Ugro Capital Q2 Profit Falls 14% to Rs 37 Cr

New Delhi: Ugro Capital, a technology-driven NBFC focused on MSME lending, on Thursday reported a 14 per cent decline in net profit to Rs 37 crore in the quarter ended in September.

The company had recorded a net profit of Rs 43 crore in the same quarter a year ago.

Total income increased to Rs 496 crore during the quarter under review from Rs 461 crore in the same period last year, Ugro Capital said in a regulatory filing.

However, the firm earned a lower interest income of Rs 313 crore during the quarter, compared to Rs 322 crore in the same period a year ago.

Total expenses also increased to Rs 446 crore against Rs 400 crore in the second quarter of the previous fiscal.

Disbursements rose to 3,159 crore in the second quarter, up 77 per cent year-on-year.

Shareholders and creditors of Ugro approved the merger of Profectus Capital into the non-bank lender on September 23, 2026. The NCLT final hearing in the matter is scheduled on November 20.

On completion, it said, income on co-lending and direct assignment loans will be recognised over the period these loans actually run, rather than their full contractual term.

This reduces the impact of reversals that unsettled past results, so reported profits should be steadier and more predictable from the quarters ahead, it said.

Capital adequacy on a merged basis will be approx 22 per cent, comfortably above requirements, allowing Ugro to fund growth without new equity.

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