Axis Bank LimitedQ1 FY27 Results & Financial Update
Axis Bank Limited: Q1 FY27 consolidated results and company financials – total income ₹43,212.82 Cr, PAT ₹7,632.31 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Find an answer
Ask this result
Chart · Market context
Axis Bank price & chart
Market price₹1,222.10
1Y return—Price return
Loading market chart…
TradingView Lightweight Charts™ · Copyright © 2025 TradingView, Inc.TradingView
Market chartPrice chart temporarily unavailableThe price chart could not be loaded right now. The reported financial results remain available above.
Spotted a factual error?Tell us the number, date or statement and we will re-check the underlying records and calculations.Report an error
Quarterly Results AnalysisExplore Axis Bank Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Axis Bank delivered a resilient operating performance in Q1 FY27, characterized by robust loan and deposit expansion, stable core operating profitability, and solid asset quality improvements.
Consolidated net profit after tax grew by 23% year-on-year, supported by positive operating jaws and stable asset health. Core operating profit reached INR 11,122 crores, marking a 5% increase over the previous quarter.
Net Interest Income (NII) registered an 8% year-on-year growth, with the Net Interest Margin (NIM) standing at 3.46%. Cost of funds decreased by 35 bps year-on-year and 2 bps quarter-on-quarter, supported by broad-based deposit mobilization.
Deposit growth remained strong across both period-end and quarterly average balances, with total deposits growing 18% year-on-year. Term deposits grew 21% year-on-year and CASA balances expanded by 13% on a quarterly average balance basis, maintaining a healthy CASA ratio.
The bank's loan book expanded by 19% year-on-year, led by strong momentum in focus segments such as Small Business Banking, SMEs, Mid-Corporates, and Corporate loans. SME loans advanced 25% year-on-year, while corporate loans grew 38% year-on-year.
Asset quality metrics showed continued improvement, with the gross non-performing asset (GNPA) ratio declining 29 bps year-on-year to 1.28% and the net NPA ratio easing to 0.39%. The provision coverage ratio remained robust at 70%, with an aggregated coverage ratio of 161%.
Capital adequacy remained strong, with the overall capital adequacy ratio at 16.67% and a Tier I CAR of 15.35%. The bank maintained an additional provision cushion of approximately 52 bps over reported CAR, alongside healthy liquidity buffers including excess SLR and an average Liquidity Coverage Ratio of ~119%.
Pre-provision operating profit was ₹1,165.90 Cr for the reported quarter. EPS was ₹1.00 for the reported quarter. Provisions was ₹824.40 Cr for the reported quarter.
01 · Business model
What does Axis Bank do?
Axis Bank Limited is one of India's leading private sector banks, offering a comprehensive suite of financial products and services spanning retail banking, corporate banking, treasury operations, and specialized financial services through its subsidiaries.
The bank generates core revenues through net interest income from lending operations across retail, small business banking, small and medium enterprises (SMEs), and large corporate segments, alongside non-interest fee income derived from payments, digital banking, merchant acquiring, and wealth management.
Axis Bank distributes its offerings through an extensive domestic branch network spanning over 6,295 branches and extension counters, underpinned by market-leading digital platforms such as the Axis Mobile app.
The group also operates several prominent domestic financial subsidiaries including Axis Finance, Axis AMC, Axis Securities, and Axis Capital, which contribute meaningfully to consolidated earnings and portfolio diversification.
02 · Historical context
What shaped the business before this quarter
The bank expanded its domestic branch network from 4,903 branches in March 2023 and 5,377 in March 2024 to 5,876 by March 2025 and 6,295 by June 2026.
Over the past five years leading up to Q1 FY27, the combined Small Business Banking, SME, and Mid-Corporate portfolio (SBB+SME+MC) scaled to INR 3,061 billion, representing 24% of total loans and expanding by approximately 911 basis points.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Total income | ₹43,212.82 Cr |
| Pre-provision operating profit | ₹1,165.90 Cr |
| Provisions | ₹824.40 Cr |
| Profit before tax | ₹10,161.28 Cr |
| Profit after tax | ₹7,632.31 Cr |
| EPS | ₹24.55 |
| Gross NPA ratio | 1.28% |
| Net NPA ratio | 0.39% |
| Net interest margin | 3.46% |
04 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Net Interest Income reached INR 14,646 crores for Q1 FY27, marking an 8% increase year-on-year, supported by balanced loan and deposit growth.
Fee income stood at INR 6,156 crores, up 7% year-on-year, with granular fees constituting 90% of overall fees and retail fee income growing by 2% year-on-year.
