Ujjivan Small Finance Bank Ltd. (UJJIVANSFB) AI Stock Analysis

• Market Cap: ₹108.00B
• Dividend Yield: 2.82%
• Average Volume (3M): 792.40K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.02
• Revenue Growth: 6.15%
• EPS Growth: -64.12%
• Country: IN
• Employees: 22,566
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.00
• Shares Outstanding: 1,942,714,400
• 10 Day Avg. Volume: 640,665
• 30 Day Avg. Volume: 792,396
• PEG Ratio: -0.22
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -1.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 3.38
• Revenue Forecast (FY): ₹49.15B

• Rating: 46 Neutral
• Price Target: ₹54.00 ▼(-9.01% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily weighed down by weak financial performance—especially the large revenue decline, lower profitability, and negative operating/free cash flow—while technicals also show soft near-term momentum (below key short-term averages and negative MACD). Valuation is comparatively supportive with a moderate P/E, but the absence of dividend yield data limits additional valuation upside.

Positive Factors

Improved leverage

A much lower debt-to-equity (0.47 from 1.52) signals materially reduced financial leverage. This strengthens the bank's resilience to credit stress, lowers interest cost vulnerability and preserves capacity to support lending or absorb provisions without immediate capital raises — a durable balance-sheet improvement.

Retail / underserved customer focus

A strategic focus on retail and financially underserved segments builds a sticky deposit and lending franchise. These customers create durable low-cost deposit bases, recurring transaction and fee opportunities, and differentiated market position versus larger banks reliant on wholesale funding.

Very high gross profit margin (banking model)

A 100% gross profit margin reflects the structural economics of the bank's core lending and fee businesses before operating costs. High gross margin provides a durable buffer to restore net profitability as operating efficiency improves or credit costs normalize, supporting long-term margin recovery potential.

Negative Factors

Sharp revenue decline

A 41.8% drop in revenue is a structural red flag: it likely reflects sustained contraction in lending volumes, yields or fee income. Prolonged top-line weakness erodes scale economics, makes cost absorption harder, and undermines the bank's ability to rebuild margins and organic capital generation over the medium term.

Negative operating and free cash flow

Negative operating and free cash flow indicate the bank is not converting reported earnings into cash, constraining capacity for organic growth, dividends, and creating buffers against asset stress. Weak cash generation increases reliance on external funding and reduces long-term strategic flexibility.

Profitability & ROE deterioration

A halving of ROE and a sharp net margin decline show reduced profitability and capital efficiency. Lower returns limit the bank's ability to generate internal capital, pressure shareholder outcomes and make it harder to absorb credit losses or invest in growth without external capital or painful cost reductions.

Ujjivan Small Finance Bank Ltd. Business Overview & Revenue Model

Company Description

Ujjivan Small Finance Bank Limited provides various banking and financial services in India. The company operates through Treasury, Retail Banking, and Corporate/Wholesale Banking segments. It provides current, savings, salary, and NRI accounts; and fixed, recurring, TASC fixed, and tax saver fixed deposits. The company's loan products include group loans, such as business, family, agriculture and allied, education, GL top-up, emergency, and loyalty loans; individual loans comprising individual business, livestock, agriculture, and bazar loans, as well as home improvement loans, open market livestock and home improvement loans; housing loans; vehicle loans; and gold loans. Its loan products also comprise micro and small enterprise loans, which include loan against property, secured enterprise and business loans, overdraft against property, and business edge term loans; business edge overdrafts; loan against rent receivables; emergency credit line guarantee scheme; personal loans; and financial institutions group loans. The company also offers mobile, phone, net, SMS, and missed call banking services; debit and credit cards; and insurance products, such as credit life, endowment, term, PAR, POS, ULIP, motor, property, home content, health, and personal accident insurance. In addition, it is involved in retail forex and trade. As of March 31, 2022, the company operated 575 banking outlets; and 492 automated teller machines (ATMs), including 54 automated cash recyclers (ACR). The company was incorporated in 2016 and is headquartered in Bengaluru, India. Ujjivan Small Finance Bank Limited is a subsidiary of Ujjivan Financial Services Limited.

How the Company Makes Money

Ujjivan Small Finance Bank primarily makes money through (1) net interest income and (2) fee and other income. Net interest income is earned from the spread between interest collected on its loan portfolio and interest paid on deposits and borrowings; this is typically the largest contributor for banks, with profitability influenced by loan yields, cost of funds, loan mix, and credit performance (including provisioning for non-performing assets). Fee and other income is generated from charges and commissions tied to banking services—such as account-related fees, transaction and remittance charges, card and payment-related fees, and fees linked to distribution of third-party financial products (exact product categories and contributions: null). Additional earnings can include treasury/investment income from the bank’s liquidity portfolio and gains or losses from investments and trading activities, subject to market conditions and regulatory requirements. Key factors affecting earnings include growth in deposits and advances, ability to maintain a favorable interest margin, operating efficiency, and asset quality; specific major partnerships or partner names contributing to revenue: null.

