Axis Bank Ltd.AXISBANK₹1,169.60 -0.61%

Axis Bank Ltd. announced its financial results for the quarter ended September 30, 2025 (Q2 FY26), highlighting market share gains and strong operational metrics despite a sharp decline in reported Net Profit due to provisions.

The bank’s Core Operating Profit grew 3% year-on-year for the quarter, reaching ₹9,915 crores. This growth was aided by a robust increase in non-interest income. 

Fee income grew 10% year-on-year to ₹6,037 crores, with Retail fees also growing 10%. However, Net Interest Income (NII) only rose 2% year-on-year, standing at ₹13,745 crores.

Axis Bank continued to gain market share in its loan and deposit books. On a quarter-on-quarter basis, Total Deposits grew 4%, and Advances grew 5%. The growth was focused on key segments: SME loans were up 9% quarter-on-quarter, and the Mid-Corporate (MC) book grew 8%. The share of CASA deposits stood healthy at 40%.

The bank’s reported Net Profit declined 26% year-on-year to ₹5,090 crores. This was due to an increase in provisions, which stood at ₹3,547 crores for the quarter. A significant factor was the additional ₹1,231 crore one-time standard asset provision made during the quarter, impacting profitability. Despite this, core asset quality remained stable: Gross NPA stood at 1.46% (down 11 basis points quarter-on-quarter) and Net NPA was low at 0.44%.

The bank maintained its dominant position in the digital space, which continues to drive business. Axis Bank is the market leader in the UPI Payer PSP segment with a market share of ≈37% by volume and maintains the lowest technical declines among top UPI members. The bank also achieved a milestone by crossing 15 million Cards in force after acquiring over 1 million cards this quarter. The Axis Mobile app remains highly rated, and the bank continues to be one of the largest players in the Merchant Acquiring business with a terminal market share of 20.6%.

Over the last five years, this stock has delivered multibagger returns of more than 145%. 

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Note: The share price mentioned is as of 3:30 pm.