27 Apr , 2026 By : Debdeep Gupta
Axis Bank shares fell sharply in early trade on Monday after its Q4 FY26 results, as investors reacted to weak core operating performance and elevated provisions despite steady asset quality. In early morning trade, Axis Bank stock was trading at Rs 1,309.7, down 4.1 percent for the day.
The stock is up 9.5 percent over the past one year, compared with a 1.3 percent decline in the Nifty 50 over the same period.
The private lender reported a mixed set of earnings for Q4 FY26, with net profit coming in at Rs 7,071 crore, broadly in line with expectations. However, operating profit declined 7 percent year-on-year due to higher provisions and weaker non-interest income.
Brokerages flag weak core, but back growth outlook
Brokerages largely maintained constructive views on the stock, highlighting improving asset quality and strong loan growth, even as they flagged pressure on margins and core earnings.
Nomura retained a ‘buy’ call on Axis Bank stock with a target price of Rs 1,560 per share. It said that a credit cost beat helped offset weak core performance in the quarter. The brokerage highlighted strong asset quality improvement, and said loan growth was driven by the corporate segment. It expects return on assets (RoA) of 1.6-1.7 percent, and return on equity (RoE) of 14-15 percent over FY27-28; and earnings CAGR of 23 percent over FY26-28.
UBS also maintained a ‘buy’ rating and raised its target price to Rs 1,620 per share. It said profit after tax was in line, and that the quarter was mixed with one-offs. The brokerage noted loan growth of 18.5 percent year-on-year and a 40 basis point sequential increase in loan-to-deposit ratio. It guided for net interest margin of around 3.8 percent, and called valuations attractive relative to peers.
Kotak Institutional Equities retained a ‘buy’ call with a target price of Rs 1,600 per share, but flat earnings. It also highlighted that the operating profit declined 7 percent year-on-year due to one-off provisions. The brokerage noted weak revenue growth despite strong loan growth. On valuations, Kotak said that a significant re-rating has already played out, limiting further upside.
Bernstein maintained an ‘outperform’ rating with a target price of Rs 1,600 per share, citing strong loan growth and improving asset quality as supportive of profitability. However, it flagged continued pressure on margins and weak fee income. On the other hand, it noted that the bank’s RoA improved to 1.58 percent and its capital position provides a tactical advantage.
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