Axis Bank (AXISBANK) Q1 25/26 earnings summary

Executive summary

• Operating profit rose 14% YoY and 7% QoQ, supported by higher non-interest income, controlled costs, and a resilient balance sheet; CET1 ratio at 14.68%.

• Advances grew 8% YoY and 2% QoQ, with lending to small business, SME, and mid-corporate up 18% YoY, now 23% of total loans.

• Deposits increased 9% YoY and 2% QoQ, with retail and small business deposits under MCR up 12% YoY.

• Asset quality was impacted by technical factors, with GNPA at 1.57% and NNPA at 0.45%.

• Board approved unaudited financial results for Q1 FY26, reflecting continued growth in income and profitability.

Financial highlights

• NII at INR 13,560 crore, up 1% YoY; net interest margin at 3.8%.

• Standalone net profit for Q1 FY26 was ₹5,806.14 crore; consolidated net profit was ₹6,243.72 crore.

• Total income for the quarter was ₹38,321.57 crore, up from ₹35,844.22 crore YoY; consolidated total income at ₹40,401.00 crore.

• Operating expenses at INR 9,303 crore, up 2% YoY, with cost to assets at 2.41%.

• Fee income grew 10% YoY; trading profits and other income up 161% YoY.

Outlook and guidance

• Advances expected to grow 300 bps faster than industry in FY26.

• Margins expected to revert to 3.8% over a two-cycle duration, despite near-term compression.

• Asset quality and credit costs expected to normalize as technical impacts subside.

• Continued investment in technology and digital transformation to drive growth.

• Board and audit committee approved results with no material modifications from auditors.