Ugro Capital Limited · NSE:UGROCAP
Ugro Capital — Q1 FY26 Earnings Presentation
40 slides from Ugro Capital's earnings presentation, Aug 12, 2025
Slide 1: Intimation of Investor Presentation to exchanges
12th August 2025 To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No. C/1, G Dalal Street Block Bandra, Kurla Complex, Bandra Mumbai 400001 (East) Mumbai 400051 Scrip Code – 511742 Symbol – UGROCAP Subject: Investor Presentation for th
Slide 2: UGRO Capital Limited Earnings Presentation Q1'FY26
UGRO Capital Limited Building an Institution for MSME Lending Data Tech Empowering Small Businesses (MSME) Lending Earnings Presentation (Q1’FY26) August 2025 NSE: UGROCAP | BSE: 511742
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation is for information purposes only and should not be deemed to constitute or
Slide 4: Q1'FY26 Snapshot: Strategic Initiatives and Expansion
Q1’FY26 Snapshot: Strategic Initiatives and Expansion Equity Fund raise: Profectus acquisition: Focus on Emerging Market (EM) channel(1): Equity raise of INR 1,300 Cr; Announced acquisition of M/s Completed Rights Issue of INR 381 Profectus Capital Private Limited to 286 branches as of June 30, 2025
Slide 5: Performance snapshot for Q1'FY26
Performance snapshot for Q1’FY26 FY25 Q1’FY26(6) Q1’FY25(6) AUM (INR Cr) 12,003 12,081 9,218 31% Net Disbursement (INR Cr)(2) 7,651 1,599 1,146 39% Off-book AUM (%) 42% 42% 45% 279 bps Annualised EPS of Q1’FY26(5): INR 14.4 Net Total Income (%)(3) 13.7% 12.4% 13.1% 72 bps Pre-Tax Profit (INR Cr) 203
Slide 6: Key metrics for Q1'FY26
Key metrics for Q1’FY26 01 Asset 02 03 Asset 04 Liability & Profitability Growth Quality Co - lending AUM Net Total Income GNPA Borrowings As of Jun’25: 12,081 Cr Q1’FY26: 216 Cr As of Jun’25 : 2.5% As of Jun’25 : 7,586 Cr (+31% Y-o-Y) (+31% Y-o-Y) (Jun’24: 2.0%) Co-lending Net Loans Originated PPOP
Slide 7: Serving a diverse set of customers with multi-product, multi-channel strategy
Serving a diverse set of customers with multi-product, multi-channel strategy UGRO’s Focus Prime Intermediated: Emerging Market: Tier 2 & Ecosystem Channel & Direct & Digital Alliances Metro & Tier 1/2 Branches beyond branches Green Asset Financing Collateral: Prime Property (For Collateral: Collate
Slide 8: Emerging Market: Vintaged branches tracking to our expectations
Emerging Market: Vintaged branches tracking to our expectations Parameters Q1FY26- >=18 months <18 months AUM split by geography Overall 71 # of branches 286 150 136 AUM (INR Cr) 2,772 2,308 463 25% AUM per branch (INR Cr) 9.7 15.4 3.4 48% Total AUM Ticket size (INR Cr)(1) 0.2 0.2 0.2 2,772 Cr Yield
Slide 9: Emerging Market: Key metrics snapshot
Emerging Market: Key metrics snapshot Q1’FY26 FY25 FY24 Quarterly trends- Last 5 quarters Strategy- Current/ Target 286 # of branches: # of branches 212 127 • Our planned expansion of the Emerging Market vertical is expected to be completed by # of states 13 11 8 286 Q2FY26. 187 201 212 141 # of log
Slide 10: Embedded finance platform (MSL) acquisition tracking as per plan
Embedded finance platform (MSL) acquisition tracking as per plan Market opportunity Disbursement trend (INR Cr) MSL Performance so far.. $22bn+ • Our targeted acquisition of the embedded 65mn 637 finance platform (MSL) has tracked to the Total Merchants Annual Credit 582 Requirement for Small 335 ri
Slide 11: Our collection efficiencies and portfolio performance (1/2)
Our collection efficiencies and portfolio performance (1/2) Collection Efficiency, Month on Books, GNPA and 30+ quarterly trend Total Collections (1) (including overdue) / Current Month Demand 96% 96% 96% 96% 95% 95% Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 GNPA, 30+% and MOB 6.8% 7.2% 7.5% 6.4% 6.
