Axis Bank shares slip 5.2% after poor Q1

Lender's earnings forecast reduced for FY26 and FY27

- NIKITA VASHISHT

Frequent negative surprises on the earnings front, as seen during the first quarter of 2025-26 (Q1FY26), have led analysts to cut Axis Bank's earnings forecast for the coming years.

Nuvama Institutional Equities downgraded the stock to "hold" on repeated volatility in asset quality and earnings growth. "We cut earnings by 5.4 per cent for FY26 and 6.3 per cent for FY27 on an already below consensus base, and trim our target to ₹1,180 from 1,400. Since Axis Bank has more catching up to do on rate cuts compared to peers, we expect the stock's discount to peers to widen, given repeated volatility," the brokerage said.

Axis Bank's share price crashed 7.4 per cent intraday on Friday to hit a low of ₹1,073.95 on the BSE. It ended 5.24 per cent lower at ₹1,099, as against a 0.6 per cent dip in the BSE Sensex.

Slippages surgeAxis Bank's Q1FY26 net profit slipped 4 per cent year-on-year (Y-o-Y) to ₹5,806 crore, weighed by "technical" slippages and a one-time bump in provisions. The technical impact, it said, was restricted to cash credit and overdraft products, and one-time settled accounts.