Axis Bank Limited Q4 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
Axis Bank Q4 FY26: Revenue ₹41,142.69 Cr (vs ₹39,958.04 Cr YoY), PAT ₹7,602.63 Cr (vs ₹7,475.13 Cr YoY)
Q4 FY26 consolidated results show Total Income of ₹41,142.69 Cr and consolidated Net Profit (Group) of ₹7,602.63 Cr for the quarter ended 31 Mar 2026. Operating profit before provisions was ₹10,819.26 Cr while provisions (net) were ₹3,572.07 Cr in Q4 FY26, moderating pre-tax profits. The quarter included a material tax benefit allowed on Citibank India intangibles which lowered tax expense for Q4FY26 and FY26, and the Board recommended a dividend of ₹1 per share for FY26. Auditors issued unmodified opinions on the audited standalone and consolidated financials.Total Income (Consolidated, Q4 FY26)
₹41,142.69 Crvs ₹39,958.04 Cr in Q4 FY25
Consolidated Net Profit (Group, Q4 FY26)
₹7,602.63 Crvs ₹7,475.13 Cr in Q4 FY25
Operating Profit (before provisions, Q4 FY26)
₹10,819.26 Crvs ₹11,445.05 Cr in Q4 FY25
Provisions (Net, Q4 FY26)
₹3,572.07 Crvs ₹1,550.28 Cr in Q4 FY25
Interest Earned (Consolidated, Q4 FY26)
₹34,170.99 Crvs ₹32,452.32 Cr in Q4 FY25
Interest Expended (Consolidated, Q4 FY26)
₹19,079.71 Crvs ₹18,120.71 Cr in Q4 FY25
Basic Earnings Per Share (Consolidated, Q4 FY26)
₹24.17 per sharevs ₹24.11 per share in Q4 FY25
Key Highlights
9
Consolidated Total Income rose to ₹41,142.69 Cr in Q4 FY26 from ₹39,958.04 Cr in Q4 FY25, driven by higher interest income of ₹34,170.99 Cr in Q4 FY26.
Consolidated Net Profit (Group) for Q4 FY26 was ₹7,602.63 Cr compared with ₹7,475.13 Cr in Q4 FY25, with profitability supported by a lower tax charge in the quarter.
Operating profit before provisions declined to ₹10,819.26 Cr in Q4 FY26 from ₹11,445.05 Cr in Q4 FY25, reflecting increased operating costs and higher interest expense.
Provisions (net) increased to ₹3,572.07 Cr in Q4 FY26 from ₹1,550.28 Cr in Q4 FY25, including the Bank's voluntary one-time provisioning framework and standard-asset provisions described in notes.
The Bank recorded interest earned of ₹34,170.99 Cr and interest expended of ₹19,079.71 Cr in Q4 FY26, indicating continued interest-income growth but also rising funding costs quarter-on-quarter.
Board recommended a dividend of ₹1 per share (50%) for FY26, subject to shareholder approval, signalling capital distribution intent.
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Key Highlights
9
Consolidated Total Income rose to ₹41,142.69 Cr in Q4 FY26 from ₹39,958.04 Cr in Q4 FY25, driven by higher interest income of ₹34,170.99 Cr in Q4 FY26.
Consolidated Net Profit (Group) for Q4 FY26 was ₹7,602.63 Cr compared with ₹7,475.13 Cr in Q4 FY25, with profitability supported by a lower tax charge in the quarter.
Operating profit before provisions declined to ₹10,819.26 Cr in Q4 FY26 from ₹11,445.05 Cr in Q4 FY25, reflecting increased operating costs and higher interest expense.
Provisions (net) increased to ₹3,572.07 Cr in Q4 FY26 from ₹1,550.28 Cr in Q4 FY25, including the Bank's voluntary one-time provisioning framework and standard-asset provisions described in notes.
Tax expense for Q4 FY26 and FY26 was lower by ₹2,193.20 Cr due to tax depreciation allowed on intangibles recognised on the Citi India Consumer Business acquisition, including reversal of prior excess provisions.
Bank continues balance-sheet actions
The Bank recorded interest earned of ₹34,170.99 Cr and interest expended of ₹19,079.71 Cr in Q4 FY26, indicating continued interest-income growth but also rising funding costs quarter-on-quarter.
Board recommended a dividend of ₹1 per share (50%) for FY26, subject to shareholder approval, signalling capital distribution intent.
Auditors (M M Nissim & Co LLP and KKC & Associates LLP) issued unmodified audit opinions on both standalone and consolidated FY26 results dated 25 April 2026.
Guidance & Outlook
4
Bank states the one-time standard-asset provision of ₹1,231 Cr will be written back to P&L upon declassified loans being made compliant or recovered, no later than 31 Mar 2028, implying potential provision reversals over the next two years.
Management emphasised the Q4FY26 additional one-time provision of ₹2,001 Cr as a prudent balance-sheet strengthening measure and not indicative of deterioration in asset quality as of reporting date.
Board proposed dividend of ₹1 per share for FY26, subject to shareholder approval at the AGM, indicating management's intention to return capital.
Auditors issued unmodified opinions on FY26 results, supporting the reliability of audited financials and underlying disclosures for planning ahead.
Risks & Concerns
5
Higher provisions (₹3,572.07 Cr in Q4 FY26) materially weighed on pre-tax profit in the quarter and may reduce near-term earnings visibility if provisioning momentum continues.
One-off tax benefit of ₹2,193.20 Cr related to Citi intangibles lowered Q4FY26 tax expense, which can distort year-on-year comparability of net profit and effective tax rate going forward.
Voluntary additional provisioning framework (₹2,001 Cr in Q4 FY26) may signal conservative bias but introduces uncertainty on timing and quantum of future write-backs, affecting earnings cadence.
Interest expended rose to ₹19,079.71 Cr in Q4 FY26 from ₹18,120.71 Cr in Q4 FY25, indicating rising funding cost pressure that could compress margins if interest-earning asset repricing lags funding costs.
Regulatory interaction
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