Shares of Axis Bank fell nearly 4% to touch an intraday low of ₹1,158 on the BSE on Friday, despite the private sector lender reporting a better-than-expected net profit for the March 2025 quarter. The stock decline comes amid broader market volatility and concerns over modest loan growth.
For Q4FY25, Axis Bank reported a net profit of ₹7,117.5 crore, nearly flat compared to ₹7,123 crore in the same period last year but higher than the ET NOW poll estimate of ₹6,681 crore. Net interest income (NII) grew 5.5% YoY to ₹13,810.5 crore, while the net interest margin (NIM) improved 4 basis points sequentially to 3.97%. Core operating profit rose 11% YoY to ₹10,575 crore.
Asset quality improved, with gross NPA ratio at 1.28% (down 15 bps YoY and 18 bps QoQ) and net NPA ratio at 0.33% (down 2 bps QoQ). The bank’s balance sheet grew 9% YoY to ₹16.09 lakh crore, with deposits rising 10% YoY and CASA ratio improving to 41% from 39% in Q3FY25.
Should you buy, sell, or hold Axis Bank stock? Here’s what brokerages say:
Nomura
Maintains Buy with a target price of ₹1,450
Nomura sees improving loan growth as a key driver, expecting a 12–13% CAGR in loans and deposits over FY25–FY27. The valuation at 1.7x FY26 book value is seen as attractive.
Investec
Maintains Buy, raises target to ₹1,430 from ₹1,298
Investec called Q4 a steady quarter, highlighting a PAT beat driven by lower credit costs. It noted healthy deposit growth and asset quality but expects some NIM pressure in FY26 due to rate cuts.
Nuvama
Maintains Buy, raises target to ₹1,400 from ₹1,220
Nuvama highlighted improved corporate credit asset quality and ongoing recovery in personal loans. It flagged that tighter norms may raise credit costs marginally in FY26.
According to Trendlyne, Axis Bank has a consensus share price target of ₹1,296 with projected revenue growth of 10.2% and profit growth estimate of 4.5% for FY25, based on top 40 analyst calls.
