Nuvama Wealth Management Limited — Q1 FY26 earnings call

Call held 14 Aug 2025

Management summary

Nuvama delivered a robust Q1 FY26 performance characterized by broad-based growth across wealth and asset management segments despite a range-bound macro environment. The company is successfully pivoting towards an annuity-led model, with Managed Products and Investment Solutions (MPIS) now forming the majority of wealth revenues. Management remains optimistic about structural growth in the upper end of the 'K-curve' segment, despite near-term headwinds in capital markets and specific regulatory impacts in asset services.

Highlights

  • Consolidated Revenue reached ₹770 crores, representing a 15% YoY growth

  • Operating PAT grew by 19% YoY to ₹264 crores with an ROE of 30%+

  • Consolidated Client Assets grew 19% YoY to ₹4.6 lakh crores

  • Cost-to-Income ratio improved to 55% from 56% in the same period last year

  • Nuvama Wealth MPIS revenue grew 59% YoY, now contributing 54% of segment revenue

  • Asset Management AUM surged 54% YoY to ₹11,800 crores

  • Asset Services revenue increased 46% YoY despite temporary client suspensions

  • Net flows in Nuvama Wealth remained strong at ₹2,300 crores for the quarter

Key financials

  1. Revenue ₹770 Cr +15%YoY
  2. Operating PAT ₹264 Cr +19%YoY
  3. ROE 30%
  4. Cost-to-Income Ratio 55% -1.7%YoY
  5. Consolidated Client Assets ₹4.60L Cr +19%YoY

What they filed

Q1 FY27: revenue up 0.5%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue516 385 218 422 188 −64%404 +5%172 −21%424 +0%
EBITDA371 251 64 278 76 −80%313 +25%31 −52%278 +0%
Net profit317 207 27 221 46 −85%280 +35%19 −30%255 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Nuvama Wealth
    17% Revenue Growth₹1.05L Cr Client Assets59% MPIS Revenue Growth₹75 Cr Operating PBT
  • Nuvama Private
    ₹155 Cr Revenue19% Revenue Growth₹2.20L Cr Client Assets25% ARR Asset Growth
  • Asset Management
    ₹11,800 Cr AUM54% AUM Growth93% Fee Paying Assets
  • Asset Services
    ₹1.27L Cr AUC and Clearing46% Revenue Growth

Guidance & targets

Revenue

  • Wealth Annuity Stream Growth Revenue · FY26 · Medium confidence 50-60%
    I think if we take just the annuity stream, the jump this year would be more than 50-60% over last year in terms of the income stream.

    — Ashish Kehair, MD and CEO

Volume

  • Private Segment Net Flows Volume · FY26 · High confidence 25-30% of opening ARR assets
    So broad math, if you want to use, it will range between 25% to 30% of the opening ARR assets... anywhere between INR11,000-12,000 crores is where we land.

    — Ashish Kehair, MD and CEO

Profitability

  • Full Year Cost-to-Income Ratio (Wealth Cluster) Profitability · FY26 · High confidence 65%
    On a full year basis, our assessment is that we should end at 65% with growth cost embedded.

    — Ashish Kehair, MD and CEO

  • Net Profit Growth Profitability · next couple of years · Medium confidence 20-25%
    We are aspiring for the same, yes. Of course, we are aspiring [to 20-25% net profit growth].

    — Ashish Kehair, MD and CEO

Capacity

  • Asset Management Fundraise (Private Markets) Capacity · next 3 quarters · Medium confidence ₹4,000-5,000 crores
    between these 3 funds, I think in the next 3 quarters, anywhere between INR4,000-5,000 crores is what we are targeting to raise.

    — Ashish Kehair, MD and CEO

Risks & concerns

  • Jane Street Regulatory Impact

    medium

    A major client in Asset Services is currently suspended pending regulatory clearance; management estimates a ₹15-20 crore PAT impact for the full year.

    Both acknowledged

  • Global Trade Tensions and Tariffs

    medium

    U.S. tariffs and trade tensions are viewed as a potential drag on sentiment and FPI flows for the next few quarters.

    Management acknowledged

  • Increased Competition in Wealth Management

    low

    Traditional brokers are entering the wealth segment, though Nuvama believes its superior platform and multi-asset approach provide a moat.

    Both acknowledged

Q&A highlights

3 direct
Impact of Jane Street suspension on Asset Services Direct
even if we assume 0 revenue from the day... on a full year basis in Asset Services, we will still end up getting a reasonable amount of growth, maybe early double-digit kind of a growth. Had they been there, it could have been more like late teens.

Clarifies the financial impact of a major client suspension due to regulatory issues, quantifying the drag on growth.

Asked by Naresh Naiker, Systematix Shares

Sequential decline in MPIS revenues Direct
Largely Q4, Abhijeet, has heavy insurance... INR27 -28 crores insurance has fallen, and rest of the streams have gone up by INR17-18 crores. So there's a INR10 crores movement there.

Explains the seasonality of insurance sales which impacts sequential revenue comparisons in the wealth business.

Asked by Abhijeet Sakhare, Kotak Securities

Asset Services Yields and Interest Rate Sensitivity Direct
if there is a further fall from here of interest rates of maybe another 30-50 basis points... then maybe this 2.1% can fall to 2% because we also have laddered maturity.

Provides sensitivity analysis for yields in the asset services business relative to RBI rate cuts.

Asked by Sanketh Godha, Avendus Spark

2 min read 5 chapters

Detailed narrative

Strategic Pivot to Annuity-Led Wealth Model

Nuvama is successfully transitioning its wealth business toward a recurring revenue model. Managed Products and Investment Solutions (MPIS) now account for 54-55% of segment revenues, up from 40% a year ago. Net flows in Q1 remained strong at ₹2,300 crores, with 77% coming from managed products. Management expects the annuity income stream to jump by 50-60% over the previous year, providing higher predictability to future earnings.

Asset Management Deployment and Fundraising Traction

The Asset Management segment saw a 54% YoY growth in AUM to ₹11,800 crores, with 93% of assets being fee-paying. Deployment has accelerated, with the first commercial real estate fund concluding its first deal in Delhi and signing definitive documents for a second in Chennai. Nuvama plans to raise an additional ₹4,000-5,000 crores across three private market funds in the next three quarters, including a new private credit product launching by the end of Q3.

Navigating Regulatory Headwinds in Asset Services

Despite the suspension of a major client (Jane Street) due to regulatory subjudice, Asset Services revenue grew 46% YoY. Management has quantified the potential impact, estimating a ₹15-20 crore PAT drag for the full year if the client does not resume. However, yields have improved to approximately 2.1% following the shift of wealth management clearing to a self-clearing model, which removed ₹10,000 crores of low-yield assets from the segment.

Cost Efficiency and Margin Sustainability

The consolidated cost-to-income ratio improved to 55% in Q1 FY26. While the company added 19-20 Relationship Managers (RMs) over the last year, bringing the total to 137, management expects productivity to rise as these cohorts mature. For the full year, Nuvama targets a 65% cost-to-income ratio for the wealth cluster, even with growth costs embedded, while maintaining an overall ROE of 30% plus.

Capital Markets Recovery Anticipated in H2

Capital markets revenue was down 10% YoY in Q1, primarily due to a dry spell in IPOs and QIPs during April and May and a lumpy M&A deal in the base year. However, activity picked up significantly in late June and July. Management is betting on a 'flurry of issues' in the second half of the year, supported by a robust pipeline and improving market sentiment as clarity emerges on global trade tariffs.

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