Axis Bank Shares Fall 4% After Q4 Earnings Miss Estimates

Axis Bank shares came under strong selling pressure on Monday, dropping more than 4% in intraday trade despite a broadly positive outlook from leading brokerages following the lender’s Q4 results for the financial year ending March 2026. The stock slipped to around ₹1,309, compared to its previous close of ₹1,365, reflecting a sharp reaction from investors after the earnings announcement.

The decline in the stock came after Axis Bank reported quarterly numbers that missed street expectations on key metrics. Net interest income stood at ₹14,457 crore, falling short of analyst estimates, while net profit largely met expectations but was supported by a one-time tax write-back. Market participants appeared to focus more on the weak core performance rather than headline profit figures, triggering selling pressure in early trade.

In contrast to the stock’s negative reaction, several broking firms maintained a bullish stance on Axis Bank and even raised their target prices. Kotak Securities retained a “Buy” rating and increased its target price to ₹1,600 from ₹1,500, citing stable core performance and improving growth across business segments. However, it also noted that the bank’s strong re-rating compared to peers could limit further upside in the near term.

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Morgan Stanley also maintained an "overweight" rating with a target price of ₹1,575, highlighting improved asset quality and lower slippages as key positives. Jefferies remained among the most optimistic, maintaining a “Buy” rating and raising its target price to ₹1,700 from ₹1,660, pointing to improving loan growth momentum and better long-term valuation comfort despite a slight quarterly miss.

Despite these positive broking assessments, investor sentiment remained cautious as the market weighed near-term earnings softness and margin pressure against longer-term growth prospects. Axis Bank has gained around 12% over the past year, but its year-to-date performance remains modest, reflecting ongoing volatility and mixed sentiment in the banking sector.

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