Ugro Capital Q1 FY27 Results (NSE: UGROCAP)
Signal: Steady quarter
The read
Consolidated Q1FY27 shows healthy operating metrics (EBITDA margin 73.2%) and sharp improvement in asset quality (GNPA 2.75% vs 3.66% QoQ), but earnings quality is weak: other income is 61.2% of PBT (consolidated) and a one-off tax-rate change (deferred tax credit) inflated PAT. Standalone PAT growth of +77.9% YoY is largely tax-driven; EPS growth lags due to dilution. The sequential revenue decline (-18% QoQ consolidated) and increasing finance costs warrant monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹496.94 Cr | N/A | -18.1% |
| EBIT | ₹350.51 Cr | N/A | |
| Net profit | ₹67.87 Cr | N/A | |
| EPS | ₹4.44 | N/A | |
| EBIT margin | 73.2% |
P&L walk
Consolidated revenue ₹496.94 Cr, down ~18% QoQ; EBITDA margin 73.2% (N/A YoY); PAT derived ~₹67.9 Cr from PBT of ₹61.54 Cr and tax credit of ₹6.33 Cr; other income at 61.2% of PBT flags earnings quality.
Key positives
- Asset quality improved: GNPA down 91 bps QoQ to 2.75%, NNPA down 53 bps to 1.71%.
- CRAR remains strong at 20.96% (above regulatory minimum).
- Standalone EBITDA grew +15.1% YoY, showing operating momentum.
- Co-lending disbursements as originating RE of ₹41,472.08 lakh (₹414.72 Cr) during the quarter.
Key concerns
- EPS growth (+10% YoY) significantly lags PAT growth (+77.9% YoY) due to dilution from CCD conversions.
- Other income is 75.2% of standalone PBT and 61.2% of consolidated PBT, flagging reliance on non-operating income.
- One-off deferred tax credit (₹12.05 Cr standalone) from concessional tax regime change inflated PAT; not repeatable.
- Consolidated revenue declined ~18% QoQ, indicating slowdown in disbursements.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.