Axis Bank Q4 results today: Net profit expected to fall 5% YoY; margin pressure seen with sluggish loan growth

Axis Bank share price gained over a percent on Thursday ahead of its Q4 results today. Axis Bank shares rose as much as 1.11% to ₹1,220.00 apiece on the BSE.

The third largest private sector lender in India, Axis Bank will report its Q4 results today, April 24. Along with its financial results for the fourth quarter of FY25, the bank will also declare its earnings for the full financial year ending 31 March 2025.

The private lender Axis Bank is expected to report muted earnings performance during the January-March quarter of FY25, highlighted by tepid margins and sluggish loan growth. While asset quality ratios are likely to see a flat trend, credit cost is expected to decline for the bank.

Axis Bank is projected to report a net profit of ₹6,773 crore during the quarter ended March 2025, registering a fall of 5% from ₹7,129.7 crore, from the year-ago period, according to Livemint poll.

The bank’s net interest income (NII) in Q4FY25 is estimated to grow by 6.2% to ₹13,900 crore from ₹13,089 crore, year-on-year (YoY). Other income of the lender is estimated to be better, and hence cost ratios would be lower.

Axis Bank’s net interest margins (NIMs) are expected to come under pressure in Q4FY25. NIMs are estimated to fall 14 basis points (bps) to 3.9%.

“NII growth will be slightly slower than average loan growth due to fall in yield on advances outpacing cost of deposits. Consequently, NIM will be lower sequentially,” YES Securities said in a note.

Loan Growth, Deposit Growth

Analysts expect Axis Bank’s advances to grow by 9.27% YoY to ₹10.6 lakh crore in the March 2025 quarter, as compared with ₹9.7 lakh crore in the same period last year.

Deposits during the quarter are expected to grow 8.4% to ₹11.6 lakh crore from ₹10.7 lakh crore, YoY.

“Expect a softer QoQ growth in loan book, and similar deposit growth. NIM continues to be a key monitorable. We expect steady NIMs or a marginal decline. Opex trend would lend support to core PPoP growth,” Elara Capital said.

Asset Quality

Asset quality of the bank is expected to remain stable sequentially. Motilal Oswal Financial Services expects the gross non-performing asset (GNPA) ratio during the March quarter to be flat quarter-on-quarter (QoQ) at around 1.5%. The net NPA (NNPA) ratio is also estimated to be flat at 0.4%, similar to that in the December quarter.

Key Monitorables

Axis Bank’s management commentary as regards progress on deposit growth, outlook on Pre-Provisioning Operating Profits (PPoP) growth and credit cost outcomes are likely to be key monitorables during the Q4 results.

Axis Bank Stock Price Trend

Axis Bank share price has demonstrated resilient performance despite recent volatility in the Indian stock market. The banking stock has surged over 13% in the past month and recorded a robust gain of more than 27% over the last three months. On a year-to-date (YTD) basis, Axis Bank shares are up nearly 14%, while the stock has advanced approximately 55% over the past year.

Over a five-year period, Axis Bank shares have delivered multibagger returns of around 180%, underscoring strong long-term growth.

At 10:45 AM, Axis Bank shares were trading 0.75% higher at ₹1,215.60 apiece on the BSE.

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