UGRO Capital originates Rs 958.8102 crore in MSME loans

UGRO Capital Limited originated Rs 958.8102 crore of micro, small and medium enterprise (MSME) co-lending disbursements through four active partners in the half year ended September 30, 2026, and reported Rs 957.8809 crore of those loans as standard. The disclosed originations include the funding shares of co-lending partners.

How much did UGRO Capital originate through co-lending?

UGRO Capital originated Rs 958.8102 crore of MSME loans as the originating regulated entity during the half year ended September 30, 2026. The company reported 51,260 loan accounts and four active co-lending partners in this role, while confirming that the disbursement figure includes both its own and its partners’ shares.

The originating portfolio’s weighted average interest rate was 28.91% for the six-month period. UGRO Capital received Rs 23.20 lakh in fees on these arrangements, while its disclosure left the fees-paid field blank. The entire Rs 958.8102 crore of originations was classified under the MSME sector, with no other lending sector identified.

The arrangements were disclosed under the Reserve Bank of India’s November 28, 2025 directions on transfer and distribution of credit risk. The filing describes the Rs 958.8102 crore as disbursements made during the half year, rather than as the closing balance of all loans originated through co-lending.

What was the performance of UGRO Capital’s originated loans?

UGRO Capital disclosed Rs 957.8809 crore of standard loans and Rs 0.9293 crore of substandard loans in its originating co-lending portfolio for the six months ended September 30, 2026. The non-performing loans field in the co-lending table contained no amount, and the stated performance disclosure covers loans originated under the cited Reserve Bank of India circular during that period.

Standard loans represented the overwhelming majority of the Rs 958.8102 crore originator portfolio, while substandard loans represented Rs 0.9293 crore. The filing does not disclose delinquency ageing, recoveries, impairment provisions, or prior-period co-lending asset-quality data, so it does not provide a trend in performance for this portfolio.

UGRO Capital’s broader standalone loan-quality metrics provide separate context but do not isolate co-lending exposures. Gross Stage 3, defined in the filing as Gross Stage 3 Loans Exposure at Default divided by Gross Total Loans Exposure at Default, was 2.73% at September 30, 2026, compared with 2.99% at September 30, 2025. Net Stage 3 was 1.73%, compared with 1.66% a year earlier.

Which co-lending partners have default-loss guarantees?

UGRO Capital reported no first-loss default guarantee (FLDG) in its originator arrangements with SIDBI and Profectus Capital Private Limited. It reported a 5% FLDG, described as being in accordance with the directions, for originator arrangements with MAS Financial Services Ltd and ABCL.

The company did not disclose how the Rs 958.8102 crore of originator disbursements was divided among SIDBI, Profectus Capital Private Limited, MAS Financial Services Ltd and ABCL. It also did not disclose defaults covered by the guarantees, claims under the FLDG arrangements, or risk retained for each partner as at September 30, 2026.

As a partner regulated entity, UGRO Capital had two active co-lending partners and reported 5% FLDG arrangements with Credright Finance Private Limited and Nomisma Moblie Solutions Private Limited. This partner role accounted for Rs 6.5974 crore of MSME disbursements across 132 loan accounts during the same half year.

How does UGRO Capital’s partner-lender activity compare?

UGRO Capital’s originator activity was substantially larger than its partner-regulated-entity activity in the half year ended September 30, 2026. Originator disbursements were Rs 958.8102 crore across 51,260 accounts, compared with Rs 6.5974 crore across 132 accounts when it acted as a partner.

The originator portfolio also carried a higher weighted average interest rate, at 28.91%, than the 19.41% reported for the partner portfolio. The 9.50 percentage-point difference is disclosed in the figures, but the filing does not explain whether it reflected borrower segments, loan terms, collateral, pricing or partner-specific arrangements.

The partner portfolio was reported entirely as Rs 6.5974 crore of standard loans, while the originator portfolio included Rs 0.9293 crore of substandard loans. Neither role has a prior-period comparison in the filing for disbursements, fees, yields or performance, limiting comparisons to the two operating roles in the latest half year.

What financial context did UGRO Capital disclose?

UGRO Capital reported standalone net profit after tax of Rs 98.0844 crore for the half year ended September 30, 2026, compared with Rs 77.4416 crore in the corresponding period a year earlier. Standalone net worth was Rs 2,946.621 crore at September 30, 2026, up from Rs 2,462.872 crore at September 30, 2025.

Standalone operating cash flow was an outflow of Rs 955.693 crore for the latest half year, compared with an outflow of Rs 55.6269 crore a year earlier. The cash-flow statement recorded an increase in loans of Rs 993.3904 crore in the latest period, whereas the prior-year period showed Rs 34.647 crore.

The debt-to-equity ratio was 3.41 at September 30, 2026, compared with 3.28 at September 30, 2025. Total debts to total assets were 0.76, compared with 0.75 a year earlier; these measures are separate from the co-lending disclosure, whose Rs 958.8102 crore disbursement figure includes partner funding shares.

Conclusion

UGRO Capital’s disclosure shows that its co-lending activity in the half year ended September 30, 2026 was concentrated in originating MSME loans. The company reported Rs 958.8102 crore of originations through four partners, against Rs 6.5974 crore when acting as a partner, with Rs 0.9293 crore of the originator portfolio classified as substandard.

The next disclosed event is the National Company Law Tribunal’s final hearing on November 20, 2026 for the proposed amalgamation of Profectus Capital Private Limited with UGRO Capital. The company said its shareholders, secured creditors and unsecured creditors approved the scheme on September 22, 2026, and that its final-approval petition was admitted after filing on September 25, 2026.