Research Report

ICRA expects a healthy growth of 15-17% in HFCs’ AUM during FY2026 and FY2027. Growth in the NHL segment has been increasing over the past few quarters; ICRA expects the share of NHLs to inch up further in the near term amid competitive challenges in the HL segment and pressure on margins. The earnings are likely to remain healthy with RoMA of 1.9-2.1% in FY2026 and 1.8-2.0% in FY2027, supported by low operating expenses and credit costs.

• As on September 30, 2025, the AUM of HFCs stood at Rs. 9.8 lakh crore, increasing by approximately 15% YoY. ICRA forecasts a robust growth of 15-17% in the AUM for FY2026 and FY2027. The NHL segment has shown steady growth in recent quarters and ICRA anticipates its share to rise further shortly, driven by competitive pressure in the HL segment and narrowing margins
• The total on-book HL portfolio of HFCs, NBFCs, and banks is estimated to have increased by 10% YoY to Rs. 40.8 lakh crore as on September 30, 2025. YoY housing credit growth for H1 FY2026 was approximately 12% for HFCs, around 11% for NBFCs, and about 10% for SCBs, with moderation in the growth rate witnessed across lenders in the segment.