Ugro Capital Q2 FY27 Results (NSE: UGROCAP)
Signal: Earnings grew
The read
The strategic reset is gaining operating traction: Q2 disbursement reached ₹3,159 crore, up 77% YoY and 24% QoQ, AUM rose 23% YoY to ₹15,019 crore, and operating cost fell 38% over two quarters to ₹127 crore; however, the earnings inflection is not yet sequentially clean because credit cost rose 32% QoQ to ₹86.9 crore and PAT declined 25% QoQ to ₹50.7 crore after the prior quarter's tax credit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹578.4 Cr | N/A | +8% |
| Net profit | ₹50.7 Cr | +17% | |
| EBIT margin | 0% |
P&L walk
Total income increased 8% QoQ to INR 578.4 crore and net total income rose 15% to INR 282.4 crore, while operating expenses were down 5% YoY on the half-year comparison; credit cost rose 32% QoQ to INR 86.9 crore and PAT fell 25% QoQ to INR 50.7 crore despite PBT rising 11% QoQ.
Key positives
- Net disbursement reached ₹3,159 crore, up 77% YoY and 24% QoQ, with more than ₹1,000 crore disbursed in each month of Q2.
- The two growth engines increased from 32% to 53% of the loan book in nine months; Emerging Market LAP grew 42% YoY to ₹4,268 crore and GROx AUM nearly tripled to ₹3,661 crore.
- Operating cost declined 38% over two quarters from ₹205 crore to ₹127 crore, while portfolio yield rose 108bps to 18.7%.
- Asset quality remained contained at 2.7% GNPA overall and 1.7% in the two growth businesses, with 97% collection efficiency.
Key concerns
- PAT fell 25% QoQ to ₹50.7 crore even as PBT rose 11% QoQ, because tax moved from a ₹6.3 crore credit in Q1 to a ₹17.5 crore charge in Q2.
- Credit cost rose 32% QoQ to ₹86.9 crore, outpacing the 8% QoQ increase in total income; sustained asset-quality performance remains important as the growth engines scale.
- The filing does not disclose EPS or a Q2 year-ago total-income comparison, limiting per-share and top-line trend analysis.
- The merger remains subject to the NCLT final hearing scheduled for 20 November 2026; the stated benefit of steadier recognition of co-lending and direct-assignment income is therefore not yet realized.
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