Ujjivan Small Finance Bank Ltd (UJJIVANSFB) Q1 FY27 Results Analysis: PPOP Surges 52% YoY, Advances Growth Beats Guidance

Ujjivan Small Finance Bank Ltd reported Q1 FY27 numbers with revenue of Rs. 2,280.93 Cr (+22.10% YoY) and PAT growth of +206.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Ujjivan Small Finance Bank delivered a strong Q1, with advances growth of 28.9% YoY ahead of the ~25% guidance and cost-to-income at 62% beating the 65-66% target. Asset quality continued to improve, with GNPA at 2.16% and NNPA at 0.34%, while PPOP grew 52% YoY. Concerns include a dip in CASA ratio to 26.8% and CRAR erosion to 20.36%, which a planned Rs.2,000 Cr capital raise aims to address.

Key Investment Insights

Key Positives

• Advances grew 28.9% YoY, ahead of the ~25% full-year guidance.
• Net interest income surged 38.7% YoY, driven by declining cost of funds.
• Pre-provision operating profit (PPOP) jumped 52% YoY to Rs.548.06 Cr.
• Asset quality improved: GNPA at 2.16% (vs 2.52% a year ago), NNPA at 0.34% (vs 0.70%).
• Provision coverage ratio improved to 84.66% from 72.90%.
• PAT more than tripled to Rs.316.54 Cr, up 206.7% YoY.
• Cost-to-income ratio improved to 62.0%, better than the 65-66% guidance.

Risk Factors

• CASA ratio declined to 26.8% from 28.6% QoQ, below the 29-30% target.
• CRAR declined to 20.36% from 22.77% a year ago, requiring capital raise.
• Secured portfolio mix improvement pace slowed (80 bps QoQ vs required 150 bps to reach 56% target by March 2027).