Financial Services – Jul-Sep’26 Earnings Preview – NBFC NIM under pressure; CAS denting trading volumes
Published on 06 Oct 2026
We expect steady disbursement growth for auto financiers in Q2; prefer players with a diversified portfolio (SHFL, CIFC). NIM is likely to be impacted in Q2FY27 due to hardening bond yields; possibility of a rate hike to exert further pressure. Credit cost is expected to remain broadly stable; however weak monsoons and rising fuel prices to impact borrower cash flows. HFCs are likely to see strong disbursement growth. NIM to be under pressure due to rise in incremental CoF; credit cost outlook benign. BAF has reported strong AUM growth of 26.5% YoY; commentary around sustaining growth momentum and asset quality are key. We upgraded CIFC and BAF to ‘Buy’ following a 13%/ 10% correction in their stock prices over the past month.
