🔹 Intraday Update
- Currently trading near ₹1,085, down about 2.3%—the stock witnessed a sharp knee-jerk reaction following Q1 FY26 results (moneycontrol.com, livemint.com, etnownews.com).
📉 Q1 FY26 Earnings Overview
- Standalone Net Profit: â‚ą5,806 crore, down ~4% YoY (â‚ą6,035 crore last year) YouTube+9The Economic Times+9The Economic Times+9.
- Net Interest Income (NII): Flat YoY at around â‚ą13,560 crore; Net Interest Margin declined to 3.8% from 4.05% Reuters+5Reuters+5Samco+5.
- Provisions: Jumped ~93% YoY to â‚ą3,948 crore, tied to higher slippages and a one-time technical impact setting a stricter NPA classification Reuters+6The Economic Times+6ETBFSI.com+6.
- Gross Slippages: ₹8,200 crore—sharp rise led especially by retail/microfinance segments Investing.com+15Reuters+15Axis Bank+15.
🛡 Quality Push Discomfort
- The bank implemented stricter internal NPA norms, qualifying certain overdraft and one-time-settlement accounts as NPAs early—adding ₹2,709 crore to slippages StockGro+1ETBFSI.com+1.
- Underlying performance remains sound: 14% YoY growth in operating profits to â‚ą11,515 crore, 8%+ loan and deposit growth, fee income +10% YoY StockGro+1Axis Bank+1.
🔍 Market Reaction & Technical Outlook
- Stock dropped ~4.6% on Friday due to concerns on margin and asset quality Reuters+1The Economic Times+1.
- Current resistance supports are near ₹1,063, with resistance around ₹1,157–1,215 for this week Equity Pandit.
âś… What Investors Should Do
| Investor Type | Action Plan |
|---|---|
| Short-Term Traders | Consider trading the volatility between support ( |
| Long-Term Investors | The dip is technical. With strong core earnings, healthy loan growth, and provisions cushion, accumulation near Q1 levels could pay off once technical hiccups stabilize. |
âť“ FAQs
Q1. Why did Axis Bank stock drop today?
The sharp correction follows Q1 profits missing estimates due to higher provisions and a one-off technical adjustment in NPA norms The Economic TimesAxis Bank+1AInvest+1StockGro+3AInvest+3The Economic Times+3The Economic Times+11Reuters+11Reuters+11.
Q2. Is the underlying business weak?
No—core metrics like operating profit, fee income, and deposits remain strong. The drop in profit is mainly technical, not due to fundamental deterioration The Economic Times+4Axis Bank+4AInvest+4.
Q3. What is the technical impact?
Axis tightened its NPA recognition for overdraft and settlement accounts, triggering ₹2,709 Cr of additional slippages. Most affected accounts are secured Reuters+3The Economic Times+3ETBFSI.com+3.
Q4. Will margins recover?
Likely. Core NII remains stable; asset-quality measures suggest future earnings may stabilize once one-time provisions are accounted for.
Q5. What’s a good entry point?
Technical support lies around â‚ą1,063; a dip towards that zone could be a smart entry for long-term holders.
🧠Final Take
Axis Bank’s Q1 drop is driven by a one-off “technical NPA hit” and elevated provisions—not core weakness. Despite margin pressure, business fundamentals remain sturdy. The current pullback could offer a strategic opportunity for both short-term trades and long-term accumulation near support levels.
