Axis Bank share price declines ahead of Q2 result; here's what top brokerages expect from the lender's Q2 earnings

Axis Bank share price slipped about 1.60 per cent in morning trade on Thursday, October 17, ahead of its July-September quarter (Q2) results. Shares of the banking major opened at ₹1,152.95 against its previous close of ₹1,152.25 and slipped 1.6 per cent to the level of ₹1,134. Around 10:25 am, the stock traded 1.5 per cent lower at ₹1,135.35.

Axis Bank Q2 preview

Experts expect Axis Bank to report an 8-9 per cent year-on-year (YoY) rise in net profit for Q2FY25, driven by an increase in net interest income (NII) and reduced slippages.

As Mint reported earlier, an average estimate from five brokerages indicates the private sector lender's NII for Q2 may grow by 10 per cent YoY, while slippages are anticipated to increase by 29 per cent YoY but decline by 12 per cent quarter-on-quarter (QoQ).

According to brokerage firm Motilal Oswal Financial Services, Axis Bank may report a 13 per cent YoY rise in net profit for Q2, while NII may see an increase of 10.7 per cent YoY. The brokerage firm expects the CD (credit-deposit) ratio to remain elevated and margins may moderate in Q2. Asset quality ratios may be keenly monitored and cost ratios may remain elevated, said the brokerage firm.

Nuvama Institutional Equities see a 10 per cent YoY rise in core PAT, while pre-provision operating profit (PPoP) may grow 18 per cent YoY.

"NII is likely to grow 1.8 per cent QoQ and 11.2 per cent YoY. Margin is likely to decline by nearly 3 bps. Growth in NII, non-interest income, and lower provisions would lead to higher PAT. Axis will likely report QoQ loan growth of under 1 per cent," said Nuvama.

Axis Bank share price trend

Axis Bank shares gained about 4.5 per cent this year until October 16. The stock has underperformed the benchmark Sensex, which gained about 13 per cent in the same period. 

On a monthly scale, the stock is down nearly 4 per cent in October. If the stock ends in the red for October, it will have snapped its winning streak of the last four consecutive months.

The stock hit its 52-week high of ₹1,339.55 on July 12 this year and its 52-week low of ₹951.55 on October 25 last year.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.