Q1 FY26 Results - Jio Financial, Axis Bank & Polycab

The first quarter of FY26 produced a variety of results for large corporate India. Some companies reported very strong numbers while others had challenges that can negatively impact share prices. Let's go through the details of the results of three large companies: Jio Financial Services, Axis Bank, and Polycab India.

1. Jio Financial Services Q1 Results

On Friday July 11, Jio Financial Services' shares finished down 1.76% at ₹325.80 apiece on the NSE, and the trend continued after the release of the Q1 results. The shares closed down 1.5% at ₹318.1 after announcing quarterly results on Thursday July 17, 2025.

Jio Financial Services Q1 FY26 Earnings Highlights

The company's financial performance showed mixed signals in Q1 FY26:

• Net Profit : ₹324.6 crore (up 3.8% from ₹312.6 crore last year)

• Revenue : ₹612.46 crore (impressive 46.58% growth from ₹417.82 crore)

• Net Interest Income : ₹264.06 crore (strong 52% increase from ₹161.74 crore)

• Quarter-on-Quarter Growth : Revenue up 24%, profit up 3% from March 2025

Key Business Developments

JFSL had a big quarter, acquiring State Bank of India's 14.96% stake in Jio Payments Bank Limited. The price was approximately ₹105 crore. The acquisition brought JPBL under JFSL as a wholly owned subsidiary. As of June 30, 2025, the bank had 2.58 million customers and had deposits of ₹358 crore.

JFSL had another successful milestone with its joint venture, Jio BlackRock Asset Management Private Limited, with approval to commence operations in May 2025. JFSL launched the first New Fund Offer of three cash and debt funds on June 30, 2025, and the funds received over ₹17,800 crore in investments during the 3-day NFO.

Why JFS Share Price is Under Pressure

After decent quarterly results, Jio Financial Services was criticized as investors were disappointed by its year-on-year profit growth of just 3.8%. Most analysts were hoping for strong profit growth, especially with JFSL speaking positively about future acquisitions, and worse still, the overall market sentiment can weigh on share price momentum for financial service companies.

2. Axis Bank Q1 Results

Axis Bank shares fell sharply by over 5% to ₹1,086 levels on July 18, 2025, after posting weaker-than-expected Q1 results. The bank's performance showed significant challenges across multiple metrics.

Axis Bank Q1 Results Summary

The bank's financial performance disappointed investors with concerning trends:

• Net Profit : ₹5,806 crore (down 3.77% from ₹6,034 crore last year)

• Quarter-on-Quarter Drop : Over 18% decline from ₹7,117 crore in March 2025

• Slippages : Jumped 72% quarter-on-quarter to ₹8,200 crore

• Credit Costs : Surged to 1.5% from 84 basis points last quarter

• Margin Pressure : Contracted by 17 basis points quarter-on-quarter

Major Concerns Affecting Axis Bank

The greatest concern for investors is the pronounced jump in slippages. The bank did an internal classification that was voluntary, which mainly impacted retail cash credit, overdraft facilities, and loans under onetime settlements, which caused slippages to jump quarter-on-quarter by nearly 72%. Management detailed that 'technical slippage' is a result of internal annual benchmarking and had a one-off impact of ₹2,700 crore on slippage. 

Total slippages had jumped to ₹8,200 crore, driven by the impact of an updated classification norm. The bank also stated that its margins contracted 17 basis points quarter-on-quarter due to the repo rate cuts, which translated into very slightly lower borrowing costs. From improving asset quality, it appears that loan classifications have become stricter, given that slippages were higher.

