Axis Bank Q1 Results: What Went Wrong With Axis Bank Share Price Today As Profit Dips, Stock Tank

Axis Bank had a rough Friday, and if you’re tracking the markets, you definitely noticed. The stock tanked over 7%, sliding down to ₹1,073.95 on the BSE after the bank reported a 4% dip in its net profit for the April–June quarter. Profits dropped from ₹6,035 crore last year to ₹5,806 crore this time, something investors didn’t take lightly. The result? A heavy sell-off that made Axis Bank the biggest loser across the Nifty 50, Nifty Bank, and Nifty Private Bank charts. Ouch. It was also the stock’s worst day in six months. So, what’s behind the tumble? Worries about rising bad loans, higher provisioning, and shrinking margins. To add to the pain, the stock’s gains for the year shrank to just 4.3%. If you’re wondering what really went wrong behind the scenes, let’s break it down- no jargon, just the facts!

What Went Wrong – Quick View

What’s Dragging Axis Bank? It’s The Asset Quality

Here’s where things really took a turn- Axis Bank reported gross slippages of ₹8,200 crore in Q1FY26. That’s a 72% jump from the last quarter! What caused the spike? The bank recently went through a one-time “benchmarking” exercise to bring its asset classification rules in line with industry standards. In simple terms, it re-evaluated how it labels certain loans, and that reclassification didn’t go too well. CFO Puneet Sharma said most of these fresh slippages came from unsecured retail loans and overdraft products. Because of this, the bank’s gross NPAs jumped, and the credit cost shot up to 1.38%. That number raised eyebrows. Even after factoring in this one-time change, analysts like Macquarie still think Axis Bank’s credit costs are higher than those of its private peers. Not exactly what investors want to hear.

Axis Banks Margins Under Pressure: Key Takeaways

• Net Interest Margin (NIM) dropped to 3.8% in Q1FY26 from 4.05% in Q1FY25.
• Net Interest Income (NII) stayed flat at ₹13,560 crore, showing no growth year-on-year.
• Analysts say delayed deposit rate cuts after RBI’s earlier rate actions are squeezing margins.
• Systematix expects this margin pressure to continue in Q2FY26.
• Operating profit before provisions rose 14% to ₹11,515 crore, showing strength in core business.
• However, provisions nearly doubled to ₹3,948 crore, up from ₹2,039 crore last year.
• This surge in provisioning offset gains and weighed down overall earnings sentiment.

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