Ujjivan Small Finance Bank Ltd. Financial Statement Overview

Summary

Income statement shows sharp revenue contraction (-41.81%) and lower profitability (net margin down to 19.44% from 32.19%). Balance sheet leverage improved (debt-to-equity down to 0.47 from 1.52) but ROE declined to 11.94% from 22.83%. Cash flow is a key weakness with negative operating and free cash flow, indicating poor cash generation.

Income Statement

Ujjivan Small Finance Bank Ltd. has experienced a significant decline in revenue growth, with a negative growth rate of -41.81% in the most recent year. The net profit margin has decreased to 19.44% from 32.19% the previous year, indicating reduced profitability. However, the company maintains a strong gross profit margin of 100%, which is typical for banks due to the nature of their revenue recognition. The EBIT and EBITDA margins have also decreased, reflecting operational challenges.

Balance Sheet

The bank's debt-to-equity ratio has improved to 0.47 from 1.52, indicating better leverage management. Return on equity has decreased to 11.94% from 22.83%, suggesting reduced efficiency in generating profits from shareholders' equity. The equity ratio stands at 12.76%, showing a stable capital structure. Overall, the balance sheet reflects a moderate level of financial stability with some room for improvement in profitability.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating cash flow and free cash flow in the most recent year. The free cash flow growth rate is negative, indicating a decline in cash generation capabilities. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income into cash. The free cash flow to net income ratio is slightly above 1, suggesting some alignment between cash flow and reported earnings, but overall cash flow performance is weak.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	73.01B	70.88B	63.25B	47.55B	31.75B	31.09B
Gross Profit	31.86B	43.70B	40.57B	32.88B	21.35B	20.32B
EBITDA	5.27B	10.76B	18.00B	15.58B	-4.70B	869.98M
Net Income	4.17B	7.26B	12.81B	11.00B	-4.15B	82.97M
Balance Sheet
Total Assets	496.14B	476.89B	404.22B	333.17B	236.04B	203.80B
Cash, Cash Equivalents and Short-Term Investments	26.86B	31.57B	25.24B	1.85B	21.68B	19.33B
Total Debt	29.62B	28.45B	85.07B	85.35B	78.41B	76.30B
Total Liabilities	432.91B	416.06B	348.09B	291.08B	208.02B	171.62B
Stockholders Equity	63.23B	60.83B	56.13B	42.09B	28.03B	32.19B
Cash Flow
Free Cash Flow	-8.90B	-43.07B	15.23B	9.34B	24.95B	25.99B
Operating Cash Flow	-7.86B	-41.40B	17.69B	10.60B	25.47B	26.57B
Investing Cash Flow	-16.38B	-17.93B	-71.36B	-20.96B	-8.41B	-13.56B
Financing Cash Flow	17.03B	65.67B	55.77B	11.86B	-14.84B	-7.06B

Ujjivan Small Finance Bank Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 59.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UJJIVANSFB, the sentiment is Neutral. The current price of 59.35 is above the 20-day moving average (MA) of 56.95, below the 50-day MA of 59.54, and above the 200-day MA of 51.35, indicating a neutral trend. The MACD of -2.24 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:UJJIVANSFB.

Ujjivan Small Finance Bank Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAPITALSFB	72 Outperform	₹10.95B	8.67	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EQUITASBNK	56 Neutral	₹66.43B	19.93	―	1.63%	10.02%	-120.18%
SURYODAY	51 Neutral	₹13.53B	10.24	―	―	―	―
UJJIVANSFB	46 Neutral	₹108.00B	13.80	―	2.82%	6.15%	-64.12%
UTKARSHBNK	45 Neutral	₹21.57B	-1.76	―	2.82%	2.35%	-261.81%
CENTRUM	43 Neutral	₹10.52B	-3.33	―	―	47.88%	11.61%

Ujjivan Small Finance Bank Ltd. Corporate Events

Ujjivan Small Finance Bank Schedules Investor Meetings and Branch Visit in March 2026

Ujjivan Small Finance Bank has announced a series of upcoming investor and analyst interactions, including a branch visit in Baroda on March 13, 2026, organized by HDFC Securities. The program also features in‑person management meetings in Bangalore on March 18, 2026, with institutional investors such as IFC, Fidelity International, ICICI Prudential Life Insurance and Bandhan Mutual Fund.

The bank emphasized that these engagements are part of its regular investor outreach and confirmed that no unpublished price-sensitive information will be shared during the meetings. The schedule, which may be subject to change due to exigencies, reflects ongoing efforts to maintain transparent communication with key market participants and strengthen relationships with major institutional stakeholders.

Ujjivan Small Finance Bank Announces March Investor Meets and Branch Visits

Ujjivan Small Finance Bank has scheduled a series of investor and analyst engagements in March 2026, including an in-person management meeting with Bellwether Capital in Bengaluru on March 11 and a virtual meeting with East Spring Investments on March 13. These meetings underscore the bank’s ongoing efforts to maintain active dialogue with institutional investors and analysts about its business and operating environment.

