Union Bank Q3 FY26 Results: Profit Rises 9.7%

Union Bank of India announced its Q3 FY26 results on 14th January 2026, reporting a moderate yet stable financial performance. During the December 2025 quarter, the bank posted year-on-year profit growth of 9.73%, while revenue increased by 2.3% YoY, reflecting steady core banking operations amid a challenging macro and interest rate environment.

Union Bank of India reported a Q3 FY26 consolidated Profit After Tax (PAT) of ₹5,072.69 crore and revenue of ₹32,001.92 crore, supported by controlled costs, stable margins, and improvement in asset quality on the standalone side.

This article provides a detailed analysis of Union Bank of India’s Q3 FY26 results, including consolidated and standalone financials, asset quality trends, share price performance, and analysts’ outlook.

Union Bank of India Q3 FY26: Financial Snapshot

For the quarter ended 31st December 2025, Union Bank of India delivered the following key numbers:

• Consolidated Revenue: ₹32,001.92 crore

• Consolidated PAT: ₹5,072.69 crore

• Standalone PAT: ₹5,016.77 crore

• Standalone Net NPAs: ₹5,102.15 crore

The results indicate consistent profitability and improving asset quality, which are crucial metrics for banking sector investors.

Union Bank of India Q3 Results FY26: Consolidated vs Standalone

Extract of Q3 FY26 and Q3 FY25 Financials

Q3 FY26 vs Q3 FY25: Key Highlights

Consolidated Performance

• Revenue Growth:
  Union Bank of India clocked ₹32,001.92 crore in consolidated revenue in Q3 FY26 compared to ₹31,334.80 crore in Q3 FY25.

• Profit Growth:
  Consolidated PAT rose to ₹5,072.69 crore, up from ₹4,623.03 crore a year ago.

• YoY Growth Rates:

  • Revenue growth: ~2%

  • PAT growth: ~9%

This reflects steady income generation despite pressure on margins across the banking sector.

Standalone Performance

• Standalone Revenue:
  ₹30,984.46 crore in Q3 FY26 versus ₹30,960.13 crore in Q3 FY25.

• Standalone PAT:
  ₹5,016.77 crore in Q3 FY26 versus ₹4,603.63 crore in Q3 FY25.

• YoY Growth:

  • Revenue: ~0.08%

  • PAT: ~8.97%

The standalone results underline the bank’s core operational stability, with profit growth driven more by efficiency and asset quality improvement rather than aggressive balance sheet expansion.

Asset Quality: A Key Positive

One of the most notable improvements in Q3 FY26 is on the asset quality front:

• Standalone Net NPAs reduced to ₹5,102.15 crore

• Net NPAs in Q3 FY25: ₹7,568.36 crore

The sharp reduction in net NPAs reflects better recovery, lower slippages, and disciplined credit monitoring. Improving asset quality strengthens the bank’s balance sheet and supports sustainable profitability in the long run.

What Supported Union Bank of India’s Q3 FY26 Performance?

Key drivers behind the Q3 FY26 performance include:

1. Stable Interest Income:
   Despite a modest rise in revenue, core interest income remained resilient.

2. Improved Asset Quality:
   Declining net NPAs reduced credit costs and supported net profits.

3. Cost Control:
   Operational efficiency helped protect profitability in a low-growth environment.

4. Balanced Loan Growth:
   The bank maintained a cautious approach toward credit expansion, prioritizing asset quality.

Union Bank of India Share Price Performance

Recent Stock Movement

On the opening bell of 15th January 2026, Union Bank of India shares opened at ₹166.19 per share. After witnessing intraday volatility, the stock moved higher and is currently trading around ₹179.00 per share, comfortably above its opening level.

Returns Across Timeframes

• 6-month return: ~22.41%

• 1-year return: ~68.72%

• Long-term return: ~1,066.12%

The strong long-term returns highlight the bank’s turnaround over the years and renewed investor confidence in PSU banking stocks.

Market Reaction to Q3 FY26 Results

The market reaction to Union Bank of India’s Q3 FY26 results has been cautiously positive. While revenue growth remained muted, investors welcomed:

• Consistent profit growth

• Improvement in asset quality

• Stability in core banking operations

These factors are particularly important in a period of tightening liquidity and margin normalization across the banking sector.

Analysts’ Expectations After Q3 FY26 Results

Following the Q3 FY26 performance, analysts expect Union Bank of India’s share price to trend upward over the medium term:

• Bullish Target (1 year): ₹264.80 per share

• Downside Scenario: ₹159.30 per share

Analysts believe that continued improvement in asset quality, stable credit growth, and controlled costs could support valuation re-rating. However, they also caution that interest rate movements and macroeconomic factors remain key variables.

Risks to Consider

While Union Bank of India’s fundamentals have improved, investors should remain mindful of the following risks:

• Interest Rate Volatility: Can impact net interest margins

• Slower Credit Growth: May limit revenue expansion

• Macroeconomic Uncertainty: Could affect asset quality

• PSU Banking Risks: Policy and regulatory changes may influence performance

Long-Term Outlook

Union Bank of India’s Q3 FY26 results reaffirm its position as a stable and steadily improving PSU bank. The focus on asset quality, profitability consistency, and capital discipline positions the bank well for sustainable long-term growth.

For long-term investors with a moderate risk appetite, Union Bank of India remains a fundamentally stronger PSU banking play, especially if asset quality improvements continue over the coming quarters.

Conclusion

Union Bank of India delivered a solid Q3 FY26 performance, with PAT growth of nearly 10% YoY and stable revenue. While topline growth was modest, improving asset quality and consistent profitability provide comfort to investors.

As always, banking stocks are sensitive to economic cycles and interest rate movements. Investors should evaluate their risk profile and investment horizon carefully before taking exposure.

Disclaimer:
Investment in the stock market is subject to risk. This article is for informational purposes only and does not constitute investment advice. Please conduct your own research or consult a qualified financial advisor before investing in shares or other securities.

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