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    Nuvama Wealth

    NUVAMAGood
    Financial Services·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

    8

    • 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

    Single quarter

    05 metrics
    1. 01Revenue₹755 Cr+4%YoY
    2. 02Adjusted PAT₹262 Cr+3%QoQ
    3. 03Client Assets₹4.6 Cr+5.7%QoQ
    4. 04Cost-to-Income Ratio53%
    5. 05Lending Book₹4,300 Cr+38%QoQ

    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)7.0% Revenue Growth (QoQ)
    List

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    Wealth Management NNM
    28% to 30%
    		High
    Volume
    AMC Net New Money
    ₹7,000-₹8,000 crores
    		Medium
    Volume
    Lending Book Growth
    20% to 30%
    		Medium
    Margin
    Asset Services Yield
    2.6 to 2.9
    		Medium
    Revenue
    Opex Growth
    10% to 12%
    		High
    Revenue
    Overall Business Growth
    20% to 25%
    		Medium

    Risks & concerns

    3
    RiskSeverity

    F&O Regulatory Changes

    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

    medium

    Anugrah Litigation

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

    low

    Public Market Volatility

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

    medium

    Q&A highlights

    3

    “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

    2 min read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.