Auto NBFCs Poised for Q4FY26 Growth on Strong Vehicle & Rural Demand

• Auto-focused NBFCs saw growth in Q3FY26 due to improved CV and PV demand, and better fleet utilisation.
• Rural market pickup and GST rate cut boosted tractor financing performance, expected to continue in Q4FY26.
• NBFCs recorded 16% YoY and 4% QoQ AUM growth in Q3FY26, with strong disbursement momentum.
• Profitability indicators remained stable with healthy NIMs, benefiting from repo rate cuts.
• Asset quality improved, and credit costs declined, providing comfort on the risk front for Q4FY26.