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27 Apr 2026
Axis Bank's board approved raising up to ₹20,000 crore via equity instruments and ₹35,000 crore through debt, along with a final dividend of ₹1 per share for FY26.
By Meghna Sen
Shares of Axis Bank Ltd. will be in focus on Monday, April 27, after the lender reported its March quarter results over the weekend, with brokerages maintaining a broadly constructive view despite a mixed performance.
The bank reported a profit after tax (PAT) of ₹7,071 crore, down marginally by 0.65% year-on-year, aided by a ₹2,193 crore tax write-back. This was largely offset by a ₹2,001 crore one-time standard asset provision.
Net interest income (NII) grew 5% YoY to ₹14,457 crore, while net interest margin (NIM) stood at 3.62%, remaining broadly stable sequentially but continuing a gradual declining trend over the past few quarters.
The bank's pre-provision operating profit (PPOP) came in below estimates, impacted by weak non-interest income and a trading loss of ₹606 crore compared to a profit last year.
Advances rose 19% YoY, led by the corporate segment, while deposits grew 14% YoY, with the CASA ratio at 40%.
Asset quality improved meaningfully, with gross non-performing assets (GNPA) declining to 1.23% and net non-performing assets (NNPA) to 0.37%. Slippages moderated and credit costs improved to 0.37%.
How brokerages reacted to Axis Bank Q4
Among brokerages, Nomura maintained a 'Buy' rating with a price target of ₹1,560, citing that lower credit costs helped offset a softer core performance.
The brokerage expects return on assets (RoA) of 1.6-1.7% and return on equity (RoE) of 14-15% over FY27-28, along with a strong earnings CAGR of 23%, making valuations at 1.4x FY28 price-to-book (P/B) appear attractive.
UBS also retained a 'Buy' rating and raised its price target to ₹1,620, highlighting steady earnings despite one-offs, improving loan growth, and stable margin guidance of around 3.8%.
It added that the stock's valuation at 1.7x FY27 price-to-book value (P/BV) offers a favourable risk-reward.
Kotak Institutional Equities maintained a 'Buy' with a target of ₹1,600, but flagged that operating profit declined 7% YoY due to higher one-off provisions.
The brokerage said that muted revenue growth and weak non-interest income offset strong loan growth, and added that a significant re-rating versus peers could limit further outperformance.
Bernstein maintained an 'Outperform' rating with a target of ₹1,600, citing strong loan growth and improving asset quality.
It said that while margin pressure and weaker fee income persisted, the pace of margin compression is moderating, and lower slippages and credit costs supported profitability.
The bank's board approved raising up to ₹20,000 crore via equity instruments and ₹35,000 crore through debt, along with a final dividend of ₹1 per share for FY26.
Management clarified that the additional provisioning was precautionary and does not reflect any underlying stress, while reiterating its medium-term NIM guidance of around 3.8%.
Axis Bank shares ended 0.55% lower on Friday at ₹1,362 and are up about 7% so far this year.
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