- Axis Bank's Q1FY27 net profit rose 23% YoY to Rs 7,114 crore, beating estimates
- Net interest income increased 8% YoY to Rs 14,646 crore but missed projections
- Pre-provision operating profit grew 1% YoY to Rs 11,659 crore and 16% QoQ
Axis Bank reported a 23% YoY increase in net profit to Rs 7,114 crore for Q1FY27 Result as compared to Rs 5,806 crore in the corresponding period last year. On a sequential basis, profit rose 1%.
Net interest income increased 8% year-on-year to Rs 14,646 crore from Rs 13,560 crore and was up 1% quarter-on-quarter. The pre-provision operating profit rose marginally by 1% year-on-year to Rs 11,659 crore, compared with Rs 11,515 crore a year ago. PPOP increased 16% sequentially.
Provisions declined sharply by 44% year-on-year to Rs 2,223 crore from Rs 3,948 crore. Provisions were also 37% lower compared with the previous quarter. Other income fell 7% year-on-year to Rs 6,735 crore from Rs 7,258 crore, although it increased 12% sequentially.
The operating expenses rose 5% year-on-year to Rs 9,722 crore from Rs 9,303 crore but declined 7% on a quarter-on-quarter basis.
The bank's asset quality weakened marginally during the quarter. The gross non-performing asset ratio increased by 5 basis points sequentially to 1.28% from 1.23%, while the net NPA ratio rose by 2 basis points to 0.39% from 0.37%.
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Axis Bank Q1 Results - Standalone, YoY
- Net profit up 23% at Rs 7,114 crore vs Rs 5,806 crore
- Net interest income up 8% at Rs 14,646 crore vs Rs 13,560 crore
- Pre-provision operating profit up 1% at Rs 11,659 crore vs Rs 11,515 crore
- Provisions down 44% at Rs 2,223 crore vs Rs 3,948 crore
Asset Quality - QoQ
- Gross NPA at 1.28% vs 1.23%
- Net NPA at 0.39% vs 0.37%
Axis Bank Q1 Profit Beats Estimates
Axis Bank reported a net profit of Rs 7,114 crore for the first quarter, exceeding the Bloomberg estimate of Rs 7,027 crore. Profit was around 1% higher than expectations.
Asset quality also came in better than projected. The bank's gross non-performing asset ratio stood at 1.28%, compared with the estimate of 1.37%. Net NPA was reported at 0.39%, marginally better than the forecast of 0.40%. Operating profit came in largely in line with expectations at Rs 11,659 crore, against the Bloomberg estimate of Rs 11,681 crore.
However, net interest income missed projections. NII stood at Rs 14,646 crore, compared with the estimated Rs 15,147 crore, a shortfall of Rs 501 crore or about 3.3%.
Provisions declined sharply to Rs 2,223 crore from Rs 3,522 crore in the previous quarter. They were also lower than the Rs 3,948 crore reported in the corresponding quarter last year.
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