Ujjivan Small Q2 FY27 Results (NSE: UJJIVANSFB)
Signal: Earnings grew
The read
The trajectory remains a retail-led credit-cost recovery: total income grew 26.3% YoY, operating profit grew 50.2% and PAT grew 199.9% as provisions fell 56.2%; asset quality also improved, with GNPA at 2.10% versus 2.45% YoY and NNPA at 0.31% versus 0.67%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,448.94 Cr | +26.3% | +7.4% |
| EBIT | ₹593.69 Cr | +50.2% | |
| Net profit | ₹365.05 Cr | +199.9% | |
| EPS | ₹1.87 | +196.8% | |
| EBIT margin | 0% |
P&L walk
Total income rose to ₹2,44,894 lakh, +26.3% YoY and +7.4% QoQ, while operating profit increased to ₹59,369 lakh, +50.2% YoY, helped by operating-expense intensity falling to 38.8% from 40.3%; PAT rose to ₹36,505 lakh, +199.9%, as provisions fell 56.2% YoY.
Segments
Retail banking is the clear driver: revenue rose to ₹2,12,621 lakh, +28.7% YoY, and segment result increased to ₹48,100 lakh from ₹9,132 lakh, while wholesale banking result fell to ₹215 lakh from ₹4,984 lakh and treasury result declined to ₹2,182 lakh from ₹3,230 lakh.
Key positives
- Retail banking segment result rose to ₹48,100 lakh from ₹9,132 lakh YoY, contributing the bulk of the ₹49,072 lakh profit before tax.
- Deposits grew 29.1% YoY to ₹50,64,301 lakh and advances grew 32.4% to ₹44,75,326 lakh, supporting continued balance-sheet expansion.
- Operating profit increased 50.2% YoY to ₹59,369 lakh while operating expenses rose 21.4%, reducing operating-expense intensity to 38.8% from 40.3%.
- Gross NPA improved to 2.10% from 2.45% YoY and net NPA improved to 0.31% from 0.67%; provision coverage stood at 85.31%.
Key concerns
- Wholesale banking segment result declined to ₹215 lakh from ₹4,984 lakh YoY, leaving the earnings recovery increasingly dependent on retail banking and lower provisions.
- Interest expended rose 18.9% YoY to ₹90,495 lakh, while the bank's cost of deposits and funding is not separately disclosed in this filing.
- The bank recorded ₹36,505 lakh PAT in Q2FY27, but provisions of ₹10,297 lakh remain materially below the ₹23,496 lakh year-ago level, making credit-cost normalization important to sustaining earnings growth.
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