In addition, the bank will host multiple in-person branch visits for investors in Bengaluru, Patna, and Indore between March 13 and March 20, organized by Ambit, ICICI Securities, and Elara Capital. Ujjivan has emphasized that no unpublished price-sensitive information will be shared during these interactions, signaling an attempt to balance enhanced transparency and investor access with strict regulatory compliance under SEBI’s disclosure norms.

Ujjivan Small Finance Bank Publishes Q3 FY2025-26 Unaudited Results in Newspapers

Ujjivan Small Finance Bank Ltd. has announced that it has published the extract of its unaudited financial results for the quarter ended December 31, 2025, in leading newspapers. In compliance with SEBI’s Listing Obligations and Disclosure Requirements, the results have been released in all editions of the English daily Financial Express and the Kannada daily Hosadigantha, and are also made available on the bank’s website, reinforcing its regulatory transparency and disclosure practices for investors and other stakeholders.

Ujjivan Small Finance Bank Publishes Audio Recording of Q3 FY2025-26 Earnings Call

Ujjivan Small Finance Bank Ltd., a small finance bank specializing in inclusive retail and microbanking services in India, has notified the stock exchanges that it has made available the audio recording of its earnings and quarterly conference call held on January 22, 2026, discussing the bank’s financial performance for the quarter ended December 31, 2025. The recording can be accessed via the bank’s official website, reflecting the bank’s ongoing compliance with SEBI disclosure norms and its efforts to enhance transparency and access to information for investors and other stakeholders.

Ujjivan Small Finance Bank Releases Q3 FY26 Investor Presentation on Financial Performance

Ujjivan Small Finance Bank Ltd. has submitted an investor presentation detailing its business and financial performance for the quarter ended December 31, 2025, to the National Stock Exchange of India and BSE. The presentation, which follows an earlier regulatory intimation and is also available on the bank’s website, is intended to update investors and other market participants on the bank’s quarterly results and operating trends, reinforcing its ongoing disclosure practices and engagement with capital market stakeholders.

Ujjivan Small Finance Bank Posts Record NII and Disbursements in Q3 FY26 as Asset Quality and Profitability Improve

Ujjivan Small Finance Bank reported a strong Q3 FY26 performance, highlighted by record quarterly net interest income of ₹1,000 crore and all-time high disbursements of ₹8,293 crore, driven particularly by micro banking disbursements. The bank’s gross loan book rose 21.6% year-on-year to ₹37,057 crore, with secured loans growing nearly 49% and now accounting for 48.1% of the portfolio, while overall asset quality improved as GNPA, NNPA and portfolio-at-risk ratios declined and provision coverage increased to 76%. On the liability side, deposits grew 22.4% year-on-year to ₹42,223 crore, with CASA balances up over 33% and the cost of funds easing, underscoring a strengthening funding profile that outpaced loan growth. Profitability metrics also improved significantly, with quarterly profit after tax surging 70.8% year-on-year to ₹186 crore, net interest margin expanding to 8.23%, and returns on assets and equity rising, all supported by robust capital adequacy of 21.6% and strong liquidity as reflected in a high liquidity coverage ratio.

Ujjivan Small Finance Bank’s MSME Business Head Ashim Sarkar Resigns

Ujjivan Small Finance Bank has announced that its Business Head – MSME, Mr. Ashim Sarkar, who is designated as Senior Management Personnel, has resigned effective January 14, 2026, to pursue better prospects. The bank has stated that there is no other material reason for his departure and has made the required regulatory disclosures under SEBI listing regulations, signaling a leadership change in its MSME vertical that stakeholders may watch for any subsequent impact on strategy and execution in this key business segment.

Ujjivan Small Finance Bank Allots 4.96 Lakh Shares Under ESOP 2019, Expands Paid-Up Capital

Ujjivan Small Finance Bank has approved the allotment of 496,366 fully paid equity shares of Rs 10 each under its Employee Stock Option Plan 2019, following the exercise of stock options by eligible employees. The bank has already obtained in-principle listing approvals from the NSE and BSE and is seeking final listing approval for these shares, which will raise its paid-up capital from Rs 19,38,46,31,170 to Rs 19,38,95,94,830, modestly expanding its equity base and reinforcing its use of stock-based compensation to align employee interests with long-term shareholder value.

Ujjivan Small Finance Bank Schedules Virtual Investor Meet With Polar Capital

Ujjivan Small Finance Bank has informed the stock exchanges that it will hold a virtual investor and analyst meeting with Polar Capital Holdings PLC on December 23, 2025, between 1:00 pm and 2:00 pm, hosted from Bangalore. The bank noted that the meeting was scheduled at short notice in compliance with SEBI listing regulations, emphasized that no unpublished price-sensitive information will be shared during the interaction, and indicated that any changes in schedule would be due to exigencies, with details also made available on its website, underscoring its commitment to transparent and timely investor communication.