Axis Bank: Target Price Raised to Rs 1475 by Motilal Oswal

Axis Bank Reports Flat YoY Net Profit in 4QFY26

Axis Bank, a leading Indian bank, has reported a net profit of INR70.7 billion for the fourth quarter of fiscal year 2026 (4QFY26). This net profit is flat year-over-year (YoY), but up 9% quarter-over-quarter (QoQ), meeting market expectations.

The bank's net interest income (NII) grew 4.7% YoY and 1.2% QoQ to INR144.6 billion, aligning with the market's predictions. However, the net interest margin (NIM) dipped 2 basis points (bp) QoQ to 3.62%, slightly below the research firm's estimated 3.58%. Axis Bank utilized one-off gains from tax reversals to bolster its standard asset provisioning buffer, making provisions of INR20 billion against the tax reversal of INR21.9 billion. As a result, the bank now holds INR154 billion in total standard provisioning.

Earnings Estimates and Recommendations

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Based on the bank's performance, the research firm has revised its earnings estimates for Axis Bank. The firm has raised its earnings estimates for fiscal year 2027 (FY27) and fiscal year 2028 (FY28) by approximately 4% each. The revised estimates include a return on assets (RoA) of 1.6% and a return on equity (RoE) of 14.6% for FY27. The research firm has retained a neutral rating for Axis Bank with a target price of INR1,475, which is equivalent to 1.7 times the estimated adjusted book value (ABV) for September 2027, plus a stop loss of INR148.