In , Axis Bank Ltd (Banks - Private) is outperforming Nifty 500 with +5.1% relative strength. Fundamentals: Weak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Net Credit Cost: 0.76%
Impact: 4 bps improvement
“Net credit cost at 0.76%, down 4 bps YOY... Retail asset quality stabilizing as evidenced by: Credit card portfolio has seen a YOY improvement.”
What: Deposit Growth: 15% YoY
Impact: Outpaced credit growth
“In Q3, our deposits have outpaced the credit growth. Year-on-Year on MEB and QAB basis, total deposits grew 15% and 12%.”
What: Cost to Assets: 2.33%
Impact: 15 bps YOY improvement
“We had positive operating jaws both for the quarter as well as year-to-date, with our cost to assets at 2.33%, a 15 bps YOY improvement.”
What: Burgundy AUM Growth: 8% YoY
“Premiumisation across the franchise is progressing well... reflected in the 7% QoQ and 8% YoY growth in Burgundy AUMs.”
What: Corporate Salary Growth: 18% YoY
“ETB Salary book now growing at 18% YoY... delivering large part of our asset growth by deepening the relationship with our existing customers.”
What: Deposit Growth at 15% YoY
“Our Deposits growth momentum continued with month-end balances growing 5% QoQ and 15% YoY... outpaced the credit growth.”
Earnings deceleration risks from management commentary
Trigger: The 25 bps repo rate cut in December 2025 will fully play through loan yields in Q4FY26.
Impact: PAT impact: 9 bps NIM compression
Management view: Focusing on NII optimization and rebalancing portfolio proportionality.
Monitor: regulatory
Trigger: Ongoing prudent internal policy to provision for the implementation of the Code on Social Security.
Impact: PAT impact: ₹25 Cr charge in Q3
Management view: Cumulative provision of ₹434 crores held as of December 31, 2025.
Monitor: labor
Trigger: Geopolitical events make it difficult for macroeconomic factors to stabilize quickly.
Management view: Monitoring the situation; hoping for stabilization in 15-18 months.
Monitor: geopolitical
Key quotes from recent conference calls
“In Q1, we had mentioned and reiterated our aspiration in the medium term to grow about 300 basis points above market. [Previous Credit Growth guidance]”
“for our franchise, we should see margins bottom up out in Q3. But please do note that this is subject to no incremental rate cuts. [Previous NIM Trajectory guidance]”
“Neo for Corporates is fast emerging as the digital backbone of our Corporate Banking franchise, transforming how clients engage with us. [Initiative: Neo for Corporates]”
“Full quarter impact of the 25 bps repo rate cut in December 2025 will play through loan yields in Q4FY26. [Risk (regulatory): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹14,287 Cr
Why: Growth was driven by resilient net interest income and healthy momentum in fee income despite a 25 bps repo rate cut.
NII growth remained steady despite the impact of the December 2025 repo rate cut.
EBITDA
₹10,815 Cr
Why: Core operating profit growth was aided by positive operating jaws and a 3% QoQ degrowth in expenses.
The bank delivered positive operating jaws with core operating profit outpacing revenue growth.
PAT
₹6,490 Cr
Why: PAT growth was significantly boosted by the absence of the one-time ₹1,231 crore standard asset provision taken in Q2.
The sharp QoQ jump reflects the normalization of credit costs after the previous quarter's large regulatory provision.
Other Highlights
• Crossed the milestone of 6,000 branches.
• CASA delivered strong growth of 3% QoQ and 14% YoY.
• Consolidated ROE improved by 264 bps QoQ to 14.15%.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin
3.64%
Why: Impacted by the 25 bps repo rate cut and a mix shift toward wholesale loans.
Gross NPA Ratio
1.40%
Why: Reflects ongoing improvement in portfolio behavior and stabilization in retail assets.
Net NPA Ratio
0.42%
Why: Stable asset quality with marginal improvement.
CASA Ratio (QAB)
37%
Why: Decline in QAB CASA was partially offset by rate benefits across parts of the liability stack.
Provision Coverage Ratio
70%
Why: Maintained at healthy levels as per internal policy.
CET 1 Ratio
14.50%
Why: Net accretion of capital during the quarter from profits.
Net Credit Cost
0.76%
Why: Stabilization in retail unsecured products and cards.
Gross Slippage Ratio
Not Given
Why: Meaningful reduction in gross slippage numbers, particularly in technical impacts.
Forward-looking targets from management for Through-cycle
Revenue Growth Target
3.8%
OPM Guidance
3.8%
3.80%
NIM optimization through the year
Growth above industry average
Guidance Changes
NIM Target: Bottom out in Q3 → 3.8% through-cycle
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +15% | Stable |
| PAT (Net Profit) | +2% | +34% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Axis Bank Ltd's latest quarterly results (Mar 2026) show
Axis Bank Ltd's profit is growing with an turning around (inflection up) trend.
Axis Bank Ltd's revenue growth trend is stable.
Axis Bank Ltd's asset quality trend is stable.
Axis Bank Ltd's long-term compounding rates
Axis Bank Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
Axis Bank Ltd's trailing twelve month (TTM) performance
Axis Bank Ltd appears overvalued based on our fair value analysis.
Axis Bank Ltd's current PE ratio is 16.2x.
Axis Bank Ltd's current PE is 16.2x.
Axis Bank Ltd's price-to-book ratio is 2.0x.
Axis Bank Ltd is rated Weak with a fundamental score of 20.94/100. This score is calculated from objective financial metrics
Axis Bank Ltd has a debt-to-equity ratio of N/A.
Axis Bank Ltd's return ratios over recent years
Axis Bank Ltd's operating cash flow is negative (FY2026).
Axis Bank Ltd's current dividend yield is 0.07%.
Axis Bank Ltd's shareholding pattern (Mar 2026)
Axis Bank Ltd's promoter holding has decreased recently.
Axis Bank Ltd has been outperforming Nifty 500 for 2 consecutive weeks, indicating early-stage outperformance.
Axis Bank Ltd is an established outperformer with 2 weeks of consecutive Nifty 500 outperformance.
Axis Bank Ltd has 6 key growth catalysts identified from recent earnings analysis
Axis Bank Ltd has 3 key risks worth monitoring
In Q3 FY26, Axis Bank Ltd's management highlighted
Axis Bank Ltd's management has provided the following forward guidance for Through-cycle
Axis Bank Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Axis Bank Ltd may be worth studying
Axis Bank Ltd investment thesis summary:
Axis Bank Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
