Ujjivan SFB Shares Jump 7% to Record High After Analysts Raise Targets Post Q3
On January 23, 2026, Ujjivan Small Finance Bank (SFB) shares jumped nearly 7% to a record high after the bank reported strong performance for the third quarter of FY26. The stock moved up sharply after analysts raised their price targets. This happened because the bank posted a 71% rise in net profit and its core income hit the highest level ever in a quarter.
Investors reacted quickly because the results showed clear improvement in key areas like loan growth, profits, and earning power. The positive outlook from brokers gave extra strength to the share price. This rally stands out in the market and has sparked fresh interest among retail and institutional investors alike.
Let’s explore what drove the shares higher and why analysts are now more upbeat about the bank’s future.
What Triggered the Ujjivan Stock Rally? Key Q3 FY26 Financial Highlights
Ujjivan Small Finance Bank delivered a standout performance in the third quarter of FY26, which ended on December 31, 2025. The bank’s net profit jumped 71% year‑on‑year to ₹186 crore, up from ₹109 crore in the same quarter last year. This sharp rise showed that the bank is growing not just revenue but also efficiency in managing costs and loan quality.
A major reason for this profit surge was its net interest income (NII) hitting a record ₹1,000 crore, up 12.8% compared to Q3 FY25. NII represents the core interest earnings after paying interest on deposits, and this milestone shows strong core banking performance.
The bank also saw robust loan book growth, with total loans rising about 21.6% year‑on‑year to ₹37,057 crore. High disbursements, the largest ever in a quarter at ₹8,293 crore, helped pull this growth. Total deposits climbed too, rising over 22% to ₹42,223 crore, which improved the bank’s funding cushion.
The rise in both lending income and safety in collections boosted confidence in the bank’s earnings quality. In addition, asset quality improved as provisioning needs eased, especially for microfinance portfolios, helping profit figures look stronger.
Analysts Upgrade Ujjivan SFB Shares Targets: What They are Saying?
After the strong financial results, several brokerages raised their price targets on Ujjivan SFB shares. Analysts now see greater value in the stock because its fundamentals improved sharply in Q3 FY26.
One major brokerage firm raised its target price to ₹80 per share and kept a Buy rating, citing Ujjivan’s improving return on assets and asset quality compared with peers. Another firm also lifted its valuation multiple based on this quarter’s performance and retained a Buy stance with revised targets around ₹73 per share.
A third major brokerage highlighted that credit costs could fall further and return on assets could rise in future quarters if trends continue. This outlook supported its own raised target close to similar levels.
These raised targets reflect analysts’ belief that the bank’s earnings momentum will continue into Q4 FY26 and possibly beyond. Investors often track such changes in target prices closely, as they signal shifting expectations about future growth.
Comparing Ujjivan SFB to Peers
Within the Indian banking sector, performance can vary widely. Many larger private lenders and big banks usually grab headlines for steady growth. At the same time, small finance banks like Ujjivan SFB have shown surprisingly strong results this quarter. For example, while some private lenders reported mixed or modest results in recent quarters, Ujjivan’s 71% profit jump and record NII stood out as more exceptional.
Small finance banks often focus on niche segments such as micro loans, small business loans, and retail products. When these segments perform well and asset quality stays healthy, such banks can outperform larger peers in growth rates for specific metrics like net interest income and profit growth. Ujjivan’s numbers reflect this dynamic in Q3 FY26.
Ujjivan SFB Shares: Technical & Market Momentum Indicators
On January 23, 2026, Ujjivan SFB shares surged during trading and tested a new 52‑week high, with the stock hitting levels above ₹66 at one point. This intraday movement showed strong buyer interest and positive trading sentiment during the session.
The stock’s rise also came with higher volume compared to recent averages, a sign that more investors were participating as results and target price upgrades came in. This kind of trading activity often supports short‑term momentum and may attract additional traders looking for breakout opportunities.
Overall, the share performance shows that Ujjivan SFB’s stock is not just reacting to broader market trends but responding to company‑specific strengths this quarter.
Risks and Headwinds for Ujjivan SFB Shares
Despite the strong quarterly results, risks still exist. Ujjivan SFB has significant exposure to microfinance portfolios, which can be more sensitive to economic slowdowns or weaker repayment trends. If macroeconomic conditions deteriorate, collection efficiency could weaken, affecting profits.
Additionally, competition for deposits and loans from larger banks may put pressure on margins and growth rates over time. Small finance banks also face funding cost pressure if interest rates shift higher, which could compress net interest margins.
Finally, even though analysts raised price targets, valuations after the recent rally may be less attractive if earnings growth slows unexpectedly. Investors need to track future quarters for consistent performance.
Ujjivan SFB Q4 FY26 Outlook: Key Metrics to Track
The coming fourth quarter results of FY26 will be important. Key areas to track include loan growth trends, deposit growth, and whether net interest income expands further. Improvements in asset quality and reductions in credit costs will also be critical signals for continued strength.
Investors should also watch macroeconomic indicators and interest rate trends, as these can influence banking sector performance broadly. Target price revisions from brokers based on full‑year forecasts will offer another view of market expectations.
Final Words
Ujjivan SFB’s strong Q3 FY26 performance delivered a real reason for its shares to rise significantly. The combination of a sharp profit increase, record NII, improved asset quality, and raised analyst targets gave a fresh boost to its stock. While risks remain in the economic landscape and competitive banking environment, this quarter’s results mark a clear step forward for Ujjivan SFB, and they have reshaped investor expectations for the near future.
Frequently Asked Questions (FAQs)
Ujjivan SFB shares rose about 7% on January 23, 2026, after strong Q3 results. Analysts raised their price targets, and investors reacted positively to higher profits and loan growth.
In Q3 FY26, Ujjivan SFB reported a 71% profit rise and record net interest income. Loan growth and better asset quality helped push the stock to a new high.
After Q3 FY26, analysts raised Ujjivan SFB’s target prices to ₹73-₹80 per share, citing strong earnings, improved margins, and better asset quality as reasons for optimism.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
