Shares of Axis Bank are in focus on Monday after the private lender reported its fourth quarter earnings for the financial year 2026 on Saturday. A slew of brokerages have come out with a positive outlook on the stock, citing stable core performance and strong internals.
Axis Bank's net profit for the March quarter rose 9% from the previous three months to Rs 7,071 crore, marginally above Rs 6,958 crore Bloomberg estimate.
The bottom line was down 0.6% from Rs 7,117 crore a year earlier. The lender said tax expense for the quarter was lower by Rs 2,193.2 crore after income-tax authorities allowed depreciation on intangible assets linked to the acquisition of Citi's India consumer business.
Axis Bank Q4 Results Key Highlights (Standalone, YoY)
Net interest income up 4.7% to Rs 14,457 crore versus Rs 13,811 crore (Bloomberg Estimate: Rs 14,727 crore).
Net interest margin at 3.62% versus 3.64% QoQ.
Profit down 0.6% to Rs 7,071 crore versus Rs 7,117 crore (Estimate: Rs 6,958 crore).
Gross NPA at 1.23% versus 1.40% QoQ (Estimate: 1.36%).
Net NPA at 0.37% versus 0.42% QoQ (Estimate: 0.35%).
Provisions at Rs 3,522 crore versus Rs 1,359 crore YoY.
In the wake of Axis Bank's earnings, both Kotak Securities and Jefferies have hiked target price on the counter whereas Morgan Stanley has maintained an overweight call.
Brokerages On Axis Bank
Kotak Securities on Axis Bank
- Maintain Buy; Hike TP to Rs 1600 from Rs 1500
- Stable core performance; provisions do not derail the thesis
- A few one-offs but internals look comfortable
- Growth accelerating across segments; NIM takes an impact
- Significant relative re‑rating versus peers has already occurred, making further outperformance materially harder to sustain
Morgan Stanley on Axis Bank
- Maintain Overweight with TP of Rs 1575
- Good risk-adjusted outcome
- Q4 gross and net slippages fell sharply
- Core PPOP missed estimates due to lower core fees and higher costs
- Balance sheet grew robustly and has been strengthened for macro risks
Jefferies on Axis Bank
- Maintain Buy; Hike TP to Rs 1700 from Rs 1660
- Q4: Slight Miss, but Core Trends Are Improving; Stays Among Top Picks
- Loan growth pick-up led by corporate; disbursement uptick to lift retail growth
- Deposit moderates slightly; Asset quality continues to improve
- Raise estimates and see valuations attractive
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