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Axis Bank shares jumps 4% on Q3 profit rise to Rs 6,490 crore; brokerages turn bullish. Is this the right time to buy?
Axis Bank Share Price
Axis Bank Share Price: Axis Bank shares jumped as much as 4.22% to an intraday high of Rs 1,311 on the BSE on Tuesday after the private lender reported a 3% year-on-year (YoY) rise in standalone net profit for Q3FY26.
The bank posted a net profit of Rs 6,490 crore for the December quarter, compared with Rs 6,304 crore a year ago. On a sequential basis, profit after tax surged 27% from Rs 5,090 crore in Q2FY26.
Net interest income (NII) grew 5% YoY and 4% quarter-on-quarter (QoQ) to Rs 14,287 crore, while the net interest margin (NIM) came in at 3.64%.
Interest income rose 4.3% YoY to Rs 32,274 crore from Rs 30,954 crore, while interest expenses increased nearly 4% to Rs 17,988 crore versus Rs 17,348 crore in the year-ago quarter.
On the asset quality front, provisions and contingencies stood at Rs 2,246 crore for the quarter, including specific loan-loss provisions of Rs 2,307 crore. Cumulative provisions, excluding NPAs but including standard and additional buffers, were Rs 13,111 crore as of Q3FY26. This translated into a standard asset coverage ratio of 1.14% as of December 31, 2025. The provision coverage ratio (PCR) remained robust at 146% of gross NPAs at the end of the quarter.
What brokerages say
Brokerages turned more constructive on the stock, citing better visibility on credit costs, steady profitability and attractive valuations.
Citi upgraded Axis Bank to Buy and raised its target price to Rs 1,436, indicating an upside of over 14%. It highlighted a core earnings beat and return on assets (RoA) of about 1.5%. Citi also pointed to stable slippages despite agricultural seasonality, lower-than-expected credit costs and improved cost efficiency, even as treasury gains and fee income remained soft.
CLSA maintained its Outperform rating with a target of Rs 1,500, calling asset quality the key highlight. It noted that, excluding technical slippages, gross slippages declined sharply YoY, driven by the unsecured retail segment, while credit costs were below estimates.
Bernstein, with an Outperform rating and a Rs 1,480 target, described the quarter as mixed, with healthy loan and deposit growth offset by margin pressure and elevated credit costs, though RoA remained steady at around 1.5%.
Nomura reiterated a Buy rating with a target price of Rs 1,540, citing improving credit cost visibility and stronger growth momentum. It expects RoA of 1.7–1.8% and return on equity (RoE) of around 15% over FY27–28, with earnings CAGR estimated at 26%.
HSBC maintained a Buy call with a target of Rs 1,580, saying the upgrade thesis was playing out, backed by sharp improvement in credit costs and solid growth and margin performance. Jefferies also retained its Buy rating with a target of Rs 1,550, citing a profit beat driven by stronger topline, lower credit costs and controlled operating expenses.
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January 27, 2026, 10:46 IST
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