365telugu.com online news,Hyderabad, December 9th, 2025: UGRO Capital Limited (NSE: UGROCAP | BSE: 511742), a leading DataTech Non-Banking Financial Company (NBFC) specializing in MSME lending, today announced the successful completion of its 100% acquisition of Profectus Capital.
This landmark transaction is positioned as a highly accretive move, significantly strengthening UGRO Capital’s scale, profitability, and capital productivity. With the addition of Profectus’s ₹3,468 crore Assets Under Management (AUM), UGRO’s consolidated AUM has surged to ₹15,471 crore, representing a 29% expansion in AUM.
Immediate and Long-Term Value Creation
The acquisition is immediately value-accretive, delivering an annualized profit accretion of ₹150 crore from Day 1, achieved with zero origination cost. Furthermore, the integration is expected to unlock ₹115 crore in operating synergies, which is projected to drive a 60–70 basis points (bps) improvement in Return on Assets (ROA) and accelerate UGRO’s path toward a stronger long-term Return on Equity (ROE).
A crucial shift in UGRO’s balance sheet structure is the move to a 75% secured asset mix, which is anticipated to provide greater earnings stability and reduce credit-cost volatility, key factors for sustainable valuation growth.
The company noted that the transaction represents an efficient deployment of its recent equity raise into a fully secured, high-yield asset base, enhancing capital adequacy and profitability per unit of capital.
The deal also strengthens UGRO’s liability franchise through Profectus’s established lender relationships, potentially leading to better funding costs and incremental spread improvement. Additionally, it opens a new ₹2,000 crore medium-term opportunity in school financing, diversifying future profit pools.
Management Commentary and Future Outlook
Mr. Shachindra Nath, Founder and Managing Director of UGRO Capital, commented on the completion, stating, “With the completion of this acquisition, we have strengthened the foundation for the next phase of UGRO’s growth, one that is defined by stronger returns, more efficient use of capital and a sharper, more resilient earnings engine.
Profectus brings a secured, high-quality book that immediately enhances our profitability profile, but more importantly, it gives us long-run compounding power through a better asset mix, deeper distribution and a more diversified lender base. This transaction is an investment in stability, scalability and value creation, and sets us firmly on the path to delivering consistently higher ROE for our shareholders.”