# NBFCs face up to 12% EPS cut as cost of funds rises: Nomura 2026-10-03T01:11:06+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets Nomura has warned that a 50-60 basis point rate hike could cut FY27 earnings per share (EPS) of covered non-banking financial companies (NBFCs) by 1 to 8%, with the impact potentially reaching 12% over FY27-28. The brokerage said NBFCs will pass the higher cost to customers only from FY28, but structural EPS growth of 16 to 28% is projected for FY27-29. Business Today and The Economic Times both report that bond yields for AAA and AA+ rated NBFCs have risen 29 to 70 basis points since the RBI's hawkish monetary policy tilt on 19 August. Bond issuance by Bajaj Finance, L&T Finance and HDB Financial Services lagged year-ago levels in the first half of FY27. Regulatory developments, including insurance distribution reforms and hesitation over flexi loans, are flagged as a bigger concern than rate hikes. The Economic Times notes that cost of funds for covered NBFCs rose 6 to 42 basis points sequentially in Q1FY27. Nomura has set 12-month price targets including Rs 1,270 for Bajaj Finance, Rs 415 for Tata Capital and Rs 370 for L&T Finance. ## Indian Opinion Analysis The two outlets carry nearly identical Nomura analysis, but The Economic Times frames the EPS hit as potentially 12% over FY27-28, while Business Today reports only the 1 to 8% FY27 range. The Economic Times also adds detail on the bond yield rise since the RBI's August 19 minutes and the lagging bond issuance by Bajaj Finance, L&T Finance and HDB Financial Services, giving the cost pressure a sharper, more immediate context. Both outlets agree that regulatory changes around credit-life insurance and flexi loans are the bigger concern for the sector, and that structural EPS growth of 16 to 28% over FY27-29 remains intact. ## Coverage Coverage: 2 sources, 2 neutral - businesstoday.in (neutral report) Straightforward report of Nomura note with target prices. - economictimes.indiatimes.com (neutral report) Straight report with additional context on bond yields and issuance. This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Tags: Bajaj Finance, L&T Finance, NBFCs, Nomura, RBI Canonical: https://indianopinion.org/nbfcs-face-up-to-12-eps-cut-as-cost-of-funds-rises-nomura/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nbfcs-face-up-to-12-eps-cut-as-cost-of-funds-rises-nomura/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/