Axis Bank reported a 23% year-on-year increase in standalone net profit to ₹7,114 crore for the quarter ended June 30, 2026. The profit growth was driven by a rise in total income to ₹40,721 crore and a significant decline in provisions and contingencies. The bank's asset quality improved on a year-on-year basis, with Net NPAs decreasing to 0.39% from 0.45% in the same quarter of the previous year. Deposits grew 18% YoY, while advances increased 19% YoY, reinforcing the bank's position as the third-largest private sector bank in India.

Analyst Ratings and Views

Following the quarterly results, leading global brokerages maintained their bullish stance on Axis Bank. Bernstein maintained an Outperform rating with a target price of ₹1,600, noting that Q1 delivered strong corporate-led balance sheet and net interest income (NII) growth. However, the brokerage flagged that NIM compressed 16 bps and weaker non-interest income weighed on operations. Bernstein added that disciplined costs, lower credit costs, and 23% YoY earnings growth offset a marginal deterioration in asset quality.

Jefferies maintained a Buy rating with a target price of ₹1,700, citing that Q1 profit after tax (PAT) beat estimates on the back of higher NII, lower credit costs, and controlled operating expenses. The brokerage highlighted 19% loan growth and strong asset quality as key positives, with improving retail deposit and fee growth expected to support earnings despite temporary NIM pressure. Jefferies also upgraded its FY27 EPS estimate by 2%.

Financial Performance

The bank's net interest income rose 8% YoY to ₹14,646 crore, while other income stood at ₹6,735 crore. Operating profit for the quarter was recorded at ₹11,659 crore. Provisions and contingencies (excluding tax) were significantly lower at ₹2,223 crore compared to ₹3,948 crore in the corresponding quarter of the previous year. The bank's Net Interest Margin (NIM) stood at 3.46% for the quarter. The following table summarises the key standalone financial metrics:

Asset Quality and Ratios

Asset quality metrics reflected a mixed picture — improving on a year-on-year basis but showing a marginal sequential uptick. Gross NPAs stood at 1.28%, down from 1.57% in Q1FY26 on a YoY basis, but higher than 1.23% in the previous quarter on a QoQ basis. Similarly, Net NPAs improved to 0.39% from 0.45% a year ago, though slightly above 0.37% recorded in the prior quarter. The Capital Adequacy Ratio (Basel III) was reported at 16.67% as of June 30, 2026, and the bank's Return on Assets (annualized) was 1.51%.

Segmental Performance

Retail Banking continued to be a major revenue driver, contributing significantly to segment results. Digital Banking, a sub-segment of Retail Banking, reported revenue of ₹10,627 crore. The Corporate/Wholesale Banking segment and Treasury segment also posted positive results for the quarter. The bank maintained a market share of ~38% in the UPI Payer PSP space and ~13.4% in credit cards in force.

Key Developments

During the quarter, the bank infused equity capital of ₹1,499.26 crores in Axis Finance Limited and invested ₹380.60 crores in Axis Max Life Insurance Limited. Additionally, Axis Finance Limited issued and allotted fresh equity shares on a preferential basis to Kedaara Pearl Holding and Kedaara Capital Fund IV AIF for a total cash consideration of ₹750 crores, diluting the bank's stake to 94.92%.

Consolidated Results

On a consolidated basis, Axis Bank reported a net profit of ₹7,632.31 crore for the quarter ended June 30, 2026, compared to ₹6,243.72 crore in the same period last year. Total consolidated income stood at ₹43,212.82 crore. The unaudited financial results were approved by the Board of Directors at its meeting held on July 18, 2026, and were subjected to a limited review by joint statutory auditors M M Nissim & Co LLP and KKC & Associates LLP.

Earnings Call Disclosure

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank conducted an earnings call with analysts and investors on July 18, 2026, to discuss the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The audio recording of the call is available on the Bank's website.

Axis Bank has appointed Rajeev Mantri as its Chief Financial Officer (CFO) and Key Managerial Personnel, effective September 28, 2026. The decision was taken by the Board of Directors at its meeting held on July 18, 2026, based on the recommendations of the Nomination and Remuneration Committee and the Audit Committee. Mantri will be part of the Senior Management of the Bank.

The appointment follows the resignation of Puneet Sharma from the position of CFO and Key Managerial Personnel. Mantri satisfies the qualifications and conditions prescribed under the Reserve Bank of India (Commercial Banks - Governance) Directions, 2025, for the role of CFO.

Rajeev Mantri, aged 49 years, is a seasoned financial services leader with nearly three decades of experience across banking, financial services, credit information, consumer goods, and international financial institutions. Prior to this role, he served as the Executive President and Chief Financial Officer at Bandhan Bank, leading a team of over 150 members spanning financial planning, accounting, controls, reporting, and investor relations.

His career includes tenures at leading global and Indian banks such as Citibank, Standard Chartered, and Mashreq across India, Singapore, and the UAE. Mantri is a Chartered Accountant from ICAI India and holds a Global Executive MBA from INSEAD Business School, Singapore.

The Board meeting commenced at 9.00 am IST and concluded at 3:55 pm IST. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.