Axis Bank Share Price: Should You Buy, Sell or Hold After Their Q3 Results

Synopsis: Axis Bank posted steady Q3 FY26 results with improved profitability, stable asset quality, and resilient margins. Brokerages remain positive, citing recovery momentum, strengthening fundamentals, and attractive valuations supporting further upside potential of up to 30.94 percent.

This private sector bank, engaged in providing comprehensive banking services, including retail, corporate, wholesale, treasury, investment banking, and international operations across India, jumped 5.71 percent after the company reported its December quarterly results, while brokerages shared positive views on its future outlook.

With a market capitalization of Rs. 4,10,374.34 crores, the share of Axis Bank Limited has reached an intraday high of Rs. 1,332 per equity share, rising nearly 5.71 percent from its previous day’s close price of Rs. 1,260.10. Since then, the stock has retreated and is currently trading at Rs. 1,321.50 per equity share. 

Q3 FY26 Result Walkthrough

Coming into the quarterly results of Axis Bank Limited, the company’s consolidated Net Interest Income increased by 5.01 percent YOY, from Rs. 13,606 crore in Q3 FY25 to Rs. 14,287 crore in Q3 FY26, and grew by 3.94 percent QoQ from Rs. 13,745 crore in Q2 FY26.

In Q3 FY26, Axis Bank Limited’s consolidated net profit increased by 2.95 percent YOY, reaching Rs. 6,490 crore compared to Rs. 6,304 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 27.50 percent, from Rs. 5,090 crore.

The basic earnings per share increased by 2.71 percent and stood at Rs. 82.50 as against Rs. 80.32 recorded in the same quarter in the previous year, FY2025. Axis Bank Limited’s revenue and net profit have grown at a CAGR of 18.42 percent and 25.67 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 7.11 percent and 16.3 percent, respectively. Axis Bank Limited has an earnings per share (EPS) of Rs. 84.7, and its debt-to-equity ratio is 7.40x.

Financial Performance

Axis Bank delivered a stable operating performance in Q3 FY26, reporting a Net Interest Margin (NIM) of 3.64 percent. The bank continued to strengthen its asset quality, with Gross NPA improving to 1.40 percent from 1.46 percent on a QoQ basis, reflecting a decline of 6 bps both sequentially and year-on-year. 

Net NPA also moderated to 0.42 percent from 0.44 percent QoQ, indicating better credit discipline. Provisions and contingencies during the quarter rose by 4.2 percent to Rs 2,245.9 crore compared to Rs 2,155.6 crore in the previous quarter.

Financial Performance of 9M FY26

Axis Bank reported steady operating performance for 9MFY26, with Net Interest Income rising 3 percent year-on-year to Rs. 41,591 crore, supported by consistent core lending growth. Fee income recorded a healthy increase of 11 percent YoY, reaching Rs. 17,883 crore, reflecting strong traction across transaction banking, cards, and distribution-led businesses.

Operating profit for 9MFY26 increased 5 percent to Rs. 32,803 crore compared to Rs. 31,353 crore in 9MFY25, while core operating profit also grew 5 percent to Rs. 30,824 crore. Total provisions stood at Rs. 9,741 crore during the period. Net profit for 9MFY26 came in at Rs. 17,385 crore, reflecting a 10 percent YoY decline due to higher provisions and normalization of margins.

Brokerages Viewpoint

Kotak Securities, a prominent brokerage firm, has recommended a “Buy” call on Axis Bank Limited with a revised target price of Rs. 1,500 per share from Rs. 1,400, indicating an upside potential of 19.04 percent from its previous day’s close price of Rs. 1,260.10. 

Kotak Securities maintains a Buy rating on Axis Bank, driven by a clear recovery in performance. Although annual trends remain stable, sequential improvement is strengthening due to better asset quality and easing retail loan stress. The bank’s performance is increasingly converging with frontline peers, which supports confidence in its earnings outlook and forms the basis for Kotak Securities’ positive target rationale.

Likewise, Morgan Stanley has recommended a “Overweight” call on Axis Bank Limited with a revised target price of Rs. 1,650 per share from Rs. 1,450, indicating an upside potential of 30.94 percent from its previous day’s close price.

Morgan Stanley maintains an Overweight rating on Axis Bank, noting that the re-rating potential is strengthening. The bank’s balance sheet growth, improving asset quality, and better cost-to-assets metrics are moving in the right direction. While NIM has been impacted by the interest rate cycle, momentum is expected to sustain, with management guiding a recovery to 3.7-3.8 percent supported by a pickup in retail disbursements.

Similarly, Jefferies has recommended a “Buy” call on Axis Bank Limited with a revised target price of Rs. 1,550 per share from Rs. 1,530, indicating an upside potential of 23.01 percent from its previous day’s close price.

Jefferies maintains a Buy rating on Axis Bank, supported by an improving growth outlook. Loan growth is picking up, led by the corporate segment, while a recovery in retail disbursements is expected to drive retail growth. Deposit growth has also strengthened, and asset quality continues to improve. Jefferies finds current valuations attractive and continues to rank Axis Bank among its top investment picks.

Company Overview

Axis Bank Limited was founded in 1993 as UTI Bank by promoters including Unit Trust of India, LIC, and GIC, with its first branch opening in Ahmedabad in 1994. Rebranded as Axis Bank in 2007, it has grown into a universal bank offering retail, corporate, wholesale banking, treasury, investment banking, and international services through a vast network of branches, ATMs, and digital platforms.

Axis Bank is India’s third-largest private sector bank and is headquartered in Mumbai. The bank emphasizes customer-centric innovation, financial inclusion, and sustainability initiatives across diverse sectors like MSMEs, agriculture, and global operations.

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