Axis Bank Posts Rs 5,806 Crore Profit In Q1 FY26, Down 4% YoY

Axis Bank reported a 4 per cent year-on-year decline in standalone net profit for the first quarter ended June 30, 2025, impacted by a slight deterioration in asset quality. The private lender posted a net profit of Rs 5,806 crore in Q1FY26, compared to Rs 6,035 crore in the corresponding quarter of the previous fiscal.

Despite the dip in profitability, the bank witnessed a healthy rise in total income. During the April–June period, total income climbed to Rs 38,322 crore, up from Rs 35,844 crore in the year-ago quarter. Interest earned for the quarter stood at Rs 31,064 crore, compared to Rs 30,061 crore during the same period last year, reflecting steady lending and investment returns.

Operating Profit Rises

Axis Bank’s operational performance remained strong, with operating profit increasing to Rs 11,515 crore in Q1FY26 from Rs 10,106 crore a year earlier. However, the higher operating profit was offset by a sharp increase in provisions and contingencies.

Also Read: Gold Rate Today (July 16): Check Out Gold Prices In Delhi, Mumbai, Bengaluru, Ahmedabad, More Cities

Asset Quality Weakens Marginally

The bank’s asset quality showed mild stress. Gross non-performing assets (GNPA) edged up to 1.57 per cent of gross advances at the end of the June quarter, compared to 1.54 per cent in the year-ago period. Net NPAs also saw an uptick, rising to 0.45 per cent from 0.34 per cent last year.

As a result of this deterioration, provisions and contingencies for the quarter nearly doubled to Rs 3,948 crore from Rs 2,039 crore in Q1FY25.

Capital Position Improves

Axis Bank’s capital adequacy ratio, a key measure of financial stability, improved slightly to 16.85 per cent as of June 2025, compared to 16.65 per cent in the same quarter of the previous fiscal.

Meanwhile, Motilal Oswal Financial Services has maintained a 'Neutral' rating on Axis Bank, with a target price of Rs 1,300 per share. The brokerage noted that the stock has lagged behind major private sector peers, largely due to subdued growth, higher credit costs, and a weakening return on equity (RoE). It added that Axis Bank is recalibrating its focus towards secured and higher-yielding loan segments, while adopting a cautious approach to unsecured retail lending. The bank also aims to grow at a compound annual rate approximately 3% higher than the overall system in the coming years.

business