Axis Bank’s Q3 FY26 investor presentation highlights several under-the-radar strengths beyond headline earnings, particularly in returns, subsidiary performance, digital scale, and balance-sheet quality indicators.
On the liability side, the bank maintained a CASA ratio of 39% on a month-end basis, reinforcing its ability to fund growth through relatively low-cost deposits. The bank’s customer base expanded to about 54 million, supported by a wide physical footprint of 6,110 branches and extension counters across the country, underlining continued franchise expansion.
Profitability ratios showed steady improvement. On a standalone basis, return on assets (RoA) stood at 1.49% for Q3 FY26, improving from 1.40% for the nine-month period, while return on equity (RoE) rose to 13.68% from 12.61% over the same timeframe. At the consolidated level, RoA increased to 1.57%, and RoE improved to 14.15%, reflecting stronger contribution from subsidiaries. Annualised diluted EPS rose to ₹82.50, while book value per share increased to ₹634, indicating steady accretion to shareholder equity.
Subsidiaries continued to play a growing role in earnings diversification. Axis Finance recorded a 12% year-on-year increase in profit, while Axis Asset Management delivered 20% profit growth, aided by higher assets under management. Axis Securities posted a profit of ₹270 crore, and Axis Capital also reported 20% year-on-year profit growth, highlighting sustained momentum across the group’s non-banking businesses.
On the digital front, Axis Bank retained its leadership in payments. The bank holds a 39% share in the UPI payer service provider market and a 21.4% share in merchant acquiring, strengthening its fee-generating ecosystem. The Axis Mobile app reported about 15 million monthly active users, reflecting strong customer engagement and supporting cross-sell opportunities.
Strategic/Other Highlights
Axis Bank’s Q3FY26 investor presentation underscores broad franchise depth in both traditional and digital channels. The bank continues to lead in the UPI Payer PSP market with 39% share and holds a 21.4% merchant acquiring market share, reinforcing strong non-interest ecosystem positioning beyond classic lending.
In digital adoption, the Axis Mobile app boasts 15 million monthly active users (MAU) and market-top ratings on major app platforms, indicating solid customer engagement and potential for low-cost cross-sell and retention gains.
Subsidiaries across finance, AMC, securities, and capital markets delivered double-digit PAT growth, signalling diversified earnings streams and reduced reliance on core banking alone.
Outlook Addendum
Looking forward, Axis Bank highlights continued execution on granular revenue avenues, such as payments and digital finance, and strengthening subsidiary profitability, while maintaining high CASA share and franchise scale.