New Delhi, Oct. 12 -- Diversified non-banking financial companies (NBFCs) are expected to witness robust assets under management (AUM) growth in Q2FY27; however, elevated funding costs could weigh on profit margins, as per a report by JM Financial.

According to the report, India's macroeconomic environment has become less favourable since Q1FY27, with rising borrowing costs emerging as a key concern for earnings in the second half of FY27, replacing demand as the major factor.

At the same time, the 10-year government securities (G-sec) yield surged by 25-40 basis points since August 2026, while yields on NBFCs' three- and five-year AAA-rated bonds rose by 50-60 basis points since June 2026.

"This points to mounting pressure on funding ...