Robust Growth Trajectory Continues: FY25 Financial Highlights
INVC NEWS New Delhi : The UGRO Capital, India’s leading DataTech-driven NBFC specializing in MSME lending, has unveiled its impressive financial results for the quarter and fiscal year ended March 31, 2025. Demonstrating unwavering momentum toward becoming the largest small business financing platform, we reported record-breaking achievements across all key financial metrics.
In FY25, our Assets Under Management (AUM) soared to INR 12,003 crore, reflecting a substantial 33% year-on-year (YoY) growth, while net loans origination reached an all-time high of INR 2,436 crore for Q4’FY25 alone — marking a stellar 57% YoY and 16% quarter-on-quarter (QoQ) surge.
Disbursements Surge Amidst Expanding Market Presence
During FY25, we successfully disbursed INR 7,651 crore, a remarkable 30% YoY increase over FY24. For Q4’FY25, disbursements reached INR 2,436 crore, underscoring a 57% YoY and 16% QoQ growth, reaffirming the effectiveness of our data-driven underwriting model and the strategic expansion of our branch network.
Our Emerging Market Loan Against Property (LAP) segment, a key growth driver, witnessed disbursements of INR 669 crore for Q4’FY25 — a phenomenal 230% YoY and 23% QoQ increase. This expansion is directly tied to the opening of 85 new branches under the Emerging Market umbrella during FY25, significantly strengthening our market footprint.
Exceptional Asset Quality and Strong Risk Management Framework
Maintaining a strong focus on asset quality, our Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) stood at 2.3% and 1.6%, respectively, on the total AUM. These figures highlight the success of our robust risk management framework and industry-leading collection efficiency, further solidifying UGRO Capital’s reputation for prudent portfolio management.
Financial Metrics at a Glance
| Particulars | Q4FY25 | Q3FY25 | Growth (QoQ) | FY25 | FY24 | Growth (YoY) |
|---|---|---|---|---|---|---|
| AUM | INR 12,003 Cr | INR 11,067 Cr | 8% | INR 12,003 Cr | INR 9,047 Cr | 33% |
| Loans Originated | INR 2,436 Cr | INR 2,098 Cr | 16% | INR 7,651 Cr | INR 5,867 Cr | 30% |
| Total Income | INR 412 Cr | INR 385 Cr | 7% | INR 1,442 Cr | INR 1,082 Cr | 33% |
| Net Total Income | INR 231 Cr | INR 218 Cr | 6% | INR 814 Cr | INR 639 Cr | 27% |
| PAT | INR 41 Cr | INR 38 Cr | 8% | INR 144 Cr | INR 119 Cr | 21% |
Record-Breaking Total Income and PAT Growth
Our Total Income for FY25 stood at INR 1,442 crore, marking a robust 33% YoY growth. Notably, the Net Total Income increased by 27% YoY to INR 814 crore. We achieved a Profit After Tax (PAT) of INR 144 crore for the full year, a 21% YoY growth, while PAT for Q4’FY25 stood at INR 41 crore, reflecting a strong 8% QoQ and 24% YoY increase.
Our strategic focus on operational efficiency led to stable Operating Expenses, which stood at INR 438 crore for FY25, up 27% YoY but well-managed relative to our income expansion.
Strengthened Liability Profile with Unprecedented Debt Mobilization
UGRO Capital achieved its highest-ever debt mobilization, raising over INR 1,500 crore during Q4’FY25, taking the total debt to INR 6,904 crore as of March 31, 2025. This diversified liability mix, coupled with deep relationships across 59 lenders, underpins our resilient balance sheet and enhanced liquidity position.
Our focus on co-lending partnerships continues to be a cornerstone of our growth strategy, with off-book AUM now accounting for 42% of total assets. Collaborations with 17 co-lending partners, 10+ green anchors, and 730+ GRO partners have expanded our reach to more than 150,000 MSMEs across India.
Accelerated Growth of Embedded Finance Platform
Our Embedded Finance business, led through the MSL platform, reached a milestone AUM of INR 743 crore by the end of FY25. This growth reaffirms our leadership in leveraging embedded ecosystems to deliver seamless, customized financial solutions to India’s burgeoning MSME sector.
Strategic Vision for FY26 and Beyond
Speaking on the record-breaking performance, Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, remarked:
“Our FY25 performance underscores the strength of our DataTech-driven business model and the progress we have made in reaching underserved MSME segments. With record quarterly originations and robust AUM growth, we remain on track to expand our Emerging Markets portfolio, driving both yield enhancement and greater financial inclusion. Our diversified liability mix, and industry-leading collection efficiency demonstrate the resilience and scalability of our risk-management framework. As we set ambitious targets for FY26, backed by continuous innovation and a growing branch network, UGRO Capital is more committed than ever to empowering MSMEs across India with tailored, high-impact financial solutions.”
Outlook: Charting the Course Ahead
As we move into FY26, UGRO Capital remains steadfast in its commitment to:
Expand branch network aggressively in emerging and underserved markets.
Strengthen embedded finance capabilities through deeper integration with digital ecosystems.
Enhance yield and profitability by optimizing product mix and risk-adjusted returns.
Invest in technology innovation to further refine data-driven underwriting and credit models.
Promote financial inclusion, ensuring MSMEs across urban, semi-urban, and rural geographies have access to critical growth capital.
Our continued focus on data, technology, and partnerships ensures that UGRO Capital is not just growing, but reshaping the MSME lending landscape with innovation, speed, and resilience.
With our strategic initiatives aligned for future growth, UGRO Capital is poised to redefine MSME lending in India, drive greater financial empowerment, and consistently deliver superior value to all stakeholders.
