U GRO Capital, a leading DataTech NBFC focused on MSME lending marks a milestone as CRISIL Ratings upgraded its long-term rating on bank loans and non-convertible debentures to 'CRISIL A/Stable' from 'CRISIL A-/Positive', affirming the short-term rating at 'CRISIL A1'.The upgrade underscores U GRO's ability to enhance its franchise business, driven by robust business prospects and an extensive operating network.

CRISIL Ratings upgrades U GRO Capital Limited's rating to CRISIL A Stable from CRISIL A- Positive

UGRO Capital Limited, the DataTech NBFC focused on MSME lending, has acquired Profectus Capital Private Limited, for ₹1400 crore. This all-cash deal, with the consideration payable in a single tranche at closing, will make Profectus a wholly owned subsidiary. Ugro signed a share-purchase agreement with existing investor - British private equity firm Actis. This acquisition would add approximately ₹150 crore of annualized profit to UGRO making it a capital adequacy accretive transaction. Profectus has demonstrated stable portfolio expansion, building its assets under management to ₹3,468 crore as of March 2025, with presence across seven states through a 28-branch network and over 800-member team, all while maintaining a gross NPA of 1.6% and Net NPA of 1.1%, it added.

UGRO Capital to acquire Profectus Capital for ₹1,400 cr

On December 12, 2025, UGRO Capital converted CCDs into 15.89 lakh equity shares at ₹185 each (₹175 premium). This increased the paid-up share capital by ₹1.59 crore, raising the total share count to 15.42 crore.

UGRO Capital Allots 15.89 Lakh Equity Shares Following CCD Conversion

UGRO reported an improved PAT of ₹143.93 Cr for FY2025, though RoAA at 1.86% reflects ongoing profitability pressure. While Opex moderated to 5.23%, Acuité identifies scaling efficiently as a key challenge. The company maintains a diversified ₹6,904.12 Cr debt profile with a slightly reduced borrowing cost of 10.61%.


UGRO’s GNPA improved to 2.35% in FY2025 (from 3.09%), with the restructured portfolio dropping to 0.2% of AUM (mainly in Education and Hospitality). Total impaired assets stood at ₹522.97 Cr, which includes ₹243.17 Cr in repossessed assets held for sale

The issuer has made timely interest payments.

Satyananda Mishra, Non - Executive Chairman 

Led by veteran Shachindra Nath, UGRO Capital is a high-growth MSME lender that successfully completed its Rs 1,400 Cr all-cash acquisition of Profectus Capital in December 2025. This move boosted the company's consolidated AUM by 29% to Rs 15,471 Cr and expanded its reach to over 300 branches. Supported by marquee global investors and a recent Rs 1,315 Cr capital raise, UGRO is shifting toward a 75% secured asset mix to drive long-term profitability.


UGRO Capital employs a tech-driven, "ecosystem" approach to MSME lending across nine specialized sectors. By maintaining a granular portfolio with an average ticket size of Rs. 15 lacs and a Rs. 5 Cr exposure cap, the company balances rapid digital underwriting with rigorous, sector-specific scorecards. Robust governance—including board-level oversight for large exposures and KMP appointments—ensures that while growth remains disciplined, asset quality is prioritized through every stage of the loan lifecycle.



In FY2025, UGRO’s outstanding portfolio grew significantly to Rs. 12,002.83 Cr., up from Rs. 9,047.06 Cr. in FY2024. This growth was driven by increased disbursals across all channels, including branch-led operations, partnerships/co-origination with NBFCs, ecosystem financing (machinery and supply chain), and pool buyouts.

Security Name: 11.00% UGRO Capital Limited 27 May 2026

ISIN: INE583D07455

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