Asset Quality Improvement
Expected: Q4 FY26HIGH confidence
What: GNPA: 2.4%
“As anticipated, slippages and write-offs have moderated to Rs. 221 crores and Rs. 126 crores respectively in Q3.”
Ujjivan Small Finance Bank Ltd: Stock Analysis & Fundamentals
Data from 5w agoUjjivan Small Finance Bank Ltd (Banks - Small Finance) — fundamental analysis, earnings data, and key metrics. PE: 23.7. ROE: 12.4%. This stock is not currently in the Nifty 500 momentum outperformers list.
Ujjivan Small Finance Bank Ltd Key Facts
What's Happening
🌐FII stake decreased 3.6% this quarter
🏛️DII accumulation — stake up 13.6%
Earnings Acceleration Triggers
1. Asset Quality Improvement
Q4 FY26HIGH
2. Value Added Product Mix Shift
OngoingHIGH
3. Interest Cost Reduction Deleveraging
Q3 FY26MEDIUM
Key Risks
1. ₹18 crore one-off impact due to new labor code provisions
MEDIUM2. MFIN guardrails impacting rejection rates in micro-banking
LOW3. Gold price volatility affecting the gold loan portfolio
LOWSector-Specific Signals
Net Interest Margin8.2%
Gross NPA Ratio2.4%
CASA Ratio27%
Provision Coverage Ratio76%
Key Numbers
Current Price
₹60
Market Cap
11.7K Cr
Valuation
N/AWhy Are Ujjivan Small Finance Bank Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Value Added Product Mix Shift
Expected: OngoingHIGH confidence
What: Secured Loan Mix: 48%
“Growth in the secured book continues to stay aligned with our long-term objective of increasing its share in the overall loan book, reaching 48%.”
Interest Cost Reduction Deleveraging
Expected: Q3 FY26MEDIUM confidence
What: Cost of Funds: 7.08%
Impact: 26 bps reduction
“Cost of funds for the quarter was 7.08% down 26 bps Q-o-Q.”
Regulatory Approval Or License Win
Expected: Next 1-2 quartersMEDIUM confidence
What: Universal Bank License: Pending
“it is being actively considered by the Reserve Bank of India and we have to just wait for their decision.”
New Product Or Brand Launch
Expected: Y-o-YLOW confidence
What: Gold Loan Book: ₹557 Cr
Impact: 5-fold growth
“The relatively new gold loans business has scaled up roughly 5-fold Y-o-Y to Rs. 557 crores.”
NIM at 8.2%
HIGH confidence
What: NIM at 8.2%
“On the margin side, net interest margin for the quarter was sequentially higher at 8.2%, supported by lower cost of funds, favorable product mix.”
What Are the Key Risks for Ujjivan Small Finance Bank Ltd?
Earnings deceleration risks from management commentary
₹18 crore one-off impact due to new labor code provisions
MEDIUMTrigger: Implementation of new labor code effective November 25.
Impact: PAT impact: ₹18 Cr pre-tax
Management view: Provisioned in Q3; cost-to-income expected to drop below 65% excluding this.
Monitor: labor
MFIN guardrails impacting rejection rates in micro-banking
LOWTrigger: Implementation of Guardrail 2.0 and lender caps.
Management view: Rejection rates normalizing to 35-36% from peak of 47%.
Monitor: regulatory
Gold price volatility affecting the gold loan portfolio
LOWTrigger: Underlying gold price movement shocks.
Management view: Maintaining LTV below 60% to ensure resilience.
Monitor: commodity
What Is Ujjivan Small Finance Bank Ltd's Management Saying?
