Utkarsh Small Finance Bank reported a net loss of ₹3,391.97 lakh for the quarter ended June 30, 2026 (Q1FY26), a significant improvement from the net loss of ₹23,948.05 lakh recorded in the corresponding quarter of the previous year. The narrowing loss was primarily driven by a reassessment of provisions for non-performing advances covered under the Credit Guarantee Fund for Micro Units (CGFMU), which reduced the provision requirement by ₹7,661.85 lakh. Gross Non-Performing Assets (NPA) declined to 6.09% from 11.42% year-on-year, reflecting active management of stressed assets through transfers to Asset Reconstruction Companies (ARCs).

The Board of Directors approved the unaudited financial results on August 01, 2026. The results were subjected to a limited review by the Joint Statutory Auditors, M M Nissim & Co LLP and KKC & Associates LLP, who issued an unmodified conclusion. The disclosure was made pursuant to Regulations 30, 33, and 51 of the SEBI Listing Regulations.

Financial Performance

Total income for the quarter stood at ₹1,00,237.22 lakh, down slightly from ₹1,01,865.14 lakh in Q1FY25. Interest earned rose marginally to ₹88,356.30 lakh from ₹88,090.63 lakh, while other income decreased to ₹11,880.92 lakh from ₹13,774.51 lakh. Operating profit before provisions and contingencies improved to ₹6,356.74 lakh from ₹9,164.22 lakh in the prior year quarter, though this was impacted by higher provisions relative to the previous year's baseline before the guarantee adjustment.

The lower provision charge of ₹10,898.21 lakh, compared to ₹41,051.17 lakh in Q1FY25, was primarily due to the CGFMU guarantee cover adjustment. The bank also transferred 2,14,727 stressed loan accounts with an aggregate principal outstanding of ₹72,681.81 lakh to ARCs during the quarter. It received Security Receipts (SRs) worth ₹7,166.30 lakh as part of the consideration.

Asset Quality and Capital Adequacy

Gross NPA ratio improved to 6.09% from 7.71% in the previous quarter and 11.42% in Q1FY25. Net NPA ratio declined to 2.86% from 3.29% in Q4FY25 and 5.00% in Q1FY25. The Capital Adequacy Ratio (CAR) stood at 17.44%, down from 17.71% in the preceding quarter but well above regulatory requirements.

Corporate Developments

The bank is progressing with the amalgamation of Utkarsh CoreInvest Limited (UCL). The National Company Law Tribunal (NCLT) has fixed the next hearing on August 06, 2026, pending a reply from the Income Tax authority. Additionally, the Board approved the redemption of ₹19,500 lakh worth of Lower Tier II Bonds on August 13, 2026, exercising its call option at par.

What the Numbers Show

The significant reduction in net loss is largely attributable to non-operational factors, specifically the reassessment of guarantees under CGFMU rather than pure operational efficiency. While operating profit before provisions declined, the drastic cut in provisions highlights the impact of external guarantee mechanisms on the bottom line. The aggressive transfer of stressed assets to ARCs has cleaned up the balance sheet, resulting in a sharp decline in NPA ratios, though investors should monitor the recovery ratings of the Security Receipts received, many of which remain unrated.

Utkarsh Small Finance Bank will host its earnings conference call on August 3, 2026, at 16:00 IST to discuss the unaudited financial results for the quarter ended June 30, 2026. The Bank's Board of Directors approved these results during a meeting held on August 1, 2026. This disclosure ensures investors have timely access to management commentary on the Q1FY27 performance, maintaining transparency ahead of the trading window reopening.

The Board meeting was convened pursuant to Regulation 29 and Regulation 50 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Following the approval of the financial results, the trading window for insiders, which had been closed since June 25, 2026, will reopen on August 4, 2026. This reopening occurs 48 hours after the declaration of the financial results, as per regulatory requirements.

The earnings call will be conducted under the framework of Regulation 30 of the SEBI LODR Regulations, 2015. Management intends to provide insights into the Bank's operational performance and financial health for the quarter. The event offers analysts and shareholders a direct channel to query leadership regarding strategic initiatives and financial outcomes.

Management Participation

Senior executives from Utkarsh Small Finance Bank will participate in the conference call to address investor queries. The participating management team includes:

• Govind Singh, Managing Director and CEO
• Sarjukumar Pravin Simaria, Executive Director
• Amit Acharya, Chief Risk Officer
• Virender Sharma, Head Micro Banking
• Sourabh Ghosh, Head Consumer Banking
• Abhay Kataria, Head Assets

ICICI Securities is coordinating the conference call logistics. Participants can join via universal access numbers or international toll-free lines provided for Hong Kong, Singapore, the UK, and the USA. Detailed dial-in instructions and registration links are available through the call coordinator.

Key Dates and Contact Information

The following table outlines the key dates associated with the Q1FY27 earnings cycle:

For further clarifications regarding the conference call, investors may contact the designated coordinators at ICICI Securities, including Jaideep Goswami, Renish Bhuvra, and Chintan Shah. While specific financial metrics such as net profit or revenue figures are not disclosed in this pre-call intimation, the scheduling of the earnings call signals the completion of the quarterly reporting cycle for Q1FY27.