NBFC, insurance may outperform in H2 FY2026, says report

The NBFC and insurance segments are expected to perform better in the second half of FY26, supported by a friendlier regulatory environment and continued growth push from both regulators and the government, according to a report by Emkay Research.

- TDG NETWORK

The report noted that easing regulations in both the NBFC and insurance sectors, along with growth-focused measures by authorities, are setting the stage for a stronger performance in the second half of the fiscal year. It stated, "Easing of the regulatory environment in both the NBFC and insurance spaces, and growth impetus by the regulators and the government, set the platform for stronger performance in H2FY26."

However, the performance in the first quarter (and possibly the second quarter) has not been very encouraging. For NBFCs, key indicators such as AUM growth, asset quality, and credit cost have shown limited improvement.