Key quotes from recent conference calls
“We have already grown 15.6 % in H1 and are on track to meet the FY '26 guidance of 35% plus secured book growth. [Previous Secured Book Growth guidance]”
“So as we said, we are not changing our guidance on credit cost. It will be in the range of 2.4. [Previous Credit Cost guidance]”
“On our Universal Bank application being considered by the regulator, we continue to remain hopeful. [Initiative: Universal Bank License]”
“We will introduce our mid-corporate offerings in Q4 FY '26 which will expand the product suite. [Initiative: Mid-Corporate Offerings]”
What Did Ujjivan Small Finance Bank Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,000 Cr
YoY +12.8%QoQ +8.5%
Why: The growth was driven by normalization in P&L post the recent stress period and highest ever reported Net Interest Income.
NII reached a record high as the bank emerged from a period of asset quality stress.
EBITDA
₹340 Cr
Margin 34%
Why: Operating profit was impacted by a ₹18 crore one-off provision for the new labor code, though cost-to-income remained flat at 66%.
PPOP was resilient despite one-off labor code expenses of ₹18 crores.
PAT
₹186 Cr
QoQ +52.5%
Why: Profitability improved due to lower credit costs and improved net interest margins of 8.2%.
PAT showed a sharp sequential recovery as credit costs moderated to ₹195 crores.
Other Highlights
• Gross loan book grew 21.6% Y-o-Y to ₹37,057 crores.
• CASA ratio stayed above 27% for two consecutive quarters.
• Bucket X collection efficiency reached 99.7% in December 2025.
What Sector Metrics Matter for Ujjivan Small Finance Bank Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
8.2%
QoQ +30 bps
Why: Supported by lower cost of funds and favorable product mix.
Gross NPA Ratio
2.4%
Why: Slippages moderated to ₹221 crores.
CASA Ratio
27%
Why: Healthy mobilization and focus on quality new-to-bank customers.
Provision Coverage Ratio
76%
QoQ +3%
Why: Reflecting positive signs in provision requirement.
Cost of Funds
7.08%
QoQ -26 bps
Why: Benefit of deposit rate cuts taken in H1 FY26.
Credit to Deposit Ratio
88%
Why: Absorption of excess liquidity.
Gross Slippages
₹221 Cr
QoQ -₹57 Cr
Why: Moderation in the micro-banking segment stress.
CRAR
21.4%
Why: Aligned with planned book growth.
What Is Ujjivan Small Finance Bank Ltd's Management Guidance?
Forward-looking targets from management for Q4 FY26
Revenue Growth Target
7.9%
OPM Guidance
10–12%
Revenue Outlook
7.9% or higher
Margin Outlook
ROE guidance reaffirmed.
Volume
CASA ratio targeted for long-term expansion.
Management Tone: BULLISH
Guidance Changes
LOWERED
Credit Cost: 2.4 → Lower in Q4
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Ujjivan Small Finance Bank Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Ujjivan Small Finance Bank Ltd's latest quarterly results?
Ujjivan Small Finance Bank Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +70.6%
- Revenue Growth YoY: +10.1%
- Net Interest Margin: -3.00%
- Gross NPA: 2.39%
What is Ujjivan Small Finance Bank Ltd's current PE ratio?
Ujjivan Small Finance Bank Ltd's current PE ratio is 23.7x.
- Current PE: 23.7x
- Market Cap: 11.7K Cr
What is Ujjivan Small Finance Bank Ltd's price-to-book ratio?
Ujjivan Small Finance Bank Ltd's price-to-book ratio is 1.9x.
- Price-to-Book (P/B): 1.9x
- Book Value per Share: ₹32
- Current Price: ₹60
Is Ujjivan Small Finance Bank Ltd a fundamentally strong company?
Ujjivan Small Finance Bank Ltd's fundamental strength based on key financial ratios
- Return on Equity (ROE): 12.0%
Is Ujjivan Small Finance Bank Ltd debt free?
Ujjivan Small Finance Bank Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹3,000 Cr
What is Ujjivan Small Finance Bank Ltd's return on equity (ROE) and ROCE?
