Axis Bank Ltd. share price target

We value Axis bank on an SOTP basis at INR 1556, comprising the core bank at 1.7x FY28 adjusted book value of INR 843(INR 1433 / share) plus INR 123 for the subsidiaries. With a CMP of INR 1310 and a target price of INR 1556, we arrive at an upside of 19%.

Asset quality improved both q/q & y/y with gross/net slippages declining to 1.63%/0.69% closing the gap with peers on this metric. Loan growth accelerated to 18.5% y/y (vs 14.2% in Q3), ~250bps ahead of system and peers (Kotak/ICICI/HDFC).

Axis Bank reported a strong quarter with advances growing 19% YoY and 6% QoQ, while deposits grew 14% YoY and CASA improved to 40% on MEB basis. NIM moderated to 3.62% (FY26 NIM at 3.69%) reflecting rate cut transmission; management reiterated through-the-cycle NIM guidance of 3.8% to be achieved within 15-18 months from the last rate cut. Asset quality strengthened with GNPA improving 17 bps QoQ to 1.23% and Net NPA at 0.37%. The bank proactively created a one-time voluntary provision of Rs 2,001 cr which is calibrated against a severe stress scenario including oil at $150/bbl neutralised by a Rs 2,193 cr tax...

Retail and SME comprise ~66% of total loans Q4FY26 performance: Axis Bank reported a steady operating performance in Q4FY26, with advances growing ~18.5% YoY (6.4% QoQ) led by strong traction in corporate and SME segments, while retail growth remained relatively moderate but supported by improving disbursement. Deposits increased ~14% YoY (6% QoQ), aided by term deposits and CASA accretion. NIMs remained broadly stable at 3.62%, while other income was impacted by treasury MTM losses, opex remained controlled with cost-to-asset at ~2.3%. Asset quality improved with GNPA/NNPA...

Mixed quarter; NII/opex miss was offset by fees/provisions Targeted retail share is 70% (66.5% as of Mar'26) We trim core PAT for FY27/28E by avg. 2% AXSB saw a mixed quarter as better fees and asset quality was offset by miss on NII and opex. NII growth at 1.2% QoQ was lower to loan growth of 6.4% led by back-ended corporate accretion. Due to tax benefit of INR 21.9bn, buffer provisions of INR 20bn...

Axis Bank (AXSB) reported a 4QFY26 net profit of INR70.7b (flat YoY, up 9% QoQ; in line), as the bank utilized one-off gains from tax reversals to strengthen its standard asset provisioning buffer.

PAT higher than our estimates, mainly supported by tax reversals. Return ratios and AQ improving on lower slippages

Update Note

PPoP in line with estimates; return ratios and asset quality improving

Axis Bank (AXSB) reported 3QFY26 net profit of INR64.9b (up 28% QoQ, 11% beat), aided by lower provisions and controlled opex.

Axis Bank reported a healthy Q3FY26 performance, with operating metrics reflecting steady execution despite a softer interest rate environment. Net interest income grew 5% YoY to Rs14,287 crore, supported by balance sheet expansion and stable margins. Core pre-provision operating profit increased 7% YoY to Rs10,815 crore, aided by healthy fee income growth and controlled operating costs. Profit after tax rose 3% YoY to Rs6,490 crore, with a strong 28% QoQ improvement driven by operating leverage and stable credit costs. We...

Retail and SME comprise ~69% of total loans Q3FY26 performance: Axis Bank reported healthy business momentum though margin pressure persisted in Q3FY26. Advances grew 14% YoY (4% QoQ), led by continued traction in SME and mid-corporate segments, while retail portfolio remained benign in single digit. Deposits recorded robust growth of 15% YoY (5% QoQ), led by healthy CASA inflows, with CASA ratio sustained at 39%. NIM for Q3FY26 was 3.64%, down 9 bps QoQ, reflecting continued transmission of rate cuts. Core operating profit rose 7% YoY (9% QoQ), driven by strong fee income growth...

We sense a strategic shift in Axis Bank (Axis)’s playbook, basis our meeting with Mr Amitabh Chaudhry (MD&CEO), Mr Subrat Mohanty (ED), Mr Puneet Sharma (CFO) and Mr Rahul Jain (Head-IR).

The management said that NIM is expected to bottom out by Q3FY26, assuming there are no further rate cuts and the balance sheet mix improves. businesses. The management guided that margin is likely to bottom out in the coming quarters as anticipated repo rate cuts exert near-term yield pressure. The bank is focused execution excellence, expanding its distribution network across 2,740 branches and accelerating digital transformation through pioneering agentic AI-powered payment solution for UPI and multiple CBDC initiatives. Company's management is focused on its GPS strategy for building a resilient franchise....

Axis Bank (Axis) reported a mixed set of numbers with better-than-expected top line (strong growth and contained NIM pressure), though PAT at INR 50.9bn missed our estimates due to elevated provisioning (including a one-time standard asset charge).

Axis Bank’s core profitability remains solid despite transient headwinds from regulatory provisioning and PSLC costs. We expect NIMs to stabilize and credit costs to normalize in H2 FY26, supporting a rebound in RoA/RoE.

Retail and SME comprise ~69% of total loans Q2FY26 performance: Axis Bank reported improvement in growth and asset quality trend in Q2FY26, however, one-time regulatory provision impacted earnings momentum. Advances rose 12% YoY (5% QoQ) to 11.1 lakh crore, led by strong SME and mid-corporate growth, while deposits increased 11% YoY (4% QoQ) to 12.1 lakh crore. NIM contracted 7 bps QoQ to 3.73%, though the decline was less than expected due to proactive repricing of term deposits. Asset quality improved, with GNPA/NNPA at 1.46%/0.44%, while net slippages declined 54% QoQ to 2,808...

Axis Bank (AXSB) reported 2QFY26 net profit of INR50.9b (26% YoY decline, 8% miss) amid higher provisions. NII grew 1.4% QoQ (up 2% YoY) to INR137.4b (4% beat). NIMs contracted 7bp QoQ to 3.73%, aided by 4bp growth from interest reversals.

In Q1FY26, Axis Bank’s Net Interest Income (NII) grew by 0.8% YoY (-1.8% QoQ) to INR 135,598 Mn., in-line with our estimates. The NIM declined by 17bps sequentially to 3.80%, (-25bps YoY).