Axis Bank Q4 FY25: Net Profit Marginally Declines but Beats Estimates
Axis Bank reported a marginal decline in standalone net profit for the fourth quarter of FY25 at Rs 7,118 crore, compared to Rs 7,130 crore in the same quarter last year. Despite the minor drop, the results exceeded analyst expectations due to robust growth in core lending income, which offset declines elsewhere. Analysts had projected a lower profit of Rs 6,710 crore, indicating the bank’s performance surpassed consensus forecasts.
Highlights:
Q4FY25 standalone net profit: Rs 7,118 crore vs Rs 7,130 crore YoY.
Beat analyst estimates pegged at Rs 6,710 crore.
Total Income Grows Steadily in Q4
Total income for Q4FY25 rose by 6 percent year-on-year to Rs 38,022 crore from Rs 35,990 crore in Q4FY24, reflecting consistent revenue generation across interest and non-interest streams. Axis Bank closed the trading session on April 24 at Rs 1,208.5 per share on the NSE, marking a modest 0.13 percent gain. The lender also declared a dividend of Re 1 per share for the fiscal year ending March 2025.
Highlights:
Q4 total income: Rs 38,022 crore, up 6% YoY.
Dividend declared: Re 1 per share for FY25.
Growth in Interest Earned Supports Revenue Expansion
Standalone interest earned increased 6.9 percent year-on-year to Rs 31,242.51 crore in Q4FY25, driven by strong growth in lending and investment income. Interest on advances rose by 5.3 percent to Rs 24,579.59 crore, while income from investments surged 14.1 percent to Rs 6,095 crore. On a consolidated basis, interest earned reached Rs 32,452.32 crore, with the lending segment contributing Rs 25,709 crore.
Highlights:
Interest earned (standalone): Rs 31,242.51 crore, up 6.9%.
Investment income grew 14.1% YoY.
Stable Growth in Total Income and Other Income
Standalone total income, comprising net interest income and other income, rose 5.7 percent to Rs 38,022.03 crore. Other income grew marginally by 0.2 percent to Rs 6,779.52 crore, indicating moderate traction in non-interest income sources. The diversified income profile helped Axis Bank maintain a steady overall financial performance despite macroeconomic pressures.
Highlights:
Total income (standalone): Rs 38,022.03 crore, up 5.7%.
Other income saw marginal rise of 0.2% YoY.
Moderate Rise in Operating Expenses
Operating expenses rose modestly during the quarter. Standalone operating expenses increased 5.6 percent to Rs 9,837.69 crore, while consolidated figures climbed 4.6 percent to Rs 10,392.28 crore. Despite the increase, the growth was contained in comparison to income, allowing the bank to preserve operating efficiency margins.
Highlights:
Standalone operating expenses: Rs 9,837.69 crore, up 5.6%.
Consolidated expenses rose by 4.6% YoY.
Operating Profit Remains Resilient
Standalone operating profit before provisions edged up 2 percent to Rs 10,752.37 crore. Consolidated operating profit saw a similar rise of 2.1 percent to Rs 11,445.05 crore. The bank’s stable operating performance despite rising expenses underlines efficient cost controls and robust revenue generation across segments.
Highlights:
Standalone operating profit: Rs 10,752.37 crore, up 2%.
Consolidated operating profit: Rs 11,445.05 crore, up 2.1%.
Sharp Drop in Provisions and Improvement in Asset Quality
Provisions and contingencies (net) decreased significantly to Rs 1,359.35 crore in Q4FY25 from Rs 2,155.63 crore in the previous year. This sharp reduction aided profit stability. Gross non-performing assets (NPAs) improved to 1.28 percent from 1.43 percent, while net NPAs dropped to 0.33 percent from 0.35 percent. Consolidated net provisions also eased to Rs 1,550.28 crore from Rs 2,239.98 crore, reflecting better credit quality.
Highlights:
Net provisions down to Rs 1,359.35 crore from Rs 2,155.63 crore.
Gross NPAs improved to 1.28%; Net NPAs at 0.33%.
Annual Profit and Earnings Show Consistent Growth
For FY25, standalone net profit grew by 6.1 percent to Rs 26,373.48 crore, supported by total income of Rs 1,47,934.10 crore and operating profit of Rs 42,104.93 crore. On a consolidated basis, net profit increased 6.3 percent year-on-year to Rs 28,055.11 crore, backed by total income of Rs 1,55,916.86 crore and consolidated operating profit of Rs 44,888.51 crore.
Highlights:
FY25 standalone net profit: Rs 26,373.48 crore, up 6.1%.
FY25 consolidated net profit: Rs 28,055.11 crore, up 6.3%.
Strong Capital Position and Dividend Proposal
Axis Bank maintained a robust capital adequacy ratio (Basel III) of 17.07 percent and posted a healthy return on assets (ROA) of 1.74 percent for FY25. The bank’s earnings per share (EPS) stood at Rs 85.28 (basic, standalone) for the year, compared to Rs 80.67 in FY24. The Board recommended a dividend of Rs 1 per share, equivalent to 50 percent of the face value, pending shareholder approval.
Highlights:
Capital adequacy ratio: 17.07%; ROA: 1.74%.
FY25 EPS: Rs 85.28; Dividend proposed: Rs 1/share.
