Axis Bank shares jump nearly 4% today after Q3 results, brokerages bullish; check target prices

Axis Bank

• Axis Bank shares rose nearly 4 percent after Q3 results beat estimates
• Net profit for Q3 FY26 rose 3 percent to Rs 6,489.6 crore, beating expectations
• Brokerages upgraded Axis Bank, citing improved asset quality and strong growth

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Shares of Axis Bank Ltd jumped nearly 4 percent in early trade on Tuesday, January 27, after the private sector lender reported a better-than-expected results for Q3 FY26. The strong financial performance drew a string of bullish brokerage responses on earnings visibility, asset quality and valuations.

Axis Bank stock was trading at Rs 1,306.6, up 3.86 percent, extending its strong run over the past year. The stock has gained 37.3 percent over the last 12 months, sharply outperforming the Nifty 50, which is up about 9.7 percent over the same period.

Axis Bank Q3 results beat estimates

Axis Bank reported a 3 percent year-on-year rise in net profit to Rs 6,489.6 crore for Q3 FY26, beating the CNBC-TV18 poll estimate of Rs 6,046 crore. Net interest income grew 5 percent on-year to Rs 14,286.4 crore, also ahead of Street expectations, reflecting steady core lending performance.

Asset quality improved sequentially, with gross NPAs easing to 1.40 percent from 1.46 percent in the September quarter and net NPAs declining to 0.42 percent from 0.44 percent. In absolute terms, gross NPAs fell quarter-on-quarter, while net NPAs edged up marginally.

Axis Bank stock call: Brokerages turn more bullish

Brokerages were largely positive on the stock outlook, citing improving credit cost visibility, resilient profitability metrics and attractive valuations.

Citi upgraded Axis Bank to a ‘Buy’ and raised its target price to Rs 1,436, implying an upside of over 14 percent. Citi highlighted another core earnings beat and return on assets of around 1.5 percent. The brokerage flagged stable slippages despite agricultural seasonality, lower-than-expected credit costs and improved cost efficiency, even as treasury gains and fee income remained muted.

CLSA maintained its ‘Outperform’ rating with a target price of Rs 1,500, calling asset quality the key highlight of the quarter. It noted that excluding technical slippages, gross slippages declined sharply on-year, driven by unsecured retail credit, while credit costs came in below estimates.

Bernstein, which has an ‘Outperform’ rating and a target of Rs 1,480, described the quarter as mixed, with healthy loan and deposit growth offset by margin pressure and elevated credit costs. Still, it said return on assets was sustained at around 1.5 percent.

Nomura reiterated its ‘Buy’ call with a target price of Rs 1,540, pointing to improving credit cost visibility and strengthening growth trends. The brokerage expects return on assets of 1.7-1.8 percent and return on equity of around 15 percent over FY27-28, with earnings CAGR estimated at 26 percent.

HSBC also maintained a ‘Buy’ rating, setting a target price of Rs 1,580, and said the upgrade thesis was playing out as expected, supported by sharp improvement in credit costs and strong growth and margin performance. Jefferies retained its ‘Buy’ call with a target of Rs 1,550, citing a profit beat driven by stronger topline, lower credit costs and controlled operating expenses.

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