India’s third-largest private bank declared its Q4 FY25 results. This has bagged mixed reactions from different brokerages such as Jefferies, Morgan Stanley, Nuvama, etc. In this article, we will discuss their viewpoints on this bank.
Price Movement
With a market capitalization of Rs 3,57,553 crore, the shares of Axis Bank Ltd are currently trading at Rs 1,154 per share, down by 14 percent from its 52-week high of Rs 1,340 per share. During the last one year, the stock has given a positive return of 2.67 percent.
Financial Highlights
On Thursday, the company announced its financial results and made a couple of announcements. Its interest earned grew by 19.6 percent to Rs 1,27,374 crores in FY25, up by 19.6 percent from its FY24 revenue of Rs 1,12,759 crores. It increased by 17.3 percent YoY from 30,231 crores in Q4 FY24 to 32,452 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 7.58 percent from 32,162 crores in Q3 FY25 to 32,452 crores in Q4 FY25
It posted a net profit of Rs 28,191 crores in FY25, up by 22.22 percent, from its FY24 net profit of Rs 26,492 crores. And decreased by 20.62 percent YoY from 7,630 crores in Q4 FY24 to 7,509 crores in Q4 FY25. However, on a QoQ basis, it rose by 9.35 percent from 6,779 crores in Q3 FY25 to 7,509 crores in Q4 FY25. Additionally, the company declared a dividend of Rs 1 per equity share, i., 50% of its face value.
The bank’s net interest income (NII) in Q4FY25 grew 6 percent to Rs 13,811 crore. The net interest margin (NIM) declined to 3.97 percent for the quarter from 4.06 percent, year-on-year (YoY). Axis Bank’s total advances increased 8 percent YoY to Rs 10.4 lakh crore, while deposits grew 10 percent YoY to Rs 11.7 lakh crore during the March 2025 quarter. Asset quality also improved, with gross NPA ratio (GNPA) at 1.28 percent, down 15 bps YoY and 18 bps QoQ, and net NPA (NNPA) at 0.33 percent, down 2 bps QoQ.
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Analyst Comments post Q4 results
Axis Bank has drawn positive attention from leading brokerages as a result of the enhancement in its asset quality and good cost control by CEO Amitabh Chaudhry’s management team.
Jefferies has kept a ‘Buy’ rating with a target price of ₹1,450, implying an upside potential of approximately 20% over its current market price of ₹1,154. The company is of the view that Axis Bank is priced at a 25-30 percent discount to its peers due to asset quality concerns, although gross non-performing assets have reduced progressively from Rs 18,000 crore (2.02%) three years back to Rs 14,490 crore (1.28%) now.
Morgan Stanley, though positive with an ‘Overweight’ rating, is also more guarded in its expectations, predicting a price of Rs 1,300 within the next one year, signaling a relatively smaller upside of about 12 percent citing the same asset quality reason.
Nuvama and Emkay have also upgraded their target price to Rs 1,400, implying a potential return of approximately 21 percent. Still, certain near-term issues exist, like the sluggish pick-up in the personal loans business and potential margin squeeze on account of anticipated RBI rate reductions, which may decrease interest income, particularly as 57% of Axis Bank’s loans are repo-rate linked.
About the company
Axis Bank Limited, with its headquarters in Mumbai, provides a broad array of banking and financial products and services across its four business segments: Treasury, Retail, Corporate/Wholesale, and Other Banking.
It offers loans, deposits, cards, digital banking, wealth management, and insurance products, as well as corporate lending, advisory, and trade finance services. The bank also deals in investment, broking, asset management, and MSME invoice discounting, with branches in India and offices in Singapore, Dubai, Dhaka, Abu Dhabi, and Sharjah.
Written by Satyajeet Mukherjee
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