UGROCAPNSE7 November 2025

Ugro Capital Limited has informed the Exchange about Investor Presentation

Ugro Capital Limited

7th November 2025

To BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block Bandra, Kurla Complex, Bandra (East) Mumbai 400051

Scrip Code – 511742

Symbol – UGROCAP

Subject: Investor Presentation for the quarter and half year ended 30th September 2025

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith investor presentation for the quarter and half year ended 30th September 2025.

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: Equinox Business Park, Tower 3, 4th Floor, LBS Road, Kurla (West), Mumbai - 400070 CIN: L67120MH1993PLC070739 Telephone: +91 22 41821600 I E-mail: info@ugrocapital.com I Website: www.ugrocapital.com

UGRO Capital Limited

Building an Institution for MSME Lending

Data Tech Empowering

Small Businesses (MSME) Lending

Investor Presentation

(Q2’FY26)

September 2025

NSE: UGROCAP | BSE: 511742

Safe Harbor

This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions.

This presentation is for information purposes only and should not be deemed to constitute or form part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India.

There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes

The financial information in this presentation may have been reclassified and reformatted for the purposes of this presentation. You may also refer to the financial statements of the Company available at www.ugrocapital.com before making any decision on the basis of this information.

Certain statements contained in this presentation that are not statements of historical fact constitute forward- looking statements. These forward- looking statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in such forward- looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience in recent years, but these assumptions may prove to be incorrect.

Potential investors must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose.

This presentation and its contents are for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person.

Slide 2

Q2’FY26 Snapshot: Strategic Initiatives and Expansion

Equity Fund raise:

Equity raise amounting to ~INR 535 Cr through CCDs for Profectus acquisition; investor Samena Capital infused ~INR 241 Cr

existing

Focus on Emerging Market (EM) channel: 303 EM branches with AUM mix increased to ~25% as of Sep’25; added 90 branches in H1’FY26

Building up Embedded finance:

Our embedded finance platform, MSL continues to gain momentum with AUM reaching INR 1,270 Cr within short span of 4 quarters

Reduced Disbursals in H1’FY26(1):

Credit Ratings update (long-term):

Stable Asset Quality:

Q2’FY26 net loan disbursals at INR 1,789 vs INR 1,971 in Q2’FY25; H1’FY26 net loan originated at INR 3,388 Cr vs INR 3,118 Cr in H1’FY25

‘IND A+/ Rating watch with Positive Implications’ by India Ratings and ‘Crisil A/ Rating watch with Developing Implications’ by CRISIL on Profectus Capital Acquisition and Capital raise

GNPA at AUM maintained at 2.4% with all portfolio parameters stable; coverage provision maintained at 47%.

(1) UGRO in last 3 years have added AUM of ~INR 3,000 Cr annually. UGRO’s proposed acquisition of Profectus Capital would add ~INR 3,000 Cr to our AUM inorganically. In light of this, we have recalibrated current year’s disbursals so that we can reduce our liability requirements leading to lower cost of borrowing in future. This has been done by adopting tightened underwriting – this approach also augers well with current macro headwinds in small ticket MSME loans.

Slide 3

Performance snapshot for Q2’FY26

Q2’FY26(5)

Q2’FY25(5)

H1’FY26(5)

H1’FY25(5)

AUM (INR Cr)

12,226

10,157

20%

12,226

10,157

20%

Net Disbursement (INR Cr)(1)

1,789

Off-book AUM

43%

1,971

44%

3,388

3,118

112 bps

43%

44%

112 bps

Annualized EPS of H1’FY26(4) INR 14.8 per share

Net Total Income %(2)

13.9%

14.8%

96 bps

13.2%

13.7%

50 bps

Pre-Tax Profit (INR Cr)

PAT (INR Cr)

61.1

43.3

50.1

35.5

22%

109.3

77.4

92.9

65.9

18%

Cost to Income Ratio

56.6%

52.7%

384 bps

56.2%

53.3%

283 bps

Price to Earnings Ratio (P/E) 11.5x

(Basis NSE price as on 30 Sep 2025)

ROA

ROE(3)

2.5%

7.7%

2.6%

8.2%

16 bps

2.2%

46 bps

7.5%

2.5%

8.0%

25 bps

51 bps

(1) Net Disbursement = Gross Disbursements – Repayment received in Supply Chain Financing during the period ; (2) On Average On-books AUM for the relevant period; (3) Excluding equity component of CCDs; (4) Annualised Diluted EPS for H1’FY26 is INR 13.7; (5) Annualised ratios for period

Slide 4

Key metrics for Q2’FY26

Asset Growth

Profitability

Asset Quality

Liability & Co - lending

AUM As of Sep’25: 12,226 Cr (+20% Y-o-Y)

Net Total Income Q2’FY26: 243 Cr (+21% Y-o-Y)

Net Loans Originated Q2’FY26: 1,789 Cr (-9% Y-o-Y)

Portfolio yield As of Sep’25: 17.6% (+5% Y-o-Y)

PPOP Q2’FY26: 105 Cr (+12% Y-o-Y)

Net Profit Q2’FY26: 43 Cr (+22% Y-o-Y)

GNPA (AUM) As of Sep’25 : 2.4% (Sep’24: 2.1%)

NNPA (AUM) As of Sep’25 : 1.5% (Sep’24: 1.3%)

Leverage As of Sep’25: 3.3x (Sep’24:2.7x)

Co-lending - Partnership with 16 co - lenders / co - originators

- Off-book AUM: 43%

Collection efficiency(1) Q2’FY26: 100% (Q2’FY25: 96%)

Cost of Borrowings As of Sep’25 : 10.37% (-38 bps Y-o-Y)

