Transcript of Earnings Call held on May 08, 2026
UJJIVANSFB · price
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Ujjivan Small Finance Bank reported strong Q4FY26 results with net profit of ₹282 crores (ROA 2.1%, ROE 17.2%) and FY26 net profit of ₹693 crores. The bank achieved deposits and gross loan book each crossing ₹40,000 crores, with total deposits at ₹45,668 crores (+21.4% Y-o-Y) and loan book at ₹40,655 crores (+26.6% Y-o-Y). NIM improved to 8.5% driven by robust loan growth and stable yields. The secured portfolio now comprises 49.4% of the overall book, up from 43.5% Y-o-Y. Asset quality remained robust with GNPA at 2.27% and credit cost improving to 2.2%. For FY27, management guided for 25% advance growth, stable NIM at 8.5%, credit cost moderation to 1.4-1.5%, ROA of 1.6%, and secured portfolio reaching 56%+. The board approved raising equity capital of up to ₹2,000 crores in H2 FY27 to fund medium-term growth. The RBI returned the bank's universal bank license application, citing need for further portfolio diversification, and the bank plans to reapply at an appropriate time.
The stock is likely to see positive sentiment from strong Q4 performance and asset quality improvement. However, the conservative 1.6% ROA guidance (vs 2.1% exit ROA) with no clear explanation on P&L drivers may create short-term uncertainty. The ₹2,000 crore capital raise is dilutive but supports growth ambitions. Continued NIM stability despite shifting to lower-yielding secured assets is a key positive.