Axis Bank Earnings Summary — Q2 FY2027
Axis Bank Reports 38% YoY Jump in Standalone Net Profit to ₹7,003 Cr Driven by Lower Credit Provisions and Healthy Loan Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹38,087 Cr is 17.9% higher year-on-year.
- Revenue has compounded at 9.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹7,705 Cr is 39.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 8.3% annualised across the period.
- Operating margin stands at 64.8% in Q2 FY2027.
- Operating margin expanded by 911 bps year-on-year.
- Over the last two years operating margin has expanded by 412 bps.
- PBT margin is 27.2%.
- Expense growth of -6.4% remained below revenue growth of 17.9%.
- Operating profit of ₹24,698 Cr is 37.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 83/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q2 FY2027 | Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 38,087 | 35,542 | 34,171 | 33,709 | 32,310 | 32,348 | 32,452 | 32,162 | 31,601 | 31,159 |
| Expenses | Stable | 13,390 | 12,837 | 14,816 | 12,743 | 14,302 | 13,983 | 11,943 | 11,913 | 12,412 | 11,892 |
| Operating Profit | Improving | 24,698 | 22,705 | 19,355 | 20,967 | 18,007 | 18,366 | 20,510 | 20,249 | 19,189 | 19,267 |
| Operating Margin | Stable | 64.8% | 63.9% | 56.6% | 62.2% | 55.7% | 56.8% | 63.2% | 63.0% | 60.7% | 61.8% |
| Other Income | Stable | 7,587 | 7,671 | 6,972 | 7,189 | 7,460 | 8,053 | 7,506 | 6,797 | 7,603 | 6,637 |
| Interest | Stable | 21,933 | 20,215 | 19,080 | 18,785 | 17,971 | 18,239 | 18,121 | 18,040 | 17,615 | 17,261 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 10,352 | 10,161 | 7,247 | 9,371 | 7,496 | 8,180 | 9,895 | 9,007 | 9,177 | 8,643 |
| Tax | Volatile | 2,702 | 2,505 | -385 | 2,326 | 1,938 | 1,920 | 2,405 | 2,244 | 1,768 | 2,193 |
| Net Profit | Stable | 7,705 | 7,632 | 7,603 | 7,011 | 5,528 | 6,244 | 7,475 | 6,742 | 7,401 | 6,436 |
| Net Margin | Stable | 20.2% | 21.5% | 22.3% | 20.8% | 17.1% | 19.3% | 23.0% | 21.0% | 23.4% | 20.7% |
Key Takeaways
- Standalone Net Profit surged 37.6% YoY to ₹7,003.28 Cr, primarily aided by a 52.2% YoY decline in provisions and contingencies to ₹1,693.74 Cr.
- Total Income grew 14.24% YoY to ₹42,949.32 Cr, supported by a 17.59% YoY rise in interest earned to ₹36,418.77 Cr.
- Gross NPA ratio improved further to 1.16% (down 30 bps YoY and 12 bps QoQ), while Net NPA declined to 0.35% compared to 0.44% in Q2 FY2026.
- Operating expenses expanded 8.66% YoY and 11.28% QoQ to ₹10,818.89 Cr, leading to operating margin contraction to 25.81%.
- Consolidated Net Profit rose 39.38% YoY to ₹7,704.67 Cr, demonstrating sustained compounding across subsidiaries.
- Capital adequacy remained strong with Basel III CRAR at 16.27%, supporting continued credit expansion across retail and corporate books.
Management Guidance
Management remains focused on sustainable compounding guided by its 'GPS' (Growth, Profitability, and Sustainability) framework, maintaining tight underwriting standards and scaling high-margin granular retail and digital banking franchises.
Sentiment Shift
Improving
Asset quality metrics improved to multi-year highs with Gross NPA at 1.16%, while normalized credit costs and steady balance sheet expansion offset QoQ operating expense pressure.
Outlook
The bank remains well-positioned to drive above-industry loan growth backed by strong capital adequacy, a robust deposit base, and improving asset quality metrics.
From the Annual Report (Key Quotes)
“The Board of Directors has inter alia approved the unaudited standalone and consolidated Financial Results of the Bank for the quarter and half-year ended September 30, 2026.”
“Operating Profit before Provisions & Contingencies stood at ₹11,083.08 Cr compared to ₹10,412.53 Cr in Q2 FY2026.”
“Gross Non-Performing Assets improved to 1.16% as of September 30, 2026, compared to 1.46% in the prior year period.”
Official Quarterly Documents
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This summary is AI-generated from Axis Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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