Axis Bank shares jump 4% after analysts project targets of up to ₹1,525 on Q2 results

Shares of Axis Bank Ltd. can rise up to ₹1,525 per share, analysts tracking the stock have projected after its September quarter results, that were reported after market hours on Wednesday.

None among the 51 analysts that have coverage on Axis Bank have a "sell" rating on the stock. 41 of those have a "buy" rating, while the remaining say "hold."

A one-time provisioning worth ₹1,231 crore impacted Axis Bank's profitability during the quarter, but the rest of the parameters were better than expectations. The lender's core income grew, asset quality improve, while slippages also narrowed on a sequential basis.

Here's a look at what some of the analysts had to say post its results:

HSBC

The brokerage maintained its "buy" rating on the lender and increased its price target to ₹1,460 from ₹1,340 earlier, adding that the premise for its recent upgrade to a preferred pick is playing out.

HSBC said that Axis Bank's results on the loan growth, margins, asset quality front were very strong, although the one-off provision was a disappointment.

However, it sees an inflection in its earnings and as a result, the brokerage raised Axis Bank's Earnings Per Share (EPS) estimates for financial year 2026-2028 by 2.7% to 5.3% led by stronger growth and lower credit costs.

Jefferies

The brokerage has also raised its price target on Axis Bank to ₹1,430 from ₹1,370 earlier, while maintaining its "buy" recommendation.

Similar to HSBC, Jefferies also believes that the RBI-mandated provisions are a negative, although many other parameters are positive, including a moderation in slippages and core credit costs.

It finds Axis Bank's current valuations to be attractive and tweaked earnings estimates to factor in better core trends.

Bernstein

Bernstein maintained its "outperform" rating on Axis Bank with a price target of ₹1,250.

It said that improving underlying trends such as lower slippages and improving card additions indicate that the asset quality stress may be nearing a bottom.

The brokerage added that credit costs were elevated, albeit lower than previous quarters due to one-off provisions on agri advances, but that could reverse in the subsequent quarters.

CLSA

The brokerage maintained its "outperform" rating on the stock with a price target of ₹1,400. It believes that the second quarter was a change in trend for the lender.

Incred

The

brokerage maintained its "Add" rating on the stock with a price target of ₹1,500, which is the second-highest on the street, following the ₹1,525 target by Yes Securities.

InCred believes that Axis Bank is a key beneficiary of an improving systemic volume growth and moderating credit costs, which should aid its profitability further.

At 1.3 times September 2027 estimated price-to-book-value for a 15% return on equity (RoE) the brokerage finds Axis Bank's valuations to be cheap.

The consensus estimate of price targets implies a potential upside of another 16% from current levels for Axis Bank shares.

Shares of Axis Bank are currently trading with gains of 3.2% at ₹1,207.5.