Utkarsh Small F. Q2 FY27 Results (NSE: UTKARSHBNK)
Signal: Loss narrowed
The read
The recovery remains incomplete: total income grew 6.9% YoY and pre-provision operating profit turned positive at ₹8,524.39 lakh, but the bank still reported a ₹6,985.22 lakh loss because provisions were ₹16,588.85 lakh; the key positive is GNPA falling to 5.96% from 12.42%, while the key near-term concern is that the loss widened from ₹3,391.97 lakh in Q1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,002.28 Cr | +6.9% | -0.01% |
| EBIT | ₹85.24 Cr | +2,665% | |
| Net profit | ₹-69.85 Cr | +80.0% | |
| EPS | ₹-0.39 | +87.7% | |
| EBIT margin | 0% |
P&L walk
Standalone total income was broadly flat QoQ at ₹1,00,228.06 lakh and rose 6.9% YoY; lower provisions and a ₹2,561.47 lakh leave-liability reversal improved the loss, but provisions of ₹16,588.85 lakh still exceeded operating profit of ₹8,524.39 lakh.
Segments
Retail remained the main drag with a ₹4,385.83 lakh loss despite ₹77,445.00 lakh of revenue, while Treasury lost ₹4,967.49 lakh; Wholesale was the only profitable segment at ₹1,288.86 lakh, and retail assets rose 10.7% YoY to ₹16,34,025.61 lakh.
Key positives
- Gross NPA improved to 5.96% from 12.42% YoY and net NPA to 2.74% from 5.02%, indicating a substantial asset-quality repair.
- Net interest income rose 24.2% YoY to ₹43,530.63 lakh as interest earned grew 8.2% and interest expended fell 3.2%.
- Operating profit before provisions turned positive at ₹8,524.39 lakh from a ₹332.40 lakh loss YoY, while operating expenses declined 1.8% YoY to ₹44,308.68 lakh.
- Capital adequacy remained solid at 17.05%, despite declining 16bps YoY.
Key concerns
- Retail generated a ₹4,385.83 lakh loss and Treasury generated a ₹4,967.49 lakh loss, leaving Wholesale's ₹1,288.86 lakh profit insufficient to offset them.
- The bank remained loss-making at ₹6,985.22 lakh in Q2FY27 and the loss widened 106.0% sequentially from ₹3,391.97 lakh.
- H1 operating cash flow was negative ₹10,739.14 lakh despite advances rising 6.8% from March 31, 2026.
- The improvement was partly supported by a ₹2,561.47 lakh reversal of accumulated leave-liability provision and a ₹2,921.00 lakh reduction in quarterly NPA provisions from the CGFMU reassessment.
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