New Delhi, Oct. 6 -- India's non-banking financial companies (NBFCs) are expected to report a strong first half of FY27, supported by sustained credit growth and resilient asset quality, despite near-term margin pressure from higher borrowing costs, according to a report by Emkay Research.

The report highlighted that healthy credit demand continues to support sector-wide growth. Retail lending remains strong, driven by robust disbursements across urban consumption, SME and gold loans, despite festive-season disbursements being largely pushed to the third quarter.

Mortgage and housing loans also continue to record double-digit growth, while healthy auto and trade credit demand has offset weaker disbursements in rural tractor and farm fin...