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

• Market Cap: ₹126.67B
• Dividend Yield: 2.82%
• Average Volume (3M): 792.40K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.92
• 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: 1,938,959,500
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹65.00 ▲(9.52% Upside)

The score is held back primarily by weak financial performance—sharp revenue decline, reduced profitability, and negative operating/free cash flow—despite improved leverage. These risks are partially offset by strong technical momentum (price above key moving averages with positive MACD) and a moderate valuation with a modest dividend yield.

Positive Factors

Improved Leverage

A materially lower debt-to-equity ratio reduces financial risk and interest burden, giving the bank more flexibility to support lending and absorb shocks. Over the next 2-6 months this improves resilience to rate or credit stress and capacity for measured portfolio growth.

Stable Capital Base

A c.12.8% equity ratio provides regulatory cushion and supports organic growth without immediate dilution. This structural capital buffer helps sustain lending during economic volatility and underpins deposit franchise stability over the medium term.

Retail-focused Business Model

Concentration on retail and underserved clients yields a granular deposit and loan mix that typically lowers concentration risk and stabilizes net interest income. This structural franchise supports steady fee opportunities and long-term customer stickiness.

Negative Factors

Sharp Revenue Decline

A severe revenue contraction undermines internal capital generation and limits reinvestment capacity. Persisting over quarters, such structural shrinkage pressures margins, constrains lending growth, and can force reliance on external funding to maintain operations.

Weak Cash Generation

Sustained negative operating and free cash flows indicate the bank is not converting reported earnings into cash, forcing dependence on wholesale funding or equity to fund growth. Over months this limits liquidity buffers and hampers dividend or capital return policies.

Eroding Profitability

A sharp fall in net margin and lower ROE reflect margin compression or rising credit/operating costs. This reduces return on capital, slows equity accumulation, and constrains strategic investments or growth initiatives over the medium term unless profitability recovers.

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 generates revenue primarily through interest income from loans and advances provided to customers. The bank charges interest on various loan products, including microloans, personal loans, and small business loans, which constitutes a significant portion of its earnings. Additionally, the bank earns income from fees and commissions on banking services, such as account maintenance fees, transaction fees, and charges for other financial services. Ujjivan Small Finance Bank also benefits from interest earned on investments in government securities and bonds. The bank's focus on financial inclusion has led to strategic partnerships with various organizations, enhancing its outreach and customer acquisition, thereby contributing to its overall revenue growth.

Ujjivan Small Finance Bank Ltd. Financial Statement Overview

Summary

Overall fundamentals are pressured: revenue growth is sharply negative (-41.81%) and profitability has weakened (net margin down to 19.44% from 32.19%). The balance sheet is comparatively steadier with improved leverage (debt-to-equity 0.47 vs 1.52), but cash generation is a key concern with negative operating and free cash flow.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	71.82B	70.88B	63.25B	47.55B	31.75B	31.09B
Gross Profit	43.37B	43.70B	40.57B	32.88B	21.35B	20.32B
EBITDA	6.77B	10.76B	18.00B	15.58B	-4.70B	869.98M
Net Income	5.28B	7.26B	12.81B	11.00B	-4.15B	82.97M
Balance Sheet
Total Assets	0.00	476.89B	404.22B	333.17B	236.04B	203.80B
Cash, Cash Equivalents and Short-Term Investments	0.00	31.57B	25.24B	1.85B	21.68B	19.33B
Total Debt	0.00	28.45B	85.07B	85.35B	78.41B	76.30B
Total Liabilities	-60.83B	416.06B	348.09B	291.08B	208.02B	171.62B
Stockholders Equity	60.83B	60.83B	56.13B	42.09B	28.03B	32.19B
Cash Flow
Free Cash Flow	0.00	-43.07B	15.23B	9.34B	24.95B	25.99B
Operating Cash Flow	0.00	-41.40B	17.69B	10.60B	25.47B	26.57B
Investing Cash Flow	0.00	-17.93B	-71.36B	-20.96B	-8.41B	-13.56B
Financing Cash Flow	0.00	65.67B	55.77B	11.86B	-14.84B	-7.06B

Ujjivan Small Finance Bank Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UJJIVANSFB, the sentiment is Positive. The current price of 59.35 is below the 20-day moving average (MA) of 60.16, above the 50-day MA of 56.29, and above the 200-day MA of 49.00, indicating a bullish trend. The MACD of 2.26 indicates Negative momentum. The RSI at 71.09 is Negative, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹11.67B	8.59	―	1.97%	13.76%	11.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UJJIVANSFB	60 Neutral	₹126.67B	25.60	―	2.82%	6.15%	-64.12%
SURYODAY	57 Neutral	₹14.73B	21.51	―	―	―	―
EQUITASBNK	56 Neutral	₹79.88B	-118.24	―	1.63%	10.02%	-120.18%
UTKARSHBNK	45 Neutral	₹24.20B	-2.34	―	2.82%	2.35%	-261.81%
CENTRUM	39 Underperform	₹11.27B	-7.86	―	―	47.88%	11.61%

Ujjivan Small Finance Bank Ltd. Corporate Events

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.

Ujjivan Small Finance Bank Schedules Investor Meetings for December 2025

Ujjivan Small Finance Bank Ltd. has announced a schedule for upcoming investor and analyst meetings in December 2025, to be held in Bengaluru and Mumbai. These meetings are part of the bank’s efforts to engage with investors and analysts, ensuring transparency and communication about its operations. The bank has assured that no unpublished price-sensitive information will be disclosed during these meetings, highlighting its commitment to regulatory compliance and stakeholder trust.

Ujjivan Small Finance Bank Schedules Investor Meeting in Bengaluru

Ujjivan Small Finance Bank Limited has announced an upcoming investor and analyst meeting scheduled for December 2, 2025, in Bengaluru. The meeting will involve several prominent investment firms such as Sundaram Mutual Fund, Bajaj Life, and Kotak MF, among others. The bank has assured that no unpublished price-sensitive information will be disclosed during the meeting, maintaining compliance with regulatory standards.