Slide 12: Our collection efficiencies and portfolio performance (2/2)
Our collection efficiencies and portfolio performance (2/2) Stable Stage 1 assets ECL Data (Jun’25) 94% 93% 94% 94% 93% 92% (INR Cr) Loan Exposure Loan Exposure (%) Stage 1 11,170 92.5% Stage 2 610 5.1% Stage 3 301 2.5% Total 12,081 100.0% Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Jun'25 Adequate Provisi
Slide 13: Diversified Lender base and continued build-out of liability book
Diversified Lender base and continued build-out of liability book Total Debt (INR Cr) and Cost of borrowings Liability mix by lender profile Liability mix by product 10.73% 10.75% 10.68% 10.61% 10.55% 3% 3% 7,586 16% Cost of Borrowings 6,904 6,151 24% 8% 5,344 Total Debt Total Debt 50% 4,529 INR 7,5
Slide 14: Overall off book ratio maintained sustainably
Overall off book ratio maintained sustainably Off - Book AUM mix Product wise Mix of off - Book AUM (Jun’25) On Book Portfolio Off Book Portfolio 2,750 2,886 2,772 1,355 1,072 1,011 10% 33% 55% 62% 52% 45% 45% 45% 45% 44% 42% 42% 100% 90% 67% 45% 38% 48% 58% Secured Business Emerging Machinery Partner
Slide 15: Finance | Quarterly Income Statement
Finance | Quarterly Income Statement Income Statement (INR Cr) Q1’FY26 Q1’FY25 Y-o-Y Q4’FY25 Q-o-Q ROA Tree Q1’FY26(2) Q4’FY25(2) Interest Income 304.2 232.0 31% 264.4 15% As a % of Avg On Book AUM Income on Co-Lending / Direct 90.8 50.4 80% 119.3 (24%) Total Income 24.2% 25.2% Assignment Other Inco
Slide 16: Operating & Financial Metrics
Operating & Financial Metrics Total Income (INR Cr) & Portfolio Yield(1) Finance Cost (INR Cr) & Cost of Borrowing Operating Exp. (INR Cr) and Cost to Income 18.2% 18.7% 18.9% 10.73% 10.75% 10.68% 10.61% 54.1% 52.7% 56.7% 51.8% 55.7% 17.8% 10.55% 17.7% 17.5% 17.3% 16.7% 16.9% 16.7% 205 123 120 121 3
Slide 17: MSME lending: The largest opportunity today
MSME lending : The largest opportunity today Slide 16
Slide 18: For India's GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion
For India’s GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion Today India’s GDP in FY2028 FY2028 MSME ~6.6 Crore MSMEs 35 – 40% ~8 – 10 Crore MSMEs MSME MSME 35-40% 35-40% ~29 Crore employment ~35-40 Crore employment ~30% of GDP ~30-40% of GDP MSME sector expected to grow to USD
Slide 19: MSME sector is the key to India's Employment Generation
MSME sector is the key to India’s ‘Employment Generation’, making it one of the Central themes of Government in the last decade MSME count to grow to ~10 crores employing 35-40 crores Slide 18
Slide 20: Well supported by continuity in Government initiatives
…well supported by continuity in Government initiatives Government Initiatives throughout the years Financial Support for MSME Growth - 2025 • 2014 - Pradhan Mantri MUDRA Yojana (PMMY) Budget Allocation • For Ministry of MSME: INR 23k Crores • 2015 - Udyog Aadhaar Memorandum (UAM) Revised Classifica
Slide 21: Building a large institution for MSME financing is a real possibility
Building a large institution for MSME financing is a real possibility Explosion of Credit in MSME Segment: Large market opportunity, conducive macro, favorable policy framework Total MSME Credit gap is INR 1,03,000 Bn Credit Gap of our customer segment constitutes majority portion Overall MSME Credi
Slide 22: UGRO Capital: Well-placed to capitalize on the opportunity
UGRO Capital: Well-placed to capitalize on the opportunity MSME Focused Lender targeting Analytics Powered Pan-India Presence large credit gap Targeting MSME sector which has India’s trailblazing data-driven Extensive network pan India, with substantial credit gap of ~INR 103 cashflow based underwri
Slide 23: UGRO's Data & Tech driven approach
UGRO’s Data & Tech driven approach Slide 22
Slide 24: UGRO's journey of Data-Tech driven lending to MSMEs over 5+ yrs
UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs Build phase Early Validations Maturing phase Growth Phase Data Repository - Jun’25 Infrastructure build at inception during Covid, pivoted At Dec 2022, 87% of long term portfolio Become an industry to cash flow based underwriting models
Slide 25: Data driven by AI/ML powers our core underwriting
Data driven by AI/ML powers our core underwriting : Ability to capture alternate data from banking and bureau… …to draw meaningful insights out of unorganized data... Artificial Intelligence GRO 2.0 GRO 3.0 Engineering of making Intelligent Credit Bureau Machines and Programs Credit Across Multiple
