Ujjivan Small Finance Bank Share Price Target 2026: Brokerages have reviewed the performance of the Ujjivan Small Finance Bank (SFB) after the bank on Friday reported over three-fold jump in net profit at Rs 282 crore in the fourth quarter ended March 2026. The bank had posted a net profit of Rs 83 crore in the year-ago period.
The total income rose to Rs 2,185 crore in the January-March quarter of the financial year 2025-26 from Rs 1,843 crore in the year-ago period.
The bank’s total expenditure, excluding provisions, shot up to Rs 1,670 crore from Rs 1,483 crore in the same period a year ago.
Emkay and Centrum have made certain observations on the bank stock.
Centrum noted that Ujjivan Small Finance Bank delivered a strong Q4FY26 performance with healthy loan growth, stable margins (~8.5% NIM) and improving asset quality, reflecting normalization in the microfinance portfolio and robust traction in secured segments.
However, the brokerage added that despite the strong exit run-rate, the outlook remains more measured as the bank accelerates its strategic pivot toward a higher secured mix (~56% by FY27), which, while improving balance sheet resilience, is likely to structurally moderate yields.
- Management has guided for sub-10% growth in the high-yield MFI book.
- Elevated investments planned in branches, technology, and digital capabilities.
- Combined impact of slower high-yield growth + higher investments expected to keep profitability below peak levels (ROA ~1.6%).
- Due to mix shift and moderation in incremental yields, NIM trajectory revised lower: FY27E: ~8.3% (vs. 8.4% earlier); FY28E: ~8.1% (vs. 8.4% earlier)
- NIM expected to normalize broadly towards FY26 levels.
Centrum has rated Buy call for the bank stock with a target price of Rs 73.
Emkay too has maintained Buy call with a target price of Rs 80 vs Rs72 (Upside ~29%).
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
