Stories
NBFCs Projected to Outpace Banks in Q2 FY27 Earnings
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CNBC TV18•08-10-2026, 12:24
NBFCs Projected to Outpace Banks in Q2 FY27 Earnings
- •Non-banking finance companies are expected to report over 35 percent year-on-year profit growth in the July-September quarter, compared to 12 percent for banks.
- •Profitability is largely supported by retail-focused loan books, which make up over 80 percent of NBFC lending.
- •JM Financial has picked Aditya Birla Capital and Piramal Finance as preferred diversified NBFCs due to their floating-rate loan exposure.
- •Gold loan growth has surged due to higher collateral values from rising gold prices, though increased competition brings caution.
- •Large private sector banks like HDFC Bank, ICICI Bank, and Axis Bank remain top picks despite the expected NBFC outperformance.
Key Questions Answered
JM Financial expects non-banking finance companies (NBFCs) to report more than 35% year-on-year profit growth in the July-September 2026 quarter, compared with around 12% for banks.
JM Financial prefers Aditya Birla Capital and Piramal Finance as top diversified NBFCs because more than 70% of their loan books carry floating interest rates, helping them benefit from rising lending rates.
More than 80% of NBFC lending is retail-focused, covering core segments such as personal loans, consumer durables, microfinance, and gold loans.