(1) Total Collections (including overdue) / Current month demand

Slide 5

Serving a diverse set of customers with multi-product, multi-channel strategy

UGRO’s Focus

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1Cr – 15Cr Customer Turnover

Secured Biz. Loan: Rs 89L Biz. Loan*: Rs 20L Prime Machinery: Rs 46L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz/Mch: 12/3/4 yrs

Channel AUM Mix: 44% Sec/Biz/Mch : 20%/22%/2%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 3Cr Customer Turnover

Rs 17L Average ticket size

Yield: 19% Tenure: 10 yrs

Rs 1Cr – 10Cr Customer Turnover

Rs 36L Average ticket size

Yield:. 14% Tenure: 4 yrs

Channel AUM Mix: 25%

Channel AUM Mix: 11%

Tech Stack

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/ 26% Tenure: 4 yrs/ 1 yr

Channel AUM Mix: 8%/10%

Tech Stack GRO line

*CGTMSE backed

Products sold across channels: Intermediated: Secured Biz. Loan, Biz. Loan, Rooftop Solar and Machinery; Emerging Market: Secured Business Loan, Rooftop Solar and Machinery; Equipment finance and Green Asset Financing: Direct distribution and across other channels; Digital business & Alliances: Digital business and Embedded finance

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 6

Emerging Market: Poised to achieve steady-state metrics with diversified portfolio mix

Parameters

Branch Productivity

Yield %

Ticket size (INR Cr)

Tenor (months)

GNPA %

Credit cost %

Steady-state levels

INR 1.1 Cr p.m

18%

INR 0.2 Cr

125

3.7-4%

1.3-1.5%

Branch productivity bucket

# of branches

AUM (INR Cr)

Yield % GNPA % Remarks

Greater than INR 1 Cr per month

INR 0.5 Cr to INR 1 Cr per month

703

17.7%

1.2% 75%

branches

are

profitable

1,005

18.6%

1.9% -

Expected

reach productivity of INR 1 Cr in next 12 months - profitable

50% branches

are

Less than INR 0.5 Cr per month

188

1,289

19.4%

2.7% Expected

reach productivity of INR 1 Cr in next 18 months

Overall

303

2,997

18.7%

2.1%

AUM split by geography

6% 4%

17%

Total AUM 2,997 Cr

15%

14%

13%

Tamil Nadu

Telangana

Gujarat

Rajasthan

Madhya Pradesh

Karnataka

Uttar Pradesh

Maharashtra

Andhra Pradesh

Delhi

Slide 7

Emerging Market: Key metrics snapshot

Q2’FY26

Q1’FY26

FY25

FY24

Quarterly trends- Last 6 quarters

Strategy - Current/ Target

# of branches

303

286

212

127

# of branches:

• Our planned expansion of EM

vertical is complete

# of states

187

201

212

141

286

303

# of logins

10,677

7,998

35,143

19,847

Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25

Disbursement (INR Cr)

410

360

1,869

722

AUM (INR Cr)

2,997

2,772

2,596

1,144

Channel AUM (INR Cr) trend:

2,596

2,772

2,997

2,073

1,644

1,279

% of Total AUM

25%

23%

22%

13%

Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25

Our Emerging Market Channel continues to grow quarter on quarter with steady AUM

• We

have

significantly curtailed our throughput rate from 30% to 20% on account of over leverage among the EM customer segment

• Focus

maximizing productivity of the branches and portfolio quality.

• The AUM mix is planned to increase from current levels to approx. 32-35% in the near term

Slide 8

Embedded finance platform (MSL) acquisition delivering massive results

Market opportunity

Disbursement trend (INR Cr)

MSL Performance so far..

65mn Total Merchants

45mn Digital Merchants

35mn Digitally enabled small Merchants & Retailers(1)

$22bn+ Annual Credit Requirement for Small Retailers(2)

637

582

713

335

Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26

92% Credit Gap(3)

AUM trend (INR Cr)

$20bn+

Annual Credit Gap

1,011

1,270

743

302

• Our targeted acquisition of the embedded finance platform (MSL) has tracked to the right scale.

• We have seen good traction for the partner volumes, with monthly run rate of Rs 150 Cr to Rs 200 Cr.

• Out of total universe of ~3 crore merchants pertaining to MSL’s partners, we have served 1.5 lakh+ customers. The AUM as of Sep-25 is INR 1,270 Cr.

• The approval process for completion of

Q3'FY25 Q4'FY25 Q1'FY26 Q2'FY26

acquisition is ongoing.

Partnerships

Source: Paytm DRHP, SBFC DRHP | Notes: (1) Total number of merchants using QR payments are considered as small retailers, (2) Considering INR 50k average ticket size, (3) Credit gap for small retailers

Slide 9

Well diversified, granular and stable portfolio quality

Product Mix (AUM)

Portfolio Concentration in key geographical areas

Sector Mix

14%

10%

20%

10%

11%

25%

State wise AUM coverage

Guaranteed by CGTMSE

Rest of India: ~1%

14%

10%

27%

12%

Secured Business Loan Emerging Market LAP Machinery Loan Embedded Finance

Business Loan Supply Chain Financing Partnerships & Alliances

Product category

AUM (Cr)

ROI (%)

Ticket size (Lakh)

Secured Business Loan

2,438

14.0%

Business Loan

2,643

18.6%

Emerging Market Loan

2,997

18.7%

Supply Chain Financing

193

15.4%

Machinery Loan

1,704

14.6%

Partnerships & Alliances

981

15.4%

Embedded Finance

1,270

26.0%

Grand Total

12,226

17.5%

State wise branches

Prime

Total

Rajasthan Tamil Nadu Madhya Pradesh Maharashtra Andhra Pradesh Uttar Pradesh Karnataka Telangana Gujarat Haryana Other States