Ujjivan Small Finance Bank Ltd's return ratios over recent years
- FY2023: ROE 33.0%
- FY2024: ROE 27.0%
- FY2025: ROE 12.0%
Is Ujjivan Small Finance Bank Ltd's cash flow positive?
Ujjivan Small Finance Bank Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹2,000 Cr
- Free Cash Flow (FCF): ₹235 Cr
- CFO/PAT Ratio: 279% (strong cash conversion)
What is Ujjivan Small Finance Bank Ltd's dividend yield?
Ujjivan Small Finance Bank Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹60
Who holds Ujjivan Small Finance Bank Ltd shares — promoters, FII, DII?
Ujjivan Small Finance Bank Ltd's shareholding pattern (Dec 2025)
- Promoters: 0.0%
- FII (Foreign): 15.4%
- DII (Domestic): 28.7%
- Public: 55.9%
Is promoter holding increasing or decreasing in Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 0.0% (Dec 2025)
- Previous Quarter: 0.0% (Sep 2025)
- Change: 0.00% (stable)
Is Ujjivan Small Finance Bank Ltd a new momentum entry or an established outperformer?
Ujjivan Small Finance Bank Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd has 6 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — Slippages and write-offs have moderated significantly.
- Value Added Product Mix Shift — Housing and Micro Mortgages grew 49.6% Y-o-Y.
- Interest Cost Reduction Deleveraging — Benefit of deposit rate cuts taken in H1.
- Regulatory Approval Or License Win — Application is with RBI for 12 months.
What are the key risks in Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd has 3 key risks worth monitoring
- [MEDIUM] ₹18 crore one-off impact due to new labor code provisions — Implementation of new labor code effective November 25.
- [LOW] MFIN guardrails impacting rejection rates in micro-banking — Implementation of Guardrail 2.0 and lender caps.
- [LOW] Gold price volatility affecting the gold loan portfolio — Underlying gold price movement shocks.
What did Ujjivan Small Finance Bank Ltd's management say in the latest earnings call?
In Q3 FY26, Ujjivan Small Finance Bank Ltd's management highlighted
- "We have already grown 15.6 % in H1 and are on track to meet the FY '26 guidance of 35% plus secured book growth. [Previous Secured Book Growth guidan..."
- "So as we said, we are not changing our guidance on credit cost. It will be in the range of 2.4. [Previous Credit Cost guidance]"
- "On our Universal Bank application being considered by the regulator, we continue to remain hopeful. [Initiative: Universal Bank License]"
What is Ujjivan Small Finance Bank Ltd's management guidance for growth?
Ujjivan Small Finance Bank Ltd's management has provided the following forward guidance for Q4 FY26
- Revenue growth target: 7.9%
- OPM guidance: 10–12%
- Management tone: bullish
- Milestone: [LOWERED] Credit Cost: 2.4 → Lower in Q4
What sector-specific metrics matter most for Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin: 8.2% (QoQ +30 bps) — Supported by lower cost of funds and favorable product mix.
- Gross NPA Ratio: 2.4% — Slippages moderated to ₹221 crores.
- CASA Ratio: 27% — Healthy mobilization and focus on quality new-to-bank customers.
- Provision Coverage Ratio: 76% (QoQ +3%) — Reflecting positive signs in provision requirement.
- Cost of Funds: 7.08% (QoQ -26 bps) — Benefit of deposit rate cuts taken in H1 FY26.
- Credit to Deposit Ratio: 88% — Absorption of excess liquidity.
Is Ujjivan Small Finance Bank Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Ujjivan Small Finance Bank Ltd may be worth studying
- Cash flow is positive — CFO ₹2,000 Cr
What is the investment thesis for Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: ₹18 crore one-off impact due to new labor code provisions
What is the future outlook for Ujjivan Small Finance Bank Ltd?
Ujjivan Small Finance Bank Ltd's forward outlook based on current data signals
- Key Catalyst: Asset Quality Improvement
- Key Risk: ₹18 crore one-off impact due to new labor code provisions
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.