Axis Bank Financial Breakdown: Revenue, Profit & Ratios
Axis Bank, India's third-largest private-sector lender, reported a sharp recovery in earnings in the September 2026 quarter. Standalone net profit rose 38% year-on-year to Rs 7,003 crore in Q2 FY27, from Rs 5,090 crore in Q2 FY26, helped by 12% growth in net interest income and a fall in provisions. This breakdown looks at the bank's five-year revenue and profit trend, its Q2 FY27 results, balance-sheet strength, key ratios, shareholding, dividend record and how it compares with ICICI Bank and Kotak Mahindra Bank.
At a glance (Q2 FY27, quarter ended 30 September 2026): standalone PAT Rs 7,003 crore (+38% YoY); net interest income (NII) Rs 15,371 crore (+12% YoY); net interest margin (NIM) 3.36%; gross NPA 1.16%; net NPA 0.35%; total capital adequacy ratio (CAR) 16.27%; advances Rs 13.74 lakh crore (+23% YoY); deposits Rs 14.52 lakh crore (+21% YoY).
Business overview
Axis Bank operates through four segments — treasury, retail banking, corporate/wholesale banking and other banking business — and offers deposits, loans, cards, payments, wealth and corporate-banking services in India and overseas. Retail lending is the largest part of its loan book, followed by corporate and SME lending. The bank also runs subsidiaries including Axis Capital, Axis AMC, Axis Securities and Axis Finance. Its digital franchise is a key part of the story: management has pointed to around 38% share of the UPI payer-service-provider segment, about 25.7% share of merchant-acquiring terminals and around 16 million monthly active users on its mobile banking app.
Q2 FY27 results: profit jumps 38%
Axis Bank announced its Q2 FY27 results on 17 October 2026. The standalone numbers, for the quarter ended 30 September 2026, were:
- Net profit: Rs 7,003 crore, up 38% YoY from Rs 5,090 crore in Q2 FY26, but down about 2% sequentially from Rs 7,114 crore in Q1 FY27. Consolidated net profit was Rs 7,705 crore, up about 39% YoY.
- Net interest income: Rs 15,371 crore, up 12% YoY and 5% QoQ.
- Other income: Rs 6,531 crore, down 1% YoY, as trading income fell sharply to Rs 85 crore from Rs 498 crore a year earlier; fee income rose 6% to Rs 6,381 crore.
- Operating profit: Rs 11,083 crore, up 6% YoY; core operating profit rose 11% to Rs 10,998 crore.
- Operating expenses: Rs 10,819 crore, up 9% YoY, including a one-time labour-code-related expense; cost-to-assets improved to 2.14%.
- Provisions: Rs 1,694 crore, down sharply from a year earlier, including specific loan-loss provisions of Rs 1,564 crore.
- Asset quality: gross NPA ratio 1.16% (from 1.46% a year earlier); net NPA ratio 0.35% (from 0.44%); gross slippages Rs 4,762 crore, down from Rs 5,696 crore a year earlier; net slippage ratio 0.75%; provision coverage ratio 70%.
- Half-year (H1 FY27): standalone net profit Rs 14,117 crore, up 30% YoY; NII Rs 30,018 crore, up 10% YoY; fee income Rs 12,536 crore, up 6% YoY.
The profit beat on lower provisions was partly offset by elevated costs and weak treasury income, which is why brokerages described the quarter as mixed even though headline profit jumped. The reported profit of Rs 7,003 crore was also slightly below the roughly Rs 7,132 crore expected in a CNBC-TV18 poll, while NII beat the poll estimate of about Rs 14,970 crore.
Revenue and profit trend: FY22 to FY26
The table below uses standalone total income and net profit as reported by financial-data portals, cross-checked against the bank's results. Total income here means interest earned plus other income.
| Financial year | Total income (Rs crore) | Net profit (Rs crore) | Net interest income (Rs crore) |
|---|---|---|---|
| FY22 | 82,597 | 13,026 | 33,920 |
| FY23 | 1,01,307 | 9,580 | 44,060 |
| FY24 | 1,31,811 | 24,862 | 51,370 |
| FY25 | 1,47,934 | 26,374 | 56,340 |
| FY26 | 1,53,163 | 24,457 | 58,460 |
Three points stand out. First, total income nearly doubled over five years, from Rs 82,597 crore in FY22 to Rs 1,53,163 crore in FY26, while NII rose from Rs 33,920 crore to Rs 58,460 crore. Second, FY23 profit fell to Rs 9,580 crore because of a large exceptional item (about Rs 12,490 crore) linked to the Citibank India consumer-business acquisition; profit before that item was far higher, and FY24 profit rebounded to Rs 24,862 crore. Third, FY26 profit fell 7.3% to Rs 24,457 crore even as total income grew 3.5%, because provisions jumped to Rs 13,263 crore in FY26 from Rs 7,758 crore in FY25 — a reminder that credit costs, not just loan growth, drive a bank's bottom line.
