Axis Bank reported a net profit of ₹6,489.57 crore for the third quarter of FY26, reflecting a modest year-on-year increase amid stable operating performance and improving asset quality. The bank maintained strong capital adequacy and continued balance-sheet expansion across retail and corporate segments, reinforcing its position among India’s leading private sector lenders.

Axis Bank Q3 Results FY26 Financial Performance

Axis Bank reported total income of ₹38,500.06 crore for the December quarter, compared with ₹36,926.14 crore in the same period last year. Operating profit stood at ₹10,875.70 crore, reflecting stable margin performance and controlled operating expenses.

Net profit for the quarter came in at ₹6,489.57 crore, compared with ₹6,303.77 crore in the corresponding quarter last year, indicating modest but stable earnings growth.

Interest income remained the primary revenue contributor, with interest earned at ₹32,274.40 crore during the quarter.

Axis Bank Q3 Results: Operational Drivers

The bank’s operating performance was driven by stable loan growth and consistent fee income streams. Operating expenses for the quarter stood at ₹9,636.52 crore, while interest expenses were ₹17,987.84 crore.

Provisions and contingencies for the quarter were ₹2,245.92 crore, reflecting prudent credit cost management.

The bank also maintained disciplined cost control, which helped sustain operating profitability despite a rising interest-rate environment.

Axis Bank Q3 Results: Segment Trends

Axis Bank’s business mix remained diversified across retail, corporate, and treasury segments.

• Retail banking revenue: ₹36,858.35 crore
• Corporate/wholesale banking revenue: ₹12,659.01 crore
• Treasury revenue: ₹7,555.88 crore

Retail banking continued to be the largest contributor to the bank’s revenue base, driven by growth in digital and consumer lending segments.

Axis Bank Q3 Results: Balance Sheet and Asset Quality

The bank reported total assets of ₹17,52,171.47 crore as of December 31, 2025, compared with ₹16,09,929.88 crore as of March 31, 2025.

Advances stood at ₹11,59,051.66 crore, while deposits were ₹12,60,785.88 crore, reflecting continued balance-sheet expansion.

Asset Quality Metrics

• Gross NPAs: ₹17,166.78 crore
• Net NPAs: ₹5,154.29 crore
• Gross NPA ratio: 1.40%
• Net NPA ratio: 0.42%

The improvement in asset quality metrics indicates stable credit trends across the loan book.

Capital Position

Axis Bank reported a capital adequacy ratio of 16.55% under Basel III norms, providing a comfortable buffer for future growth and regulatory requirements.

Return on assets stood at 1.49% for the quarter, reflecting stable profitability.

Valuation Context

Private sector banks typically trade at premium price-to-book multiples compared with PSU banks, reflecting superior return ratios and asset quality. Axis Bank’s stable RoA and improving NPA profile support its valuation relative to sector peers.

Institutional investors typically focus on:

• Credit growth trajectory
• Net interest margins
• Asset quality trends
• Capital adequacy

Axis Bank’s Q3 results indicate stability across these metrics.

Outlook

Axis Bank’s balance-sheet expansion, stable asset quality, and strong capital buffers position it for steady growth. The bank is expected to benefit from continued retail loan demand and corporate credit revival.

Institutional focus will remain on margin trends, deposit growth, and credit-cost trajectory over the coming quarters.