Axis Bank surges 4%, stock nears record high; brokerages see more upside

Axis Bank share price hit a 52-week high at ₹1,308.40 and was trading close to its record high of ₹1,339.55 touched on July 12, 2024 on the BSE.

Axis Bank share price today

 

Share price of Axis Bank hit a 52-week high of ₹1,308.40, surging 4 per cent on the BSE in Wednesday’s intra-day trade in  anticipation of improved performance in the second-half of the financial year 2025-26. The market price of the private sector lender had hit a record high of ₹1,339.55 on July 12, 2024.

 

At 11:51 AM; Axis Bank stock was trading 3 per cent higher at ₹1,300.50, as compared to 0.16 per cent rise in the BSE Sensex.

Brokerages see more upside in Axis Bank stock price

 

Axis Bank’s management reiterated its through-cycle net interest margin (NIM) guidance of 3.8 per cent, expecting margins to bottom out in the October to December 2025 quarter (Q3FY26) (expecting no further rate cut), supported by cash reserve ratio (CRR) release and deposit cost normalization. In the September 2025 quarter (Q2FY26), Axis Bank’s credit cost declined sharply by 65 bps QoQ to 73 bps, indicating that the Q1 technical provisioning impact has fully normalized, according to analysts at ICICI Securities.

 

 

Driven by steady business traction, contained margin pressure, and normalization of one-off provisions, we anticipate improved performance in H2FY26. Current valuations already reflect near-term headwinds, while improving retail momentum and stable asset quality support medium-term re-rating potential, the brokerage firm said. It maintains ‘BUY’ rating on Axis Bank with revised target price to ₹1,420, valuing the stock at ~1.8x FY27E BV, and ₹120 for subsidiaries.  ALSO READ | Nomura initiates Buy on Indian Hotels; cites ADR growth, asset-light model 

Analysts at BNP Paribas India think Axis Bank is poised to grab a meaningful market share during the credit upcycle that the brokerage firm expects over the next few years, given its  provisioning and capital buffering; reasonably robust deposit franchise, albeit a notch below those of its best-in-class peers; commitment to gaining a digital/technological competitive edge; acquisition of Citigroup's India retail portfolio; and willingness to grow businesses such as rural and small business banking (SBB) that broad-base its loan growth potential.

 

The brokerage firm in the Q3FY26 earnings preview said that they are yet to build in any material monetary easing into their earnings estimates, but Axis Bank margins should respond the fastest to expectations of easing, in analysts view. Its annualised ROE has broken through the 18 per cent barrier in recent quarters, partly aided by low credit costs. The stock is trading at 1.7x 1-year forward P/BV valuations, which is quite attractive vis-à-vis what analysts see as a sustainable ROE of 14-16 per cent. Analysts have a ‘BUY’ rating on Axis Bank with a target price of ₹1,660 per share.  ALSO READ | Metal stocks extend rally; Vedanta, Nalco, Hindustan Copper zoom up to 6% 

While earnings progression has been somewhat uneven, Axis Bank appears to be navigating what may be the final phase of margin and asset-quality normalization. Q3FY26 is likely to witness further margin pressure and technical slippages, along with agri seasonality effects, which may weigh on operating performance. However, we expect earnings progression to improve gradually in subsequent quarters as asset-quality stress normalizes and margin recovers in FY27.

 

With loan growth expected to accelerate to mid-teens, credit costs trending lower, and NIMs recovering toward ~3.8 per cent, Axis Bank is well-positioned for a gradual improvement in RoA, targeting 1.6-1.8 per cent over the medium term, analysts at Motilal Oswal Financial Services said in the Q2 result update. The brokerage firm has a ‘NEUTRAL’ rating on the stock.  =================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.