Ujjivan Small Finance Bank Ltd reported Q2 FY27 numbers with revenue of Rs. 2,448.94 Cr (+26.32% YoY) and PAT growth of +199.91% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 16, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,448.94 Cr (+26.32% YoY) |
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| PAT (Q2) | Rs. 365.05 Cr (+199.91% YoY) |
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| EBITDA margin | 24.20% (+380 bps YoY) |
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| EPS (Q2) | Rs. 1.87 (+196.80% YoY) |
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| Market cap | Rs. 12,579.05 Cr |
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| CMP | Rs. 64.41 |
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Quarter Snapshot
Ujjivan SFB delivered record Q2 PAT of Rs.365.05 Cr, up 199.9% YoY, on NII growth of 35.5% and a 56% YoY decline in provisions, while GNPA fell to 2.10% and NNPA to 0.31%. The bank met or exceeded its own FY27 guidance on advances growth (32.1% vs ~25%), annualised RoA (2.36% vs 1.8–2.0%), and credit cost (0.67% vs 0.9–1.0%), with cost-to-income improving 158 bps to 38.80%. Watch items are the wholesale banking segment result down 95.7% YoY, the treasury result down 32.5% YoY, and H2 credit-cost normalisation from an exceptionally low H1.
Key Investment Insights
Key Positives
- PAT of Rs.365.05 Cr grew 199.9% YoY and 15.3% QoQ; H1FY27 PAT of Rs.681.59 Cr is already 98% of FY26 full-year PAT of Rs.692.63 Cr
- NII grew 35.5% YoY to Rs.1,248.41 Cr as interest earned growth (28.0%) outpaced interest expended growth (19.0%)
- PPOP grew 50.2% YoY to Rs.593.69 Cr; cost-to-income improved 158 bps YoY to 38.80%
- GNPA fell to 2.10% (−35 bps YoY, −7 bps QoQ) and NNPA to 0.31% (−36 bps YoY), the best levels in the series
- Advances grew 32.4% YoY to Rs.44,753 Cr and deposits 29.2% YoY to Rs.50,643 Cr; gross loan book growth of 32.1% YoY is ahead of the ~25% FY27 guidance
- Annualised RoA of 2.36% exceeded the 1.8–2.0% guidance; credit cost of 0.67% annualised came in below the 0.9–1.0% guidance
- Retail banking segment result rose to Rs.481.00 Cr from Rs.91.32 Cr YoY on 28.7% revenue growth
- H1FY27 operating cash flow of Rs.1,040.12 Cr was 1.53× PAT
Risk Factors
- Wholesale banking segment result fell 95.7% YoY to Rs.2.15 Cr despite 32.8% revenue growth
- Treasury segment result declined 32.5% YoY to Rs.21.82 Cr
- CASA ratio stood at 26.8% in Q1FY27, below the ~30% target
- Secured loan share at 52.0% versus the 56% March 2027 target requires about a 2% shift per quarter in H2 versus roughly 1% achieved in the prior quarter
- H1 credit cost of 0.67% annualised ran below the 0.9–1.0% full-year guidance, with some normalisation expected in H2
- Post-quarter repo-rate hike to 5.50% (October 7, 2026) adds a funding-cost headwind for H2