What Brokerages Are Saying About Axis Bank

Brokerage firms have mixed views on Axis Bank's future prospects:

• Motilal Oswal : Neutral rating with ₹1,250 target (reduced FY26/FY27 forecasts by 8.6%/5.7%)

• Nuvama : Downgraded to 'Hold' with ₹1,180 target (citing asset quality volatility)

• JM Financial : Maintains 'Buy' with ₹1,330 target (expects 14.7% upside)

Axis Bank Share Performance

The stock has dropped ₹65 in the last five days, and over a month, it is down 9%. On a six-month basis, the stock is up 12%, and on a one-year basis is down 15%. XRP is up 3% year to date in 2025. The 52-week high of Axis Bank is ₹1,318.60. The 52-week low is ₹933.50

3. Polycab Q1 Results

On July 18, 2025, Polycab India shares soared nearly 3% to ₹7,065 per share following great Q1 results and positive brokerage recommendations. The company reported excellent performance on all key financial parameters.

Polycab Q1 Results: Outstanding Performance

The company's exceptional performance across all business segments impressed investors:

• Net Profit : ₹600 crore (impressive 50% growth year-on-year)

• Revenue : ₹5,906 crore (strong 25.7% increase)

• EBITDA : ₹858 crore (significant 47.1% growth)

• EBITDA Margin : 14.5% (expanded by over 200 basis points)

Business Segment Performance

The wires and cables segment continued to be the primary driver of growth, as both revenue and performance was strong, with revenue rising to ₹5,228 crore in the June quarter from ₹3,995 crore in the same quarter last year. The FMEG (fast-moving electrical goods) segment also performed well, growing revenue by 18%, rising to ₹454 crore from ₹385 crore in the same quarter last year. The FMEG business had its margin expand 283 basis points to 2.1% and reported its second consecutive quarterly profit.

At the same time, revenue from the EPC (engineering, procurement, and construction) segment fell to ₹347 crore from ₹427 crore in the same quarter last year. The EPC segment previously reported under the 'others' segment will now be reported separately after fulfilling the qualitative criteria for distinctive reporting.

Polycab Share Price Target 2025

Brokerages remain bullish on Polycab's prospects with attractive target prices:

• Citi Research: Buy rating with ₹7,700 target (12% upside potential)

• UBS: Buy rating with ₹8,100 target (18% upside potential)

• Market Consensus: Positive outlook on infrastructure growth trends

Polycab Share Price Performance

On July 18 at about 9:40 am, shares of the company were trading 2.5% higher than the previous close of ₹ 7050 at the NSE. Polycab India shares have appreciated 14% over the last month, but are still down 5% year to date. The share price has been in an uptrend, benefitting from solid institutional interest.

Key Takeaways for Investors Investment Perspective

1. Jio Financial Services

Jio Financial Services (JFS), while experiencing steady but modest growth on a  quarterly basis due to significant business growth through acquisition, continues to experience share price pressure, even with reasonable results. Investors had very high expectations. Moreover, it has long-term potential in the financial services with payments bank and own asset management (AM) business.

2. Axis Bank

Axis Bank is experiencing serious asset quality issues and is facing pressure on margins stemming from rate environment. They received mixed brokerage recommendations as some view the share price as attractive valuation while others remain concerned about the execution risk. Ongoing uncertainty surrounding asset quality trends in the banking sector is linked in part to the technical reclassification that has created uncertainty in the near term.

3. Polycab

Polycab performed strong operationally with a solid market position in other cables and electrical goods. The brokerage maintained a positive outlook given the company is benefitting from the infrastructure growth trends. Both the legacy cables business as well as its newer FMEG segment are both performing strongly.

Market Outlook

The Q1 FY26 results have demonstrated relatively stable asset quality in banking, the benefits of diversification in financial services, and execution in manufacturing and infrastructure. Investors should be careful when evaluating margin trends, including net interest margin, and cost management across sectors. 

The mixed performance of these three companies reflects the broader market, where the quality of execution and sector-specific fundamentals are currently driving stock performance versus overall market sentiment. Companies with strong operational metrics and clear visibility on growth are being rewarded, while companies facing structural headwinds are continuing to face stock pressure even with satisfactory operational performance.

Disclaimer : This article is for informational purposes only and should not be considered as investment advice. Always consult with certified financial advisors before making investment decisions.

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