Are Axis Bank latest results good or bad?

Axis Bank has reported its financial results for the quarter ending June 2025, which highlight a mix of operational trends. Notably, the bank achieved its highest operating cash flow in three years, amounting to Rs 49,412.20 crore, indicating a positive development in cash revenues from its business operations. Additionally, the bank declared a dividend per share of Rs 1.00, the highest in the last five years, reflecting its commitment to returning profits to shareholders.
However, the results also reveal significant challenges. The Profit Before Tax (PBT) less Other Income experienced a sharp decline to Rs 309.44 crore, marking an 86.45% year-on-year decrease. The gross Non-Performing Assets (NPA) ratio rose to 1.57%, the highest level in five quarters, suggesting an increase in stressed loans. Furthermore, the earnings per share (EPS) fell to Rs 18.72, the lowest in five quarters, indicating declining profitability. The bank's reliance on non-operating income, which constituted 95.91% of PBT, raises concerns about the sustainability of its business model.

In terms of specific metrics, the interest earned grew by 3.34% year-on-year, a decline from the previous year's growth rate of 17.62%. The net profit also saw a year-on-year decline of 3.79%, contrasting with a growth of 4.10% in the same quarter last year. The percentage of net NPAs increased to 0.34%, while the percentage of gross NPAs rose slightly to 1.57%.

Overall, Axis Bank's latest results indicate a complex financial landscape, with both positive operational cash flow and concerning trends in profitability and asset quality. Additionally, the company saw an adjustment in its evaluation during this period.