Total

54 52 47 33 31 32 26 20 19 15 10 303

2 1 3 6 2 1 1 1 1 0 4 22

56 53 50 39 33 33 27 21 20 15 14 325

17%

4% 3%

36%

19%

Auto Components

Chemicals

Education

Electrical Equipment

Food Processing

HealthCare

Hospitality

Light Engineering

Emerging Market

Other MSMEs

Slide 10

Our collection efficiencies and portfolio performance (1/2)

Collection Efficiency, Month on Books, GNPA and 30+ quarterly trend

Total Collections (1) (including overdue) / Current Month Demand

96%

95%

100%

Q1FY25

Q2FY25

Q3FY25

Q4FY25

Q1FY26

Q2FY26

6.4%

2.1%

13.9

Sep-24

6.5%

2.1%

14.2

GNPA, 30+% and MOB 7.2%

2.3%

14.3

7.5%

2.5%

15.2

6.7%

2.4%

16.1 months

Dec-24

Mar-25

Month on Books

30+ %

Jun-25

GNPA

Sep-25

Key highlights:

• Portfolio performance is in line with increasing seasoning of book

• Unsecured portfolio has witnessed some stress on account of over leveraging; we have tightened our underwriting and have curtailed disbursements in last 2

quarters (INR 199 Cr in Q2’FY26 vs INR 623 Cr in Q2’FY25)

(1) Excluding foreclosures

Slide 11

Our collection efficiencies and portfolio performance (2/2)

Stable Stage 1 assets

ECL Data (Sep’25)

93%

94%

93%

92%

93%

(INR Cr)

Loan Exposure

Loan Exposure (%)

Stage 1

Stage 2

Stage 3

Total

11,409

529

289

93.3%

4.3%

2.4%

12,226

100.0%

Jun'24

Sep'24

Dec'24

Mar'25

Jun'25

Sep'25

 Adequate Provision Coverage Ratio

Product wise GNPA

47%

Jun'24

Sep'24

Dec'24

Mar'25

Jun'25

Sep'25

Product Category

AUM (INR Cr)

GNPA(%)

Secured Business Loan

Business Loan

Emerging market Loan

Machinery Loan

Partnerships & Alliances

Embedded Finance AUM(1)

2,438

2,643

2,997

1,704

981

1,270

12,226

0.8%

3.9%

2.1%

1.8%

1.1%

1.3%

2.4%

(1) AUM including run down portfolio of SCF amounting to INR 193 Cr. GNPA % at peak SCF AUM levels was 3.9% (Dec’23) which increased to 24.2% (INR 47 Cr) as of Sep’25 due to run down of portfolio

Slide 12

Diversified Lender base and continued build-out of liability book

Total Debt (INR Cr) and Cost of borrowings

Liability mix by lender profile

Liability mix by product

10.75%

10.68%

10.61%

10.55%

10.37%

Cost of Borrowings

6,904

6,151

5,344

7,586

8,088

17%

14%

Total Debt INR 8,088 Cr

53%

3% 4%

20%

12%

Total Debt INR 8,088 Cr

61%

Q2'FY25

Q3'FY25

Q4'FY25

Q1'FY26

Q2'FY26

Banks

NBFC

DFI

FIs

Capital Markets & Others

Term Loan

ECB NCD CP Others

(Others includes CCD, Sub-debt, CC/OD & Securitization)

Our liability sanctions have been raised from a diverse set of lenders

Public Sector Banks and Institutions

Private Sector Banks

DFIs

NBFCs

Slide 13

Overall off book ratio maintained sustainably

Oﬀ - Book AUM mix

Product wise Mix of oﬀ - Book AUM (Sep’25)

On Book Portfolio

Off Book Portfolio

2,438

2,643

2,997

1,704

45%

44%

42%

43%

55%

56%

58%

57%

56%

44%

Secured Business Loans

60%

40%

34%

66%

55%

45%

981

11%

1,270

89%

83%

Business Loans

Emerging Market LAP

Machinery Financing

Partnership & Alliances

Embedded Finance

Mar'24

Jun'24

Sep'24

Dec'24

Mar'25

Jun'25

Sep'25

1,377

1,599

1,033

Mar’24

Jun’24

Sep’24

Dec’24 Mar’25

Jun’25

Sep’25

Off Book AUM

4,078

4,114

4,493

4,902

5,087

5,055

5,271

Co-lending

1,685

1,839

2,222

2,350

2,474

2,467

2,484

Co-Origination

1,610

1,513

1,398

1,412

1,352

1,178

1,084

784

762

874

1,141

1,260

1,410

1,703

29%

51%

20%

Secured Business Loans

14%

45%

41%

50%

48% 1%

Business Loans

Emerging Market LAP

On-Book

Off-Book

109

219

100%

67%

33%

Partnership & Alliances

Embedded Finance

935

33%

60%

7% Machinery Financing

Co-lending Partnership with 9 Banks and 7 NBFCs

Co-Origination

Co-lending

Slide 14

Finance | Quarterly Income Statement

Income Statement (INR Cr)

Q2’FY26

Q2’FY25

Y-o-Y

Q1’FY26

Q-o-Q

ROA Tree

Q2’FY26(2)

H1’FY26(2)

Interest Income

Income on Co-Lending / Direct Assignment

Other Income

Total Income

Finance Cost

Net Total Income

Employee Cost

Other Expenses

PPOP

Credit Cost

PBT

Tax

PAT

322.4

100.6

38.2

461.2

218.5

242.6

67.3

69.9

105.4

44.3

61.1

17.8

43.3

208.0

109.5

25.3

342.9

143.1

199.8

61.6

43.7

94.5

44.3

50.1

14.6

35.5

55%

(8%)

