Axis Bank (AXISBANK) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 standalone PAT was ₹7,003.28 crore, up 38% YoY; consolidated PAT was ₹7,704.67 crore. NII rose 12% YoY to ₹15,371 crore.

• Advances grew 23% YoY and deposits 21%; excluding FCNR(B)-backed balances, advances grew 19% and deposits 17%.

• GNPA was 1.16% and NNPA 0.35%, both improved YoY; core operating profit rose 11% to ₹10,998 crore.

Financial highlights

• Q2 core operating revenue was ₹21,817 crore, up 10% YoY; fee income was ₹6,381 crore, up 6%, while trading income fell 83% to ₹85 crore.

• Operating expenses rose 9% YoY to ₹10,819 crore; operating profit was ₹11,083 crore, up 6%. Cost-to-assets declined 24 bps YoY to 2.14%.

• H1 FY27 NII was ₹30,018 crore (+10%), fees ₹12,536 crore (+6%), core operating profit ₹22,120 crore (+11%) and PAT ₹14,117 crore (+30%).

• Q2 standalone total income was ₹42,949.32 crore and operating profit ₹11,083.08 crore; consolidated total income was ₹45,674.37 crore and operating profit ₹12,109.11 crore.

• Q2 provisions and contingencies, excluding tax, were ₹1,694 crore, down 52% YoY; the prior-year comparison included a ₹2,001 crore one-time standard-asset provision.

Outlook and guidance

• Through-cycle NIM guidance remains 3.8%; sequential NIM improvement is targeted, but timing is uncertain. FCNR optimization benefits are expected in Q3 and Q4.

• Medium-term loan growth guidance is 300 bps above industry average; no specific sequential or YoY NII uplift guidance was given.

• Credit-cost improvement is expected to continue, with further improvement possible; management expects current-cycle credit costs below the prior cycle.