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    Nuvama Wealth Management Q1 FY27 earnings call

    NUVAMA
    Financial Services·31 Jul 2026
    Management Summary

    Nuvama Wealth Management Limited reported a strong Q1 FY27, achieving record quarterly profits of over INR300 crores and surpassing INR5 lakh crores in client assets. The company saw robust growth in MPIS and Private Wealth segments, driven by record net new money and improved RM productivity. While asset services showed exceptional QoQ growth, management anticipates some moderation, and the asset management business is expected to remain loss-making for the full year.

    Highlights

    5

    • Achieved record quarterly PAT of over INR300 crores, an all-time high, with ROE near 30%.

    • Client assets surpassed INR5 lakh crores, reaching INR5,36,000 crores, driven by MPIS assets growing 32% YoY to INR42,500 crores and Private Wealth ARR assets growing 20% YoY to INR58,000 crores.

    • MPIS net new money reached a record INR3,000 crores, with productivity per RM increasing over 25% YoY for net new money assets and 17% YoY for revenue.

    • Asset services business demonstrated strong growth of 20% QoQ, with overall revenue reaching INR909 crores, an 18% YoY increase.

    • Offshore operations are nearing breakeven, with Dubai already profitable and Singapore expected to breakeven by year-end.

    Concerns

    4

    • Net ARR flows for Private Wealth were softer at ~INR1,000 crores due to weeding out low-cost historical mandates.

    • The asset management business is projected to incur a cumulative loss of INR35-40 crores for the full year.

    • Capital market revenue remained flat at INR180 crores QoQ, impacted by a drop in Institutional Equities revenue compared to the prior year.

    • Management anticipates moderation in the extraordinary QoQ growth seen in asset services and acknowledges that some fixed income revenue from Q1 may not be repeatable in Q2.

    Key financials

    Single quarter

    05 metrics
    1. 01Client Assets₹5.36L Cr
    2. 02Revenue₹909 Cr+18%YoY
    3. 03PAT₹306 Cr+16%YoY
    4. 04ROE30%
    5. 05Consolidated Cost-to-Income Ratio55%

    Segment breakdown

    Nuvama Wealth (MPIS)
    ₹42,500 Cr Assets₹3,000 Cr Net New Money20% Revenue Growth
    Nuvama Private (ARR)
    ₹58,000 Cr Assets₹1,800 Cr Net New Money70% Cost-to-Income Ratio
    Asset Services
    ₹260 Cr Revenue20% Business Growth
    Capital Markets
    ₹180 Cr Revenue
    List

    Guidance & targets

    15
    CategoryTargetPriority
    Asset Management
    AUM Deployment (PRIME fund)
    70% of AUM
    		High
    Asset Management
    Second Fund Launch (PRIME)
    INR4,000 to INR5,000 crores
    		High
    Asset Management
    Cost Run Rate Peak
    INR35 crores to INR36 crores
    		High
    Asset Management
    Cumulative Loss
    INR35 crores to INR40 crores
    		High
    Asset Management
    Breakeven Path
    start seeing path to breakeven
    		High
    Private Equity
    Crossover 4 Fund Raising
    INR700 crores to INR1,000 crores
    		High
    Private Credit
    First Private Credit Fund Launch
    launch of first private credit fund
    		High
    Offshore Operations
    Singapore Breakeven
    breakeven
    		High
    Offshore Operations
    Revenue Contribution
    5% to 7%
    		High
    Asset Services
    Revenue Growth
    more than 20-25%
    		High
    Private Wealth
    RM Addition
    15-16%
    		High
    Private Wealth
    Cost-to-Income Ratio
    60% to 62%
    		High
    Private Wealth
    ARR Assets Growth
    20-22%
    		High
    Capital Markets
    Transactional Income
    INR350 crores to INR360 crores
    		High
    Consolidated
    Cost-to-Income Ratio
    around 55%
    		High

    What to watch in Q2 FY27

    5

    Asset Management Breakeven Path

    By Q4 FY27
    CurrentExpected cumulative loss of INR35-40 crores for FY27
    TargetStart seeing path to breakeven

    Why it matters

    Key to profitability for the asset management segment.

