Axis Bank Q4 Result Highlights: Net Profit Falls Annually To Rs 7,071 Cr, NII Up 5% ; Dividend Declared

Axis Bank Q4 Result Highlights: Axis Bank reported a marginal decline in its net profit to Rs 7,071 crore in the fourth quarter of financial year 2025-26. The private lender also reported a 5% year-on-year surge in its net interest income and announced dividend for FY26.

While the private lender reported an annual decline in its net profit, Axis Bank's Q4 result was slightly above experts' expectations as higher provisions and weaker non-interest income weighed on profitability.

Axis Bank Q4 Result Highlight

While the net profit declined marginally on an annual basis, it increased on a quarter on quarter (QoQ) basis. Axis Bank's Q4FY26 profit increased by 9% on a sequential basis from Rs 6,489.57 crore reported in the December quarter.

Axis Bank Q4 Result: Net NPA Eases Despite Weak NII

Axis Bank's gross non-performing assets ratio eased to 1.23% from 1.4% in December quarter. Its net NPA declined to 0.37% from 0.42%, which signalled healthier loans. Despite weaker non-interest income and higher provisions, core income stayed firm.

Axis Bank Q4 Result Highlights: Strong Balance Sheet

The private lender's provisions and contingencies surged to Rs 3,522 crore during the quarter under review against Rs 2,245 crore in the previous quarter. Axis Bank reported a one-time provision of Rs 2,001 crore to support its balance sheet.

Axis Bank's Net Credit Cost

The bank's net credit cost stood at 0.37% for Q4FY26, which was lower on an annual and sequential basis due to improved asset quality. The provision coverage ratio remained at 70 percent, which the lender described as comfortable. These metrics, combined with the lower GNPA and NNPA ratios, suggested that the higher provisions mainly reflected prudence rather than fresh pressure on borrowers.

Axis Bank Q4 NII

Axis Bank's net interest income (NII) surged by 5% on an annual basis to Rs 14,457 crore in Q4FY26. The net interest margin (NIM) for Q4FY26 stood at 3.62%. Core operating revenue stayed broadly stable, even as weaker trading performance pulled down other income, limiting overall profitability growth despite stronger loan volumes.

Fee income, a key part of non-interest revenue, rose to Rs 6,561 crore, up 8 percent quarter-on-quarter and 4 percent year-on-year, helped by retail fees and a more granular mix. However, overall non-interest income was hit by a trading loss of Rs 606 crore. Operating profit fell 7 percent year-on-year to Rs 10,013 crore, while operating expenses increased 6 percent over the same period.

Axis Bank Dividend

Axis Bank's board of directors recommended an interim dividend of Re 1 for the financial year 2025-26. The board "Recommended a final dividend of Rs. 1/- per equity share (face value of Rs. 2/- each) i.e., 50% of the face value, for the financial year ended March 31, 2026, subject to approval of the members of the Bank at the ensuing 32nd Annual General Meeting ("AGM") and applicable statutory approval, if any. The dividend, if approved, will be paid within 30 days from the date of conclusion of the AGM," as per the BSE filing released on Saturday, April 25.