Shares of Axis Financial institution fell sharply in early commerce on Friday after the personal sector lender posted a muted set of numbers for the June quarter (Q1FY26), with a major leap in provisions weighing on profitability. A number of brokerages turned cautious, trimming value targets at the same time as working revenue remained resilient.
At 9:30 AM, the inventory was down over 4 per cent at Rs 1,111 on the NSE, reacting to the earnings report and weak investor sentiment.
Axis Financial institution Key Q1FY26 Highlights
Internet revenue stood at Rs 5,806 crore, down 4 per cent year-on-year (YoY) from Rs 6,034 crore.
Working revenue rose 14 per cent YoY to Rs 11,515 crore, and was up 7 per cent sequentially.
Internet Curiosity Revenue (NII) grew simply 1 per cent YoY to Rs 13,560 crore.
Internet Curiosity Margin (NIM) for the quarter stood at 3.80 per cent.
Provisions and contingencies spiked to Rs 3,948 crore, from Rs 1,359 crore in Q4FY25.
Gross NPAs elevated to Rs 17,765 crore, with the gross NPA ratio rising to 1.57 per cent from 1.28 per cent sequentially.
Internet NPAs rose to Rs 5,066 crore, with a web NPA ratio of 0.45 per cent.
Brokerages views on Axis Financial institution Q1 outcomes
A number of world brokerages revised their outlooks submit the earnings:
JP Morgan: Downgraded to Impartial from Obese; goal reduce to Rs 1,265 from Rs 1,315
Jefferies: Maintains Purchase; goal decreased to Rs 1,370 from Rs 1,450
Goldman Sachs: Purchase ranking retained; goal raised to Rs 1,570 from Rs 1,555
CLSA: Maintains Accumulate; goal reduce to Rs 1,350 from Rs 1,400
Citi: Retains Impartial; goal revised to Rs 1,285 from Rs 1,320
Nomura and Macquarie: Preserve Purchase/Outperform, with goal at Rs 1,450
Bernstein: Purchase ranking; goal reduce to Rs 1,300
Macquarie and CLSA flagged larger credit score prices as a key concern, whereas Goldman Sachs and Nomura see long-term potential supported by wholesome working metrics.
Anil Singhvi Warning on Axis Financial institution: “This Inventory Might Be Friday’s Principal Accident”
Zee Enterprise Managing Editor Anil Singhvi issued a powerful warning on Axis Financial institution, saying the outcomes had been under expectations and the analyst name lacked readability or confidence.
“The outcomes are extraordinarily weak. Credit score prices have risen sharply, and the commentary doesn’t encourage a lot confidence. This inventory may very well be Friday’s most important accident,” Singhvi mentioned on air.
His name for merchants:
Promote Axis Financial institution Futures
Cease-loss: Rs 1,177
Targets: Rs 1,120, Rs 1,105, Rs 1,090
Market Guru Anil Singhvi estimated a 5–10 per cent near-term draw back on the inventory.
Outlook
Axis Financial institution’s sturdy working efficiency was overshadowed by an increase in provisioning and slower development in core earnings. With a number of brokerages now impartial or cautious and technical specialists like Singhvi turning bearish, buyers might wish to look ahead to additional cues on asset high quality and administration commentary earlier than taking contemporary positions.
