New Delhi, June 25 -- While business trends are improving for affordable housing finance companies (HFCs) with growth recovery expected from FY27, macro-economic factors may impact the businesses from second half, as per Kotak Institutional Securities.

The brokerage said growth in the affordable housing segment had remained subdued over the past two years due to multiple factors, including a slowdown in low-ticket lending, changes in disbursement recognition norms and elevated competition.

"We expect growth momentum to pick up in FY2027E, as low-ticket business rundown, process changes are reflected in the base and competitive intensity stabilizes, following encouraging industry trends in 2HFY26," the report said.

Kotak noted that indu...