51%

35%

53%

21%

60%

12%

22%

304.2

90.8

26.8

421.8

205.4

216.5

60.9

59.7

95.9

47.7

48.2

14.0

34.1

11%

42%

12%

11%

17%

10%

(7%)

27%

As a % of Avg On Book AUM

Total Income

Finance Cost

26.4%

25.5%

12.5%

12.2%

Net Total Income

13.9%

13.2%

Opex

Credit cost

PBT

PAT

7.9%

2.5%

3.5%

2.5%

7.4%

2.7%

3.2%

2.2%

Key Ratios

Q2’FY26

H1’FY26

Leverage

RoE(1) (2)

3.3x

7.7%

3.3x

7.5%

(1) Excluding Equity component of CCDs (2) Annualised

Slide 15

Finance | Balance Sheet

Balance Sheet (₹ Cr)

Sep-25

Mar-25

Balance Sheet (₹ Cr)

Sep-25

Mar-25

Assets

Cash and Bank Balance

Loans

Investments

Other financial assets

Financial Assets

PPE, Intangible assets, ROU etc

Current and Deferred tax assets (net)

Other non-financial assets

Non-Financial Assets

Total Assets

1,599

8,004

492

Liabilities

544

Trade payables

7,919

Debt securities

103

Borrowings (other than debt securities)

Other financial liabilities

10,169

8,623

Financial liabilities

190

419

610

Non-financial liabilities

168

Equity share capital

375

Other equity

545

Equity

10,779

9,168

Total Liabilities & Equity

1,884

6,204

8,170

146

114

2,349

2,463

10,779

1,983

4,921

6,989

133

1,954

2,046

9,168

Slide 16

Operating & Financial Metrics

Total Income (INR Cr) & Portfolio Yield(1)

Finance Cost (INR Cr) & Cost of Borrowing

Operating Exp to AUM and Cost to Income

16.7%

16.9%

17.3%

17.5%

17.6%

10.75%

10.68%

10.61%

10.55%

10.37%

52.7%

56.7%

51.8%

55.7%

56.6%

343

385

412

422

461

143

167

181

205

219

4.3%

4.7%

4.2%

4.0%

4.5%

Q2'25

Q3'25

Q4'25

Q1'26

Q2'26

Total Income

Portfolio Yield (%)

Q2'25

Q3'25 Finance Expense

Q4'25

Q1'26

Q2'26

Cost of borrowing (%)

Q2'25

Q3'25

Q4'25

Q1'26

Q2'26

Opex to AUM (%)

Cost to Income Ratio (%)

Credit Cost (INR Cr) & Credit cost / Avg AUM(2)

PBT (INR Cr) and PBT / Avg. On Book AUM(2)

PAT (INR Cr) and PAT / Avg. On Book AUM(2)

1.8%

1.6%

1.9%

1.6%

1.5%

3.7%

3.6%

3.5%

2.8%

3.5%

2.6%

2.5%

2.0%

2.5%

Q2'25

Q3'25

Q4'25

Q1'26

Q2'26

Q2'25

Credit Cost

Credit Cost/ Avg AUM

Q3'25

PBT

Q4'25

Q1'26

Q2'26

Q2'25

Q3'25

Q4'25

Q1'26

Q2'26

PBT/ Avg On-book AUM

PAT

ROTA %

2,463 Cr

Net Worth

12,226 Cr

AUM

43%

Off book %

3.3x / 25.4%

Debt to Equity / CRAR

2.4% / 1.5%

GNPA / NNPA (AUM)

325

~233,000

Branches

Active Loans

(1) Weighted Average AUM yield as on Period End (2) Annualized ratio based on quarterly average of AUM and On book AUM

Slide 17

MSME lending : The largest opportunity today

Slide 18

For India’s GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion

Today

India’s GDP in FY2028

FY2028

MSME 35-40%

~6.6 Crore MSMEs

MSME 35 – 40%

~29 Crore employment

~30% of GDP

MSME 35-40%

~8 – 10 Crore MSMEs

~35-40 Crore employment

~35-40% of GDP

MSME sector expected to grow to USD ~2 trillion by FY2028

Rapid digitization, expansion of the ecommerce Penetration of the Digital India Stack 2.0 Rising digital payments; India accounts for 49% of global transactions Other initiatives: Account Aggregator Framework, OCEN, ONDC Continuous support from Government

Slide 19

MSME sector is the key to India’s ‘Employment Generation’, making it one of the Central themes of Government in the last decade MSME count to grow to ~10 crores employing 35-40 crores

Slide 20

…well supported by continuity in Government initiatives

Government Initiatives throughout the years

Financial Support for MSME Growth - 2025

•

2014 - Pradhan Mantri MUDRA Yojana (PMMY)

Budget Allocation

2015 - Udyog Aadhaar Memorandum (UAM)

2016 - Stand-Up India Scheme

2017 - MSME Samadhaan, MSME Sambandh

2018 - 59-minute loan portal, Interest Subvention Scheme for MSMEs

2019 - MSME Support and Outreach Program

2020 - Emergency Credit Line Guarantee Scheme (ECLGS)

2021 - Raising and Accelerating MSME Performance (RAMP) Program

2022 - Revised Credit Guarantee Scheme for MSMEs

2023 - Credit guarantee trust, Vivad se Vishwas scheme

2024 - MSME-TEAM Scheme: A trade enablement initiative launched through ONDC

•

For Ministry of MSME: INR 23k Crores

Revised Classification Criteria

•

The investment and turnover limits for classification of MSMEs have been increased by 2.5 times and 2 times, respectively.

