Ujjivan Small Finance Bank has published its unaudited financial results for the quarter ended June 30, 2026, marking the completion of its first-quarter reporting obligations for FY27. The disclosure ensures transparency for investors and stakeholders regarding the bank’s operational performance during the period.

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors during their respective meetings held on July 23, 2026. This procedural step confirms that the financial statements have undergone internal scrutiny before public release.

Regulatory Compliance

The publication of these results is in accordance with Regulation 33 read with Regulation 47(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Compliance with these regulations mandates timely disclosure of quarterly financial performance to maintain market integrity.

Publication Details

The unaudited financial results were published in all editions of "Financial Express" (English) and "Hosadigantha" (Kannada) on July 24, 2026. This dual-language publication aims to reach a broader audience of investors across different regions.

Accessing the Results

Investors and analysts can access the full format of the financial results through multiple channels. The documents are available on the websites of the National Stock Exchange of India Limited and BSE Limited. Additionally, the bank has hosted the detailed results on its official website under the Investor Relations section.

Sanjeev Nautiyal, Managing Director and CEO, signed off on the intimation on behalf of the Board of Directors. Sanjeev Barnwal, Company Secretary & Head of Regulatory Framework, facilitated the communication with the stock exchanges.

Ujjivan Small Finance Bank reported a net profit of ₹317 crore for the quarter ended June 30, 2026, marking a 207% year-on-year increase from ₹103 crore in the corresponding period of the previous fiscal. This robust performance was primarily driven by a record-high Net Interest Income (NII) of ₹1,186 crore, which surged 38.6% YoY, alongside significant improvements in asset quality and operational efficiency. The bank's Board approved the unaudited financial results on July 23, 2026, and subsequently disclosed the audio recording of the earnings conference call held on the same date, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following the strong quarterly print, global brokerage HSBC maintained its Buy rating on the stock while raising its target price to ₹83, citing the earnings beat, an upgraded Return on Assets (RoA) guidance, and increased FY27–29 EPS estimates on the back of a lower expected credit cost trajectory.

The strong bottom-line growth reflects a broader turnaround in profitability metrics. Pre-provision operating profit (PPOP) improved by 52% YoY to ₹548 crore, up from ₹360 crore in Q1FY26. Total income for the quarter stood at ₹2,282 crore, while total costs grew at a slower pace of 15% YoY to ₹1,734 crore. This divergence allowed the Cost to Income ratio to improve by 497 basis points to 62.0%. On a sequential basis, net profit grew 12% from ₹282 crore in Q4FY26, indicating sustained momentum into the new fiscal year.

Key Financial Metrics

The following table summarises the bank's key financial performance indicators for the quarter:

Asset Quality and Capital Adequacy

Asset quality parameters showed further stabilization during the quarter. Gross Non-Performing Assets (NPAs) declined to 2.17% of gross advances, down from 2.27% in the prior quarter. Net NPAs also improved to 0.34% from 0.43% in Q4FY26. The provision coverage ratio strengthened to 85% as of June 30, 2026, compared to 81% in March 2026. The bank maintained a robust Capital Adequacy Ratio (CRAR) of 20.36%, well above regulatory requirements, supported by a strong liquidity position with an Average Liquidity Coverage Ratio (LCR) of 132% for Q1FY27.

Business Growth and Segments

The bank's gross loan book expanded by 28.9% YoY to reach ₹42,903 crore, while total assets grew to ₹60,658 crore. A notable shift in portfolio composition was observed as the secured loan portfolio grew 42.7% YoY to ₹21,638 crore, now constituting 50.4% of the gross loan book. Newer business lines, including Gold and Vehicle loans, crossed the ₹1,000 crore milestone, standing at ₹1,020 crore and ₹1,036 crore respectively. Disbursements for the quarter hit a record high of ₹9,245 crore, up 41.4% YoY.

On the liabilities side, deposits grew 24.6% YoY to ₹48,129 crore. The Current Account Savings Account (CASA) book increased significantly by 37.8% YoY to ₹12,930 crore, contributing to a reduction in the Cost of Funds to 6.9%, a decrease of 71 basis points YoY. The Retail Banking segment remained the primary revenue driver, contributing ₹1,980 crore to total income, while Treasury and Wholesale Banking contributed ₹237 crore and ₹63 crore respectively. The branch count increased to 814 as of June 2026.

Analyst View and Guidance

HSBC's decision to raise its target price to ₹83 while maintaining a Buy rating underscores growing institutional confidence in the bank's earnings trajectory. The brokerage's upward revision of FY27–29 EPS estimates is anchored in a lower expected credit cost outlook, which aligns with management's own guidance revision. The upward revision of FY27 RoA guidance to 1.8%–2.0% and credit cost guidance to 0.9%–1.0% of average total assets signals management's confidence in sustained margin expansion and asset quality stability. The simultaneous growth in secured lending and CASA deposits reflects a strategic shift towards lower-risk, lower-cost funding structures, which has supported the improved Net Interest Margin (NIM) of 8.5%, up 80 basis points YoY.