Brokerages struck a cautiously optimistic tone on Axis Bank following its Q4 FY26 results, highlighting improving asset quality and healthy loan growth even as profitability and margins remained under pressure. While the March‑quarter numbers showed a marginal year‑on‑year dip in net profit to Rs 7,071 crore and some softness in core operating performance, analysts largely retained their Buy or Neutral ratings, citing a stronger balance sheet, lower credit costs, and stable earnings outlook. Target prices were revised upward with brokerages flagging sustained loan and deposit momentum, stable NIMs, and improving return ratios as key drivers for upside over the medium to long term.
Axis Bank reported a standalone net profit of Rs 7,071 crore for the March quarter of FY26, slightly lower than Rs 7,118 crore a year earlier, marking a marginal decline of 0.64 per cent. The private sector lender’s interest income rose 4.7 per cent year-on-year to Rs 32,724 crore in Q4FY26, compared with Rs 31,243 crore in the same period last year.
The lender reported interest expenses of Rs 18,267 crore in the quarter under review, up 4.7 per cent year-on-year from Rs 17,432 crore in Q4FY25. The bank’s Board of Directors has recommended a dividend of Rs 1 per share for the financial year ended March 31, 2026, subject to shareholders’ approval at the upcoming Annual General Meeting.
The bank reported Net Interest Income (NII) of Rs 14,457 crore for Q4FY26, marking a 5 per cent year-on-year increase, while its Net Interest Margin (NIM) stood at 3.62 per cent for the quarter. Axis Bank reported an operating profit of Rs 10,013 crore for the quarter, while core operating profit came in at Rs 10,619 crore, according to its regulatory filing. Operating expenses rose 6 per cent year-on-year in Q4FY26. Meanwhile, profit after tax (PAT) increased 9 per cent sequentially from Rs 6,490 crore in Q3FY26.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