Slide 26: Our System Architecture supports full SME lending
Our System Architecture supports full SME lending Secured Factoring P&M Loans OD product EV / Solar Digital Finance Co-lending Embedded Business Loan Finance GSTN Bureau + Banking Bureau + Banking + GSTN GROSCORE GROSCORE 2.0 3.0 UGRO’S PROPRIETARY TECH CAPABILITY Co-lending Supply Chain D2C Offerin
Slide 27: Multi-product, multi-channel Asset Engine
Multi-product, multi-channel Asset Engine Slide 26
Slide 28: Serving a diverse set of customers with multi-product, multi-channel strategy
Serving a diverse set of customers with multi-product, multi-channel strategy Prime Intermediated: Emerging Market: Tier 2 & Ecosystem Channel & Direct & Digital Alliances Metro & Tier 1/2 Branches beyond branches Green Asset Financing Collateral: Prime Property (For Collateral: Collateral:Standard
Slide 29: Sector Focused Approach, Multiple Products and Large Distribution Strength
Sector Focused Approach, Multiple Products and Large Distribution Strength Light Engineering Retailer 23 Finance Prime Branches Auto Components Business Loan Secured by Property 286 Chemicals EM Branches Business Food Processing Loan 770+ GRO Partners Our Product Education Offering 2,100+ Front-end
Slide 30: Net Loan Origination (Q-o-Q)
Net Loan Origination (Q-o-Q) Amount in INR Cr Disbursement excluding Supply Chain Financing(1) is up 24% YoY 2,436 2,098 1,971 638 335 277 1,554 1,599 1,552 291 233 308 1,477 322 1,146 -98 1,284 261 260 209 -61 287 582 156 456 -50 172 167 225 227 153 85 52 -89 196 543 203 -184 116 16 188 180 669 151
Slide 31: Strong AUM Growth Trend (Q-o-Q)
Strong AUM Growth Trend (Q-o-Q) Amount in INR Cr AUM increased to INR 12,081 Cr as of Jun’25 from INR 12,003 Cr as of Mar’25 and INR 9,218 Cr as of Jun’24 (+31%) 31% 12,003 12,081 11,067 743 1,011 8% 10,157 302 1,181 1,072 9% 1,199 9,047 9,218 1,184 1,577 1,651 14% 8,364 1,454 1,112 1,108 12% 7,592
Slide 32: Well diversified, granular and stable portfolio quality
Well diversified, granular and stable portfolio quality Product Mix (AUM) Portfolio Concentration in key geographical areas Sector Mix State wise AUM 8% coverage 6% 1% 9% 23% 4% 1% 19% 15% 4% 11% 8% 2% 5% 13% 10% 4% 3% 4% 2% 25% 3% 23% 11% Guaranteed by 9% CGTMSE Rest of India: ~1% 2% 8% Secured Bus
Slide 33: Shareholding, Board, and Management
Shareholding, Board, and Management Slide 32
Slide 34: Institutionally Owned: Majority held by Institutional Investors
Institutionally Owned: Majority held by Institutional Investors Shareholding Pattern as of Jun’25 Shareholding pattern post CCD issue(1) (Investment arm Other Public shareholders, 31.6% Other Public 13.7% of Denmark govt.) (Investment arm of 43k+ shareholders shareholders, 25.7% 21.0% Denmark govt.)
Slide 35: We are Independently supervised by eminent Board of Directors
We are Independently supervised by eminent Board of Directors Non-Executive Chairman Satyananda Mishra Chairman, Corporate Social Responsibility Committee Ex-Chairman- MCX, Ex-CIC, GOI, Ex-Director - SIDBI Independent Directors S. Karuppasamy Karnam Sekar Hemant Bhargava Rajeev K. Agarwal Tabassum I
Slide 36: With strong corporate governance framework enshrined in the Articles
With strong corporate governance framework enshrined in the Articles ▪ Reputed Audit Firm to be appointed as the statutory auditors ▪ High degree of regulatory oversight and transparency ▪ Sharp and Tannan appointed as the statutory auditor ▪ An institution created with a long-term view, designed an
Slide 37: Professionally Managed: Leadership team has 180+ years of cumulative experience
Professionally Managed: Leadership team has 180+ years of cumulative experience Shachindra Nath Anuj Pandey Sameer Nanda Irem Sayeed Founder & Managing Director Chief Executive Officer Chief Revenue Officer Chief Risk Officer 26+ Years of Experience 25+ Years of Experience 24+ Years of Experience 20
Slide 38: Regulatory updates Co-lending
Regulatory updates Co-lending Slide 37
Slide 39: RBI (Co-Lending Arrangements) Directions, 2025
RBI (Co-Lending Arrangements) Directions, 2025 RBI issued directions on Co-lending effective from January 1, 2026, which broadly includes: • Unified framework for all Co-lending arrangements (CLAs) between charges not to involve any credit enhancement or DLG, unless permitted Regulated entities (REs
Slide 40: Thank you
Thank you www.ugrocapital.com Slide 39