Finance - NBFC · Founded 1993 · www.ugrocapital.com · BSE 511742 · NSE UGROCAP · ISIN INE583D01011
No Notes Added Yet
Business
Ugro Capital Ltd. is an Indian Non-Banking Financial Company (NBFC) specializing in lending to Micro, Small, and Medium Enterprises (MSMEs). Its core business model revolves around providing financing solutions to underserved MSMEs across various sectors. The company leverages a data-science-driven underwriting approach, including its proprietary 'GRO Score' model, to assess creditworthiness efficiently. Ugro Capital generates revenue primarily through interest income earned on the loans it disburses and through processing fees. Its strategy involves a blend of physical presence (branches) and digital channels to reach its target customer base.
Revenue Mix
Ugro Capital focuses exclusively on the MSME lending segment. Its product offerings include:
Secured Loans: Loans against property (LAP), machinery loans.
Unsecured Loans: Working capital loans, supply chain finance, invoice discounting, medical equipment finance.
The company has a sector-specific lending approach, targeting industries such as Healthcare, Education, Light Manufacturing, Chemicals, Food Processing, Hospitality, and Electricals. Revenue is overwhelmingly derived from interest income on its loan book. Specific percentage contributions from different loan products or sectors are not publicly detailed in a granular revenue mix.
Industry
Ugro Capital operates within the highly competitive and fragmented Indian NBFC sector, specifically targeting the MSME credit market. This market is characterized by a significant credit gap, with many MSMEs lacking access to formal credit. Ugro Capital positions itself as a tech-enabled, data-analytics-led lender, differentiating itself through its proprietary credit underwriting model (GRO Score) and deep sector-specific knowledge. It competes with a wide array of public and private sector banks, other NBFCs, and emerging fintech lenders, by aiming to offer faster and more tailored credit solutions to MSMEs often overlooked by traditional lenders.
MOAT
Ugro Capital's primary attempt at a competitive advantage lies in its data-driven underwriting model (GRO Score), which uses a combination of traditional and alternative data points to assess credit risk more efficiently and accurately than traditional methods. This allows for faster loan processing and a potentially better quality loan book. Its sectoral expertise helps in building a nuanced understanding of specific MSME value chains, reducing information asymmetry. While these provide operational efficiencies and differentiation, for a relatively new player, these advantages are still developing and may not yet constitute a wide, durable moat in a highly competitive market.
Growth Drivers
Large Underserved MSME Market: The significant credit gap for MSMEs in India presents a substantial growth opportunity.
Government Initiatives: Policy support and focus on formalization and financing for the MSME sector.
Digital Adoption & Data Availability: Increasing digital footprint of MSMEs and availability of data for credit assessment.
Expansion & Partnerships: Geographic expansion, diversification into new MSME sub-sectors, and strategic co-lending or fintech partnerships to enhance reach and capital efficiency.
Asset Under Management (AUM) Growth: Continued ability to grow its loan book while maintaining asset quality.
Risks
Credit Risk: Potential for defaults and non-performing assets (NPAs) given the inherent risk profile of MSME borrowers and economic downturns.
Asset Quality Deterioration: Inability to maintain robust underwriting standards as the loan book scales.
Funding Risk: Dependence on external capital for growth; challenges in securing timely and cost-effective funding.
Interest Rate Fluctuations: Impact on net interest margins due to changes in borrowing costs or lending rates.
Competition: Intense competition from banks and other NBFCs, potentially leading to margin compression.
Regulatory Changes: Evolving regulatory landscape for NBFCs in India (e.g., capital adequacy, asset classification norms) could impact operations.
Economic Slowdown: The MSME sector is highly susceptible to broader economic cycles and shocks.
Management & Ownership
Ugro Capital was founded by seasoned professionals with extensive experience in the financial services sector, often with a background in traditional banking and alternative finance. The management team emphasizes leveraging technology, data science, and strong risk management practices. The ownership structure typically includes a mix of institutional investors (private equity, venture capital, domestic and foreign institutional investors), retail investors, and potentially a significant stake held by promoters or founder groups. The company often highlights its professional governance and institutional backing.