Enhanced Credit Availability

•

The credit guarantee cover has been increased from ₹5 crore to ₹10 crore, enabling additional credit of ₹1.5 lakh crore over five years.

Startups will see their guarantee cover double from ₹10 crore to ₹20 crore, with a reduced fee of 1% for loans in 27 priority sectors.

Credit Cards for Micro Enterprises

• A new customized Credit Card scheme will provide ₹5 lakh in credit to micro enterprises registered on the Udyam portal, with 10 lakh cards set to be issued in the first year.

Others

• A scheme for 5 lakh first-time women, Scheduled Caste, and Scheduled Tribe entrepreneurs will provide term loans up to ₹2 crore over five years, incorporating lessons from the Stand-Up India scheme.

Slide 21

Building a large institution for MSME financing is a real possibility Explosion of Credit in MSME Segment: Large market opportunity, conducive macro, favorable policy framework

Total MSME Credit gap is INR 1,03,000 Bn

Credit Gap of our customer segment constitutes majority portion

Overall MSME Credit Addressable Market

FY24: INR 1,38,000 Bn

Credit Gap

FY24: INR 1,03,000 Bn

MSME addressable credit demand

FY24: INR 67,500 Bn

Medium Enterprise No. of entities – 0.04L

Medium

Small

Small Enterprise No. of entities – 4.7L

UGRO’s Target Customer Segment T/o INR 25L - 15Cr

Micro

Micro Enterprise No. of entities – 623L

Unserved Customers

Source: IFC report on Financing India’s MSME; Crisil Report.

Slide 22

Executing The big plan…

Slide 23

UGRO Capital: Well-placed to capitalize on the opportunity

MSMEs – A large and growing credit opportunity with strong tailwinds

UGRO – a pureplay MSME financing platform with a focused business strategy

Wide-array of customized product offerings catering to a diverse customer base

Multi-channel distribution ensuring deeper access and faster build-out

Proprietary, AI/ML enabled, technology-first-approach to credit assessment

Robust and balanced liability engine supported by a large and diverse set of lending partners

Professionally managed business driven by a leadership team with deep industry experience

Strong corporate governance with independent supervision from an eminent Board of Directors

Slide 24

UGRO’s journey Amount in INR Cr

Developed Sectoral Expertise and GRO Score 1.0

Series of Credit Crises • ILFS • DHFL •

Yes Bank

Equity raise of INR 340 Cr

(1) Fund Raise: INR 381 Cr through Rights Issue (2) Proposal for Acquisition of

Raised INR 258 Cr though CCDs

12,003 Cr

12,226 Cr

9,047 Cr

6,081 Cr

Raised INR 535 Cr though CCDs

2,969 Cr

861 Cr

Raised Capital

Jul’18

Started Disbursing

Jan’19

79 Cr

Mar’19

Mar’20

Mar’22

Mar’23

Mar’24

Mar’25

Sep’25

Set up phase

Creating Infra to Build scale

Growth Phase

Strategic Initiatives

•

Incorporation and setting up of the Company

• Raised

INR 900+ Cr Capital from (ADV, Investors

Marquee NewQuest, Samena & PAG)

• Pivoted business to make

it multi product, focused on Emerging Market.

•

Focus on digitizing business processes and product diversification

• Upgraded to Gro Score 3.0 - Data tripod of underwriting from GRO Score 2.0

•

Increased distribution strength & laying foundation of Co-lending model

•

Launched Embedded Finance through MSL platform

Increased focus on Emerging Market with branch expansion crossing 300+ EM branches

Slide 25

UGRO’s Data & Tech driven approach

Slide 26

India’s data repository will support Data driven MSME credit expansion Increasing MSME Data availability is a key lever

India Data Stack

360-degree underwriting is possible

INCREASE IN GST PAYERS Up from 70L in 2017 to ~16 Mn in Aug’25

>100%

26x

UDYAM REGISTRATION Up from 14L in Dec’20 to 421L in Oct’25

30x

TOTAL MSME COUNT Up from 361L in 2015 to 635L in Sep’25

76%

140 Mn

Monthly UPI VOLUMES Up from 800 Mn in Mar’19 to ~21 Bn in Oct’25

33%

ITR FILED Up from 565L in Mar’19 to 750L in Mar’25

LINKED ACCOUNTS 650 Financial Information Users and 180 Financial Information Providers in Account Aggregator Network (Sep’25)

Bureau

Banking

GST

Sector - subsector

Nature of business

Position in Network

Repayment discipline

Banking habits

Cashflow consistency

Over leveraging

Recent stress

Productivity improvement By focussing energies only on 40% of cases, rest can be decisioned immediately

No compromise in asset quality Disbursal in adherence to score cut-offs controls probability of default

Scalable and integrable Gro Score products are templatized and delivered through APIs

Slide 27

UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs

Build phase Infrastructure build at inception during Covid, pivoted to cash flow based underwriting models

Early Validations At Dec 2022, 87% of organic prime business was using GRO Score

Maturing phase

term

portfolio long performance starting to emerge

Growth Phase industry an Become benchmark in data-driven decision making for MSME

First Banking scorecard and Gro Score 2.0 (Jul 21) In house analytical rule engine for fast deployment of analytics strategies

API integrations Data layer First gen Gro Score on look- alike data from credit bureau

Industry first statistical model using GST data Gro Score 3.0 as a combination of Bureau + Banking + GST

2022-23

2021-22

2020-21

Develop Network Science, ability to create blueprint of large supply chains First generation eligibility recommendation model

2023-24

2024+

Gro Score 4.0 – 100% digital including hyper- underwriting customization personal interactions Sector specific data models based on proprietary data and knowledge Doubling of credit productivity with stable asset quality

Data Repository - Sep’25

~7.5L

Bureau Records analyzed

~3.1L

Bank Statements analyzed

102k+

GST records analyzed

233k+

Customer served

Slide 28

Data driven by AI/ML powers our core underwriting :

Ability to capture alternate data from banking and bureau…

…to draw meaningful insights out of unorganized data...