Profitability and margins
Axis Bank's NIM — the difference between interest earned and interest paid, as a share of earning assets — was 3.36% in Q2 FY27, down from 3.73% in Q2 FY26. Excluding the impact of foreign-currency non-resident (FCNR-B) deposit mobilisation, NIM was 3.47%. Management has reiterated a through-cycle NIM guidance of around 3.8%, supported by improving retail disbursements and a better balance-sheet mix. On an annualised basis in Q2 FY27, standalone return on assets (ROA) was 1.38% and standalone return on equity (ROE) was 13.30%, both up from 1.23% and 11.06% respectively a year earlier. Diluted earnings per share (annualised) was Rs 88.80 in Q2 FY27, against Rs 64.75 in Q2 FY26, and book value per share was Rs 703, against Rs 612 a year earlier.
Balance sheet strength
- Advances: Rs 13,73,727 crore at 30 September 2026, up 23% YoY (19% excluding FCNR-B-backed advances).
- Deposits: Rs 14,52,066 crore, up 21% YoY; current-account deposits up 7%, savings deposits up 12% and term deposits up 27%; month-end CASA ratio 36%.
- Total assets: Rs 20,46,240 crore, up 22% YoY; shareholders' funds Rs 2,18,749 crore, up 15% YoY.
- Capital: Basel III total CAR 16.27% at 30 September 2026 (16.55% on the presentation's comparative basis), CET-1 ratio 14.61%, up 23 basis points during H1 FY27. The bank also held Rs 8,006 crore of additional provisions beyond those reflected in its reported CAR — a cushion of about 49 basis points.
- FCNR-B deposits: Rs 1.018 lakh crore raised, which management says it will use to retire high-cost bulk deposits or to fund advances growth.
Segment and loan-book split
| Segment (Q2 FY27) | Size / growth |
|---|---|
| Retail loans | Rs 7.40 lakh crore, up 16% YoY; 54% of net advances; about 74% secured |
| SME loans | Rs 1.65 lakh crore, up 25% YoY |
| Corporate loans | Up 34% YoY; mid-corporate book up 29% YoY |
| Deposits — CASA | Month-end CASA ratio 36%; quarterly average CASA balances up 14% YoY |
| Deposits — term | Up 27% YoY |
The mix matters: retail is the anchor at over half the book, but corporate lending grew fastest in Q2 FY27, while the relatively low 36% CASA ratio — compared with stronger CASA franchises at peers — is one reason Axis Bank's funding costs and NIM remain under watch.
Key ratios at a glance
| Ratio (Q2 FY27 unless stated) | Value | Year-ago comparison |
|---|---|---|
| Net interest margin | 3.36% (3.47% ex-FCNR-B) | 3.73% |
| Return on assets (standalone, annualised) | 1.38% | 1.23% |
| Return on equity (standalone, annualised) | 13.30% | 11.06% |
| Gross NPA ratio | 1.16% | 1.46% |
| Net NPA ratio | 0.35% | 0.44% |
| Provision coverage ratio | 70% | 70% |
| Capital adequacy ratio (total) | 16.27% | — |
| CET-1 ratio | 14.61% | — |
| Cost-to-assets | 2.14% | Down 24 bps YoY |
| Cost-to-income | 49.4% | 45.5% in Q1 FY27 |
| Net credit cost (annualised) | 0.45% | Down 28 bps YoY |
Shareholding pattern (September 2026)
| Shareholder category | September 2026 |
|---|---|
| Promoters | 7.86% |
| Foreign institutional investors (FII/FPI) | 41.16% |
| Domestic institutional investors (DII) | 44.54% |
| Public and retail | 6.43% |
| Promoter pledge | 0.00% |
Axis Bank has no dominant promoter: the promoter group holds under 8%, while domestic institutions now hold more than foreign institutions — a shift from a few years ago, when FII holding was above 50%. Promoter holding has been broadly stable, edging down from 8.16% in September 2025 to 7.86% in September 2026, with no pledged shares.
