Axis Bank (AXISBANK) Q2 25/26 earnings summary

Executive summary

• Achieved strong growth in advances and deposits, with advances up 12% YoY and deposits up 11% YoY, gaining market share in both segments for Q2 FY26.

• Credit card business surpassed 15 million cards; UPI market share exceeded 35% in value and volume.

• Maintained a resilient balance sheet, strong capital position, and stable asset quality, with GNPA at 1.46% and NNPA at 0.44%.

• Core operating profit for H1FY26 reached ₹20,010 crore, up 4% YoY, with cost-to-assets at 2.38%.

• Focused on deposit growth, credit growth, asset quality, cost management, and digital transformation.

Financial highlights

• Net interest income (NII) for H1 FY26 was INR 27,304 crore, up 1% YoY; Q2 NII at INR 13,745 crore, up 2% YoY and 1% QoQ; NIM for Q2 was 3.73%.

• Fee income for Q2 was INR 6,037 crore, up 10% YoY and 5% QoQ; granular fee comprised 91% of total fee.

• PAT for Q2 was INR 5,090 crore; gross NPA at 1.46%, net NPA at 0.44%, both improved QoQ.

• Core operating profit for H1 was INR 20,010 crore, up 4% YoY; Q2 core operating profit at INR 9,915 crore, up 3% YoY.

• Standalone net profit for Q2FY26 was ₹5,089.64 crore, down from ₹6,917.57 crore in Q2FY25.

Outlook and guidance

• Advances expected to grow 300 bps faster than industry over the medium term (3-5 years, base FY26).

• Margins expected to bottom out in Q3 FY26, assuming no further rate cuts.

• Continued focus on premiumization, granularization, and digital transformation to drive growth.

• Focus on further granularization of deposits and continued growth in focus segments (SBB, SME, MC).