Mumbai — Axis Bank reported a standalone net profit of ₹7,071 crore for the fourth quarter of fiscal year 2026, broadly flat compared to ₹7,118 crore in the same period last year. The bank also announced a dividend of ₹1 per share (50% on face value of ₹2), subject to shareholder approval.
The financial results were approved at the bank’s Board meeting held earlier today.
Q4 FY26: Stable Profit, Higher Provisions Impact Bottom Line
For the January–March quarter, Axis Bank delivered steady income growth but saw pressure on profitability due to higher provisions:
- Net Profit: ₹7,071 crore (vs ₹7,118 crore YoY)
- Total Income: ₹38,747 crore (up from ₹38,022 crore)
- Operating Profit: ₹10,013 crore (vs ₹10,752 crore)
- Provisions: ₹3,522 crore (vs ₹1,359 crore)
- Profit Before Tax: ₹6,491 crore (vs ₹9,393 crore)
The increase in provisions reflects a more conservative approach to balance sheet strengthening.
Full-Year FY26: Strong Profitability Despite Slight Decline YoY
For the full fiscal year:
- Net Profit: ₹24,457 crore (vs ₹26,373 crore in FY25)
- Total Income: ₹1,53,163 crore (up from ₹1,47,934 crore)
- Operating Profit: ₹42,817 crore (vs ₹42,105 crore)
Although net profit declined slightly year-over-year, the bank maintained strong operating performance and income growth.
Asset Quality Continues to Improve
Axis Bank reported further improvement in asset quality, a key metric for investors:
- Gross Non-Performing Assets (NPA): 1.23% (vs 1.28% last year)
- Net NPA: 0.37% (vs 0.33%)
- Capital Adequacy Ratio: 16.42%
- Return on Assets (Q4): 1.58%
Lower gross NPAs indicate better loan quality and risk management.
Key Developments
- The bank made an additional prudent provision of ₹2,001 crore during the quarter to strengthen its balance sheet.
- It recognized a tax benefit of ₹2,193 crore linked to its acquisition of Citibank’s India consumer business, particularly due to depreciation on intangible assets.
- The Board recommended a ₹1 per share dividend, reinforcing its commitment to shareholder returns.
Subsidiaries and Group Structure
Axis Bank operates through a diversified financial services ecosystem, including:
- 10 subsidiaries
- 2 step-down subsidiaries
- 1 associate: Axis Max Life Insurance
Audit and Compliance
The bank’s financial statements received an unmodified (clean) audit opinion from its joint statutory auditors:
- M M Nissim & Co. LLP
- KKC & Associates LLP
This indicates that the financials present a true and fair view of the bank’s performance.
Bottom Line
Axis Bank delivered a stable quarterly performance and maintained strong fundamentals in FY26, supported by improved asset quality and disciplined provisioning. While profits saw a slight dip year-over-year, the bank’s conservative approach and steady income growth position it well for sustained performance ahead.