Dividend history
Axis Bank paid a dividend of Rs 1 per share for FY26 (a 50% rate on the Rs 2 face value), the same Rs 1 per share it has paid in each of the last five financial years (FY22–FY26). At a share price of around Rs 1,217.50 on 23 October 2026, that implies a trailing dividend yield of about 0.08% and an FY26 payout ratio of roughly 1% of earnings per share of Rs 85.03. In short, Axis Bank is a growth-and-reinvestment story, not an income stock — shareholders have historically gained from earnings and book-value growth rather than dividends.
Peer comparison (Q2 FY27)
| Bank (Q2 FY27) | Net profit (Rs crore) | NIM | Gross NPA | CAR |
|---|---|---|---|---|
| Axis Bank | 7,003 (+38% YoY) | 3.36% | 1.16% | 16.27% |
| ICICI Bank | 14,843 (+20.1% YoY) | 4.18% | 1.20% | 16.68% |
| Kotak Mahindra Bank | 4,212 (+29% YoY) | 4.31% | 1.04% | 21.9% |
Axis Bank sits between its two large private peers on profit scale, but trails both on NIM — ICICI Bank at 4.18% and Kotak Mahindra Bank at 4.31% in the same quarter — which underlines why margin recovery is the key monitorable for Axis Bank. On asset quality it is broadly in line, with a slightly better gross NPA ratio than ICICI Bank but a weaker one than Kotak. Axis Bank's market capitalisation was around Rs 4 lakh crore in mid-October 2026, with a price-to-earnings ratio of roughly 13.5 times.
Key risks to watch
- Margin pressure: NIM fell to 3.36% from 3.73% a year earlier, partly because of FCNR-B mobilisation; recovery towards the 3.8% through-cycle guide depends on deploying those funds well.
- Cost inflation: operating expenses rose 9% YoY and cost-to-income jumped to 49.4% from 45.5% in Q1 FY27, partly on one-time labour-code costs.
- Credit costs: FY26 showed how quickly provisions can rise (Rs 13,263 crore vs Rs 7,758 crore in FY25); unsecured retail and SME growth need watching.
- Deposit mix: a 36% CASA ratio leaves the bank more dependent on costlier term deposits than stronger CASA franchises.
- Valuation sensitivity: after a strong profit rebound, the shares fell about 5% on the results day despite the 38% profit jump, as traders focused on the cost and margin misses — a reminder that expectations, not just earnings, move the stock.
FAQs
What was Axis Bank's profit in Q2 FY27? Standalone net profit was Rs 7,003 crore in Q2 FY27 (quarter ended 30 September 2026), up 38% from Rs 5,090 crore in Q2 FY26. Consolidated net profit was Rs 7,705 crore.
What is Axis Bank's NIM in Q2 FY27? Net interest margin was 3.36%, or 3.47% excluding the impact of FCNR-B deposits, down from 3.73% a year earlier.
How much did Axis Bank's advances and deposits grow? Advances grew 23% YoY to Rs 13.74 lakh crore and deposits grew 21% YoY to Rs 14.52 lakh crore at 30 September 2026.
What dividend does Axis Bank pay? Rs 1 per share for FY26, the same as in each of the previous four years, giving a yield of about 0.08% at late-October 2026 prices.
Who owns Axis Bank? As of September 2026, promoters held 7.86%, domestic institutions 44.54%, foreign institutions 41.16% and public/retail investors 6.43%, with no promoter shares pledged.
Conclusion
Axis Bank's Q2 FY27 results show a bank whose earnings engine is recovering — profit up 38%, loan growth at 23%, asset quality improving and capital comfortable at 16.27%. The five-year trend shows income nearly doubling, interrupted only by the FY23 exceptional item and the FY26 provision spike. The open questions are familiar ones for this bank: can NIM climb back towards 3.8%, can cost growth be kept in check, and can credit costs stay low while retail, SME and corporate books all grow fast? Those three answers will decide whether the Q2 rebound turns into a sustained re-rating.
Disclaimer: This article is for educational purposes only and is not investment advice. Figures are sourced from Axis Bank's Q2 FY27 investor presentation and results filings, and from financial-data portals cross-checked against those filings. Please verify figures with the bank's official filings before making any investment decision.
Related reading: ICICI Bank Financial Breakdown: Revenue, Profit & Ratios | Kotak Mahindra Bank Financial Breakdown: Revenue, Profit | HDFC Bank Financial Breakdown: Revenue, Profit & Ratios