Axis Bank shares took a hit on Friday, slipping 4% to ₹1,158 on the BSE after the bank posted a slight drop in standalone net profit for the March 2025 quarter. Despite some strong numbers elsewhere, investors reacted cautiously to the earnings release.
Axis Bank Q4 Snapshot: Mixed Signals Amid Positive Market Trends
The private lender reported a standalone net profit of ₹7,118 crore, slightly down from ₹7,130 crore a year earlier. Total income, however, rose 6% year-over-year to ₹38,022 crore, reflecting resilient market trends in the sector. Notably, net interest income (NII) grew 5.5% to ₹13,810.5 crore, with a sequential rise of 4 basis points in net interest margin (NIM) to 3.97%.
Core operating profit also saw a solid 11% jump, reaching ₹10,575 crore, backed by steady balance sheet expansion. Axis Bank’s asset quality improved too, with the gross non-performing asset (GNPA) ratio falling to 1.28%—a 15 basis point improvement YoY—and net NPA declining to 0.33%.
| Key Metrics | Q4 FY25 | YoY Change |
|---|---|---|
| Net Profit | ₹7,118 crore | -0.17% |
| Total Income | ₹38,022 crore | +6% |
| Net Interest Income | ₹13,810.5 crore | +5.5% |
| GNPA Ratio | 1.28% | -15 bps |
| CASA Ratio | 41% | +2% |
Brokerage Reactions: Optimism Amid Volatility
Meanwhile, top brokerages maintain a bullish stance. Nomura reaffirmed its “Buy” rating, setting a target price of ₹1,450, citing expectations of 12–13% CAGR in loan and deposit growth between FY25 and FY27. It views the current valuation at 1.7x FY26 book value as attractive, especially amid broader market trends favoring private sector banks.
Similarly, Nuvama raised its target price to ₹1,400, highlighting steady improvements in corporate credit quality and a robust bank rally. However, it cautioned that asset quality in personal loans may need more time to stabilize and flagged potential increases in credit costs under stricter asset classifications in FY26.
Market Outlook: Auto Stocks and Nifty Movements in Focus
As Axis Bank navigates these developments, investors are also keeping a close eye on broader Nifty movements and sector rotations, especially the performance of auto stocks and the ongoing bank rally. This dynamic environment will likely continue shaping sentiment toward private lenders in the coming quarters.