Ugro Capital Ltd

- 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. - The company is flexible and opportunity-driven on co-lending and off-book funding, but no hard ceiling on future raises was stated. - Overall, no immediate plans for new fundraising were mentioned; growth will be balanced with capital adequacy.

- 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. - Future capital raising will be calibrated based on improved profitability and return metrics to reduce shareholder dilution. - UGRO continues to invest in technology, including the proprietary GRO Score model and the embedded finance platform through MyShubhLife and MSL acquisition, enhancing underwriting and risk management.

- 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. - Growth emphasis has shifted to "productive growth" with calibrated disbursements and tightened underwriting for profitability. - On current capital, UGRO can support AUM up to INR18,000-20,000 crores without additional capital; further capital raising depends on improved profitability and market conditions.

- 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). - Focus shifting from expansion-led to productivity and profitability-driven model, emphasizing calibrated growth to improve margins and EPS (Pages 4, 7). - Improved yield and portfolio quality, along with technology-led underwriting, underpin medium-term profit expansion (Pages 7-8).

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. - Portfolio performance, credit costs, and underwriting standards. - Acquisition of Profectus Capital adding approx. INR3,000 crores to AUM. No explicit details about order book or pending orders are mentioned in the provided transcript.