Across Multiple parameters

Turnover and transaction intensity

Borrowing mix and nature

Cheque bounces & bank charges

Frequency and magnitude of defaults

Payment cycles

History of high-cost debt/credit card usage

Obligations as % of turnover

Balances and withdrawals

Counterparties & relative strengths

Pace of borrowing

GRO 2.0 Credit Bureau Data + Banking Data

GRO 3.0 Credit Bureau Data + Banking Data + GST

GST

Bank

Bureau

Matches Banking & Bureau Scorecards to generate one single score which further gets augmented with GST data as an external input

Machine generates 25,000+ data features applicant’s from bureau record and bank statement

… and decide whether to disburse or not disburse the loan within 60 minutes.

Artificial Intelligence Engineering of making Intelligent Machines and Programs

Machine Learning Ability to learn without being explicitly programmed

Deep Learning Learning based on Deep Neural Network

Historical aggregation – several pages of statement going back 12 months can be summarized instantly

Normalization – convert absolute values to scale, for even comparison

Trending – create changes over standardized measure of comparison across diverse nature of entities, sectors, geographies

time,

Scoring of each case into one of the five bands of A – E with A being the best and E being the worst

Slide 29

ABCD Advent of alternate data is revolutionizing underwriting of MSMEs A combination of bureau, banking and GST makes it possible to cover all aspects that are critical for MSMEs’ financial assessment

Massive library of 20,000+ parameters derived from API integrated sources

Enabling holistic underwriting across most critical aspects

Bureau

Borrowing mix and nature Pace of borrowing Frequency and magnitude of defaults History of high-cost debt/ card usage

• • • • • Obligations as % of turnover

• • • • •

• • • •

Banking

Turnover and transaction intensity Balances and withdrawals Cheque bounces & bank charges Counterparties & relative strengths Payment cycles

GST

Sales/purchases momentum Counterparty relations Filing discipline Products and services sold

Consistency of sales in GST

Return filing discipline

Counterparty concentration

Banking credit summation

Stability of ABB

EMI ECS bounce

Repayment discipline

Over leveraging

Recent stress if any

Our System Architecture supports full SME lending

Secured

Business Loan

Factoring

P&M Loans

OD product

EV / Solar

Digital Finance

Co-lending

Embedded Finance

Bureau + Banking

GROSCORE 2.0

GSTN

Bureau + Banking + GSTN

GROSCORE 3.0

UGRO’S PROPRIETARY TECH CAPABILITY

Co-lending

Supply Chain

D2C Offering

Credit BRE

Origination

Retailer

GRO line

Operational Data Store (Data Lake)

In-House LMS

Kautilya LMS

Jayam LMS

Dedupe System

Collection System

BANKING PARTNERS

A FEW KEY API ECOSYSTEM PARTNERS

DEVELOPMENT PARTNERS

Slide 31

Strong On-ground Collections Infrastructure

4-Tier Collection Process: Vigorous Lines of Defense

1st Line of Defense Collection strategy team

• In-house team managing cases till the customer goes beyond 15+ days of default / or shows erratic or delinquent behavior • Strategy for the team relies on analyzing customer’s historical payment behaviour •Cases assigned to suitable collection channels using a data-driven, resource-efficient approach. •Tech-enabled engagement and Multi-channel

2nd Line of Defense Call centre team

• Outsourced by UGRO but internally tracked and managed • 50+ dedicated workstations deployed for tele-calling • Handles bounce and follow-up calling, PTP generation, manual case allocation, customer issue resolution, MIS preparation, and field collection reconciliation.

3rd Line of Defense Field collection team

• 500+ employees in field collections team • Fully-built out hierarchy across each product Collection officers -> Bucket managers -> State head -> Regional Credit Manager -> National Credit Manager -> Chief Revenue officer

4th Line of Defense Litigation Team

• Dedicated in-house litigation team of 35–40 members, initiating and monitoring litigation process • Strong chain of command reporting to the Legal Head Litigation Manager -> State head -> Legal Head -> National Litigation Head

Through coordinated recovery actions and legal rigor, UGRO maintains a high-quality, resilient portfolio

Slide 32

Multi-product, multi-channel Asset Engine

Slide 33

Serving a diverse set of customers with multi-product, multi-channel strategy

Prime Intermediated: Metro & Tier 1/2 Branches

Emerging Market: Tier 2 & beyond branches

Ecosystem Channel & Green Asset Financing

Direct & Digital Alliances

Collateral: Prime Property (For Sec.), Prime Machinery Cashflow: GST, Banking & Liquid income assessment

Rs 1Cr – 15Cr Customer Turnover

Secured Biz. Loan: Rs 89L Biz. Loan*: Rs 20L Prime Machinery: Rs 46L Average ticket size

Yield: Sec/Biz/Mch: 14%/19%/15% Tenure: Sec/Biz/Mch: 12/3/4 yrs

Channel AUM Mix: 44% Sec/Biz/Mch : 20%/22%/2%

Collateral: Standard Property Collateral: Standard Property Cashflow: Liquid income Cashflow: Liquid income assessment assessment

Collateral: Prime Machinery & Collateral: Prime Machinery receivables Cashflow: GST & Banking Cashflow: GST & Banking

