declined nearly 5 per cent in early trade on Monday after the lender reported a muted set of Q4 results, with pressure on profitability offsetting steady business growth and improving asset quality.
The stock was trading at ₹1,326.50 at 9.58 am, after slipping to an intraday low of ₹1,299.90 from the previous close of ₹1,365.90. Investor sentiment remained cautious as the bank o ₹7,071 crore in the fourth quarter from ₹7,117.50 crore a year ago, weighed down by lower other income and a one-time provision.
Brokerages largely described the quarter as mixed, highlighting divergence between strong balance sheet trends and weaker core profitability. Elara Capital termed the performance a “mixed bag”, noting that while loan growth remained healthy at 6.4 per cent y-o-y and asset quality improved, pressure on net interest margins and subdued fee income limited earnings momentum. The brokerage added that stabilising asset quality and consistent execution could support a rerating, and it maintained a buy rating with a target price of ₹1,629.
JM Financial echoed similar views, stating that Axis Bank reported strong loan and deposit growth alongside improving asset quality, but core profitability lagged expectations. The brokerage pointed out that net interest income growth was modest due to margin compression, while higher operating expenses and weaker fee income weighed on pre-provision operating profit. It maintained a buy rating with a revised target price of ₹1,575, though it flagged that the bank’s return ratios still trail peers.
Motilal Oswal Financial Services described the quarter as largely in line, with lower credit costs and improved asset quality offering support. However, it noted a marginal decline in margins on a q-o-q basis and highlighted external risks such as the evolving West Asia situation as near-term monitorables. The brokerage retained a neutral rating with a target price of ₹1,475.
Overall, analysts remain constructive on Axis Bank’s growth outlook, supported by steady advances, improving asset quality, and liability traction, but caution that sustained improvement in profitability metrics will be key to driving further upside in the stock.