Axis Bank Misses Profit Estimate In Q1 Despite Strong Revenue; Asset Quality Stable

Image Source : CNBC TV18

Axis Bank Ltd reported its financial results for the first quarter of FY26, showing mixed performance across key metrics. While revenue exceeded expectations, net profit fell short of analyst estimates due to elevated provisions and credit costs.

Financial Highlights For Q1 FY26

- Consolidated net profit stood at ₹58.06 billion, below the IBES estimate of ₹63.73 billion
- Revenue from operations reached ₹221.35 billion, slightly above the expected ₹220.59 billion
- Provisions and contingencies rose to ₹39.48 billion, reflecting a cautious stance on asset quality
- Gross non-performing assets (GNPA) ratio was reported at 1.57 percent, showing marginal deterioration from the previous quarter

Dividend And Shareholder Update

- Axis Bank announced an interim dividend of ₹5 per share for FY26
- The record date and payment schedule will be disclosed in the upcoming board communication
- The bank maintains a healthy capital adequacy ratio and continues to prioritize shareholder returns

Strategic Outlook And Market Reaction

- The bank’s net interest income grew 12 percent year-on-year, supported by steady loan growth
- Analysts noted that higher provisioning and credit costs impacted bottom-line performance
- Asset quality remains broadly stable, though retail slippages and unsecured loan stress are being monitored
- Shares of Axis Bank traded lower post-results as brokerages revised earnings estimates and target prices

Sources: CNBC TV18, Mint, Financial Express, Moneycontrol, Investing.com, NDTV Profit