NBFC Q2 Results Preview - Trends Point At Seasonally Weaker H1: Motilal Oswal

Motilal Oswal Report

We expect ~8% YoY growth in assets under management in Q2 FY25 for our housing finance company coverage universe, including both affordable and other HFCs. Vehicle financers are projected to report ~24% YoY AUM growth.

Gold lenders (including non-gold products) are likely to record ~24% YoY growth. NBFC-MFIs are likely to post ~13% YoY growth, while diversified lenders are expected to deliver ~22% YoY growth in AUM.

For our coverage universe, we estimate loan growth of ~18% YoY/~4% QoQ in Q2 FY25. We expect slightly weaker loan growth (versus our earlier expectations) because of rainfall/floods in certain regions and few inauspicious days in Sep-24.

Gold financiers are expected to report decent gold loan growth. Micro-financiers should report a sequential decline in loans because of muted disbursements. Most housing financiers (except LIC Housing Finance Ltd. and Repco Home Finance Ltd.) are expected to report healthy loan growth

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