Axis Bank Q2 FY27 Results (NSE: AXISBANK)
Signal: Earnings grew
The read
Q2FY27 marks a profit-quality rebound rather than a full operating inflection: consolidated PAT rose 39.4% YoY to ₹7,704.67 crore as provisions fell 51.8% to ₹1,757.46 crore, but operating profit grew only 8.7% and operating margin compressed 151bps YoY to 26.5%. Asset quality improved to 1.16% gross NPA and 0.35% net NPA, while advances grew 23.2% versus 20.7% deposit growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹45,674.37 Cr | +14.8% | +5.7% |
| EBIT | ₹12,109.11 Cr | +8.7% | |
| Net profit | ₹7,704.67 Cr | +39.4% | |
| EPS | ₹24.76 | +38.9% | |
| EBIT margin | 0% |
P&L walk
Consolidated revenue of ₹45,674.37 crore grew 14.8% YoY, while operating profit of ₹12,109.11 crore grew only 8.7%; the PAT increase to ₹7,704.67 crore was primarily aided by provisions falling 51.8% YoY to ₹1,757.46 crore.
Segments
Retail Banking generated ₹40,974.70 crore of revenue and ₹4,244.63 crore of segment result, while Corporate/Wholesale Banking contributed ₹2,743.54 crore of result; consolidated PAT exceeded standalone PAT by ₹701.39 crore as subsidiaries and the associate added ₹54.95 crore after minority interests.
Key positives
- Consolidated advances reached ₹14,31,452.73 crore, up 23.2% YoY, outpacing 20.7% deposit growth to ₹14,50,287.83 crore.
- Gross NPA improved to 1.16% from 1.46% YoY and net NPA to 0.35% from 0.44% YoY.
- Consolidated provisions fell 51.8% YoY to ₹1,757.46 crore, lifting PAT 39.4% YoY to ₹7,704.67 crore.
- Operating expenses grew 9.1% YoY versus 14.8% total-income growth, providing positive cost-income direction despite sequential operating-margin pressure.
Key concerns
- Operating profit grew only 8.7% YoY to ₹12,109.11 crore, materially below 14.8% total-income growth, and operating margin fell 151bps YoY to 26.5%.
- Operating profit declined 3.1% sequentially to ₹12,109.11 crore even as total income rose 5.7%, indicating weaker near-term operating conversion.
- Borrowings increased to ₹3,24,487.88 crore from ₹2,40,841.49 crore YoY, while capital adequacy declined to 16.27% from 16.55% YoY.
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