NIM, spread, funding cost and credit cost
Net Interest Margin (NIM) was reported at 3.46% for the quarter.
Cost of funds decreased by 35 bps year-on-year and 2 bps quarter-on-quarter, aided by disciplined deposit pricing and robust CASA mobilization.
Cost to assets improved to 2.20%, declining by 21 bps year-on-year and 8 bps quarter-on-quarter.
Net credit cost on an annualized basis declined by 75 bps year-on-year to 0.63%.
Management believes NIM has hit its cycle bottom in Q1FY27 and expects recovery starting next quarter.
Cost-to-assets declined further to 2.20%, down 21 bps YoY and 8 bps QoQ, driven by continuous improvements in operational productivity.
Cost of funds declined by 35 bps YoY and 2 bps QoQ.
05 · Loan growth, sanctions & disbursements
How the lending book is moving
Net advances grew 19% year-on-year and 2% quarter-on-quarter, reaching INR 12,61,557 crores.
Total deposits grew 18% year-on-year to INR 13,72,936 crores, with term deposits increasing 21% year-on-year and CASA balances growing 13% year-on-year on a quarterly average balance basis.
Retail disbursements registered an 18% growth year-on-year.
Acquired 0.9 million cards in Q1FY27 with a card-in-force market share of 13.4% and plans to maintain calibrated growth targeting around a million cards per quarter.
Retail disbursements grew 18% YoY, supporting future book growth across retail asset lines.
Wholesale advances grew 38% YoY and SME advances grew 25% YoY, driven by robust transaction flows and underlying economic tailwinds in energy, commercial real estate, infra, metals, and industrials.
06 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
The bank's focus segments grew by 18% year-on-year and 2% quarter-on-quarter.
SME loans grew 25% year-on-year and 3% quarter-on-quarter, while corporate loans grew 38% year-on-year with Mid-Corporate loans up 27% year-on-year.
Retail loans grew 8% year-on-year, supported by an 18% year-on-year growth in Small Business Banking and a 16% year-on-year growth in rural loans.
Geography and market mix
The domestic branch network expanded to 6,295 branches and extension counters as of June 30, 2026, compared to 5,876 a year earlier.
07 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Asset quality, stages and credit risk
Gross NPA ratio stood at 1.28%, down 29 bps year-on-year, while Net NPA ratio was 0.39%, down 6 bps year-on-year.
Provision coverage ratio (PCR) stood at a healthy 70%, with an aggregated coverage ratio of 161%, up 2,318 bps year-on-year.
Gross slippage ratio (annualized) improved to 1.79%, down 134 bps year-on-year, and net slippage ratio improved to 1.12%, down 121 bps year-on-year.
Headcount optimization continues through attrition (18% to 20%) without layoffs, leveraging technology and AI tools to improve back-office and mid-office efficiency.
08 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
Domestic subsidiaries delivered a combined PAT of INR 546 crores, up 21% year-on-year, delivering a return on investments of ~41% and contributing 36 bps to consolidated ROE.
Axis Finance recorded a Q1 FY27 PAT of INR 244 crores, up 29% year-on-year, maintaining stable asset quality with a net NPA of 0.39%.
Axis AMC reported a PAT of INR 134 crores (up 3% YoY), Axis Securities reported INR 96 crores (up 8% YoY), and Axis Capital reported INR 65 crores (up 72% YoY on the back of 8 ECM and 3 non-ECM deals executed).
Maintained market leadership in UPI Payer PSP with ~38% volume market share and lowest technical declines; terminal market share in merchant acquiring stood at 22.1% with 0.9 million cards acquired in Q1 FY27.
09 · Reported developments
What changed operationally
Consolidated return on equity (annualized) improved by 95 bps year-on-year to 14.52% for Q1 FY27.
Axis Mobile app maintained a 4.8 rating on both Google Play store and iOS app store, serving approximately 16 million monthly active users.
GNPA improved to 1.28% (declining 29 bps YoY) and NNPA to 0.39% (declining 6 bps YoY), with net credit cost down 75 bps YoY to 0.63%.
Overall capital adequacy ratio stood at 16.67% and CET1 ratio at 14.64%, with 26 bps added to CET1 during the quarter and average LCR at 119%.
Total Q1FY27 PAT of domestic subsidiaries stood at ₹546 crores, up 21% YoY, delivering a 41% return on investment.
10 · Pressure points & risks
What is not going smoothly
Other income experienced a drop, primarily due to lower trading profits of ₹537 crores in Q1FY27 compared to ₹1,420 crores in Q1 of the previous year.
