Utkarsh Small Finance Bank Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Utkarsh Small Finance Bank Ltd trades at ₹15.0, in a downtrend and 105 weeks into that stage. That is −2.5% against its own 200-day average. It sits at 37% of a 52-week range of ₹11 to ₹22. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a downtrend — week 105 of stage 4, confirmed. At ₹15.0 it trades −2.5% versus its 200-day average and sits at 37% of its 52-week range (₹11–₹22).

Against the market, two honest reads. Cumulative: over the last 3.0 years the stock moved −63% while the NIFTY 500 moved +37% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/BV sits at the 16th percentile of its own range.

Valuation For a bank we price the book, not the earnings: P/BV is what the market pays for each ₹1 of the bank's net worth. A bank below 1× book is priced below the value of what it owns, net of what it owes.

Utkarsh Small Finance Bank Ltd trades at 0.9× P/BV, near the bottom of its own range — cheaper only 16% of the time. Its long-run median P/BV is 1.3×, measured across 2.7 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/BV of 0.9× is near the bottom of its own range — cheaper only 16% of the time, against a long-run median of 1.3× measured over 2.7 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

The honest context for that discount: a bank earning about −40% on its equity is worth less per rupee of book, and the market has priced that in rather than overlooked it. The discount closes only if the returns themselves improve.

🚨 Why the multiple sits where it does: over the past year book value grew while the price moved −23.5% — price and book moved together, holding the multiple in its range.

Put together: the multiple is low against its own past, so the story rests on the book-value line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Deteriorating Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Utkarsh Small Finance Bank Ltd reads as deteriorating on its fundamental arc. Deteriorating — revenue, profit and EPS growth are shrinking (revenue growth −10.3% latest against +158.6% at its 12-quarter best), ROE slipping at -41.4%. The read is built from 12 quarters across 4 curves, on full evidence.

🚨 Why it matters: falling curves mean every cheap-looking ratio below needs a discount for direction.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

21.3/100 — rank 9 of 9 in Banks - Small Finance · 84% evidence confidence

Utkarsh Small Finance Bank Ltd scores 21.3 out of 100 against the 9 companies it is compared with in Banks - Small Finance, ranking 9. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 6.2 + 0.4 + 9.2 + 5.5 = 21.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if ROA rolls over or gross NPA rises while sector-relative strength deteriorates.

Revenue For a bank, revenue is everything the franchise earns — interest on the loan book plus fee and other income.

Utkarsh Small Finance Bank Ltd reported ₹837 Cr of income in the Mar 26 quarter, −4.9% year on year. Over 8 years it has compounded at 26.4% a year. The last full year, FY26, came in at ₹3,379 Cr. The last four reported quarters add to ₹3,379 Cr.

Utkarsh Small Finance Bank Ltd reported ₹837 Cr of income in the Mar 26 quarter, −4.9% year on year. Over 8 years it has compounded at 26.4% a year. The last full year, FY26, came in at ₹3,379 Cr. The last four reported quarters add to ₹3,379 Cr.

FY26 revenue came in at ₹3,379 Cr (−10.3% on the year), capping 8 years at 26.4% compound. The latest quarter (Mar 26) printed ₹837 Cr, −4.9% year on year.

Pace check: the last four quarters averaged −10.1% growth against the decade's 26.4% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −10.3% over the last 4 quarters against +3.1%/yr over the last 8 — rolling over.

→ Revenue slipped — did the net margin hold as it scaled? Next: −22.5% this quarter (−22.8 pp YoY).

Net margin Net margin — what the bank keeps of every ₹100 of revenue after every cost, provision and tax. It is the cleanest single margin we can read for a lender.

Utkarsh Small Finance Bank Ltd's net margin is −22.5% in the Mar 26 quarter, −22.8 percentage points against the same quarter a year ago. Across 9 fiscal years the net margin has ranged −34.1% to 16.1%. The current quarter sits inside that band.

Utkarsh Small Finance Bank Ltd's net margin is −22.5% in the Mar 26 quarter, −22.8 percentage points against the same quarter a year ago. Across 9 fiscal years the net margin has ranged −34.1% to 16.1%. The current quarter sits inside that band.

The latest quarter's net margin is −22.5%, −22.8 pp against the same quarter a year ago. Across 9 fiscal years the net margin has ranged −34.1%–16.1%.

Why: the numbers show the net margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

→ The net margin slipped — did that reach the bottom line? Next: profit −6,366.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Utkarsh Small Finance Bank Ltd posted a net loss of ₹188 Cr in the Mar 26 quarter. The full FY26 year was a loss of ₹1,151 Cr. That loss is 22.5% of the quarter's revenue. The same quarter a year earlier earned ₹3.0 Cr. 5 of the last 12 reported quarters were loss-making.

