Ujjivan SFB Q1 FY26 results: PAT ₹103cr, loan book +11% YoY

Key update and why it matters

Ujjivan Small Finance Bank Ltd (NSE: UJJIVANSFB; BSE: 542904) reported its financial performance for the quarter ended June 2025 (Q1 FY26). The bank posted profit after tax (PAT) of ₹103.22 crore, up 23.8% quarter-on-quarter (QoQ) from ₹83.4 crore, but down 66% year-on-year (YoY) from ₹301 crore. The quarter stood out for two contrasting trends: business growth remained healthy, while profitability was pressured by higher credit costs and weaker net interest income (NII) on a YoY basis.

The release was dated Thursday, 24 July 2025, and it captured the bank’s ongoing transition towards a more secured, diversified loan book. It also highlighted how provisioning and asset quality shifts can dominate quarterly earnings, even when disbursements and deposits expand.

Profitability snapshot: income, NII and PAT

On the income line, total income for Q1 FY26 was ₹1,867.8 crore versus ₹1,774.3 crore in Q1 FY25, a YoY increase of 5.3%. Compared with Q4 FY25, total income rose 1.3% from ₹1,843.0 crore.

Net interest income (NII) for the quarter was ₹855.95 crore versus ₹941.46 crore in the year-ago period, a YoY decline of 9.08%. The bank also reported non-interest income of ₹248.99 crore compared with ₹197.09 crore in the corresponding quarter, up 26.33% YoY.

Profit after tax stood at ₹103.22 crore for Q1 FY26. The bank attributed the profitability pressure primarily to higher provisions and the YoY decline in NII.

Provisions and asset quality: the key swing factor

Loan loss provisions rose sharply to ₹224.94 crore in Q1 FY26 compared with ₹109.85 crore in Q1 FY25, a 104.77% YoY jump. On a QoQ basis, provisions improved from ₹264.5 crore in Q4 FY25 to ₹224.9 crore, a 15% decline.

Asset quality weakened sequentially, with gross non-performing assets (GNPA) rising to 2.52% in Q1 FY26 from 2.18% in the previous quarter, an increase of 34 basis points. The combination of higher credit stress and elevated provisioning weighed on earnings, even as the bank continued to grow its balance sheet.

The bank reported credit cost of ₹225 crore for the quarter, improving from ₹265 crore QoQ, and noted that this included an accelerated provision of ₹23 crore.

Loan book growth and the shift to secured lending

Despite the earnings pressure, the bank posted healthy business growth. The gross loan book rose to ₹33,287 crore in Q1 FY26, up 11% YoY and 4% QoQ. A notable change was in the portfolio mix: secured loans accounted for 45.5% (also cited as 46%) of the total loan book, up from 31.3% (also cited as 31%) in the same quarter last year.

The secured book was reported at ₹15,162 crore, up 63% YoY, with secured share at 46% of the loan book. Disbursements for the quarter were ₹6,539 crore, up 24% YoY. Micro banking disbursement was ₹3,934 crore, reported as steady and broadly in line with Q4 FY25.

Within micro banking, the bank said it added approximately 1.1 lakh new customers during the quarter. It also noted that about 34,000 customers were graduated from group loans to individual lending and that customers were migrated towards secured products such as gold, vehicle and micro mortgages.

Segment indicators: group loans, housing, MSME and others

The bank’s group loans stood at ₹12,961 crore, reflecting an 18% YoY degrowth, while group loan disbursements in Q1 were ₹2,844 crore, up 2% QoQ. Individual loans were cited at ₹5,332 crore, up 7% YoY.

Several secured sub-segments reported strong growth: housing portfolio was approximately ₹8,000 crore (53% YoY growth), MSME loan book ₹2,253 crore (59% YoY growth), vehicle finance ₹560 crore (156% YoY growth), agri banking ₹403 crore (288% YoY growth), and gold loans ₹293 crore (550% YoY growth). The bank also reported collection efficiency of 99.34% for June 2025.

Deposits, CASA and cost of funds

Total deposits increased to ₹38,619 crore, up 19% YoY. CASA deposits were ₹9,381 crore, up 13% YoY. Retail term deposits plus CASA deposits were ₹27,884 crore, registering 16% YoY growth and contributing 72% of total deposits.

Cost of funds was reported at 7.6% in Q1. Management stated it had reduced peak fixed deposit rates by 65 basis points and selectively recalibrated savings account rates by up to 100 basis points. The bank also stated that MFIN Guardrails 2.0 had been fully adopted effective 1 April 2025.

Management commentary and key balance sheet notes

MD and CEO Sanjeev Nautiyal said the bank delivered 11% YoY growth in gross loan book, supported by momentum in the secured segment which grew 63% YoY. He also highlighted disbursements of ₹6,539 crore (up 24% YoY) and deposit growth of 19% YoY.

The bank reported a floating provision of ₹181 crore on its books, usable as per RBI guidelines. Of this, ₹30 crore was earmarked toward Tier II capital, ₹130 crore for PCR calculation, and ₹21 crore for other provisions. It also disclosed that certain metrics were stated without adjusting IBPC and securitisation of ₹178 crore (June 2025), ₹189 crore (March 2025), and ₹2,369 crore (June 2024).

Guidance and later-quarter reference points shared by the bank

For FY26, the bank guided for around 20% advance growth and a credit cost in the range of 2.3% to 2.4% of average gross advances. It also guided for RoE of around 10% to 12% and RoA of around 1.2% to 1.4%.

Separately, the dataset also includes later-quarter performance points: Q2 FY26 PAT of ₹122 crore (up 18.2% QoQ), PPoP of ₹395 crore (up 9.6% QoQ), and NII of ₹922 crore (up 7.7% QoQ), with RoA and RoE at 1.0% and 7.7%. It also cites Q3 FY26 NII of ₹1,000 crore (up 12.8% YoY), NIM of 8.23% (up 33 bps), cost-to-income ratio at 66% (below 65% after adjusting for a one-off gratuity expense under the new labour code), and PAT of ₹186 crore (up 70.8% YoY), with RoA at 1.5% and RoE at 11.5%.

Key financial table: Q1 FY26 in numbers

All figures are in ₹ crore unless stated otherwise.

Earnings calendar: what’s next

The dataset notes an “upcoming earnings date” of 23 July 2026 for Ujjivan Small Finance Bank (Q1 FY26-27). It also lists Q4 FY25-26 dated 8 May 2026, with interest earned of ₹1,878 crore, gross profit of ₹514 crore, and net profit of ₹281 crore, along with QoQ and YoY percentage changes.

Conclusion

Ujjivan SFB’s Q1 FY26 results showed balance-sheet expansion alongside profitability pressure from elevated provisions and weaker YoY NII. The quarter also reinforced the bank’s ongoing shift towards secured lending, with secured share rising to about 46% and deposits growing 19% YoY. Investors tracking the bank will likely focus on credit cost trends, asset quality movement, and the bank’s stated FY26 targets. The next referenced reporting milestone in the dataset is the 23 July 2026 earnings date for Q1 FY26-27.