Today, April 25, 2026, Axis Bank's board announced results for the January-March quarter of FY26. The net profit of the bank rose to ₹7,071 crore — looks like a near-flat figure, but the story underneath is more nuanced.
The bank beat most analyst estimates. Its bad loans improved sharply. Fee income grew. And it approved a plan to raise ₹55,000 crore in fresh capital. Not a bad Saturday for India's third-largest private sector bank.
The Numbers, One by One
Axis Bank reported a standalone net profit of ₹7,071.3 crore for Q4 FY26. That's a 9% jump from ₹6,489.6 crore in the previous quarter (Q3 FY26). But compared to Q4 FY25 — same quarter last year — profit is marginally lower from ₹7,130 crore. So, sequentially better. Year-on-year, slightly lower.
Total income came in at ₹38,746.6 crore — up from ₹38,022 crore a year ago.
Net Interest Income (NII) — the core banking metric, measuring interest earned minus interest paid — rose 5% year-on-year. The Net Interest Margin (NIM) stood at 3.62%.
Also Read | RIL Q4 Results 2026: Record Annual Revenue, But Quarterly Profit Slips
Operating profit, however, declined 7% year-on-year to ₹10,013 crore. This was partly because the bank made a one-time additional prudent provision of ₹2,001 crore during the quarter to strengthen its balance sheet.
Earnings per share (EPS) stood at ₹22.76 in Q4, compared to ₹20.91 in Q3.
Full Year FY26 Picture
For the full year FY26, Axis Bank's net profit came in at ₹24,456.7 crore — down about 7% from ₹26,373.5 crore in FY25. That annual dip is largely due to higher provisions made throughout the year.
But total income for FY26 rose to ₹1,53,163 crore from ₹1,47,934 crore — a steady 3.5% growth in topline. Loan book grew 19% year-on-year. Deposits grew 14%.
Also Read | HDFC Bank Q4 FY26 Results: Profit Up 9%, Dividend at Rs 15.50
Asset Quality: The Real Good News
This is where Axis Bank surprised analysts.
Gross NPA (non-performing assets) ratio fell to 1.23% in Q4 from 1.40% in Q3 — a significant improvement quarter-on-quarter. Net NPA dropped to 0.37% from 0.42%. Both figures are among the best the bank has reported in recent years, suggesting its loan quality is getting meaningfully cleaner.
Capital adequacy ratio stood at a healthy 16.42%, well above the regulatory minimum.
Fee Income and Non-Interest Income
Fee income — a key indicator of retail banking health — rose to ₹6,561 crore in Q4, up 8% quarter-on-quarter and 4% year-on-year. This was supported by retail transaction fees and a diversified product mix.
However, the bank took a trading loss of ₹606 crore, which dragged non-interest income lower. This is a one-time impact from the current volatile market environment.
Also Read | YES Bank Q4 FY26 Results: A Bank Still Finding Its Footing
Dividend Declared
The board recommended a final dividend of ₹1 per equity share (face value ₹2) for FY26 — that's 50% of the face value. This is subject to shareholder approval at the upcoming 32nd AGM.
Capital Raising Plans
The board also approved a major fundraising plan — Axis Bank intends to raise up to ₹55,000 crore (₹550 billion) through equity shares, depository receipts, or debt instruments. This is a strategic move to strengthen capital buffers and fund the next phase of lending growth.
Given the bank's 36% UPI market share and ambitious loan growth targets, the capital raise signals management confidence in demand going forward.
What Analysts Were Expecting
Most brokerages had forecast a weaker quarter. Nomura estimated profit at ₹7,010 crore. MOFSL estimated ₹6,830 crore. ICICI Securities expected ₹6,627 crore. Axis Bank came in above all three at ₹7,071 crore — a mild beat that will likely be taken positively when markets open Monday.
The key concern for investors was the Loan-to-Deposit Ratio (LDR), which had touched 116% in Q3 FY26. Management is expected to provide commentary on this in the earnings call.
Crude oil at $104 a barrel, a tightening rate environment, and ongoing geopolitical tension add complexity to the macro backdrop. But with asset quality improving and loan book growing 19%, Axis Bank is heading into FY27 in better shape than the year-on-year profit dip might suggest.
