Axis Bank shares are in focus after multiple brokerages turned positive on the lender’s September quarter (Q2FY26) results, citing stronger growth trends, resilient margins, and improving asset quality. Despite one-off provisions related to agricultural advances, analysts expect the bank’s earnings trajectory to strengthen in the coming quarters, with target prices implying up to 28% upside from the current market price of ₹1,172.50.
CLSA on Axis Bank: The brokerage maintained an Outperform rating with a target price of ₹1,400, noting that Q2 pre-tax profit (adjusted for one-offs) was 3–4% ahead of estimates, driven by better net interest income (NII) and pre-provision operating profit (PPOP). CLSA highlighted that both loans and deposits grew in low double digits versus single-digit growth earlier, while margins were down just 7 basis points (11 bps excluding one-offs). It described the quarter as a “change in trend,” with lower core slippages and improving operational momentum.
Bernstein on Axis Bank: Bernstein maintained an Outperform rating with a target price of ₹1,250, observing sequential improvement in growth metrics and a sharp recovery in asset quality as slippages declined meaningfully quarter-on-quarter. Although credit costs remained elevated due to one-off provisions on agri advances, the brokerage expects potential reversals in subsequent quarters. It added that improving card additions and lower slippages suggest asset quality stress may be bottoming out.
HSBC on Axis Bank: HSBC retained its Buy rating and raised its target price to ₹1,460. The brokerage said Axis Bank delivered “very strong results” in loan growth, margins, and asset quality, even as one-off provisions proved disappointing. HSBC said the “earnings inflection is visible,” leading it to raise FY26–28 EPS estimates by 2.7–5.3% on stronger growth and lower credit costs. The firm said the premise for Axis Bank’s upgrade to its “preferred pick” is now playing out.
Nomura on Axis Bank: Nomura maintained a Buy rating with a target price of ₹1,440, describing Q2FY26 as a period of “strong operational performance.” While one-off provisions weighed on profit, loan growth accelerated, and technical slippages moderated sharply. Credit costs were elevated due to the one-time standard asset provision, but the brokerage said underlying business strength remained robust.
Jefferies on Axis Bank: Jefferies also maintained a Buy rating with a target price of ₹1,430, stating that Axis Bank’s Q2 net profit of ₹5,100 crore (down 26% YoY) was ahead of expectations. The key positives included better-than-expected net interest margins (down only 7 bps QoQ), 12% loan growth, and 11% deposit growth. Jefferies noted that while the ₹12 billion RBI-mandated provision and ₹9 billion PSLC cost were negatives, strong core results compensated for them. It said valuations remain attractive, with Axis Bank trading at compelling levels given improving fundamentals.
InCred on Axis Bank: InCred maintained an Add rating with a higher target price of ₹1,500, highlighting robust loan growth and stronger-than-expected margin performance in Q2. While the one-off provision and PSLC cost weighed on short-term profitability, InCred said Axis Bank is well-positioned to benefit from improving credit volumes and moderating credit costs. It valued the bank at 1.3x Sep 2027F book value, estimating a 15% RoE potential.
DAM Capital on Axis Bank: DAM Capital reiterated its Buy rating with a target price of ₹1,370, saying Axis Bank has proactively strengthened its franchise and reduced balance sheet risks through both self-driven and regulatory measures. The brokerage expects loan growth to drive earnings momentum and ROA improvement from FY27 onward. It added that a sustained ROA above 1.8% could trigger re-rating toward 1.5–1.6x book valuations.
Across brokerages, sentiment remains positive as analysts see Axis Bank entering a phase of earnings recovery led by improved loan growth, controlled slippages, and stable margins. The combined target prices from major firms suggest a potential upside range of 17%–28% from the current market price of ₹1,172.50.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage views are based on their respective research reports and publicly available information.