Axis Bank Q4 Profit Rises 9% QoQ To ₹7,071 Crore, Marginally Lower YoY As Provisions Surge

Mumbai: The bank’s Q4 performance reflected steady income growth but pressure on operating metrics. Total income rose from Rupees 38,500.1 crore in Q3 to Rupees 38,746.6 crore in Q4, and from Rupees 38,022.0 crore in the year-ago quarter. However, operating profit declined to Rupees 10,013.4 crore from Rupees 10,875.7 crore in Q3, indicating rising cost pressures and provisioning impact during the quarter.

Sequential Growth Moderates

Sequentially, net profit increased by Rupees 581.7 crore (Rupees 7,071.3 crore – Rupees 6,489.6 crore), translating to a 9 percent growth. However, this was supported by tax adjustments, while core operating performance softened. Provisions surged sharply to Rupees 3,522.2 crore from Rupees 2,245.9 crore in Q3, reflecting a 57 percent rise, significantly impacting profitability. Operating expenses also increased to Rupees 10,466.3 crore from Rupees 9,636.5 crore, indicating higher cost outflows.

Key Drivers And Earnings Profile

The rise in provisions was partly due to a one-time additional prudent provision of Rupees 2,001 crore during the quarter to strengthen the balance sheet, as disclosed in the notes. Additionally, tax expenses were lower due to recognition of deferred tax benefits, aiding net profit stability. Earnings per share stood at Rupees 22.76 in Q4, compared to Rupees 20.91 in Q3 and Rupees 22.99 a year ago.

Full-Year Performance

For FY26, Axis Bank reported a net profit of Rupees 24,456.7 crore, compared to Rupees 26,373.5 crore in FY25, reflecting a 7 percent decline. Total income for the year rose to Rupees 1,53,163.1 crore from Rupees 1,47,934.1 crore, indicating steady business growth. The bank maintained capital adequacy at 16.42 percent, while asset quality remained stable with gross NPAs at 1.23 percent.

Disclaimer: This summary is based on audited financial results and is not investment advice.