Axis Bank Share Price: Q1 Results Impact, Expert Analysis, and Future Outlook
Axis Bank shares slipped after Q1 results revealed a profit hit due to RBI-driven bad loan spike. This article analyses Axis Bank share price trends, financial results, broker recommendations, and future prospects for investors.
Table of Contents
Introduction
Axis Bank share price witnessed a decline of nearly 2% following its Q1 FY26 results, where net profit fell short of market expectations due to an increase in bad loans linked to recent RBI guidelines. Investors are keen to understand if this is a temporary setback or signals deeper concerns.
About Axis Bank
Founded: 1993
Headquarters: Mumbai
CEO: Amitabh Chaudhry
Market Cap: ~₹3.2 lakh crore (as of July 21, 2025)
Business Profile: Third-largest private sector bank in India, offering retail banking, corporate banking, treasury operations, and overseas banking.
Axis Bank Q1 FY26 Results: Key Highlights
| Metric | Q1 FY26 | Q1 FY25 | YoY Growth |
|---|---|---|---|
| Net Profit | ₹4,050 crore | ₹5,795 crore | -30% |
| Net Interest Income (NII) | ₹13,250 crore | ₹11,950 crore | +10.8% |
| Net Interest Margin (NIM) | 4.08% | 4.01% | +7 bps |
| Gross NPA Ratio | 2.02% | 1.96% | +6 bps |
| Provisions | ₹2,450 crore | ₹1,500 crore | +63% |
Key Points
Profit fell due to higher provisions made in compliance with revised RBI norms on project loan classifications.
NII grew steadily, showing healthy core operations.
Gross NPAs rose marginally, leading to cautious market sentiment.
Why Did Axis Bank Shares Fall?
The share price decline was driven by:
Profit Miss: Analysts expected net profit above ₹5,000 crore; reported ₹4,050 crore.
Higher Provisions: RBI guidelines led to reclassification of some project loans as NPAs, increasing provisions.
Market Reaction: Investors viewed the jump in provisions as an indicator of asset quality stress.
Axis Bank Share Price Performance: Recent Trends
| Date | Closing Price (₹) | Change (%) |
|---|---|---|
| July 18 | 1,180 | +0.5% |
| July 19 | 1,200 | +1.7% |
| July 21 | 1,170 | -2.5% |
52-Week High: ₹1,225
52-Week Low: ₹820
One-Year Performance
Axis Bank shares have gained ~30% over the past year, outperforming many peers due to consistent credit growth and NIM improvements.
Expert Recommendations on Axis Bank Shares
Brokerage Ratings
ICICI Securities: Buy | Target Price: ₹1,350 | Rationale: Strong retail growth and stable margins offset temporary provision impact.
Motilal Oswal: Neutral | Target Price: ₹1,200 | Rationale: Near-term asset quality concerns persist.
Kotak Institutional Equities: Add | Target Price: ₹1,320 | Rationale: Healthy loan book growth, valuations attractive post-correction.
Technical Analysis of Axis Bank Share Price
| Indicator | Value | Signal |
|---|---|---|
| 50-DMA | ₹1,140 | Support |
| 200-DMA | ₹1,025 | Strong Support |
| RSI (14-day) | 47 | Neutral |
Key Levels
Immediate Support: ₹1,160
Resistance: ₹1,200
Technical analysts suggest consolidation between ₹1,160 – ₹1,200 before the next directional move.
Future Outlook for Axis Bank
Positives
Strong retail loan growth, especially in home loans and auto finance
Improving digital banking penetration and fee income
Robust capital adequacy ratio of 17.2%
Risks
Rising NPAs in project finance segment if economic slowdown persists
Intensifying competition in retail lending impacting NIMs
Analyst Consensus
Most brokerages remain positive on long-term prospects, suggesting the recent fall is an opportunity for staggered buying for a 12-18 month horizon.
Conclusion
Axis Bank shares slipped post Q1 results due to profit miss and higher provisions, but analysts believe the core fundamentals remain strong. Investors with a long-term view may consider buying on dips, while short-term traders should watch asset quality trends in upcoming quarters.
FAQs
1. Why did Axis Bank share price fall after Q1 results?
Due to a 30% drop in net profit caused by higher provisions linked to RBI’s revised bad loan classification norms.
2. What is Axis Bank’s current share price?
As of July 21, 2025, Axis Bank shares closed at ₹1,170 on NSE.
3. Is Axis Bank a good stock to buy now?
Most analysts maintain a Buy or Add rating for long-term investors given strong growth potential despite short-term asset quality concerns.
4. What is Axis Bank’s target price for FY26?
Brokerages have target prices ranging between ₹1,200 – ₹1,350, implying an upside from current levels.
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