Axis Bank shares tank 5% after weak Q4. What are Motilal Oswal, other top brokerages saying?

Shares of private lender Axis Bank tumbled 5% to their day’s low of Rs 1,300 on the NSE on Monday after it reported a standalone net profit of Rs 7,071 crore for the March quarter of FY26, compared with Rs 7,118 crore in the same period last year, reflecting a marginal decline of 0.64%.

Interest income for Q4FY26 rose 4.7% year-on-year to Rs 32,724 crore from Rs 31,243 crore in the corresponding quarter of the previous financial year. Interest expenses also increased 4.7% YoY to Rs 18,267 crore, against Rs 17,432 crore in Q4FY25.

Net Interest Income (NII) for Q4FY26 stood at Rs 14,457 crore, up 5% year-on-year, while Net Interest Margin (NIM) for the quarter came in at 3.62%.
Asset quality improved during the quarter, with Gross NPA and Net NPA at 1.23% and 0.37%, respectively, compared with 1.40% and 0.42% as on December 31, 2025. Recoveries from written-off accounts during the quarter stood at Rs 1,197 crore.

Axis Bank shares: Should you buy, sell or hold?

Motilal Oswal has maintained a Neutral rating on Axis Bank share price with a target price of Rs 1,475, indicating a potential upside of 8%. The brokerage said credit costs declined during the quarter, supported by easing stress in the unsecured portfolio. This also helped improve momentum in higher-yielding assets, along with lower interest reversals.

The bank continues to target medium-term loan growth of around 300 basis points above industry levels. Asset quality also improved sequentially, with both gross NPA and net NPA ratios declining. However, Motilal Oswal said the evolving West Asia situation remains an important near-term monitorable. It added that the bank has prudently created standard asset provisions to account for potential risks.

JM Financial has maintained its Buy rating on Axis Bank shares and raised the target price to Rs 1,575, implying a potential upside of 15.3%. The brokerage said Axis Bank’s valuation is supported by the continued strength of its deposit franchise, improving asset quality, and a more conservative balance sheet backed by incremental provisioning.It also highlighted sustained franchise gains in the SME and wholesale banking segments as key positives. While near-term pressure on net interest margins may keep return on assets improvement gradual, JM Financial believes better liability quality and lower normalised credit costs should support an earnings recovery going forward.

Elara Capital has maintained its Buy rating on Axis Bank stock price and revised its target price upward to Rs 1,629. The brokerage described the quarter as mixed, with strong asset quality trends but weaker core operating performance. It noted that asset quality continues to improve, supported by lower credit costs. It added that liability traction and deposit growth remain key monitorables going ahead. The brokerage said any re-rating in the stock will depend on consistency in performance and that its valuation is based on a SOTP methodology, rolled forward to FY28.

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