UGRO Capital Reports Strong Q3 FY25 Performance, Net Profit Rises 15.3% YoY

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Mumbai, January 24, 2025UGRO Capital Limited (NSE: UGROCAP, BSE: 511742) has reported robust financial results for Q3 FY25. Net Profit rose 15.3% year-on-year (YoY), and the company's lending portfolio grew. The company, a leading non-banking financial company (NBFC) focused on SME lending, also maintained healthy asset quality and capital adequacy ratios.

Key Financial Highlights – Q3 FY25 (Standalone & Consolidated)

  • Total Income: ₹38,496.45 lakh, up 37.8% YoY from ₹27,931.04 lakh in Q3 FY24.
  • Net Profit: ₹3,750.50 lakh, up 15.3% YoY from ₹3,252.89 lakh.
  • EBITDA Margin: 9.74%, down from 11.65% in the previous year.
  • Net Interest Income (NII): ₹25,444.86 lakh, reflecting a 40.5% YoY increase.
  • Gross Stage 3 Loans: Improved to 2.11%, compared to 3.15% in Q3 FY24.
  • Net Stage 3 Loans: Reduced to 1.16%, from 1.67% YoY, reflecting improved asset quality.
  • Debt-to-Equity Ratio: 3.08, compared to 2.97 YoY, indicating balanced leverage.
  • Capital Adequacy Ratio (CAR): 21.52%, maintaining a strong capital position despite loan book expansion.

Operational and Strategic Developments

    • Loan Book Growth: The company continues to scale its SME and MSME lending business, focusing on priority sector financing and co-lending partnerships with banks.
    • Asset Quality Improvement: The decline in Gross Stage 3 and Net Stage 3 loans underscores UGRO Capital's focus on risk management and prudent lending practices.
    • Fundraising Activities: During the quarter, UGRO Capital successfully raised ₹20,000 lakh via public issuance of Non-Convertible Debentures (NCDs), strengthening its liquidity position.
    • Employee Stock Options: Issued and allotted 1,26,502 equity shares under the company's ESOP scheme, reinforcing employee participation.

Outlook & Market Positioning

UGRO Capital's strong financial performance, stable asset quality, and well-managed leverage position it for continued growth in SME lending. The company's strategic focus on co-lending, technology-driven underwriting, and capital efficiency will drive further expansion in FY25 and beyond.
Investors will closely monitor credit demand trends, funding costs, and regulatory developments impacting the NBFC sector as UGRO Capital continues to scale its business.
 
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