Axis Bank Q2 FY27 Results Analysis: PAT Jumps 37.6%, Core Margins Slip (AXISBANK)
Axis Bank Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 42,949.32 Cr (+14.24% YoY) and PAT growth of +37.60% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 17, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 42,949.32 Cr (+14.24% YoY) |
| PAT (Q2) | Rs. 7,003.28 Cr (+37.60% YoY) |
| EBITDA margin | 25.80% (-190 bps YoY) |
| EPS (Q2) | Rs. 22.50 (+37.11% YoY) |
| Market cap | Rs. 401,688.68 Cr |
| CMP | Rs. 1,290.00 |
Quarter Snapshot
AXISBANK's Q2 FY27 PAT grew 37.60% YoY to Rs.7,003.28 cr, driven primarily by provisions falling 52.25% YoY to a five-quarter low, while GNPA improved to 1.16% and gross advances grew 22.7% YoY against industry growth of 18.8%. Core profitability is under pressure: interest expended rose 22.19% YoY versus 17.59% interest earned growth, CASA slipped to ~36.5% from ~40% in Q4 FY26, cost-to-income rose to 49.40%, and other income fell 1.42% YoY against management's fee-acceleration expectation. The retail banking segment margin recovery from 4.52% to 10.36% is the key operational signal to watch against continued wholesale margin dilution.
Key Investment Insights
Key Positives
- PAT grew 37.60% YoY to Rs.7,003.28 cr; consolidated Group PAT grew 39.38% YoY to Rs.7,704.67 cr
- GNPA fell to 1.16% (five-quarter low, down 30 bps YoY) and NNPA to 0.35%; provisions fell 52.25% YoY to Rs.1,693.74 cr, the lowest in five quarters
- NII grew 11.84% YoY to Rs.15,371.42 cr and interest earned grew 17.59% YoY to Rs.36,418.77 cr
- Gross advances grew 22.7% YoY versus industry credit growth of 18.8%; deposits grew 20.7% YoY to Rs.14,52,066.21 cr
- Retail Banking segment results rose 162.8% YoY to Rs.4,244.63 cr, with segment margin expanding from 4.52% to 10.36%
- H1 FY27 operating cash flow of Rs.36,201.84 cr versus negative Rs.11,616.52 cr in H1 FY26; CFO/PAT at 2.56×
- Net worth grew 14.59% YoY to Rs.2,10,502.14 cr; CAR of 16.27% remains above regulatory minimum
Risk Factors
- Interest expended rose 22.19% YoY, outpacing interest earned growth of 17.59%; the interest expense-to-interest earned ratio rose to 57.79% from 55.62%
- CASA ratio fell to ~36.5% (provisional) from ~40% in Q4 FY26 amid competitive term-deposit pricing (term deposits +27.3% YoY)
- Other income declined 1.42% YoY to Rs.6,530.55 cr, contradicting management's expectation of fee-income acceleration in FY27
- Cost-to-income rose to 49.40% from 45.47% in Q1 and 48.88% a year ago; PPOP declined 4.94% QoQ and PPOP margin fell to 25.80% from 27.70%
- Corporate/Wholesale segment results fell 3.46% YoY despite revenue growth of 23.15%, with margin compressing from 23.78% to 18.64%
- CAR declined to 16.27% from 16.67% QoQ; debt-equity rose to 1.25 from 1.05 YoY as borrowings grew 36.9%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.