Union Bank Q1 FY27 results: Q1FY26 key metrics explained

Union Bank set to report Q1 FY27 numbers

Union Bank of India is scheduled to announce its financial results for the first quarter of FY27 this week. The update matters because investors typically track quarterly movements in net interest income (NII), fees and treasury income, operating costs, and loan-loss provisions to judge earnings quality. Recent disclosed numbers across previous quarters show that profitability and income lines can move in different directions at the same time. That makes headline profit alone an incomplete indicator, especially for banks where provisioning and treasury gains can change quarter-to-quarter.

Union Bank’s previously reported Q1 FY2025-26 performance included growth in total income and profit on a year-on-year basis, alongside mixed quarter-on-quarter trends in key lines. Separately, for Q4 FY26, the bank reported net profit of ₹5,315.76 crore, up 3.03% year-on-year from ₹4,984.92 crore. With Q1 FY27 results due, the market will compare fresh numbers against these recent reference points.

Snapshot: Q1 FY26 income and profit trend

For the first quarter of FY2025-26, Union Bank of India reported total income of ₹32,343.93 crore. This was stated as a 2.3% quarter-on-quarter increase from ₹31,611.58 crore and a 3.3% year-on-year increase from ₹31,325.47 crore. Over the same period, total expenses were ₹25,407.98 crore, up 1.3% quarter-on-quarter from ₹25,077.73 crore and up 8.1% year-on-year from ₹23,514.22 crore.

Profit before tax (PBT) for Q1 FY2025-26 was reported at ₹5,268.68 crore, down 0.2% quarter-on-quarter from ₹5,281.20 crore but up 6.3% year-on-year from ₹4,954.49 crore. Profit after tax (PAT) for the quarter was ₹4,427.94 crore, up 33.0% quarter-on-quarter from ₹3,328.27 crore and up 21.6% year-on-year from ₹3,641.78 crore. The bank’s Q1 FY2025-26 earnings per share (EPS) was stated at 5.8.

Key quarterly metrics table (as provided)

All figures in ₹ crore except per-share values.

Net interest income and margin signals

The provided quarterly table shows NII of ₹9,243.84 crore for the Jun 25 period, compared with ₹9,670.55 crore for Mar 26, a quarter-on-quarter decline of 3.95%. On a year-on-year basis against Jun 24, it shows a 2.93% decline from ₹9,522.95 crore. These movements matter because NII is the core banking earnings line, and it reflects both loan growth and how deposit costs move relative to lending yields.

In a separate set of Q1 FY2025-26 metrics, interest earned was stated at ₹27,474.93 crore, down 1.41% quarter-on-quarter from ₹27,869.00 crore, while showing 3.57% year-on-year growth. This combination of trends suggests that investors will pay attention to how loan repricing, deposit mix, and funding costs evolve when Union Bank reports Q1 FY27 numbers.

Non-interest income and treasury swings

Non-interest income can be volatile for banks due to fees, recoveries, and treasury gains. The quarterly table shows non-interest income (bank) of ₹4,869.00 crore for Jun 25 versus ₹5,998.58 crore for Mar 26, a quarter-on-quarter decline of 21.76%. Year-on-year against Jun 24, it shows a 1.47% increase from ₹4,798.55 crore.

A separate commentary in the provided text also points to treasury-related variability, noting that the March figure included a large item and that underlying treasury profit was said to have increased from about ₹853 crore in March to ₹1,418 crore in June, after adjusting for that effect. While the Q1 FY27 release will provide the latest breakdown, investors typically look for consistency in fee income and clarity on the sources of non-interest income.

Cost and operating profit movement

On the cost side, Union Bank’s total expenses for Q1 FY2025-26 were stated at ₹25,407.98 crore. The quarterly table also shows non-interest expense (bank) at -₹7,176.89 crore for Jun 25, compared with -₹7,693.27 crore for Mar 26, indicating a quarter-on-quarter change of -11.54%, while showing a 10.24% rise year-on-year versus -₹6,510.25 crore for Jun 24.

The text also states operating profit at ₹23,100.09 crore for the Jun quarter, down 5.59% quarter-on-quarter from ₹24,468.29 crore, and up 5.95% year-on-year. Another operating-profit figure is referenced as ₹6,909 crore for Jun 24 in the Q1 FY25 disclosure section, highlighting that operating profit reporting can differ across summaries and periods included in the provided material. For Q1 FY27, the market will likely focus on whether expense growth remains controlled relative to income growth.

Provisions, tax impact, and EPS

Provisions and taxes often explain why PAT moves differently from pre-provision operating profit. The quarterly table shows loan-loss provisions at ₹1,667.27 crore for Jun 25 versus ₹1,050.31 crore for Mar 26, and ₹2,856.76 crore for Jun 24.

The Q1 FY2025-26 narrative specifically attributes the rise in PAT to a substantial reduction in tax expenses, which was stated to have decreased by 42.6% quarter-on-quarter and 16.4% year-on-year. On EPS, the same section states EPS of ₹5.80 for Q1 FY2025-26, and the quarterly table shows diluted normalized EPS of 5.80 for Jun 25, compared with 7.21 in Mar 26 and 4.77 in Jun 24.

Asset quality: GNPA, NNPA, and PCR

Beyond earnings, asset quality is a central variable for bank valuations. The provided text references gross NPA (GNPA) at 3.52% and net NPA (NNPA) at 0.62%, with provision coverage ratio (PCR) at 94.65%. It also states GNPA improved by 102 basis points year-on-year, NNPA improved by 28 basis points year-on-year, and PCR improved by 116 basis points year-on-year.

The same material also notes that the slippage ratio stayed below 1% and that recoveries on old bad loans exceeded new slippages in the quarter. For Q1 FY27, investors will watch if these asset-quality indicators remain stable, and whether provisioning levels track any changes in stress indicators.

Balance sheet growth and RAM focus

The provided text states total business grew about 5% year-on-year to ₹22.14 trillion. It also cites global advances growth of 6.83% year-on-year, while deposits grew 3.63% year-on-year. It further states RAM (retail, agriculture, and MSME) advances grew 10.34% year-on-year, and that RAM now makes up 56% of total domestic loans.

Deposit mix is another theme raised in the text, which says the bank consciously shed high-cost bulk deposits, down about 7% between March and June, while retail term deposits were up 12% year-on-year. These are the kinds of operating details that investors typically compare quarter-to-quarter, especially when rate changes affect funding costs and loan yields.

Capital position and planned fund-raise

The text cites capital-to-risk weighted assets ratio (CRAR) at 18.3% and CET1 at 15.3%. It also states the board approved plans to raise another ₹6,000 crore in capital.

For Q1 FY27, updates around capital actions and capital ratios are likely to be tracked alongside loan growth, because faster balance-sheet expansion usually needs adequate capital buffers. Any disclosed timeline or instrument mix for fund-raising can also shape expectations on dilution and funding costs.

What investors may track in Q1 FY27

When Union Bank reports Q1 FY27 results, the market is likely to focus on (1) NII movement and any change in margins, (2) the composition of non-interest income, including treasury gains, (3) expense growth versus income growth, and (4) credit cost trends reflected in provisions. Investors will also watch whether GNPA, NNPA, PCR, and slippage ratios remain aligned with the improvements referenced in the earlier material.

The bank had announced its Q1 FY2025-26 results on 14 August, 2025, and that quarter included reported revenue of ₹32,343.93 crore, net profit of ₹4,427.94 crore, and EBITDA of ₹23,499.77 crore in the provided summary. With Q1 FY27 due this week, the next release will provide a fresh set of comparable numbers for income growth, profitability drivers, and asset-quality direction.