Ujjivan Small Finance Bank Ltd (UJJIVANSFB)
🎯 Key Takeaways
- Ujjivan Small Finance Bank is transitioning from a high-growth phase into a capital-light expansion stage, with management actively pursuing scale through regulated fund raises and strategic reinvestment. The bank has moved beyond early-stage profitability to consistent operational efficiency, supported by strong ROCE and improving margins.
- Revenue grew 7.8% QoQ to ₹2,025 in Q1FY27.
- ⚠️ 1) The bank’s leverage ratio has risen to 0.56 D/E from 0.52 in the prior period, warranting monitoring of debt cost and asset-liability sensitivity i
📖 The Story
Ujjivan Small Finance Bank is transitioning from a high-growth phase into a capital-light expansion stage, with management actively pursuing scale through regulated fund raises and strategic reinvestment. The bank has moved beyond early-stage profitability to consistent operational efficiency, supported by strong ROCE and improving margins. Governance actions at the AGM signal institutionalization and long-term capital planning, including a ₹2,000 crore fundraise authorization.
📰 What's Happening
Management has prioritized capital augmentation and governance updates in recent quarters, approving a ₹2,000 crore fundraise authorization at the 10th AGM on July 24, 2026, to be executed via qualified placements or other modes. Additionally, on August 17, 2026, the bank granted 452,500 stock options under its ESOP Scheme 2019 at a Rs. 61.46 exercise price, reflecting ongoing efforts to align employee incentives with shareholder value. An investor meeting is scheduled for September 3, 2026, in Mumbai, where management will engage with Elara India on strategic developments and performance trends.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 1,682 | 1,752 | 1,878 | 2,025 |
| Operating Profit | 395 | 440 | 515 | 548 |
| OPM % | 20.4% | 21.5% | 23.6% | 24.0% |
| Net Profit | 122 | 186 | 282 | 317 |
| EPS | ₹0.63 | ₹0.96 | ₹1.45 | ₹1.63 |
The bank has demonstrated consistent top-line growth and margin expansion over the past four quarters, with revenue rising from ₹1,682 crore to ₹2,025 crore and operating profit margin improving from 20.4% to 24.0%. Net profit and EPS have grown steadily, indicating operational scalability. This trajectory aligns with management’s focus on regulated expansion and efficient asset deployment, supported by rising operating cash flows and a strengthening balance sheet.
🔮 Management Outlook & What's Next
At the 10th AGM on July 24, 2026, management indicated plans to raise up to ₹2,000 crores through qualified placements or other instruments to support growth, while reappointing Sanjeev Nautiyal as MD & CEO and amending the ESOP framework to enhance long-term incentive alignment. No specific revenue or profitability targets were disclosed, but the fundraise authorization underscores a strategic shift toward capitalizing on scalable opportunities in the small finance segment.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 1,934 | 1,935 | 1,937 | 1,943 |
| Reserves | 3,866 | 4,059 | 4,293 | 4,776 |
| Borrowings | 2,622 | 2,845 | 2,962 | 3,736 |
| Total Liabilities | 43,619 | 47,689 | 49,614 | 57,541 |
| Fixed Assets | 480 | 457 | 490 | 457 |
| Investments | 10,592 | 11,730 | 11,603 | 12,724 |
| Total Assets | 43,619 | 47,689 | 49,614 | 57,541 |
The balance sheet shows a steady increase in total assets from ₹47,689 crore (March 2025) to ₹57,541 crore (March 2026), driven by asset growth and rising reserves. Equity remains stable around ₹1,940 crore, while borrowings have increased from ₹2,845 crore to ₹3,736 crore, indicating higher leverage to fund asset expansion. Reserves have grown from ₹4,059 crore to ₹4,776 crore, reflecting retained earnings and capitalization of profits, supporting a prudent capital structure amid regulated growth.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +1,843 |
| Investing | -2,481 |
| Financing | +911 |
| Net Cash Flow | +274 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 0.0% | 0.0% | 0.0% | 0.0% |
| FII | 17.0% | 15.4% | 17.2% | 16.8% |
| DII | 20.1% | 28.7% | 31.1% | 33.5% |
| Public | 48.4% | 42.8% | 39.3% | 37.8% |
| # Shareholders | 9,37,143 | 8,40,960 | 7,87,997 | 7,67,649 |
Institutional investor interest has remained relatively stable, with FII holdings holding near 17% in recent quarters, while DII ownership has fluctuated between 20% and 33%. The number of public shareholders has increased from 7.88 lakh to 8.41 lakh over four quarters, indicating retail democratization. Promoter holding remains at 0%, consistent with the bank’s transition to a public entity post-demerged promoter structure. The growing shareholder base reflects broadening investor acceptance.
