Ujjivan SFB shares hit new high; jumps 7% as analysts hike target post Q3

Ujjivan SFB reported a 71 per cent year-on-year growth in net profit at ₹186 crore for the third quarter ended December 31, 2025

Shares of Ujjivan Small Finance Bank Ltd. rose nearly 7 per cent on Friday after analysts hiked the target price after it reported a 71 per cent growth in net profit in the third quarter ended December 31, 2025 (Q3-Fy26).

 

The lender's stock rose as much as 6.8 per cent during the day to a new high of ₹66.2 per share. The stock pared gains to trade 5.8 per cent higher at ₹65.6 apiece, compared to a 0.17 per cent advance in Nifty 50 as of 09:26 AM. 

 

Shares of the company rose for the second straight session and currently trade at 12 times the average 30-day trading volume, according to Bloomberg. The counter has risen 23 per cent this year, compared to a 3 per cent decline in the benchmark Nifty 50. Ujjivan SFB has a total market capitalisation of ₹12,645.89 crore.   CATCH STOCK MARKET UPDATES TODAY LIVE

 

Ujjivan SFB Q3 results 

The lender reported a 71 per cent year-on-year (Y-o-Y) growth in net profit at ₹186 crore for the third quarter ended December 31, 2025. The bank reported an all-time high net interest income (NII) of ₹1,000 crore for the third quarter of FY26, up 12.8 per cent year over year.

 

Gross loan book for the quarter grew 21.6 per cent YoY to ₹37,057 crore, driven by the highest-ever quarterly disbursements at ₹8,293 crore. READ FULL EARNINGS HERE

Analysts positive on Ujjivan SFB earnings

Ujjivan SFB remains Antique Stock Broking’s preferred pick to play the microfinance asset quality cycle, supported by lower slippage rates than peers and a normalising return on assets. 

 

The bank is well placed to deliver a return on assets of around 1.7 per cent in FY28, up from 1.1 per cent in the nine months ended December 2025, while return on equity is expected to improve to 14–15 per cent over the same period. Antique maintains a Buy rating on the stock and has raised its target price to ₹80 apiece.   ALSO READ | Zee Entertainment slips 3% on Q3 profit fall; most brokerages cut target 

Centrum Broking said that, given the steady improvement in the bank’s return ratios, operating resilience and diversified business mix, it has raised the target valuation multiple to 1.75 times from 1.5 times earlier on FY28 estimated adjusted book value. 

 

This reflects a mean plus one standard deviation of the bank’s five-year historical performance. Accordingly, Centrum has maintained its Buy rating on the stock with a revised target price of ₹73.

 

JM Financial said the management reiterated confidence in achieving its FY26 return on assets guidance of 1.2-1.4 per cent, with the fourth quarter expected to see a sharp improvement driven by lower credit costs, stronger disbursements and a declining cost of funds. The brokerage revised a target price to ₹73.

 

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