Axis Bank shares slide 6% as Q1FY27 NIM falls 16 bps to 3.46% despite 23% profit rise
AI Market Summary
Axis Bank reported Q1FY27 profit up 23% but shares fell ~6% as net interest margin dropped 16 bps QoQ to 3.46%, below expectations, echoing broader sensitivity to bank margin misses. Brokers largely retained Buy ratings with targets clustering around 1,490–1,700, but flagged near-term NIM pressure as the key constraint. Asset quality metrics softened modestly, with GNPA rising to 1.3% on seasonal agri delinquencies.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT+0.36%
AI Insight · NCCOGOLD2USD/USDTAI Insight
● Neutral
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Axis Bank reported Q1FY27 net profit growth of 23% year on year, but its net interest margin fell 16 basis points quarter on quarter to 3.46%, below market expectations. The stock dropped 5.54% to Rs 1,255.25 in one session as investors reacted to the margin miss. Several foreign brokerages kept Buy ratings and set target prices in the Rs 1,490–1,700 range, while flagging NIM pressure as the key near-term constraint. Gross NPAs rose to 1.3% due to seasonal agri slippages, which analysts expect to ease.
