In Week of Mar 28, 2026, Axis Bank Ltd (Banks - Private) is outperforming Nifty 500 with +9.7% relative strength. Fundamentals: Strong.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (December 2025) earnings • Updated Feb 22, 2026
What: Full quarter impact of December 2025 repo rate cut (25 bps) flows through in Q4 FY26 as loan yields reprice
Impact: +₹500 Cr revenue
“Full quarter impact of the 25 basis points repo rate cut in December 2025 will play through loan yields in Q4 FY 2026 as we transmit repo rate changes at the end of the quarter in which the rate cut has been announced.”
What: Net credit cost halved from Q1 to Q3 FY26 (1.38% to 0.76%) with slippages down 84% YoY
Impact: +₹1000 Cr revenue
“If you look at our net credit cost reported for Q1FY26, we were 1.38%. We are roughly half that net credit cost at Q3 FY26 at 0.76%.”
What: NTB growth accelerating with premiumized new customer acquisition and deepening ETB relationships
Impact: +₹400 Cr revenue
“We've been telling you that NTB growth has been encouraging for us. We've been premiumizing our new acquisition.”
Earnings deceleration risks from management commentary
Trigger: If wholesale mix continues to increase beyond 35% of total advances
Impact: -8 bps margin impact
Management view: We had clearly called out at the start of Q1 that for the current fiscal, we would look to optimize net interest income because that flows through PAT and has a positive impact on ROE.
Monitor: Wholesale loan growth rate vs retail growth rate
Trigger: If seasonal agricultural slippages exceed historical patterns
Impact: -5 bps margin impact
Management view: The reason Q3FY26 is higher than Q2FY26 is simply because we have seasonality in the Agri portfolio.
Monitor: Q4 slippages vs Q3 slippages
Key quotes from recent conference calls
“Net interest margin for Q3 was 3.64%, down 9 basis points QoQ. Full quarter impact of the 25 basis points repo rate cut in December 2025 will play through loan yields in Q4 FY 2026 as we transmit repo rate changes at the end of the quarter in which the rate cut has been announced. — Management”
“From INR 2,850 crores net slippage in Q1FY26, we are down to INR 450 crores in Q3FY26. The reason Q3FY26 is higher than Q2FY26 is simply because we have seasonality in the Agri portfolio. — Puneet Sharma, CFO”
“We had clearly called out at the start of Q1 that for the current fiscal, we would look to optimize net interest income because that flows through PAT and has a positive impact on ROE. That's exactly what you've seen. We found the right risk-adjusted opportunities to grow in the wholesale business. — Puneet Sharma, CFO”
“The bank's CET1, including nine-month FY 2026 profit, stands at 14.50%. We net accreted 7 basis points of CET1 in the quarter. We may opportunistically evaluate raising tier two and AT1 instruments since our current AT1 outstanding is due for call in 2026, based on market conditions. — Management”
Forward-looking targets from management for FY26
Implied PAT Growth
15%
Credit Growth Target
12%
NIM Guidance
3.75%
Key Milestones
• NIM expansion in Q4 from rate cut transmission
• Continued credit cost normalization through H1 FY27
• Rebalancing portfolio toward retail as indicated
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +23% | Stable |
| PAT (Net Profit) | +4% | +26% | Inflection Up |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Axis Bank Ltd's latest quarterly results (Dec 2025) 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 improving on a sequential basis.
Axis Bank Ltd's trailing twelve month (TTM) performance
Axis Bank Ltd appears undervalued based on our fair value analysis.
Axis Bank Ltd's current PE ratio is 14.3x.
Axis Bank Ltd's current PE is 14.3x.
Axis Bank Ltd's price-to-book ratio is 1.8x.
Axis Bank Ltd is rated Strong with a fundamental score of 68.68/100. 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 positive (FY2025).
Axis Bank Ltd's current dividend yield is 0.08%.
Axis Bank Ltd's shareholding pattern (Dec 2025)
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 a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Axis Bank Ltd has 3 key growth catalysts identified from recent earnings analysis
Axis Bank Ltd has 2 key risks worth monitoring
In Q3 FY26 (December 2025), Axis Bank Ltd's management highlighted
Axis Bank Ltd's management has provided the following forward guidance for FY26
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.
