Mumbai: Ujjivan Small Finance Bank reported a 71 percent year-on-year rise in consolidated net profit to Rs 185.7 crore in Q3 FY26, with revenue growing to Rs 1,751.9 crore. Compared to Rs 121.7 crore profit in Q2 and Rs 108.6 crore in Q1, the bank’s quarterly earnings show strong upward momentum. The consistent uptick in revenue from Rs 1,682.3 crore in Q2 and Rs 1,591.1 crore in Q1 highlights sustained growth across key segments.
Strong quarterly gains boost bottom line
Ujjivan Small Finance Bank delivered a robust financial performance in Q3 FY26, clocking a 10.1 percent year-on-year increase in revenue from operations to Rs 1,751.9 crore and a 16.1 percent rise in total income to Rs 2,047.4 crore. The net profit soared 71 percent YoY to Rs 185.7 crore, building on the Rs 121.7 crore recorded in Q2 and Rs 108.6 crore in Q1. Revenue and profit growth were attributed to higher net interest income and a sharp surge in other income, which grew 71.6 percent YoY to Rs 295.5 crore.
Sequential growth accelerates
On a quarter-on-quarter basis, net profit rose 52.6 percent, while revenue expanded 4.1 percent. Operating profit before provisions stood at Rs 439.8 crore, up 11.3 percent sequentially. Total expenses rose moderately by 4.2 percent QoQ to Rs 1,607.6 crore, with employee cost growing to Rs 473.8 crore from Rs 435.5 crore in Q2. The Q3 performance also included a Rs 18.3 crore provision towards new labour code compliance, which was absorbed without denting profitability.
Management insights and performance drivers
While no formal management commentary was included in the report, key drivers of performance included growth in the retail loan book and improvement in fee-based income. The bank’s earnings per share (basic) rose to Rs 0.96 in Q3 from Rs 0.63 in Q2 and Rs 0.56 in Q1. Asset quality remained stable with Gross NPA at 2.38 percent versus 2.45 percent in Q2, and Net NPA improving to 0.57 percent. Capital adequacy stood strong at 21.62 percent.
Nine-month snapshot and outlook
For the nine months ended December 2025, revenue from operations rose 5.7 percent YoY to Rs 5,053.1 crore, but net profit declined to Rs 410.7 crore from Rs 642.7 crore-a drop of 36.1 percent-reflecting elevated provisions of Rs 655.3 crore so far this year. Despite the YoY dip in cumulative profits, Q3 results indicate strong recovery momentum heading into the final quarter.
Disclaimer: This article is based on publicly available financial disclosures and company filings. It is for information purposes only and does not constitute investment advice, recommendation, or solicitation to buy or sell securities.
