Ujjivan Small Q1 FY27 Results (NSE: UJJIVANSFB)
Signal: Earnings grew
The read
Q1FY27 marks a strong start to the fiscal year: PAT tripled on lower credit costs and robust NII growth, while asset quality (GNPA 2.16%, PCR 84.66%) continued to improve. The quarterly ROA of 0.53% annualises to ~2.1%, already above the FY27 guidance range of 1.8-2.0%, suggesting the bank is on track or ahead of its medium-term targets.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,280.93 Cr | 22.08% | 4.39% |
| EBIT | ₹548.06 Cr | 52.04% | |
| Net profit | ₹316.54 Cr | 206.65% | |
| EPS | ₹1.63 | 207.55% | |
| EBIT margin | 24.03% |
P&L walk
Standalone PAT surged 207% YoY on strong NII growth (+38.8%), operating leverage (opex growth 20% vs revenue 22%), and a 43% drop in provisions.
Segments
Retail banking segment profit surged 376% YoY to ₹41,378 lakh, accounting for 98% of total segment profit, driving the overall improvement; wholesale banking profit remained small while treasury profit declined sharply.
Key positives
- NII grew 38.8% YoY to ₹1,18,735 lakh, driven by 28% growth in interest on advances and stable cost of funds.
- Operating profit before provisions jumped 52% YoY, with margin expanding 473bps to 24.03%.
- Asset quality improved: GNPA ratio 2.16% (vs 2.52% YoY), NNPA ratio 0.34% (vs 0.70% YoY), PCR up to 84.66%.
- Credit cost fell 43% YoY to ₹12,732 lakh, reflecting lower slippages and better recoveries.
- Retail banking segment profit surged 376% YoY, contributing ~98% of total segment profit.
Key concerns
- Other income was flat (+2.8% YoY) and declined 16.5% QoQ, driven by lower treasury gains and PSLC income.
- Cost-to-income ratio at 62.03% remains elevated, though improved from 67.38% a year ago.
- Capital adequacy ratio fell to 20.36% from 22.77% YoY, though still well above regulatory minimum.
- Treasury segment profit plunged 72% YoY to ₹1,656 lakh, indicating lower investment gains.
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