    And by the end of Q4, we will start seeing the revenue inching up with the launches of new products. So this year, we will end up at a cumulative loss of around INR35 crores to INR40 crores. And subsequent to that, you will see the path to breakeven start.

    Risks & concerns

    4
    RiskSeverity

    Asset Management Cumulative Loss

    The asset management business is expected to incur a cumulative loss of INR35-40 crores for FY27, with breakeven anticipated by Q4 FY27. — Management acknowledged

    medium

    Asset Services Growth Moderation

    Management expects moderation in the extraordinary QoQ growth seen in asset services, though full-year growth is still projected at >20-25%. — Management acknowledged

    low

    Fixed Income Revenue Repeatability

    Some part of the significant fixed income revenue from Q1 (INR15-20 crores) may not be repeatable in Q2. — Management acknowledged

    low

    Capital Markets Volatility

    The equity market environment remained selective in Q1, with primary market activity falling by 60-65%, though management expects better activity in the next 9 months. — Management acknowledged

    medium

    Q&A highlights

    8

    “full year basis, last year was around 66%. I think we will be lower than that this year. And overall, as you rightly said that 60% to 62% medium term, that target also remains over the next 3 years.”

    Addresses a key profitability metric for a core segment and reiterates a medium-term target.

    asked by Prayesh Jain

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance with Record Profitability

    Nuvama Wealth Management Limited delivered a strong Q1 FY27, achieving record quarterly profits exceeding INR300 crores, an all-time high, and maintaining an impressive ROE near 30%. Client assets surpassed INR5 lakh crores, reaching INR5,36,000 crores, driven by robust net new money inflows. Overall quarterly revenues crossed INR900 crores, settling at INR909 crores, marking an 18% year-on-year growth.

    02

    Wealth Management Segment Growth and Productivity

    The MPIS segment saw its assets grow by 32% year-on-year to INR42,500 crores, with net new money reaching a record INR3,000 crores. Relationship Manager (RM) productivity in MPIS improved significantly, with net new money assets per RM jumping over 25% year-on-year and revenue per RM increasing by approximately 17% year-on-year. The private wealth ARR assets also grew 20% year-on-year to INR58,000 crores, with net new money into managed accounts at INR1,800 crores.

    03

    Strategic Investments in Technology and AI

    The company is making deliberate and intentional investments in technology and AI across its value chain. New initiatives include 'Nuggets,' an AI-based chatbot for RMs, and 'RM Buddy,' a voice-enabled AI assistant. A completely AI-based customer profiler has completed a POC with 200 people and is slated for a full team rollout soon, aiming to enhance efficiency and personalized insights.

    04

    Asset Management Business Development and Outlook

    Nuvama successfully closed its first commercial real estate fund, PRIME, at INR4,000 crores, exceeding its initial target of INR3,000 crores. Deployment of approximately 40% of this AUM is complete, with a target to deploy 70% in the next 2-3 months to launch a second fund. The asset management business is expected to incur a cumulative loss of INR35-40 crores for FY27, with breakeven anticipated by Q4 FY27 as new products launch.

    05

    Asset Services and Capital Markets Performance

    The asset services segment demonstrated strong business growth of 20% quarter-on-quarter, with revenues reaching INR260 crores, a 34% year-on-year increase. Management expects full-year revenue growth for this segment to exceed 20-25%. Capital markets revenue remained flat at INR180 crores compared to Q1 last year, primarily due to a drop in institutional equities revenue, although fixed income activities saw phenomenal growth this quarter.

    06

    Offshore Expansion and Profitability

    The offshore business is progressing towards profitability, with Dubai operations already having broken even. Singapore is projected to achieve breakeven by the end of the current fiscal year. Management expects offshore revenue to contribute between 5% to 7% of overall revenues this year, highlighting its accretive nature due to minimal capital usage.

    07

    Evolution of Wealth Management Models and Client Segments

    Management observed a convergence of full platform models, with standalone wealth managers building capital market capabilities and vice versa. They also noted the emergence of independent wealth management as a powerful force and the growing attractiveness of the affluent and HNI segments. The company is expanding its presence beyond Tier 1 cities, now operating in 65-70 cities directly and 400-450 pin codes through external wealth managers.

    This is an AI-generated summary of a publicly available earnings call transcript.