Ujjivan SFB Q1: PAT triples to ₹317 Cr as provisions halve, NIM-led margins expand

Ujjivan Small Finance Bank reported standalone net profit of ₹316.5 Cr for Q1 FY27, more than tripling from ₹103.2 Cr a year ago (+206.7% YoY) and up 12.3% sequentially from ₹282 Cr. Total income rose ~22% YoY to ₹2,280.9 Cr, with interest earned up 25.1% to ₹2,024.9 Cr and basic EPS at ₹1.63 versus ₹0.53 a year ago. There were no exceptional or extraordinary items in either period, so the reported jump is the underlying jump — no adjustment needed.

The profit surge is overwhelmingly a credit-cost story. Provisions and contingencies fell to ₹127.3 Cr from ₹224.9 Cr a year ago as asset quality healed — gross NPA improved to 2.16% (from 2.52%) and net NPA to 0.34% (from 0.70%), with provision coverage at 84.7%. Pre-provision operating profit grew 52% YoY to ₹548.1 Cr, net margin (PAT/total income) expanded to 13.9% from 5.5% a year ago (12.9% in Q4), and operating margin held around 27% versus 22.3% YoY. Quarterly ROA of 0.53% (~2.1% annualised) ran ahead of the ~1.6% FY27 guidance.

The stock went into the print at ₹64.02, up 14.1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.

The print validates the confident tone from the Q4 concall. Management had guided ~25% loan growth and credit costs moderating to 1.4–1.5%; per the July 2 business update the loan book grew 28.9% YoY to ₹42,903 Cr and deposits 25.1% to ₹48,307 Cr — both tracking or ahead of guidance — while credit costs clearly moderated. No published street PAT consensus for this quarter was locatable, so the beat is framed against the company's own guidance rather than a poll. Results were reviewed by joint statutory auditors Deloitte Haskins & Sells and Abarna & Ananthan with an unmodified limited-review conclusion; the bank publishes standalone results only. Capital adequacy stood at 20.36%.