Axis Bank(AXISBANK)is set to release its Q2 2025 earnings on the day, with analysts forecasting a slight decline in net interest income (NII). Data compiled by LSEG shows that six analysts, on average, expect NII to fall 3.3% year-over-year.

Centrum Research prefers Axis Bank among large Indian lenders, citing that the bank has likely passed the worst phase regarding credit costs and continues to see loan growth potential. Analysts note that subdued earnings are expected across the sector due to soft loan demand in both retail and corporate segments, coupled with margin contraction following RBI rate cuts.

Sector-wide profit forecasts anticipate a 7%-12% year-over-year decline, with state-owned banks underperforming their larger private peers. Axis Bank is rated “buy” on average by six analysts, with a median price target of ₹1,350, according to LSEG data.

Year-to-date, Axis Bank shares have gained 10%, slightly underperforming the Nifty Bank index, which rose 11%, and performing broadly in line with HDFCBank’s 10.5% advance.