Ugro Capital Limited has received a credit rating of 'CareEdge B+/Stable' for its External Commercial Borrowings (ECB) amounting to USD 50 million. The rating was issued by CareEdge Global IFSC Limited on January 29, 2026. This rating reflects Ugro's strong business profile, characterized by a substantial and predominantly secured asset class, along with healthy diversification across products, geographies, and sectors. As of September 30, 2025, the company's Assets Under Management (AUM) stood at ₹12,226 crore (USD 1.4 billion), with nearly 70% in secured products like loan against property and machinery loans. The company serves nine MSME segments and maintains robust geographic diversification. However, the rating is partially offset by moderate asset quality metrics, with GNPA and NNPA at 3.0% and 1.7% respectively as of September 30, 2025. Profitability remains subdued due to elevated operating costs and relatively high borrowing costs, with ROA at 1.9% and ROE at 8.7% for FY25. Key monitorables include sustained improvement in asset quality and profitability. Ugro recently completed the acquisition of Profectus Capital Private Limited on December 08, 2025, which had a loan book of approximately ₹3,400 crore, acquired for about ₹1,400 crore. Management anticipates synergies from branch rationalization and a more secured product portfolio. The stable outlook from CareEdge Global suggests that Ugro Capital is expected to maintain its current financial and operational profile over the medium term, with consistent growth. Potential upward rating factors include gearing below 3x and RoA exceeding 2% sustainedly. Downward factors include gearing crossing 4x and credit costs exceeding 4.5%. The company's AUM grew to ₹12,003 crore in FY25, and post-acquisition of Profectus, the combined AUM stands at approximately ₹15,500 crore. Profit after tax was ₹144 crore in FY25. The company maintains a Capital Adequacy Ratio (CAR) above regulatory norms, though with a limited buffer over covenant-linked thresholds.
