Axis Financial institution Evaluate: Shares tumble 4.2% after Q1 internet revenue miss; Anil Singhvi warns of 5-10% additional drop, brokerages minimize targets

Shares of Axis Financial institution fell sharply in early commerce on Friday after the personal sector lender posted a muted set of numbers for the June quarter (Q1FY26), with a big leap in provisions weighing on profitability. A number of brokerages turned cautious, trimming value targets at the same time as working revenue remained resilient.

At 9:30 AM, the inventory was down over 4 per cent at Rs 1,111 on the NSE, reacting to the earnings report and weak investor sentiment.

Axis Financial institution Key Q1FY26 Highlights 

Web revenue stood at Rs 5,806 crore, down 4 per cent year-on-year (YoY) from Rs 6,034 crore.

Working revenue rose 14 per cent YoY to Rs 11,515 crore, and was up 7 per cent sequentially.

Web Curiosity Earnings (NII) grew simply 1 per cent YoY to Rs 13,560 crore.

Web Curiosity Margin (NIM) for the quarter stood at 3.80 per cent.

Provisions and contingencies spiked to Rs 3,948 crore, from Rs 1,359 crore in Q4FY25.

Gross NPAs elevated to Rs 17,765 crore, with the gross NPA ratio rising to 1.57 per cent from 1.28 per cent sequentially.

Web NPAs rose to Rs 5,066 crore, with a internet NPA ratio of 0.45 per cent.

Brokerages views on Axis Financial institution Q1 outcomes

A number of world brokerages revised their outlooks publish the earnings:

JP Morgan: Downgraded to Impartial from Obese; goal minimize to Rs 1,265 from Rs 1,315

Jefferies: Maintains Purchase; goal decreased to Rs 1,370 from Rs 1,450

Goldman Sachs: Purchase ranking retained; goal raised to Rs 1,570 from Rs 1,555

CLSA: Maintains Accumulate; goal minimize to Rs 1,350 from Rs 1,400

Citi: Retains Impartial; goal revised to Rs 1,285 from Rs 1,320

Nomura and Macquarie: Preserve Purchase/Outperform, with goal at Rs 1,450

Bernstein: Purchase ranking; goal minimize to Rs 1,300

Macquarie and CLSA flagged increased credit score prices as a key concern, whereas Goldman Sachs and Nomura see long-term potential supported by wholesome working metrics.

Anil Singhvi Warning on Axis Financial institution: “This Inventory May Be Friday’s Important Accident”

Zee Enterprise Managing Editor Anil Singhvi issued a robust warning on Axis Financial institution, saying the outcomes had been beneath expectations and the analyst name lacked readability or confidence.

“The outcomes are extraordinarily weak. Credit score prices have risen sharply, and the commentary doesn’t encourage a lot confidence. This inventory might be Friday’s essential accident,” Singhvi mentioned on air.

His name for merchants:

Promote Axis Financial institution Futures

Cease-loss: Rs 1,177

Targets: Rs 1,120, Rs 1,105, Rs 1,090

Market Guru Anil Singhvi estimated a 5–10 per cent near-term draw back on the inventory.

Outlook

Axis Financial institution’s robust working efficiency was overshadowed by an increase in provisioning and slower progress in core earnings. With a number of brokerages now impartial or cautious and technical consultants like Singhvi turning bearish, buyers could need to look ahead to additional cues on asset high quality and administration commentary earlier than taking contemporary positions.