Ujjivan Small Finance Bank Ltd Q1 FY27 Earnings Analysis

- Ujjivan SFB plans to grow advances by around 25% annually in FY27. - Microfinance (MFI) segment is expected to grow at a higher single-digit rate (around 8-10%). - Secured loan book will grow at a faster pace compared to unsecured, altering the secured-to-unsecured mix to roughly 55-45 by FY27. - Deposit growth will align with credit growth, with a focus on retail term deposits rather than bulk. - Branch expansion is targeted at around 140 new branches in FY27, a 20% increase from March 2026 (776 branches). - Digital, AI, and analytics investments will continue to support customer acquisition and retention. - The bank aims to maintain a stable Net Interest Margin (NIM) of approximately 8.5% in FY27. - Growth supported by planned equity capital raise up to INR 2,000 crores to fund medium-term expansion.

- Ujjivan Small Finance Bank plans around 25% growth in advances for FY27, focusing on profitable growth and building an enduring institution. - Net profit for FY26 was INR 693 crores with ROA at 1.4%; guidance for FY27 includes an ROA of around 1.6%. - Credit cost is expected to moderate to 1.4%-1.5% of average GLB in FY27. - NIM is guided around 8.5%, expected to remain stable close to the FY26 exit quarter level. - Operating expenses (opex) to ATA ratio anticipated 20-30 bps higher than FY26 due to investments in branches, technology (AI, digital), and infrastructure, but expected to decrease thereafter. - Branch expansion planned at approximately 20% growth in FY27, with about 140 new branches targeted. - The bank plans to raise up to INR 2,000 crores equity capital to support medium-term growth. - Earnings momentum is supported by new and existing secured products and improved cost of funds.

- Ujjivan Small Finance Bank plans significant investments in FY27 focused on branch expansion and digital infrastructure to support around 25% asset growth. - Branch network is expected to grow by approximately 20% in FY27, adding around 140 branches over the next 1-2 years. - Continued investment in technology, AI, analytics, and cloud-led platforms aims to enhance customer acquisition, retention, and operational efficiency. - Investments also include enhancements in IT projects, low-cost channels, marketing, and training programs. - The Board has approved raising up to INR 2,000 crores of equity capital to maintain regulatory capital buffers and support medium-term growth ambitions. - These strategic investments are expected to cause a moderate increase in operating expenses (opex) and a slight compression in ROA to around 1.6% in FY27, reflecting the upfront spending for future growth.

- Ujjivan Small Finance Bank plans to raise equity capital up to INR 2,000 crores as approved by the Board, aimed at supporting medium-term growth and fueling expansion over the next 3 years (Page 12, 13). - The capital raise is targeted for the second half of the current financial year, depending on suitable market conditions (Page 8). - There are no plans for inorganic acquisitions as part of this fundraising (Page 12). - No specific mention of new debt fundraising in the provided pages. - The equity infusion is intended to maintain an adequate buffer over regulatory capital requirements and fund growth initiatives including branch expansion, technology, and product development (Page 6, 12).

The document does not provide specific details on the current or expected order book or pending orders for Ujjivan Small Finance Bank Limited. The discussion mainly revolves around financial performance, asset quality, deposit growth, funding plans, and business strategy for FY27 and beyond, including: - Focus on maintaining deposit growth and a retail TD book. - Secured loan book growth planned at around 40%. - Unsecured loan growth planned at around 10%. - Average overall loan growth target of about 25% per annum. - No mention of any order book or pending orders as Ujjivan is a banking institution, focusing on loan book composition and growth rather than orders. Please advise if you need information on loan book or business pipeline projections instead.