Buzzing Stock: Is Today’s Fall In Axis Bank Share Price An Opportunity To Add To Your Portfolio?

Axis Bank's share price dropped over 7% in early trade on Friday, July 18, after the bank reported disappointing financial results for the April-June quarter (Q1 FY26). Investors reacted strongly to the 4% fall in net profit, and brokerage firms downgraded the stock due to concerns around rising credit costs and shrinking profit margins.

Axis Bank Share Price Movement:

Following the weaker result and brokerage downgrades, Axis Bank is trading in red at Rs 1,102.35, witnessing a fall of 4.96% or Rs 57.50 at 2.40 PM. The share of Axis Bank slipped sharply during early trade to Rs 1073.95 recording 7.4% fall on the Bombay Stock Exchange (BSE). The stock has ended at Rs 1159.85.

What Went Wrong in Q1 FY26 Result?

The bank's net profit fell by 4% to Rs 5,806 crore in Q1 FY26 compared to Rs 6,035 crore in the same quarter last year. While its net interest income (NII) saw a slight year-on-year increase of 0.8% to Rs 13,560 crore, the net interest margin (NIM) declined to 3.80%, down from 3.97% in the previous quarter.
Additionally, the bank's asset quality worsened, with the gross non-performing assets (NPA) rising to 1.57% from 1.28%, and net NPA increasing to 0.45% from 0.33% over the same period.

"Technical Impact has adversely impacted PAT by 614 crores, ROA adversely by 15 bps and ROE adversely by 1.4%. 80% of individual contracts that slipped because of Technical Impact and that continue to remain NPA as at June 30, 2025 are fully secured. Hence, given the aforementioned security cover, we believe that economic loss due to Technical Impact will be minimal over the life of such contracts, said Axis Bank in its exchange filing on the result.

Should You Buy Hold Or Sell?

Nuvama downgraded the stock to 'Hold', cutting its price target from Rs 1,400 to Rs 1,180, on repeated volatility in asset quality and growth.

"We are cutting FY26E/27E EPS by 5% /6% on an already below-consensus base, and slashing TP to INR1,180/1.7x BV FY26E (from INR1,400/2x). AXIS has more catch-up to do on rate cuts than peers; the stock's discount to peers shall widen given volatility," noted Nuvama report.

Centrum had recommended 'Buy' but revised the target price of Rs 1340 from earlier target price of Rs 1410. "We revise our valuation multiple for the standalone bank which accounts for over 90% of our target price to 1.5x P/BV to factor in the near term weakness.

Subsidiaries are valued using PE/PBV methods, and after applying a 20% holding company discount, contribute Rs120 per share to our SOTP valuation. Further, we roll over to 1HFY28E. We maintain our BUY rating with a revised SOTP-based revised target price of Rs1,340 (earlier TP Rs1410)," said Cetrum in it report for the Bank.

What Technical Analysis Say?

"Axis Bank continues to trade in a bullish structure, supported by strong price action and healthy volumes. The stock has been forming higher lows and is now consolidating just below the immediate resistance zone of Rs 1,170-Rs 1,180. A breakout above Rs 1,180 could open the door for a rally toward Rs 1,220-Rs 1,250 in the short term," said Riyank Arora, technical analyst at Mehta Equities.

"On the downside, support is seen near Rs 1,130, followed by a stronger base at Rs 1,110. The trend remains positive as long as the stock holds above these levels. Momentum indicators like RSI are also trending higher, confirming strength in the ongoing move. Traders may consider buying on dips or a confirmed breakout above Rs 1,180 for further upside," added Riyank Arora.

Axis Bank Share Price Performance:

Axis Bank's share price has seen both ups and downs over different time periods. In the past one month, the stock has fallen over 9%, but in the last six months, it has gone up by 11%. Over the past one year, the share price has dropped by 15%. However, looking at the longer term, the stock has performed well, rising 61% over the past three years and jumping an impressive 154% in the last five years.

Disclaimer
The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.