Axis Bank shares in focus after weak Q2 results: What’s next for investors

Axis Bank shares are to remain in focus in today’s session after a subdued Q2 performance. The margins for the key private sector bank have come in significantly lower compared to Q1FY26 and Q2 last fiscal. According to key brokerage house Nuvama, the miss was driven by RBI inspection-driven standard and one-time provision of Rs 120 crore on crop loans. Nuvama on Axis Bank: Retains Hold rating Nuvama Wealth Management has retained its ‘Hold’ call on Axis Bank and maintained its target price at Rs 1,180. The brokerage stated that the lender posted mixed Q2 FY26 results with a beat on loan growth and NIM. Loan growth of 5% QoQ was better than expected, but driven mostly by corporate, while retail lagged. While both core and technical slippage fell on a high base of Q1, credit cost stayed high at 1.3%, the highest among large banks. The miss was driven by RBI inspection-driven standard and one-time provision of Rs 120 crore on crop loans. “In view of the repeated volatility in credit cost and a weak loan mix, we recommend switching to ‘ICICI Bank’ for a more sustainable and less volatile business model and higher CASA growth,” said Nuvama. Axis Bank Q2FY26 results Axis Bank reported a drop of 26% year-over-year (YoY) in net profit, coming in at Rs 5,090 crore for the second quarter of the current financial year. In Q2 FY25, the bank posted a net profit of Rs 6,918 crore. The decline in net profit came as higher provisions for bad loans weighed on earnings. The bank’s net interest margins shrank 3.73% in Q2 FY26 from 3.8% in Q1 FY26 and 4% in the year-ago quarter. The dent in NIM came after the Reserve Bank of India cut key lending rates by 100 basis points in 2025. Also, the private lender’s provisions and contingencies rose 61% YoY to Rs 3,547 crore. Meanwhile, the lender’s total income increased by 1% YoY to Rs 37,595 crore in Q2FY26. The lender’s net interest income increased 2% YoY to Rs 13,745 crore. The bank’s gross NPA stood at 1.5% in Q2 FY26, compared to 1.57% in Q1 FY26, while the net NPA came in at 0.44% quarter-on-quarter, as against 0.45% in Q1 FY26. Axis Bank stock performance The share price of Axis Bank has fallen 1% in the last five trading sessions. The stock has risen over 6% in the past one month and 5.4% in the last six months. Axis Bank’s stock price has given a return of 1.6% in the past one year.