Q2 results 2025: The earnings season has finally kicked in with more than 200 companies scheduled to release their second-quarter results this week. Among banking companies, Axis Bank, HDFC Bank, IDFC First, YES Bank and ICICI Bank, among others, will announce their earnings this week.
Market investors might wonder which banking stock to buy as companies are all set to post their September quarter results in the coming weeks.
Axis Bank vs HDFC Bank vs IDFC First Bank: Q2 results preview
Axis Bank
Market analysts expect the bank to report a muted performance across lenders due to shrinking net interest margins, slow deposit growth, and limited treasury gains.
Kotak Institutional Equities expects Axis Bank’s net interest income (NII) to dip 3% year-on-year and 4% sequentially, while profit after tax is projected to decline 24% YoY and 10% QoQ. The brokerage has pegged the bank’s NII at ₹13,035.6 crore and net profit at ₹5,251.3 crore.
“We are building loan growth of 9% year-on-year and 3% quarter-on-quarter. Fee income growth will be sluggish, reflecting weak loan growth. We expect slippages of ₹60 billion, or 2.2% of loans, mostly led by retail and LLP (limited liability partnerships) of 90 bps,” the brokerage said.
HDFC Bank
The private lender will be announcing its September quarter results on October 18.
Brokerage firm Emkay Global expects HDFC Bank to post stronger loan growth and a smaller margin contraction than in Q1FY26, with credit costs likely supporting overall earnings. It added that slippages may decline, driven by a reduction in agri-related non-performing assets.
The brokerage firm projects the bank’s Q2 net interest income (NII) to increase about 5% year-on-year and 0.4% quarter-on-quarter to ₹31,561.1 crore, with the net interest margin (NIM) estimated at 3.4%, a decline of 22 basis points year-on-year and 7 basis points sequentially.
IDFC First Bank
Brokerage firm CLSA, while maintaining a ‘hold’ rating on the stock, said that the private lender is likely to grow 20 per cent year-on-year (YoY) in credit growth.
Meanwhile, net interest income is likely to rise 5.5 per cent YoY; however, operating profit is estimated to fall 1.4 per cent YoY, according to the brokerage firm.
Axis Bank vs HDFC Bank vs IDFC First Bank: Which bank stock to buy?
According to Anshul Jain, Head of Research at Lakshmishree, Axis Bank stands out with the strongest relative strength.
“The stock is forming a classic cup-and-handle pattern and looks ready to break out above ₹1,200. A preemptive buy near ₹1,175 offers a smart entry for those betting on momentum. A decisive breach above ₹1,200 could open the gates to ₹1,300– ₹1,350 levels,” Jain said.
Jain further said that HDFC and IDFC First may stay range-bound, but Axis has the technical edge. As earnings season kicks in, Axis Bank looks poised to lead the banking pack higher.
Among these counters, HDFC Bank remains a positive results play for Axis Securities. ICICI Bank and Kotak Bank are its other top picks.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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