⚖️ Peer Comparison — Banks
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| HDFCBANK | 10.97 L Cr | 13.9 | 25.0% | 14.1% | 1.00 |
| ICICIBANK | 10.31 L Cr | 18.3 | 28.8% | 16.4% | 0.61 |
| SBIN | 9.54 L Cr | 11.1 | 31.8% | 14.8% | 1.30 |
| KOTAKBANK | 4.22 L Cr | 7.3 | 20.7% | 11.2% | 0.53 |
| AXISBANK | 3.92 L Cr | 14.1 | 22.3% | 13.1% | 1.31 |
| UNIONBANK | 1.41 L Cr | 6.8 | 44.9% | 15.0% | 0.58 |
| PNB | 1.32 L Cr | 6.0 | 45.1% | 13.7% | 0.72 |
| BANKBARODA | 1.23 L Cr | 6.8 | 31.2% | 10.7% | 1.03 |
| INDIANB | 1.19 L Cr | 9.3 | 45.8% | 15.7% | 0.58 |
| CANBK | 1.14 L Cr | 5.7 | 42.1% | 16.1% | 1.32 |
⚠️ Risk Factors
1) The bank’s leverage ratio has risen to 0.56 D/E from 0.52 in the prior period, warranting monitoring of debt cost and asset-liability sensitivity in a rising rate environment. 2) Despite strong ROCE of 41.4%, the modest P/E of 14.8 suggests market skepticism about sustained earnings growth, potentially pricing in execution or credit risk. 3) The absence of promoter holding may limit long-term strategic alignment, and retail-driven volatility could affect price stability during fundraise announcements.
📋 Recent Filings
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🟡 Board Meeting 1 September 2026Ujjivan Small Finance Bank announced a conference call on September 1, 2026 at 4:00 PM IST to discuss the change in its board of directors, inviting i...
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🟡 Board Meeting 1 September 2026Ujjivan Small Finance Bank announced the early retirement of Managing Director & CEO Sanjeev Nautiyal effective September 1, 2026, with a three-month ...
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🔴 Announcement 1 September 2026Ujjivan Small Finance Bank announced the appointment of Vikas Agrawal as Business Head - MSME effective September 1, 2026, bringing 25 years of bankin...
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🔴 Announcement 31 August 2026Ujjivan Small Finance Bank announced an investor meeting scheduled for September 3, 2026, in Mumbai, running from 10:00 AM to 4:00 PM, where it will d...
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🔴 Announcement 17 August 2026Ujjivan Small Finance Bank announced on August 17, 2026 that its Nomination and Remuneration Committee approved 452,500 stock options under the Bank E...
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Announcement 17 August 2026Ujjivan Small Finance Bank announced investor and analyst meetings scheduled across August 19-26, 2026, in Bangalore and Mumbai, conducted in-person a...
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Announcement 31 July 2026Ujjivan Small Finance Bank announced its August 5-6, 2026 investor meetings with major mutual funds including Union, Sundaram, Mahindra Manulife, UTI,...
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Announcement 28 July 2026Ujjivan Small Finance Bank announced an upcoming virtual investor meeting with Kotak Mahindra AMC scheduled for July 31, 2026, from 11:00 AM to 12:00 ...
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Announcement 28 July 2026Ujjivan Small Finance Bank announced it received an ESG rating of 74, classified as 'Excellent', from ESG Risk Assessments and Insights Limited for FY...
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🟡 Board Meeting 24 July 2026Ujjivan Small Finance Bank held its 10th AGM on July 24, 2026, approving audited FY26 financials, reappointing Sanjeev Nautiyal as MD & CEO, amending ...
🧠 Analyst's Read
Ujjivan Small Finance Bank is executing a disciplined expansion strategy with improving operational metrics and growing institutional confidence, but its future trajectory hinges on successful capital deployment and credit quality maintenance in a competitive small finance landscape.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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