UGRO Capital reported a 59% year-on-year increase in total disbursements to ₹2,551 crore for the first quarter of FY27. The company's specialized GROx platform reached ₹3,003 crore in assets under management. This growth comes alongside a strategic move to exit lower-yielding third-party prime lending businesses.
UGRO Capital Limited reported its financial results for the quarter ending June 30, 2026, showing significant growth in its core lending operations. The company recorded a Profit Before Tax of ₹61.5 crore, representing a 28% increase compared to the same period in the previous year. Total disbursements for the quarter reached ₹2,551 crore, a 59% jump year-on-year and a 19% increase from the March 2026 quarter.
Impact of the GROx Platform
A major contributor to this performance was the GROx platform, an embedded finance business formerly known as MyShubhLife. In Q1 FY27, the platform disbursed ₹1,853 crore, pushing its total assets under management to ₹3,003 crore. This asset base has grown significantly, marking a 32% increase over the preceding quarter. The platform currently serves approximately 3.4 lakh active customers, reflecting the company’s focus on scaling its niche lending segments.
Strategic Shifts and Operational Efficiency
The company is undergoing a significant transformation by exiting lower-yielding third-party prime lending businesses, a process initiated in February 2026. This shift is intended to improve the quality of the loan book. Focused business segments now account for 46% of the company's total assets under management. Management aims to increase this share to 85% by the end of FY29. As part of this transition, UGRO Capital also reported a 42% reduction in quarterly operating expenses to ₹118.5 crore, signaling improved operational efficiency.
Branch Network and Future Capital Needs
UGRO Capital has expanded its physical presence to 317 branches across 13 states, supported by a workforce of over 2,500 employees. The company's branch-led lending segment contributed ₹592 crore in disbursements during the quarter, bringing its total asset contribution to ₹3,896 crore. Regarding financial stability, the company stated that it does not anticipate any further need for equity funding through FY29, which suggests management’s confidence in its current capital structure and internal cash generation to support projected expansion.
Investors may monitor the progress of the company's transition away from third-party prime lending and the execution of its goal to reach an 85% share of focused businesses in its loan book by FY29. Additionally, tracking the profit margin trends and the sustainability of operating expense reductions will be important to understand the long-term impact of these strategic shifts on profitability.