co-lending with various banks and NBFCs is being diversified to maintain balanced partnerships. - Focus remains on micro enterprise lending, with strong disbursal volumes and operational scalability. No direct data on order book or pending orders was provided.

See what Ugro Capital Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

UGRO Capital is focusing on expanding its branch network, having increased physical locations from around 75 to approximately 210, with plans to reach 250 by year-end and around 400 next year.
Significant investment has been made in technology and credit process understanding to support micro enterprise lending and geographic diversification.
The company is heavily investing in new branch infrastructure, with expectations that operating leverage benefits from this will materialize in the next 8 to 9 months.
No plans currently to bring in new strategic investors; UGRO values its existing shareholders as its strategic investors.
Capital raise of INR1,265 crores and an increase of INR500 crores to net worth have been completed to support scalable business operations.
The firm aims for efficient leverage management, comfortable up to 5x leverage in the medium term, supported by improved capital adequacy.

Track Ugro Capital Ltd — get its next earnings analysis in your feed

How does Ugro Capital Ltd rank vs peers in Finance?

Pro feature

ThisUgro Capital Ltd

Rev 2Mar 2

See where Ugro Capital Ltd sits in FinanceSee which companies these are, and every other name in the sector.Open rankings

How does Ugro Capital Ltd rank in Finance?

Compare Ugro Capital Ltd against every Finance company (Q2 FY25) on revenue, margins and earnings-call signals.

View Finance leaderboard →

What Ugro Capital Ltd's management said in earlier quarters

Others in Finance this season

JSW Holdings (Q2 FY27)
Total revenue from operations: ₹16,658.63 lakhs . Key results statement takeaways from JSW Holdings Ltd's Q2 FY27 results statement — and how it ranks against s
Indostar Capital Finance Ltd (Q2 FY27)
Revenue from operations for Q2 FY27: ₹381.9 crore . Key investor presentation takeaways from Indostar Capital Finance Ltd's Q2 FY27 investor presentation — and
TruCap Finance Ltd (Q2 FY27)
(74) lakhs, down 90% YoY . Key results statement takeaways from TruCap Finance Ltd's Q2 FY27 results statement — and how it ranks against sector peers.
Onemi Technology Solutions Ltd (Q2 FY27)
Total Income for Q2 FY27: ₹740 Cr, up 43.1% YoY (Page 39) . Key investor presentation takeaways from Onemi Technology Solutions Ltd's Q2 FY27 investor presentat

Compare:vs Bajaj Finance vs Bajaj Finserv vs Shriram Finance Ltd

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →

Ugro Capital Ltd Q2 FY25 Earnings Call Analysis

Revenue guidance

Fundraise plans

Capex plans

How does Ugro Capital Ltd rank in Finance?

Continue your research

What Ugro Capital Ltd's management said in earlier quarters

Others in Finance this season