Axis Bank (AXISBANK) Q1 25/26 earnings summary

Executive summary

• Operating profit rose 14% YoY and 7% QoQ, supported by higher non-interest income and controlled costs.

• Net interest income increased 1% YoY; net interest margin at 3.8%.

• Retail and small business deposits grew 12% YoY; total deposit growth at 9% YoY.

• Asset quality metrics impacted by prudent technical changes in recognition criteria, with GNPA at 1.57% and NNPA at 0.45%.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025.

Financial highlights

• Net Interest Income (NII) at INR 13,560 crore, up 1% YoY; Net Interest Margin (NIM) at 3.8%.

• Standalone net profit for Q1 FY26 was ₹5,806.14 crore; consolidated net profit was ₹6,243.72 crore.

• Total income rose 7% YoY to ₹38,322 crore; operating profit (standalone) at ₹11,515.16 crore, up from ₹10,106.24 crore YoY.

• Cost-to-assets at 2.41%, down 5 bps QoQ and 13 bps YoY.

• Provisions and contingencies at INR 3,948 crore, up 190% QoQ and 94% YoY.

Outlook and guidance

• Confident of growing faster than the industry in FY26 and beyond, leveraging digital capabilities and strong capital.

• Focus on growing average deposits, digital and payments leadership, and prudent risk management.

• Margins expected to revert to 3.8% over the asset-liability duration cycle; Q2 margins to be impacted by repo rate cuts.