Axis Bank Q1 Results: Standalone net profit down 4% YoY to ₹5,806 crore, NII up 1%

Axis Bank on Thursday, July 17, posted a 3.79% fall in its standalone net profit to ₹5,806.16 crore for the first quarter of the current fiscal year (Q1 FY26) as compared to ₹6,035 crore in the year-ago period. The decline in net profit is due to a slight increase in bad loans.

The lender, announcing its Q1 FY26 earnings, reported a marginal increase in its net interest income, up 1% to ₹13,559.75 crore from ₹13,448.23 crore posted in Q1 FY25.

The bank's net provisions rose by 94% to ₹3,948 crore in the reporting quarter as against ₹2,039 crore in the same quarter of the previous year.

Axis Bank Q1 FY26 results: Key highlights

The bank's Gross NPA was at 1.57% for the reporting quarter, up from 1.54% posted a year ago. Its Net NPAs (bad loans) also increased to 0.45% in Q1 FY26 from 0.34% in the June quarter of the previous financial year. In the previous quarter (Q4 FY25), the lender's Net NPA and Gross NPA stood at 0.33% and 1.28%, respectively.

The total income increased by 6.91% to ₹38,322 crore during the April-June quarter, up from ₹35,844 crore in the year-ago period.

The lender's operating profit rose to ₹11,515 crore from ₹10,106 crore posted in Q1 FY26, marking a 14% increase year-on-year (YoY) and 7% quarter-on-quarter (QoQ).

Axis Bank's capital adequacy ratio increased to 16.85% in the reporting quarter from 16.65% in the same period of the previous fiscal year. Further, its Common Equity Tier-1 (CET-1) ratio was at 14.68%, and it delivered a consolidated Return on Assets (RoA) of 1.51% in the reporting quarter.

The bank continues to hold market leadership in the UPI Player PSP segment with a share of nearly 32%. It also recorded growth in its focus segments, with its combined mix of Small Business Banking (SBB), SME and Mid-Corporate (MC) loans standing at ₹2,472 billion, showing an 8.2% improvement in the last four years.

Its advances increased by 8% YoY to ₹10.59 lakh crore. The retail loans of the bank rose 6% YoY to ₹6.22 lakh crore, accounting for 59% of its net advances.

The private sector lender remains one of the largest players in the merchant acquiring business with a market share of 19.7%.

Shares of Axis Bank ended 0.6% down at ₹1,161 apiece on the NSE on Thursday, July 17. Its market capitalisation stands at ₹3,60,080.61 crore. The bank announced its Q1 FY26 earnings after market hours.