Financial Services – Apr-Jun’26 Earnings Preview – NBFC NIM under pressure; BSE trading volume strong
Published on 07 Jul 2026
We expect disbursement growth for auto financiers to be impacted due to fuel price hikes. Players with higher exposure to M&HCV share (SHFL, SUF) to see lower growth. NIM is likely to be under pressure in Q1FY27 due to hardening bond yields. Credit cost is expected to moderate with lower delinquencies in VF/run-down of stressed portfolio (CIFC). We, however, maintain a cautionary stance in the MSME/ construction equipment segment. HFCs are likely to see strong disbursement growth (CANF, AAVAS, HFFC). Yields are expected to moderate as most covered HFCs have taken PLR cuts recently; rise in incremental CoF is likely to exert further pressure. Credit cost outlook is benign; expect recovery in one large account (LICHF). BAF has reported strong AUM growth of 24% YoY; commentary around sustaining growth momentum and asset quality in MSME are key. We downgrade CIFC and BAF to ‘Accumulate’ on account of 27%/ 18% run-up in stock price over the past month.
