India's NBFCs Project Continued Growth Amid Stable Asset Quality, Says 360 ONE Capital

A report from brokerage firm 360 ONE Capital indicates that India's non-banking financial companies are likely to maintain a steady growth trajectory in the near to medium term, with credit demand remaining healthy despite geopolitical uncertainties. Management teams have upheld their FY27 and medium-term growth guidance, and asset quality is projected to stay broadly stable, with early delinquency signals showing no significant stress.

Q1 FY27 results for covered NBFCs, excluding power lenders, revealed a 23.9% rise in net interest income, a 24.9% increase in operating profit, and a 36.9% jump in profit after tax, while assets under management grew about 19% year-on-year. Vehicle financiers saw AUM growth accelerate to 16.8%, whereas housing finance firms lagged with 5.6% growth, prompting LIC Housing Finance to lower its loan-growth outlook. Gold finance expansion slowed to 47.1% amid stable gold prices and new loan guidelines, and power financiers posted the weakest performance with a 2.3% loan-book increase. The brokerage highlighted margin pressure as a key monitorable, especially for gold and affordable-housing segments.