HDFC Life, Tata Communications shares jump up to 7% ahead of Q2 results, Axis Bank in red

The shares of HDFC Life and Tata Communications jumped on October 15, reflecting positive investor sentiment before the companies released their results for the July-September quarter of the financial year 2026.

Axis Bank shares however dropped in trade, falling over 1 percent ahead of the private lender’s Q2 results announcement.

Axis Bank Q2 expectations:

The shares of Axis Bank dropped more than 1 percent to hit an intraday low of Rs 1,164 apiece, as seen at 10.15 am. This comes as the private lender is expected to report a decline in both net interest income and profit for the July-September quarter (Q2 FY26), as higher credit costs are likely to squeeze margins.

According to Moneycontrol's poll of brokerages, Axis Bank is set to see 0.7 percent year-on-year (YoY) decline in net interest income (NII) to Rs 13,377 crore in Q2 FY26 from Rs 13,480 crore. Similarly, the lender's net profit is likely to see sharp 14 percent YoY fall to Rs 5,911 crore in Q2 FY26 from Rs 6,920 crore.

Sluggish loan growth: Analysts at CLSA expect Axis Bank’s loan book to expand 8 percent YoY and 3 percent quarter-on-quarter (QoQ) in Q2FY26. Deposits are projected to rise 2.5 percent QoQ and 9.6 percent YoY, reflecting moderate growth momentum.

Asset quality to deteriorate: According to Motilal Oswal, the bank’s gross non-performing assets (NPA) ratio is expected to rise to 1.7 percent in Q2FY26 from 1.4 percent a year ago. The net NPA ratio is estimated to increase to 0.5 percent from 0.3 percent in the same period.

Margin pressure: Brokerages expect the bank’s margins to contract by up to 38 basis points YoY in Q2FY26 due to the full impact of the RBI’s repo rate cut and higher credit costs weighing on profitability.

Centrum however, prefers Axis Bank among large banks, saying that the worst is behind in terms of credit costs and loan growth.

HDFC Life Q2 expectations:

HDFC Life Insurance Company shares rise over 2 percent ahead of the firm’s Q2 results announcement. The private life insurer is expected to post steady results for the quarter underreview, with both annualised premium equivalent (APE) and value of new business (VNB) projected to grow in high single digits.

According to a Moneycontrol poll of brokerages, HDFC Life's APE is expected to rise to Rs 4,242 crore in Q2 FY26, compared with Rs 3,858 crore in the same period last year. APE is a key metric that measures the total value of new business by combining the annual premiums of regular policies with one-tenth of single premiums.

VNB, which reflects the profitability of new policies sold during a given period—is estimated to grow to Rs 1,022 crore in Q2FY26 from Rs 938 crore a year earlier.

Gross premium income: According to Motilal Oswal, HDFC Life’s gross business premium is expected to maintain its growth trajectory. First-year premiums are likely to rise about 11 percent year-on-year in Q2 FY26, renewal premiums may increase roughly 15 percent, and single premiums could grow as much as 11.4 percent year-on-year.

Margin contraction: Brokerages anticipate that HDFC Life’s VNB margin will contract by 30 basis points year-on-year to around 24 percent in Q2 FY26, compared to 24.3 percent in Q2FY25. The marginal decline is primarily attributed to the loss of GST input credit on policies.

Emkay said HDFC Life is expected to see modest annualized premium equivalent (APE) growth in H1 FY26 driven by market linked plans, but profit margins for new policies may contract due to product mix shift

JM Financial prefers life insurers, led by HDFC Life, as it expects growth to return to double digits in the second half of FY26, even with a quarter of sub-par margins.

Peer ICICI Prudential Life Insurance on Tuesday reported a quarterly profit rise, as it benefited from an increased push into non-market-linked products and lower expenses

Tata Communications:

Tata Communications shares surged nearly 7 percent to hit a fresh 52-week-high of Rs 1,999 apiece in the morning trading hours of October 15. The stock then pared significant gains to trade only 1 percent higher at Rs 1,896 apiece, as seen at 10.30 am.

The stock has gained over 12 percent in the past five days, and over 19 percent in the past six months.

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