<Rs 3Cr Customer Turnover

Rs 17L Average ticket size

Yield: 19% Tenure: 10 yrs

Rs 1Cr – 10Cr Customer Turnover

Rs 36L Average ticket size

Yield:. 14% Tenure: 4 yrs

Channel AUM Mix: 25%

Channel AUM Mix: 11%

Tech Stack

Collateral: Receivables, FLDG from partner Cashflow: Banking & liquid income assessment

<Rs 50L Customer Turnover

Alliances: Rs 4L Embedded Finance: Rs 1L Average ticket size

P&A/Embedded fin Yield: 15%/ 26% Tenure: 4 yrs/ 1 yr

Channel AUM Mix: 8%/10%

Tech Stack GRO line

*CGTMSE backed

Strategic decision to rundown lower yielding SCF book – not covered here

Slide 34

Sector Focused Approach, Multiple Products and Large Distribution Strength

Light Engineering

Auto Components

Chemicals

Food Processing

Education

Healthcare

Electrical Equipment & Components

Hospitality

Emerging Market

Business Loan

Retailer Finance

Our Product Offering

Business Loan Secured by Property

New Age Products

Machinery Loan

Emerging Market LAP

9 sectors are further subdivided into multiple sub-sectors basis homogeneity of cash flows among MSMEs

Prime Branches

303

EM Branches

700+

GRO Partners

2,150+

Front-end Sales

100+

OEMs

40+

Fintech Partners

4,100+

Total workforce

Slide 35

Net Loan Origination (Q-o-Q) Amount in INR Cr

Disbursement excluding Supply Chain Financing(1) stands at INR 1,826 Cr for Q2’FY26 as against INR 2,069 for Q2’FY24

1,477

1,552

209

167

188

524

304

261

225

180

590

244

-89

1,554

322

227

203

627

264

-184

1,146

156

196

209

524

244

1,971

2,098

-98

277

291

456

623

422

-61

335

233

260

543

412

376

2,436

638

308

287

669

285

299

-50

1,599

582

116

234

360

186

169

-49

1,789

713

109 230

410

199

165

-37

Q2'FY24 Secured Business Loans

Q3'FY24

Q4'FY24

Q1'FY25

Q2'FY25

Q3'FY25

Q4'FY25

Q1'FY26

Business Loans

Emerging Market LAP

Supply Chain Financing

Machinery Loan

Partnerships & Alliances

Q2'FY26 Embedded Finance

Note: Secured Business Loan is secured by property, Business Loan is secured by CGTMSE, Emerging Market LAP is secured by property, SCF is secured by receivables, Machinery Loan is secured by machinery, Partnerships & Alliances are secured by FLDG, Embedded Finance through MyShubhlife (MSL) platform (1) Strategic decision to rundown lower yielding SCF book

Slide 36

Strong AUM Growth Trend (Q-o-Q) Amount in INR Cr

AUM increased to INR 12,226 Cr as of Sep’25 from INR 12,081 Cr as of Jun’25 and INR 10,157 Cr as of Sep’24 (+20%)

20%

10,157

1,184

12%

1,360

355

1,644

13%

16%

11,067 302 1,199

1,454

309

2,073

12,003

743

1,181

1,577

12,081

1,011

1,072

1,651

274

235

193

12,226

1,270

10%

981

1,704

14%

2,596

2,772

2,997

25%

9,047

1,112

1,161

632

1,144

9,218

1,108

1,238

439

1,279

2,914

3,055

3,314

33%

3,336

3,153

2,886

2,643

22%

7,592

849

891

670 871

2,352

8,364

967

1,034

722

1,000

2,639

1,958

2,002

2,084

2,098

2,300

23%

2,393

2,479

2,454

2,438

20%

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Q2FY25

Q3FY25

Q4FY25

Q1FY26

Secured Business Loan

Business Loan

Emerging Market LAP

Supply Chain Financing

(1)

Machinery Loan

Partnerships & Alliances

Embedded Finance

Slide 37

Shareholding, Board, and Management

Slide 38

Institutionally Owned: Majority held by Institutional Investors

Shareholding Pattern as of Sep’25

Fully Diluted Shareholding Pattern(1)

Other Public shareholders, 30.6% 41k+ shareholders

(Investment arm of Denmark govt.)

21.0%

Other Public shareholders, 28.3%

Insurance Cos, 1.5%

FPIs, 3.0%

Corporate, 7.5%

12.9%

Insurance Cos, 1.1%

FPIs, 2.2%

Corporates, 9.0%

(Investment arm of Denmark govt.)

15.5%

9.5%

Promoter & Management, 4.6%

6.0%

12.9%

Promoter and Management, 5.5%

12.6%

6.7%

Management and Founder to potentially own approx. 9 Mn shares on a fully diluted basis; vesting conditions are tenure linked over period of next 3 years, thereby aligning management’s goals towards company’s performance and ultimately shareholder returns

(1) Fully diluted shareholding as on date excluding warrants expiring in December 2025

Slide 39

We are Independently supervised by eminent Board of Directors

Non-Executive Chairman

Satyananda Mishra Chairman, Corporate Social Responsibility Committee Ex-Chairman- MCX, Ex-CIC, GOI, Ex-Director - SIDBI

Independent Directors

S. Karuppasamy Ex-Executive Director, RBI

Karnam Sekar Ex - MD & CEO of Indian Overseas Bank

Hemant Bhargava Ex-Chairman in charge and MD of LIC

Rajeev K. Agarwal Ex-Whole Time Member, SEBI

Tabassum Inamdar Ex Goldman Sachs, UBS Securities, Kotak Securities

Committee Chairman IT Strategy, Compliance & Customer Service

Committee Chairman Risk Management

Committee Chairman Audit

Committee Chairman Nomination & Remuneration, Stakeholder Relationship, Securities allotment and Transfer committee

