Nuvama Wealth Management Limited — Q3 FY26 earnings call

Call held 27 Jan 2026

Management summary

Nuvama Wealth delivered a resilient Q3 FY26, characterized by strong momentum in its core Wealth Management and Lending businesses, which offset moderation in Capital Markets. The company is successfully transitioning its revenue mix toward recurring 'Wealth' streams (now 57% of total). Management highlighted strategic expansions into SIF (Specialized Investment Funds) and RTA services to drive future growth, while maintaining a disciplined cost-to-income ratio of 53%.

Highlights

  • Consolidated Revenue for Q3 FY26 stood at ₹755 crores, representing 4% YoY growth.

  • Wealth Management revenue grew 18% YoY, now contributing 57% of total group revenue.

  • Consolidated Client Assets reached ₹4.6 lakh crores, up from ₹4.35 lakh crores in the previous quarter.

  • Lending book scaled to ₹4,300 crores, a significant increase from ₹2,800 crores at the start of the fiscal year.

  • Operating Profit After Tax (excluding one-time labor code impact) was ₹262 crores for the quarter.

  • Nuvama Private ARR revenue grew 30% YoY for the nine-month period, with assets exceeding ₹50,000 crores.

  • Asset Management AUM for the Commercial Real Estate fund reached ₹3,000 crores with 40% deployment.

  • Cost-to-income ratio improved to 53% for the quarter, despite a ₹11 crore one-time labor code impact.

Key financials

  1. Revenue ₹755 Cr +4%YoY
  2. Adjusted PAT ₹262 Cr +3%QoQ
  3. Client Assets ₹4.6 lakh Cr +5.7%QoQ
  4. Cost-to-Income Ratio 53%
  5. Lending Book ₹4,300 Cr +38%QoQ

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

  • Wealth Management
    18% Revenue Growth (YoY)57% Revenue Contribution48% MPIS Revenue Growth (9M)
  • Nuvama Private
    30% ARR Revenue Growth (9M)₹50,000 Cr Average ARR Assets90 bps Blended Retention
  • Asset Services
    15% Revenue Growth (9M YoY)7% Revenue Growth (QoQ)

Guidance & targets

Volume

  • Wealth Management NNM Volume · FY26 · High confidence 28% to 30%
    So, I think we are broadly on track to deliver 28% to 30% of NNM.

    — Ashish Kehair, MD and CEO

  • AMC Net New Money Volume · FY27 · Medium confidence ₹7,000-₹8,000 crores
    So FY '27, maybe another INR7,000-INR8,000 crores of net new money is what we would target from this segment.

    — Ashish Kehair, MD and CEO

  • Lending Book Growth Volume · FY27 · Medium confidence 20% to 30%
    So anywhere between 20% to 30% is what we will target for next year.

    — Ashish Kehair, MD and CEO

Margin

  • Asset Services Yield Margin · next 12 months · Medium confidence 2.6 to 2.9
    In my view, it should remain between 2.6 to 2.9 kind of range, should not migrate much unless we see significant interest rate movement on the either side.

    — Ashish Kehair, MD and CEO

Revenue

  • Opex Growth Revenue · Full Year FY26 · High confidence 10% to 12%
    Our overall guidance in terms of maybe a 10% to 12% growth on the opex on a full year still remains intact.

    — Bharat Kalsi, Group CFO

  • Overall Business Growth Revenue · Medium Term · Medium confidence 20% to 25%
    But I think once the base is formed, we should come back to that same level of growth, anywhere between 20% to 25% of the overall business.

    — Ashish Kehair, MD and CEO

Risks & concerns

  • F&O Regulatory Changes

    medium

    New F&O rules impacted volumes in the middle of Q3, creating a high base effect for year-on-year comparisons in Capital Markets.

    Management acknowledged

  • Public Market Volatility

    medium

    Volatility has subdued net flows in public market asset management strategies over the last 12 months.

    Management acknowledged

  • Anugrah Litigation

    low

    The Supreme Court has formally admitted the case; management remains confident but expects the process to take a couple of years.

    Analyst acknowledged

Q&A highlights

3 direct
Asset Services Yield Sustainability Direct
Yields... is a function of the split of the collateral between deposits and G-Sec... right now, the proportion of deposits should be higher than G-Sec hence the yields have gone up.

Explains why yields jumped from 1.4% to 2.88% and sets expectations for a sustainable range of 2.6-2.9%.

Asked by Manas Agrawal, Sanford C. Bernstein

Sequential Flatness in MPIS Revenues Direct
Composition of the MPIS also matters... if in the investment solutions bucket, there are certain categories which have different kinds of yields... overall flow may not directly correlate in terms of the revenue.

Clarifies that revenue growth in Wealth isn't always linear with flows due to product mix (e.g., insurance vs. fixed income vs. MLDs).

Asked by Prayesh Jain, Motilal Oswal

Confidence in ₹20,000 Crore Annual Flow Target Direct
So largely around the product calendar or the products which you have, which are non-correlated to equity markets is what gives us the confidence... we target between INR25,000 crores to INR26,000 crores [for next year].

Management reaffirmed their flow targets despite market volatility, citing a strong pipeline of non-equity products like alternates and MLDs.

Asked by Sanketh Godha, Avendus Spark

2 min read 5 chapters

Detailed narrative

Wealth Management Becomes the Primary Engine

Nuvama's strategic shift toward wealth management is yielding results, with the segment now contributing 57% of total revenue, up from 50% a year ago. Managed Products and Investment Solutions (MPIS) revenue grew 48% in the first nine months, while closing assets in the HNI/Affluent segment rose 30% YoY. Management is focusing on 'upgrading' RM quality to handle increasingly sophisticated client needs, prioritizing value over raw headcount.

Asset Services Recovery and Yield Expansion

After losing a large client in early Q2, the Asset Services vertical has shown a meaningful recovery with 7% QoQ revenue growth. Yields have expanded significantly to 2.88%, driven by a higher proportion of cash/deposits in the collateral mix versus G-Secs. Management expects these yields to stabilize between 2.6% and 2.9% over the next 12 months, providing a stable revenue floor.

Strategic Pivot in Asset Management

The AMC business is undergoing a transition, moving away from a pure AIF focus toward SIF (Specialized Investment Funds) and Mutual Funds. The company has received in-principle approval for a mutual fund license and plans to launch SIF products in the next 2-3 months. This migration is expected to improve the tax profile for customers and attract higher flows, with a target of ₹7,000-₹8,000 crores in net new money for FY27.

Lending Book Scaling Rapidly

The lending book has seen aggressive growth, reaching ₹4,300 crores by the end of Q3, up from ₹2,800 crores at the start of the year. Net Interest Income (NII) grew 30% in Q3 alone. Management intends to continue this trajectory, targeting 20% to 30% growth in the loan book for the next fiscal year, viewing balance sheet availability as a critical success factor in the ultra-HNI wealth space.

Cost Discipline Amidst One-Offs

Despite a one-time ₹11 crore impact from the new labor code, Nuvama maintained a cost-to-income ratio of 53%. Management reaffirmed their full-year opex growth guidance of 10-12%, with half of that growth dedicated to business expansion (new branches and verticals) and the remainder to inflation. Variable costs were adjusted downward in Q3 to align with revenue performance in Capital Markets and Asset Services.

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