Why Are Brokerages Turning Bullish on Axis Bank After a Strong Q2FY26?
Axis Bank has attracted a series of Buy and Outperform calls from leading brokerages following its Q2FY26 results. Analysts highlight the lender’s improving loan growth, resilient profitability, and sequential asset quality gains as key drivers of confidence.
Brokerage Ratings and Targets
The consensus sentiment remains positive across research houses:
- ✅ CLSA: Outperform | Target Price ₹1,400
- ✅ Bernstein: Outperform | Target Price ₹1,250
- ✅ HSBC: Buy | Target Price ₹1,460
- ✅ Nomura: Buy | Target Price ₹1,440
- ✅ Jefferies: Buy | Target Price ₹1,430
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Brokerages note that Axis Bank delivered a strong Q2FY26 operational performance, led by double-digit growth in both loans and deposits. Net Interest Margins (NIMs) declined marginally by 7 bps QoQ — a smaller contraction than peers — supported by a lower cost of deposits and improved asset mix.
Core profitability remained resilient despite one-off provisions: ₹12 billion for crop loans and ₹9 billion in Priority Sector Lending Certificate (PSLC) costs. Analysts expect these to reverse gradually, providing a near-term earnings tailwind in subsequent quarters.
Asset quality also improved sequentially, with lower slippages and declining credit costs reflecting better risk management discipline. The gross NPA ratio moderated, and restructured assets continued to trend lower, strengthening the overall balance sheet profile.
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Multiple analysts foresee an earnings inflection ahead, driven by margin recovery, operating leverage benefits, and a favorable credit cycle. They expect medium-term upside as Axis Bank continues improving its return ratios and expanding its high-yield retail portfolio.
Consensus View
📈 Consensus View: Positive — Most brokerages maintain Buy or Outperform ratings with target prices ranging between ₹1,250 and ₹1,460, signaling confidence in Axis Bank’s recovery trajectory and improving core metrics.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that Axis Bank’s steady asset quality improvement and resilient profitability position it as a key beneficiary of India’s ongoing credit cycle recovery.
Discover more actionable research at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- ✅ What Makes Axis Bank a Top Pick Among Private Banks?
- ✅ How Will Margin Recovery Impact Axis Bank’s FY26 Earnings?
- ✅ Why Are Brokerages Raising Target Prices on Axis Bank?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