NIM for Q1FY27 contracted by 16 bps QoQ to 3.46% before management expected it to bottom out.
11 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Successfully raised US$600 million in Additional Tier 1 and US$300 million in senior debt instruments during the quarter.
Carries an additional cushion of 52 bps attributable to other provisions and one-time standard asset provisions aggregating to ₹8,244 crores.
Capital allocation & funding
The bank maintained excess SLR of INR 1,41,700 crores and an average Liquidity Coverage Ratio (LCR) of ~119% during Q1 FY27.
The ₹2,001 crores prudent provision made for the West Asia crisis in Q4FY26 remains untouched at the end of Q1FY27.
12 · Management guidance & targets
What management is targeting from here
Maintained outlook to grow at approximately 300 bps faster than the banking industry over the medium term.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Digital App Rating
Axis Mobile app continued to be among the top-rated mobile banking apps globally with over 3.5 million reviews and a 4.8 rating on both Google Play and iOS stores.
14 · Management call deep dive
What management said on the conference call
Operating takeaways
12 key pointsManagement believes NIM has hit its cycle bottom in Q1FY27 and expects recovery starting next quarter.
The ₹2,001 crores prudent provision made for the West Asia crisis in Q4FY26 remains untouched at the end of Q1FY27.
Acquired 0.9 million cards in Q1FY27 with a card-in-force market share of 13.4% and plans to maintain calibrated growth targeting around a million cards per quarter.
Maintained market leading position in the UPI PSP space with a 38% market share and lowest technical declines.
Retail disbursements grew 18% YoY, supporting future book growth across retail asset lines.
Wholesale advances grew 38% YoY and SME advances grew 25% YoY, driven by robust transaction flows and underlying economic tailwinds in energy, commercial real estate, infra, metals, and industrials.
Headcount optimization continues through attrition (18% to 20%) without layoffs, leveraging technology and AI tools to improve back-office and mid-office efficiency.
Cost-to-assets declined further to 2.20%, down 21 bps YoY and 8 bps QoQ, driven by continuous improvements in operational productivity.
Cost of funds declined by 35 bps YoY and 2 bps QoQ.
Successfully raised US$600 million in Additional Tier 1 and US$300 million in senior debt instruments during the quarter.
Carries an additional cushion of 52 bps attributable to other provisions and one-time standard asset provisions aggregating to ₹8,244 crores.
Maintained outlook to grow at approximately 300 bps faster than the banking industry over the medium term.
Important analyst Q&A
3 key pointsManagement clarified that sequential increases in gross slippages were driven by Q1 agri-portfolio seasonality, while YoY comparisons show significant asset quality improvements with gross slippage ratio down 134 bps to 1.79%.
Strong corporate growth of 38% YoY was driven by sectors with economic tailwinds such as energy, commercial real estate, infrastructure, metals, industrials, mid-corporates, conglomerates, and NBFCs.
Total sanctioned ECLGS exposure stands at roughly ₹5,000 crores with disbursements at ₹2,400 crores, reflecting limited exposure and strong credit quality.
15 · Key Q&A
The quarter, answered directly
What does Axis Bank do?
Axis Bank Limited is one of India's leading private sector banks, offering a comprehensive suite of financial products and services spanning retail banking, corporate banking, treasury operations, and specialized financial services through its subsidiaries.
What is the clearest takeaway from Q1 FY27?
Axis Bank delivered a resilient operating performance in Q1 FY27, characterized by robust loan and deposit expansion, stable core operating profitability, and solid asset quality improvements.
What drove earnings or loan-book movement?
Net Interest Income reached INR 14,646 crores for Q1 FY27, marking an 8% increase year-on-year, supported by balanced loan and deposit growth.
What mattered most for margins, funding or credit cost?
Net Interest Margin (NIM) was reported at 3.46% for the quarter.
What changed operationally beyond the headline numbers?
Gross NPA ratio stood at 1.28%, down 29 bps year-on-year, while Net NPA ratio was 0.39%, down 6 bps year-on-year.
What is management guiding or targeting from here?
Maintained outlook to grow at approximately 300 bps faster than the banking industry over the medium term.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
Build your own next-quarter scenario
Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.
Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.
Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%
The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.
17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset quality trajectory: Monitor subsequent movements in GNPA and NNPA ratios alongside gross and net slippage rates.
- 02
Deposit and CASA momentum: Track ongoing deposit growth and CASA ratio resilience across quarterly average and period-end balances.
- 03
Capital adequacy headroom: Observe capital adequacy ratios and additional provision cushions relative to regulatory thresholds.
Learn the metrics
Need the concepts first?
Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.