Axis Bank share price falls over 4% after Q4 results. Should you buy, sell or hold?

Axis Bank share price declined over 4% on Friday after the company reported its Q4 results. Axis Bank shares fell as much as 4.58% to ₹1,151.95 apiece on the BSE.

India’s fourth largest private sector lender, Axis Bank reported a standalone net profit of ₹7,117.50 crore for the March quarter of FY25, registering a fall of 0.2% from ₹7,129.67 crore in the year-ago period.

The bank’s net interest income (NII) in Q4FY25 grew 6% to ₹13,811 crore. The net interest margin (NIM) slipped to 3.97% for the quarter from 4.06%, year-on-year (YoY).

Axis Bank’s total advances increased 8% YoY to ₹10.4 lakh crore, while deposits grew 10% YoY to ₹11.7 lakh crore during the March 2025 quarter.

“Axis Bank reported strong sequential, period-end loan and deposit growth and improving asset quality for Q4FY25 but NII growth was soft. Calculated NIM fell 7bp QoQ, whereas reported NIM rose 4 bps QoQ. The bank has tightened asset classification, which could marginally impact credit cost in FY26E,” said Nuvama Institutional Equities.

It noted that the asset quality in CC has stabilised while PL will take a few quarters. The bank has a tightly matched duration (on rates) of assets and liabilities. Better system liquidity will aid deposit growth.

Equirus Securities forecasts FY26E advances and deposits growth to fall below systemic trends as Axis Bank focuses on increasing the share of retail liabilities and prioritises RAROC-based lending.

“We expect FY26E credit costs to remain flattish at ~80 bps QoQ. While we view 4Q numbers as operationally soft, current valuations at 1.6x FY27E offer a favourable risk-reward – more so as Axis Bank could potentially re-rate once business growth picks up, given a meaningful valuation gap between ICICI Bank and Axis Bank,” said the brokerage firm.

Should you buy Axis Bank shares after Q4 results?

Nuvama Equities maintained a ‘Buy’ rating on Axis Bank shares on attractive valuation, and the target price to ₹1,400 apiece from ₹1,220 earlier.

Equirus Securities retained a ‘Long’ with Axis Bank share price target for March 2026 at ₹1,500 apiece.

On the technical front, analysts believe the fall in Axis Bank share price today could be used as a buying opportunity.

“After a stupendous rally from ₹1,030 to ₹1,200, Axis Bank share price is now catching up with the 10–30 EMA spread. The stock has tested the 10-day EMA and appears poised for a pullback towards the 20-day EMA at ₹1,135. Notably, volumes on this decline are low, suggesting profit booking by weak hands rather than a structural breakdown,” said Anshul Jain, Head of Research at Lakshmishree Investments.

This dip presents a healthy retracement and could offer a good buy-on-dips opportunity for momentum traders, Jain added.

Axis Bank share price has witnessed a notable uptrend, gaining nearly 4% over the past month and surging more than 22% in the last three months. On a year-to-date (YTD) basis, the banking stock has risen by 8.5%.

Over the long term, Axis Bank shares have delivered a strong performance, with the stock rallying 32% over the past two years and generating multibagger returns of 188% over a five-year period. 

At 10:15 AM, Axis Bank shares were trading 3.98% lower at ₹1,159.25 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.