New Delhi, July 6 -- NBFCs, including both large- and mid-cap companies as well as diversified and monoline players, are expected to report a strong first quarter of FY27. Despite global challenges such as the escalating West Asia conflict and ongoing inflation concerns that weighed on investor sentiment during much of the quarter, the sector remained operationally resilient, according to a Kotak Institutional Equities report.

The report said, "We expect NBFCs to raise guidance on growth, which was mixed last quarter due to the overhang of the West Asia war; most diversified NBFCs are firmly above 20% loan growth; expect guidance to inch up to ~25% for the larger pack."

The sector experiences a favourable shift in earnings dynamics, pri...