UGRO Capital’s profit gets a lift from a Rs 12.05 cr tax credit
Interest of Rs 248.18 cr nearly absorbed operating profit, while other income of Rs 36.58 cr supported pre-tax earnings.
Filed 04 Aug 2026, 15:24 IST · UGROCAP (UGROCAP)
Key takeaways
- Standalone net profit was Rs 60.71 cr, but a Rs 12.05 cr tax credit materially lifted reported earnings.
- Interest of Rs 248.18 cr consumed most of the Rs 270.00 cr operating profit, leaving Rs 48.66 cr of pre-tax profit.
- Mature branches generated Rs 0.81 cr a month in disbursements, against management’s next-12-month blended target of Rs 0.80-0.85 cr.
Tax credit and other income shape standalone earnings
UGRO Capital reported standalone Q1FY27 net profit of Rs 60.71 cr on revenue of Rs 417.41 cr. The reported tax rate was -24.77%, reflecting a Rs 12.05 cr tax credit rather than a tax charge. Other income of Rs 36.58 cr also supported profit before tax of Rs 48.66 cr, making earnings quality weaker than the net-profit figure alone suggests.
Interest absorbed most of the operating profit
The Rs 270.00 cr operating profit was supported by expenses of Rs 147.41 cr against revenue of Rs 417.41 cr, resulting in a 64.68% operating margin. However, interest expense of Rs 248.18 cr consumed most of operating profit, leaving limited pre-tax earnings after depreciation of Rs 9.74 cr. The quarter therefore shows a wide operating spread but a much tighter profit conversion after financing costs.
Branch productivity is the key operating marker
The presentation said mature branches were producing Rs 0.81 cr a month in disbursements. Management targets blended branch productivity of Rs 0.80-0.85 cr a month over the next 12 months and said FY27 operating expenses are guided at Rs 490+ cr. The company also said MyShubhLife has been rebranded as GROx and described its liability book as predominantly long-term and diversified.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹417 cr |
| Other income | ₹37 cr |
| Expenses | ₹147 cr |
| Operating profit | ₹270 cr |
| Operating margin (%) | 64.68% |
| Interest | ₹248 cr |
| Depreciation | ₹10 cr |
| Profit before tax | ₹49 cr |
| Tax | ₹-12 cr |
| Net profit | ₹61 cr |
| EPS (₹) | ₹3.97 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Mature branches produced INR 0.81 Cr per month in disbursements.
Guidance & outlook
- The company is targeting FY27 Opex guidance of INR 490+ Cr.
- Management targets blended branch productivity of INR 0.80-0.85 Cr per month over the next 12 months.
- The company expects to achieve its strategic objectives within the defined timelines.
New initiatives
- MyShubhLife was rebranded as GROx.
Competition
- The company describes its long-term liability book as predominantly long-term and well-diversified.
What to watch
- Whether interest remains below the Rs 270.00 cr operating profit.
- Progress against the company’s FY27 operating-expense guidance of Rs 490+ cr.