Axis Bank (AXSB IN) – Q1FY27 Result Update – Margin challenges persist – BUY
Published on 19 Jul 2026
AXSB saw a soft quarter as core revenue i.e. NIM and fees were a miss; however, core PAT was a beat due to lower opex. Reported NIM was down 16bps QoQ to 3.46% and mgmt. attributed the fall to agri interest reversal (3bps), loan mix change (4bps) and pricing (9bps). However, NIM has fallen by 34bps YoY; part of it could be explained by repo cut, however, mix change YoY has also contributed; corporate share rose by 462bps while avg. CASA fell by 150bps. Opex remains a silver lining and is likely to further moderate amid loan pricing challenges at industry level. We keep multiple at 1.7x on FY28 core ABV, but trim TP to INR 1,550 from INR 1,600. Retain ‘BUY’.
