New Delhi, Oct. 6 -- Non-banking financial companies (NBFCs) are expected to report another strong quarter in Q2FY27, supported by healthy loan growth and benign credit costs, but rising borrowing costs, monsoon-related stress and regulatory changes could make the outlook more challenging, according to a Kotak Institutional Equities sector report.

The report said most NBFCs could see 12-43 per cent year-on-year growth in core profit before tax, backed by 15-37 per cent loan growth, although some of the conditions that supported the sector over the past two quarters are beginning to turn less favourable.

"2QFY27 will be another strong quarter for NBFCs, with 12-43% growth in core PBT for most... driven by 15-37% yoy loan growth on the ba...