UGRO Capital to Acquire Profectus, Surpass ₹15,000 Crore AUM Target

UGRO Capital is set to complete its acquisition of Profectus Capital this month—adding ₹3,000 crore to its asset base and helping it surpass its AUM target. With this inorganic growth, the company expects to close FY26 with a consolidated AUM of ₹16,500–17,000 crore, up from ₹12,226 crore (as of September 30), which already reflects a 20% YoY growth. The deal marks a strategic shift as UGRO transitions toward scale-driven growth while enhancing capital efficiency. Post-acquisition, Profectus’s fully on-book model will reduce UGRO’s off-balance sheet exposure—from 43% to around 35%, aligning with its long-term goal of maintaining 30–35%. Going forward, growth will be driven by two high-potential segments: Micro Loan Against Property (LAP) via its expanding branch network (target: ₹1 crore average disbursement per branch within 18 months) Embedded finance partnerships with digital platforms like PhonePe, Fino, and BharatPe UGRO plans to add ₹1,000 crore in new assets over the next two quarters, even as it slows disbursements to improve portfolio quality and reduce borrowing costs by 100 bps over six quarters. The lender reported a 22% YoY rise in Q2 net profit to ₹43.3 crore, reflecting strong underlying performance. With the Profectus integration, UGRO is now focused on productivity, cost optimization, and sustainable growth in India’s evolving MSME credit landscape.