Press Release

4th August 2026 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No. C/1, G Dalal Street Block Bandra, Kurla Complex, Bandra Mumbai 400001 (East) Mumbai 400051 Scrip Code – 511742 Symbol – UGROCAP Subject: Press Release – “UGRO Capital's Embedded Lending Engine Scales Sharply in Q1’FY27; GROx Disburses Rs 1,853 Crore and Crosses 3.4 Lakh Active Customers” Dear Sir/Madam, Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith Press Release issued by the Company dated 4th August 2026, titled “UGRO Capital's Embedded Lending Engine Scales Sharply in Q1’FY27; GROx Disburses Rs 1,853 Crore and Crosses 3.4 Lakh Active Customers”. This is for your information and records. The aforesaid information is being made available on the Company's website at www.ugrocapital.com Thanking You, For UGRO Capital Limited Satish Kumar Company Secretary and Compliance Officer Encl: a/a UGRO CAPITAL LIMITED Registered Office Address: B-17, Fourth Floor, Art Guild House, Phoenix Market City, Kurla (West), Mumbai- 400070 CIN: L67120MH1993PLC070739 Telephone: +91 22 49194400 I E-mail: info@ugrocapital.com I Website: www.ugrocapital.com PRESS RELEASE UGRO Capital's Embedded Lending Engine Scales Sharply in Q1’FY27; GROx Disburses Rs 1,853 Crore and Crosses 3.4 Lakh Active Customers 60,000+ LOANS DISBURSED EVERY MONTH · 317-BRANCH EMERGING MARKET NETWORK NOW FULLY BUILT AND STABLE · STRATEGIC REALIGNMENT DELIVERING A SELF-SUSTAINED, ANNUITY-LED EARNINGS PROFILE Mumbai, August 4, 2026: UGRO Capital Limited (NSE: UGROCAP | BSE: 511742) today reported its financial results for the quarter ended June 30, 2026 (Q1’FY27) - a quarter defined by the rapid scale-up of its embedded merchant finance platform, sustained customer acquisition, the completion of its Emerging Market branch build-out, and continued progress against the strategic realignment announced in February 2026. Embedded Merchant Finance scales at pace: GROx disburses Rs 1,853 crore in a single quarter UGRO's technology-led embedded merchant finance platform, GROx (formerly MyShubhLife), was the key growth driver during the quarter, disbursing Rs 1,853 crore in Q1’FY27 with over 60,000 loans disbursed every month. GROx AUM increased to Rs 3,003 crore as of June 30, 2026, up 32% quarter-on-quarter from Rs 2,280 crore as of March 31, 2026 and nearly four times higher than five quarters ago. The GROx portfolio continues to maintain strong asset quality alongside growth, with a portfolio yield of approximately 26% and GNPA of 2.1%. Delivered through partnerships with payment ecosystems, digital platforms and e-commerce partners, GROx embeds formal credit at the point of business need, reinforcing UGRO's scalable, technology-led lending model. A rapidly widening customer base: 3.4 lakh active customers and counting GROx now serves approximately 3.4 lakh active customers, with tens of thousands of borrowers added every month through a fully digital, straight-through lending journey. This expanding base of granular, small-ticket borrowers supports recurring income generation and advances UGRO's objective of reaching 4.5 lakh active customers by FY29. Across the Company, net disbursements increased to Rs 2,551 crore, up 59% year-on-year and 19% quarter-on- quarter, reflecting broad-based growth across lending businesses. A stable, fully built branch network powering the Emerging Market business UGRO has completed the expansion of its Emerging Market branch network, which now comprises 317 branches across 13 states, supported by more than 2,500 workforce. With the build-out complete, no further incremental branch investments are planned, allowing future growth to be driven through higher productivity from the existing network. The Emerging Market business disbursed Rs 592 crore during the quarter, taking AUM to Rs 3,896 crore, up 9% quarter- on-quarter, with a portfolio yield of approximately 18.5% and GNPA of 2.1%. Branch productivity is expected to UGRO CAPITAL LIMITED Registered Office Address: Unit No. B-17, 4th Floor, Art Guild House, Phoenix Market City Mall, LBS Marg, Kurla (W), Mumbai - 400070 CIN: L67120MH1993PLC070739 I Telephone: 022 41821600 I E-m ail: info@ugrocapital.com I Website: www.ugrocapital.com improve from Rs 0.62 crore in Q1’FY27 to Rs 0.80–0.85 crore as the network matures. Together, Emerging Market LAP and GROx portfolio now account for 46% of total AUM mix, up from 32% in December 2025. Quarterly performance: profitable growth on a leaner base Overall, the Company reported Profit Before Tax (PBT) of Rs 61.5 crore, up 28% year on year, with PAT of Rs 67.9 crore (including the benefit of a one-time deferred tax reversal following the transition to the new tax regime). Return on Assets improved to 2.8% and Return on Equity to 9.2%. Total AUM stood at Rs 15,013 crore, up 24% year on year, with overall GNPA stable at 2.6%, collection efficiency of 98%, and blended portfolio yield rising to 18.1%. The balance sheet remains robust, with CRAR of 21.0%, leverage of 3.6x, and a strong liquidity buffer of Rs 1,864 crore in cash and cash equivalents - sufficient to fund continued growth. The momentum witnessed during the quarter culminated in UGRO Capital achieving its highest ever monthly disbursement of over ₹1,000 crore in July 2026, marking a significant milestone in the Company's growth journey. More importantly, it validates the Company's strategic focus on two complementary growth engines, its Emerging Markets branch network and the GROX embedded merchant finance platform. Together, these businesses combine physical reach with digital scale, strengthening UGRO Capital's ability to expand formal credit access for underserved MSMEs while delivering sustainable and profitable growth. Strategic realignment: Announced in February 2026 In February 2026, UGRO announced a strategic realignment by discontinuing fresh disbursements in the lower-yielding Prime lending business sourced through third-party intermediaries. The Company has redirected capital towards two higher-yielding, scalable businesses it owns end-to-end—Embedded Merchant Finance Lending through GROx and branch-led Emerging Market LAP. UGRO expects both businesses to grow at around 25% CAGR, while the lower-yield Prime portfolio continues to run down at approximately 20% annually, steadily improving portfolio mix, yields and profitability. Q1’FY27 represents the first full quarter of execution against this strategy. Focused businesses now constitute 46% of AUM, moving toward the 85% FY29 target. The planned Rs 220 crore annualised cost optimisation has been fully achieved, with quarterly operating expenses declining 42% to Rs 118.5 crore. The Prime book reduced by 14% during the quarter, and the Company continues to expect no requirement for additional equity through FY29. While total AUM is expected to remain broadly stable during the transition period, profitability continues to improve meaningfully. ROA increased from 2.1% in Q4’FY26 to 2.8% in Q1’FY27, with a steady-state target of 3.0–3.5% by FY29. ROE improved from 7.1% to 9.2%, while PBT rose 28% year-on-year. The Company believes the transformation is improving the earning power of every rupee of assets, even with a relatively stable balance sheet. With CRAR of 21.0% and growth funded through internal accruals, UGRO expects to continue improving shareholder returns without equity dilution. The Company has transitioned from dependence on non-recurring co-lending and direct-assignment income towards a recurring, annuity-led earnings model built on higher-yielding, secured and granular lending. During the quarter, UGRO also received stock exchange approval for the Profectus Capital merger and remains on track to achieve all milestones outlined in February 2026. UGRO CAPITAL LIMITED Registered Office Address: Unit No. B-17, 4th Floor, Art Guild House, Phoenix Marke [Showing first 8,000 characters — download PDF for full document]