Morgan Stanley Projects 19% YoY Loan Growth for NBFCs in Q1 FY26

Loan growth for non-banking financial companies (NBFCs) is expected to remain steady in the first quarter of FY26, rising by 19 per cent compared to the same period last year, and 4 per cent over the previous quarter, according to a recent report by Morgan Stanley.

- TBG NETWORK

This pace is similar to the 19 per cent annual growth reported in the fourth quarter of FY25.

The report stated "On NBFCs, we expect aggregate loan growth to remain stable at +19 per cent YoY, +4 per cent QoQ (+19 per cent in 4Q) in 1QF26".

The report also expects net profit for these lenders to grow by 15 per cent year-on-year in the June quarter, up from 5 per cent in the March quarter.

The growth is partly due to gains from capital raising activities and a turnaround in profits of a few players who had posted losses in the previous quarter.