Outlook
Ugro Capital operates in a high-growth, underserved market (MSME lending in India), which presents significant tailwinds. Its data-driven and sector-specific approach provides a differentiated strategy to tap into this opportunity. The bull case hinges on the successful scaling of its technology-led underwriting model, disciplined asset quality management, effective capital raising, and expanding its market share through strategic partnerships and product diversification. However, the bear case involves risks such as potential deterioration in asset quality amid rapid growth, intense competition leading to pressure on lending margins, and challenges in maintaining consistent funding at competitive rates, especially during economic downturns or shifts in regulatory policy. Its ability to balance aggressive growth with robust risk management will be critical for long-term success.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Mar 2026 |
|---|---|
| Operating Revenue | 607 |
| Other Income | 25 |
| Total Income | 632 |
| Total Expenditure | 248 |
| Operating Profit | 384 |
| Interest Expense | 284 |
| Depreciation | 29 |
| Profit Before Tax | 71 |
| Provision for Tax | 20 |
| Profit After Tax | 51 |
| Adjustments | 0 |
| Profit After Adjustments | 51 |
| Adjusted Earnings Per Share | 3.3 |
| #(Fig in Cr.) | Mar 2026 | TTM |
|---|---|---|
| Operating Revenue | 1937 | 607 |
| Other Income | 84 | 25 |
| Total Income | 2021 | 632 |
| Total Expenditure | 753 | 248 |
| Operating Profit | 1268 | 384 |
| Interest Expense | 954 | 284 |
| Depreciation | 70 | 29 |
| Profit Before Tax | 244 | 71 |
| Provision for Tax | 69 | 20 |
| Profit After Tax | 175 | 51 |
| Adjustments | 0 | 0 |
| Profit After Adjustments | 175 | 51 |
| Adjusted Earnings Per Share | 11.4 | 3.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | 0% | 0% | 0% |
| Operating Profit CAGR | 0% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -45% | -24% | -6% | 17% |
| ROE Average | 6% | 6% | 6% | 6% |
| ROCE Average | 9% | 9% | 9% | 9% |
| #(Fig in Cr.) | Mar 2026 |
|---|---|
| Shareholder's Funds | 2906 |
| Minority's Interest | 0 |
| Borrowings | 6482 |
| Current Liability | 4633 |
| Other Liabilities & Provisions | 150 |
| Total Liabilities | 14171 |
| Loans | 10293 |
| Investments | 108 |
| Fixed Assets | 512 |
| Other Loans | 0 |
| Other Non Current Assets | 244 |
| Current Assets | 2759 |
| Total Assets | 14171 |
| #(Fig in Cr.) | Mar 2026 |
|---|---|
| Opening Cash & Cash Equivalents | 377 |
| Cash Flow from Operating Activities | 214 |
| Cash Flow from Investing Activities | -1964 |
| Cash Flow from Financing Activities | 2751 |
| Net Cash Inflow / Outflow | 1000 |
| Closing Cash & Cash Equivalent | 1378 |
| # | Mar 2026 |
|---|---|
| Earnings Per Share (Rs) | 11.44 |
| CEPS(Rs) | 16.04 |
| DPS(Rs) | 0 |
| Book NAV/Share(Rs) | 189.28 |
| Net Profit Margin | 9.02 |
| Operating Margin | 61.84 |
| PBT Margin | 12.57 |
| ROA(%) | 1.23 |
| ROE(%) | 6.04 |
| ROCE(%) | 8.75 |
| Price/Earnings(x) | 7.1 |
| Price/Book(x) | 0.43 |
| Dividend Yield(%) | 0 |
| EV/Net Sales(x) | 5.28 |
| EV/Core EBITDA(x) | 8.07 |
| Interest Earned Growth(%) | 0 |
| Net Profit Growth | 0 |
| EPS Growth(%) | 0 |
| Interest Coverage(x) % | 1.26 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 2.24 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.25 | 2.24 | 1.7 | 1.99 |
| FII | 19.77 | 19.76 | 20.28 | 20.44 | 24.7 | 27.25 | 29.32 | 28.99 | 22.84 | 22.33 |
| DII | 4.46 | 3.76 | 2.55 | 2.75 | 2.4 | 1.85 | 1.62 | 1.59 | 1.38 | 1.23 |
| Public | 73.53 | 74.25 | 74.94 | 74.58 | 70.68 | 68.67 | 66.81 | 67.18 | 74.09 | 74.44 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.26 | 0.26 | 0.26 | 0.31 |
| FII | 1.83 | 1.83 | 1.88 | 1.9 | 2.3 | 2.54 | 3.42 | 3.39 | 3.53 | 3.47 |
| DII | 0.41 | 0.35 | 0.24 | 0.26 | 0.22 | 0.17 | 0.19 | 0.19 | 0.21 | 0.19 |
| Public | 6.81 | 6.89 | 6.96 | 6.94 | 6.59 | 6.4 | 7.8 | 7.85 | 11.46 | 11.56 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 9.26 | 9.28 | 9.29 | 9.3 | 9.32 | 9.32 | 11.67 | 11.68 | 15.47 | 15.53 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | — | — | — | — |
| Operating Profit CAGR | — | — | — | — |
| PAT CAGR | — | — | — | — |
| Share Price CAGR | -45% | -24% | -6% | +17% |
| ROE Average | +6% | +6% | +6% | +6% |
| ROCE Average | +9% | +9% | +9% | +9% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 2.24 | 2.23 | 2.23 | 2.23 | 2.23 | 2.23 | 2.25 | 2.24 | 1.7 | 1.99 |
| FII | 19.77 | 19.76 | 20.28 | 20.44 | 24.7 | 27.25 | 29.32 | 28.99 | 22.84 | 22.33 |
| DII | 4.46 | 3.76 | 2.55 | 2.75 | 2.4 | 1.85 | 1.62 | 1.59 | 1.38 | 1.23 |
| Public | 97.76 | 97.77 | 97.77 | 97.77 | 97.77 | 97.77 | 97.75 | 97.76 | 98.3 | 98.01 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.26 | 0.26 | 0.26 | 0.31 |
| FII | 1.83 | 1.83 | 1.88 | 1.9 | 2.3 | 2.54 | 3.42 | 3.39 | 3.53 | 3.47 |
| DII | 0.41 | 0.35 | 0.24 | 0.26 | 0.22 | 0.17 | 0.19 | 0.19 | 0.21 | 0.19 |
| Public | 9.05 | 9.08 | 9.08 | 9.09 | 9.11 | 9.11 | 11.41 | 11.42 | 15.21 | 15.22 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 9.26 | 9.28 | 9.29 | 9.3 | 9.32 | 9.32 | 11.67 | 11.68 | 15.47 | 15.53 |
* The pros and cons are machine generated.
Our experts help you choose the right stocks based on performance, risk, and growth potential.
Looking to buy unlisted shares or need guidance on the investment process? Our expert Private Equity Advisors are here to assist you with accurate information, real-time pricing, and seamless execution.
Want to sell unlisted shares, liquidate your ESOPs, or understand the step-by-step process of liquidation? Connect with our Buying Team for smooth coordination, quick evaluations, and end-to-end support.
Planning to build or grow your portfolio? For Mutual Fund investments, PMS solutions, tailored portfolio creation, and overall wealth management, our dedicated Wealth Team is ready to guide you.