Q3 2026 Ugro Capital Ltd Earnings Call Transcript
Key Points
- Ugro Capital Ltd (BOM:511742) has strategically realigned its focus towards emerging market secured lending and embedded merchant financing, which are high-yielding and underpenetrated segments.
- The company has built a pan-India branch network of over 300 branches, enhancing its on-ground underwriting and collection capabilities.
- Ugro Capital Ltd has developed a proprietary data analytics and underwriting framework, including Growth Score 3, to assess MSME risk effectively.
- The acquisition of MyShod Life has strengthened Ugro Capital Ltd's embedded finance and merchant lending capabilities with deep platform integration.
- The company has undertaken a cost rationalization initiative, achieving approximately 50% of the targeted annualized cost reduction of 220 crores, which is expected to improve profitability.
- Ugro Capital Ltd's standalone profit after tax for the quarter was significantly lower at 6 crores compared to 43 crores in the previous quarter, primarily due to the execution of direct assignment transactions at the subsidiary level.
- The company is experiencing a transition phase where the portfolio mix is shifting, leading to a temporary decline in income from co-lending and direct assignment.
- There is a high finance cost due to carrying excess liquidity and raising sub-debt at higher rates, impacting profitability.
- The strategic realignment may delay the achievement of the previously guided 4% ROA target, as the company transitions to more annuity-led income.
- The reduction in disbursements in lower-yielding segments may impact short-term revenue growth as the company focuses on high-yielding segments.
Ladies and gentlemen, good day and welcome to the You Grow Capitals conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing 0 on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Krishan Drumta, MK Global Financial Services Limited.
Thank you, and over to you.
Thank you, Avira.
Good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Sachandranath, founder and MD, Mr. Anuj Pandey, CEO, Mr. Silpa Bhatta, CFO, Miss Ritu Singh, senior economist and head HR, sorry, head IR. I shall now hand over the call to the manager for the opening remarks.
Thank you and over to you, sir.
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