Axis Bank shares saw a 4 percent increase on Thursday despite the private lender reporting a 26 percent year-on-year decline in net profit for the September quarter. Analysts noted that brokerages remained optimistic about the stock, attributing this to the bank’s operating performance and stable asset quality.
The lender’s net profit fell to ₹5,090 crore for Q2FY26, while net interest income experienced a modest rise of 2 percent to ₹13,745 crore. Despite the earnings shortfall, analysts largely maintained positive ratings on Axis Bank based on its robust fundamentals and stable asset metrics.
Global brokerage CLSA issued an outperform rating with a target price of ₹1,400, affirming confidence in Axis Bank’s ability to weather short-term pressures. HSBC also retained its buy rating but raised its target to ₹1,460, while Emkay Global echoed this sentiment with a ₹1,400 target.
Nomura and Jefferies maintained their buy recommendations, with target prices set at ₹1,440 and ₹1,430, respectively. Conversely, Motilal Oswal provided a neutral rating with a revised target price of ₹1,300, noting improved asset quality reflected in decreasing GNPA/NNPA ratios and moderated slippages driven by a sequential decline in both core and technical slippages.
The brokerage highlighted that business growth is on the upswing, with deposits projected to grow at a healthy pace. Axis Bank aims to outperform systemic credit growth by a compounded annual growth rate (CAGR) of 300 basis points over the medium term. Motilal Oswal also reiterated that the bank maintains its through-cycle margin guidance of 3.8 percent, although it is vigilant regarding potential repo rate cuts in the coming months.
HDFC Securities maintained its add rating with a revised target of ₹1,265, citing concerns over the bank’s growth and asset quality management, which may delay any potential re-rating. Meanwhile, Nuvama Institutional Equities retained its hold rating with a target price of ₹1,180, suggesting a switch to ICICI Bank for a more stable business model and better CASA growth due to Axis Bank’s ongoing volatility in credit costs and suboptimal loan mix.
At 10 AM, Axis Bank’s stock traded 2.5 percent higher on the NSE at ₹1,199.10, reaching an early high of ₹1,216.90 compared to the previous close of ₹1,169.60.
The report was published on October 16, 2025.