Utkarsh Small Finance Bank Ltd posted a net loss of ₹188 Cr in the Mar 26 quarter. The full FY26 year was a loss of ₹1,151 Cr. That loss is 22.5% of the quarter's revenue. The same quarter a year earlier earned ₹3.0 Cr. 5 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹−188 Cr, −6,366.7% year on year. On the full year, FY26 printed ₹−1,151 Cr (−4,895.8%).

🚨 Why profit moved: revenue contributed −4.9% and the margin −22.8 pp — the quarter was revenue-led despite a thinner margin.

Pace comparison, last four quarters: profit −2,474.5% vs revenue −10.1%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit is up — how clean is the loan book behind it? Next: gross NPA is 7.71%, 2 quarters better in a row.

Asset quality — the ladder Gross NPA is the slice of the loan book where repayments have stopped. Net NPA is what remains after the money already set aside against those loans. Falling is healing; rising is damage arriving.

Utkarsh Small Finance Bank Ltd's gross NPA is 7.71% of the loan book in Mar 26, down from 9.43% a year ago. Net of provisions already set aside, 3.29% remains. That is the 2nd straight quarter of improvement. Across the 12 quarters held here the book has ranged 2.51% to 12.42%.

Mar 26: gross NPA at 7.71% and net NPA at 3.29%, against 9.43% / 4.84% a year ago. Over the 12 quarters we hold, the book's worst reading was 12.42% and its best is 2.51%. The ladder has now improved for 2 consecutive quarters.

The synthesis: profit growth at a bank is only as good as the book behind it, and this book is healing on a multi-quarter streak. A note on depth: quarterly provisioning detail is not in our numbers yet, so this ladder reads levels and trend, not the cost of the cleanup.

Why the ladder moved: recoveries, write-offs and slippages each play a part, and that split sits below what we hold — the numbers show the healing; the driver mix does not travel with them.

→ Behind a cleaner book — is the book itself still growing? Next: revenue grew −10.3% in FY26.

The loan book We read the loan book through revenue — when the book grows, revenue grows with it. It is a rough proxy, and we say so: rate moves and fee swings can shift it a few points in any one year.

Utkarsh Small Finance Bank Ltd's revenue grew −10.3% in FY26 to ₹3,379 Cr, so the book is flat. The latest quarter ran −4.9% year on year. The net margin on that income is −22.5%, −22.8 percentage points against a year ago.

FY26 revenue was ₹3,379 Cr, −10.3% on the year, and the latest quarter ran −4.9% year on year. The net margin on that revenue is −22.5% this quarter (−22.8 pp YoY) — growth with a narrowing margin on it.

The synthesis: a lender compounds when the book grows while the margin holds and the loan book stays clean — gross NPA is the loan-quality read we carry here.

→ Does all of this actually earn its keep on equity? Next: ROE is −40%.

Returns on equity and assets Two numbers rate a bank: ROE — what it earns on shareholder money — and ROA — what it earns on everything it deploys. ROE above ~13–15% earns its keep; below that, growth builds book slowly.

Utkarsh Small Finance Bank Ltd earns a return on equity of −40% in FY26. Its trough over the ladder below was −40% in FY26. On the asset side every ₹100 of the balance sheet earned about ₹−4.04, which is the return before leverage is applied.

FY26 ROE came in at −40%. On assets, the latest reading is about −4.04% — every ₹100 the bank deploys earns roughly ₹−4.04 a year. That return is below the bar a bank must clear to compound book value quickly — which is also the honest reason the stock trades where it does.

Why: the ROE ladder shows the move; the deposit-cost and provisioning drivers behind it sit below what we hold.

→ Who owns this bank, and are they adding or leaving? Next: Promoters cut 26.3 points over 8 quarters.

Debt

For a bank, borrowings are raw material, not a warning sign — solvency is read through the returns and the loan book. A manufacturer’s debt is a claim against its profits, so the debt-to-equity lens that works everywhere else misleads on a lender and is not applied here.

A manufacturer’s debt is a claim against its profits; a bank’s borrowings are its inventory — money taken in to be lent out. The debt lens that works everywhere else misleads here, so this page does not apply it. The solvency questions for a bank — is the loan book sound, is the equity earning — are read through the loan-book and returns sections above.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 26.3 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 26.3 points of Utkarsh Small Finance Bank Ltd over 8 quarters, the biggest move on the register. That takes promoters to 42.7% of the company. Foreign institutions moved +11.0 points over the same window, to 11.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −26.3 points over 8 quarters to 42.7%; Foreign institutions: +11.0 points over 8 quarters to 11.9%; Domestic institutions: −1.1 points over 8 quarters to 9.5%.

🚨 Why the register moved: promoters drove it (−26.3 points), absorbed on the other side by foreign institutions (+11.0 points) — distribution into the market’s bid.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Utkarsh Small Finance Bank Ltd: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre. The Z-score was built for manufacturers and is not applied to banks and lenders, so solvency here is read from the capital and asset-quality lines instead.

The safety line in one sentence: the Z-score is omitted — it was built for manufacturers, not banks, and applying it here would be theatre.

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