Axis Bank shares drop 5% after Q2 results; check target price
Axis Bank reported a 38% year-on-year (YoY) increase in standalone net profit to ₹7,003 crore. Net interest income (NII) rose 12% YoY, while core operating revenue increased 10%.
- Oct 19, 2026,
- Updated Oct 19, 2026 3:45 PM IST
Axis Bank Ltd shares fell 5% on Monday after the private lender reported its September-quarter earnings, with pressure on net interest margins (NIMs) and operating expenses offsetting strong loan growth and an improvement in asset quality. Brokerages, however, maintained a positive view on the stock, citing the potential for margin recovery, sustained credit growth and lower credit costs to support profitability over the coming quarters.
Axis Bank reported a 38% year-on-year (YoY) increase in standalone net profit to ₹7,003 crore for Q2FY27. Net interest income (NII) rose 12% YoY, while loan growth accelerated to 23% YoY. Deposits increased 20.7% YoY. However, reported NIM declined 10 basis points quarter-on-quarter to 3.36%, largely due to the impact of foreign currency non-resident (FCNR-B) deposits. Excluding this impact, NIM stood at 3.47%, broadly flat sequentially. The bank's asset quality improved, with gross and net slippages declining from the previous quarter and the year-ago period.
Axis Bank shares touched a low of ₹1,225, down 4.78% from their previous close of ₹1,286.45. The stock opened at ₹1,269.90 and touched a high of ₹1,269.90 during the session.
Jefferies on Axis Bank share price
Jefferies maintained its Buy rating on Axis Bank and a target price of ₹1,700, implying an upside of around 32% from the previous close of ₹1,286.45. The brokerage said the September-quarter profit was ahead of its estimates, supported by stronger topline performance and lower provisions. It also highlighted improving asset quality and the potential for a better loan mix to support net interest margins.
Anand Rathi on Axis Bank
Anand Rathi maintained its Buy rating on Axis Bank with a sum-of-the-parts-based target price of ₹1,672. The brokerage said loan growth accelerated to 23% YoY in Q2FY27, or about 19% excluding FCNR-B-linked loans, while deposit growth reached 20.7% YoY, or around 17% excluding FCNR-B deposits. Corporate and SME lending led growth, with advances in these segments rising 33.4% and 25.2% YoY, respectively. Retail advances grew 16.4% YoY.
JM Financial on Axis Bank
JM Financial maintained its Buy rating on Axis Bank with a target price of ₹1,575, valuing the stock at 1.7 times estimated FY28 book value per share. The brokerage said the bank's Q2FY27 performance reflected accelerating balance-sheet growth and lower provisions, which helped offset relatively soft core fee income.
JM Financial noted that advances rose 23% YoY and 8.9% quarter-on-quarter, with corporate loans increasing 34% YoY and SME advances rising 25% YoY. Retail advances grew 16% YoY, although growth excluding FCNR-linked leveraged loans was lower. Deposits rose 21% YoY, while the credit-to-deposit ratio increased 270 basis points sequentially to 94.6%.
Axis Bank Ltd shares fell 5% on Monday after the private lender reported its September-quarter earnings, with pressure on net interest margins (NIMs) and operating expenses offsetting strong loan growth and an improvement in asset quality. Brokerages, however, maintained a positive view on the stock, citing the potential for margin recovery, sustained credit growth and lower credit costs to support profitability over the coming quarters.
Axis Bank reported a 38% year-on-year (YoY) increase in standalone net profit to ₹7,003 crore for Q2FY27. Net interest income (NII) rose 12% YoY, while loan growth accelerated to 23% YoY. Deposits increased 20.7% YoY. However, reported NIM declined 10 basis points quarter-on-quarter to 3.36%, largely due to the impact of foreign currency non-resident (FCNR-B) deposits. Excluding this impact, NIM stood at 3.47%, broadly flat sequentially. The bank's asset quality improved, with gross and net slippages declining from the previous quarter and the year-ago period.
Axis Bank shares touched a low of ₹1,225, down 4.78% from their previous close of ₹1,286.45. The stock opened at ₹1,269.90 and touched a high of ₹1,269.90 during the session.
Jefferies on Axis Bank share price
Jefferies maintained its Buy rating on Axis Bank and a target price of ₹1,700, implying an upside of around 32% from the previous close of ₹1,286.45. The brokerage said the September-quarter profit was ahead of its estimates, supported by stronger topline performance and lower provisions. It also highlighted improving asset quality and the potential for a better loan mix to support net interest margins.
Anand Rathi on Axis Bank
Anand Rathi maintained its Buy rating on Axis Bank with a sum-of-the-parts-based target price of ₹1,672. The brokerage said loan growth accelerated to 23% YoY in Q2FY27, or about 19% excluding FCNR-B-linked loans, while deposit growth reached 20.7% YoY, or around 17% excluding FCNR-B deposits. Corporate and SME lending led growth, with advances in these segments rising 33.4% and 25.2% YoY, respectively. Retail advances grew 16.4% YoY.
JM Financial on Axis Bank
JM Financial maintained its Buy rating on Axis Bank with a target price of ₹1,575, valuing the stock at 1.7 times estimated FY28 book value per share. The brokerage said the bank's Q2FY27 performance reflected accelerating balance-sheet growth and lower provisions, which helped offset relatively soft core fee income.
JM Financial noted that advances rose 23% YoY and 8.9% quarter-on-quarter, with corporate loans increasing 34% YoY and SME advances rising 25% YoY. Retail advances grew 16% YoY, although growth excluding FCNR-linked leveraged loans was lower. Deposits rose 21% YoY, while the credit-to-deposit ratio increased 270 basis points sequentially to 94.6%.