Ujjivan Small Finance Bank Ltd (UJJIVANSFB)

Financial Services · Banks · NSE · Updated 2 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹65.4 ↑ 51.78% (1Y)

🎯 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
Market Cap
₹12,722
P/E Ratio
14.0
P/B Ratio
1.89
ROE
13.5%
ROCE
41.4%
Debt/Equity
0.56
Promoter
0.0%

📖 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)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue1,6821,7521,8782,025
Operating Profit395440515548
OPM %20.4%21.5%23.6%24.0%
Net Profit122186282317
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)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital1,9341,9351,9371,943
Reserves3,8664,0594,2934,776
Borrowings2,6222,8452,9623,736
Total Liabilities43,61947,68949,61457,541
Fixed Assets480457490457
Investments10,59211,73011,60312,724
Total Assets43,61947,68949,61457,541

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)

ItemMar 2026
Operating+1,843
Investing-2,481
Financing+911
Net Cash Flow+274

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters0.0%0.0%0.0%0.0%
FII17.0%15.4%17.2%16.8%
DII20.1%28.7%31.1%33.5%
Public48.4%42.8%39.3%37.8%
# Shareholders9,37,1438,40,9607,87,9977,67,649

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

🔗 Peer Stock Analyses

⚠️ 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

🧠 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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