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Earnings Call Transcript

Utkarsh Small Finance Bank Earnings Call Transcript: Key Takeaways

Q2 FY27 net loss ₹70 Cr; PPOP ₹85 Cr, up 34% QoQ. Q1 one-off credits (CGFMU, ARC) distort the provisioning comparison; slippages rose sequentially to ₹239 Cr.

Utkarsh Small Finance Bank Q2 FY27 concall: date, live audio and summaryConcall page →
Highlights
Revenue growthLoan book +7.5% YoY, +2.3% QoQ; H1 disbursements +52% YoY.
MarginsNIM ~6.3% (analyst-cited); cost of funds down 50bps YoY to 7.4%.
Demand visibilityRecovery 'green shoots'; disbursements rising; August slowdown from CBS launch.
Management confidenceOver-optimistic; repeated add-back reconciliations defend provisioning optics.

Growth

Loan book +7.5% YoY, +2.3% QoQ; deposits +7% YoY; H1 disbursements +52%, with JLG only +2%.

Outlook

Guides 25-30% loan book growth FY27; NIM ~8%; ROE 15% FY28; cost-to-income 60-65% FY28.

Risks

Slippages rose QoQ to ₹239 Cr; CGFMU cover ends March with premium unpaid; Maharashtra collections dipped to 98.8%.

Last quarter's promises, checked

Delivered

  • Incremental PPOP growth → ₹64 Cr to ₹85 Cr (= BEAT)
  • ₹195 Cr 12.5% tranche early redemption by mid-Aug → redeemed early (= BEAT)
  • COF 7.7% with repricing → 7.4% (= BEAT)

Partly delivered

  • Tier-2 NCD ₹500 Cr → ₹300 Cr raised (= PARTIAL)
  • CGFMU ~80% cover sustained → window closed pending govt approval (= PARTIAL)

Missed

  • Loan book growth 25-30% YoY FY27 → +7.5% YoY (= MISS)
  • NIM ~8% → ~6.3% analyst-cited (= MISS)
  • Path to profitability, Q1 loss ₹34 Cr → Q2 loss ₹70 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: UTKARSHBNK. Summary written with AI assistance from the document.

Read the document ↗

Utkarsh Small Finance Bank Ltd: key numbers

Share price
₹11.73
Market cap
₹2,087 Cr
Revenue (annual)
₹3,379 Cr
Net profit (annual)
₹-1,151 Cr
P/E (TTM)
-3.1×Sector 20.6×
Promoter holding
42.67%+0.00% QoQ
FII holding
10.44%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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