Nominee / Shareholder Directors

Chetan Gupta (Samena Nominee) Managing Director at Samena Capital

Ramanathan Subramanian Arun Kumar (Proposed ADV Nominee) (1) Partner and COO at ADV

Rohit Goyal (IFU Nominee) VP at IFU

(1) Subject to the approval of the Reserve Bank of India

Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance

Slide 40

With strong corporate governance framework enshrined in the Articles

▪

High degree of regulatory oversight and transparency

An institution created with a long-term view, designed for continued operational efficiency

Access to permanent capital

▪ Any proposed loan >1% of net worth or to a related party to require unanimous approval of ALCO and the Board

▪ Board approved multi-layer credit authority delegation

▪ Removal of key management (including CRO, CFO) to

require 3/4th board approval

▪ Any significant action by the Company to need 3/4th

approval of the Board

▪

Reputed Audit Firm to be appointed as the statutory auditors

Sharp and Tannan appointed as the statutory auditor and Khimji Kunverji & Co appointed as the co-sourced firm for internal audit

▪ Independent directors to comprise majority for

perpetuity

▪ Any shareholder holding >10% to qualify for a board seat

▪ Key committees to be headed by an independent member

with required credentials

▪ The majority of the NRC, ALCO and Audit Committees to

comprise of independent directors

Special Resolution of Shareholders required for effecting any changes to the AoA; Promoters/Management do not have unfettered rights to divert business strategy

Slide 41

Professionally Managed: Leadership team has 180+ years of cumulative experience

Shachindra Nath Founder & Managing Director 26+ Years of Experience

Anuj Pandey Chief Executive Officer 25+ Years of Experience

Sameer Nanda Chief Revenue Officer 24+ Years of Experience

Irem Sayeed Chief Risk Officer 20+ Years of Experience

Shilpa Bhatter Chief Financial Officer 18+ Years of Experience

Rajni Khurana Chief People Officer 24+ Years of Experience

Sunil Lotke Chief Legal & Compliance Officer 21+ Years of Experience

Sharad Agarwal Chief Operating & Technology Officer 25+ Years of Experience

Slide 42

ESG -Driving Inclusive and Responsible Value Creation

Slide 43

•₹642 Cr disbursed to 3,369 green-sector MSMEs

Existing ESG Integration at UGRO Capital

Strategic Alignment • Mission: “Solving the Unsolved” MSM

•

credit gap ESG embedded in lending protocols (i.e. ESG Scorecard, exclusion list) and product design

• Business alignment with 8 UNSDGs

Impact Highlights

•

100% Portfolio assessment via ESG DD for customers

• Business outreach in 5 out of 10 low- income state comprises of ~ 17% of total AUM

• Annual Release of Social Impact Report

Campaigns & Culture

•

• #BharosaMSMEpar movement ESG-led credit as a lever for inclusive growth

UN SDG Alignment @ UGRO Capital

Slide 44

ESG Integration at UGRO Capital (FY25)

Portfolio Emission Calculation (GHG – Cat.15) In FY25, UGRO Capital attempted portfolio emission calculation

42% of borrowers invested in ESG initiatives Including energy efficiency, waste reduction, and clean technology adoption

3,360+ green-sector MSMEs ₹642 Cr disbursed to 3,369 green- sector MSMEs Spanning sectors like renewable energy, sustainable manufacturing, and WASH (Water, Sanitation, and Hygiene)

Financial Inclusion 135,000+ active MSME were supported by the loan provision; out of which 88% reported the increase in revenue through UGRO’s fund

Diversity & Inclusion Operation: 33% of women representation in senior management & Business: 76% women borrowers are owners/co- owners

Health & Welbeing 3x increase from FY23 in healthcare portfolio; Policies aligning with H&S i.e. POSH, Health & Safety Policies

Slide 45

Existing ESG Integration at UGRO Capital

Policies: CG Code, ESG, CSR, Whistleblower, POSH, CoC & Business Ethics, Anti-bribery & Anti- corruption, Equal Opportunity, Internal Audit etc.

Board Committees: RMC, ALCO, IT Strategy Committee, Audit Committee, Compliance Committee, CSR Committee etc.

Reports & Frameworks Annual Reports, Impact Reports, ICAAP & BC & DR frameworks; voluntary disclosure of BRSR & Development of ESMS in alignment with IFC Principles

Robust Grievance Redressal Mechanism for internal & external stakeholders

Slide 46

UGRO Capital Social Impact Report 2024-25

UGRO Capital MSME Social Impact Report 2025

Slide 47

UGRO Capital: Creating a strong social impact since inception

UGRO’s Impact journey from Previous report (1/2)

UN SDG

PARTICULARS

1. Percentage of female borrowers who are owners

2. Percentage of female borrowers who are owner/co-owner

Increase in revenue of borrowers (based on impact survey)

CURRENT (2024-25)

PREVIOUS (2023-24)

76%

88%

72%

94%

AUM of portfolio pertaining to 104 Emerging Market branches (branches located in Tier 3 and beyond geographies)

2,073 Cr

871 Cr

Total number of customers

135,000+

62,928

UGRO Capital MSME Social Impact Report 2025

Slide 48

UGRO’s Impact journey from Previous report (2/2)

UN SDG

PARTICULARS

CURRENT (2024-25)

PREVIOUS (2023-24)

AUM in healthcare industry

430 Cr

374 Cr

AUM in clean water and sanitation industry

268 Cr

151 Cr

AUM in clean energy industry

374 Cr

134 Cr

AUM in education industry

102 Cr

97 Cr

UGRO Capital MSME Social Impact Report 2025

Slide 49

Thank you

www.ugrocapital.com

Slide 50

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