HDFC Life, Tata Communications Gain Ahead of Q2 Results, Axis Bank Slips

Shares of HDFC Life and Tata Communications rose sharply on October 15 as investors reacted positively ahead of the companies’ Q2 FY26 results for the July–September quarter. Tata Communications briefly touched a 52-week high during morning trade, while HDFC Life saw steady gains. In contrast, Axis Bank shares fell over 1%, reflecting caution ahead of its quarterly results announcement.

Axis Bank Faces Margin Pressure Ahead of Q2 Results

Axis Bank shares fell to an intraday low of ₹1,166.80 as of now, as analysts expect a challenging quarter. Brokerages forecast a 0.7% year-on-year (YoY) decline in net interest income (NII) to ₹13,377 crore, down from ₹13,480 crore in Q2 FY25. Net profit is expected to drop sharply by 14% YoY to ₹5,911 crore from ₹6,920 crore, pressured by higher credit costs and slower loan growth.

Analysts at CLSA expect the bank’s loan book to expand 8% YoY and 3% quarter-on-quarter (QoQ), while deposits are projected to rise 9.6% YoY and 2.5% QoQ. Asset quality may deteriorate slightly, with the gross NPA ratio expected to rise to 1.7% from 1.4% and the net NPA ratio to 0.5% from 0.3%. Margins could contract up to 38 basis points YoY due to the full impact of the RBI’s repo rate cut and elevated credit costs. However, Centrum maintains a positive outlook on Axis Bank among large banks, noting that the worst may be over in terms of credit costs and loan growth.

HDFC Life Expected to Maintain Steady Growth

HDFC Life shares rose around 2% ahead of its results, as brokerages anticipate steady performance for Q2 FY26. Annualised Premium Equivalent (APE) is expected to increase to ₹4,242 crore from ₹3,858 crore a year ago, while the Value of New Business (VNB) may rise to ₹1,022 crore from ₹938 crore.

Gross premium income is projected to grow steadily, with first-year premiums increasing roughly 11% YoY, renewal premiums up about 15%, and single premiums rising around 11.4%. Brokerages expect a slight contraction in VNB margin to 24% from 24.3% in Q2 FY25, mainly due to the loss of GST input credit. Analysts at Emkay and JM Financial remain optimistic about life insurers like HDFC Life, expecting growth to return to double digits in H2 FY26 despite marginal short-term margin pressures.

Tata Communications Surges on Positive Sentiment

Tata Communications shares jumped nearly 7% during morning trading, briefly touching a 52-week high of ₹1,999 and as of now trading aroud ₹1,906.20. The stock has risen over 12% in the past five days and more than 19% over the past six months, reflecting strong investor confidence ahead of its quarterly results.

Conclusion

Ahead of Q2 FY26 results, HDFC Life and Tata Communications showed strong investor optimism, while Axis Bank faced cautious trading due to margin and credit cost concerns. Market participants will closely watch these results for insight into sectoral trends and company performance for the first half of FY26.