Summary
Nuvama Wealth Management Limited - Q3 FY 2026 Earnings Call Summary Tuesday, January 27, 2026 10:00 AM
Event Participants
Executives 2 Ashish Kehair (MD & CEO), Bharat Kalsi (Group CFO)
Analysts 7 Amar (Raedan Capital), Dipanjan Ghosh (Citigroup), Lalit Mohan Deo (Equirus Securities), Manas Agrawal (Sanford C. Bernstein), Mohit Mangal (Centrum Broking), Nidhesh (Investec), Prayesh Jain (Motilal Oswal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Client Assets | ₹4.6 lakh crores | +5.7% QoQ; Driven by net new money and positive mark-to-market. |
| Revenue | ₹755 crores | +4% YoY; Sequential drop from ₹772 crores due to lumpy IB billing and lower private transaction revenue. |
| PAT (Adjusted) | ₹262 crores | +3% QoQ (excluding one-time ₹11 crore labor code impact); Steady growth despite volatility. |
| Net New Money (9M) | ₹13,000 crores | On track for FY26; Management maintains focus on recurring revenue assets. |
| Wealth Revenue | ₹430 crores (approx) | +18% YoY; Wealth now contributes 57% of total revenue vs 50% last year. |
| Lending Book | ₹4,300 crores | +39% vs beginning of FY; Net Interest Income (NII) grew by 30% in Q3. |
| Cost-to-Income | 53% | -100 bps QoQ; 9M ratio at 55% as management manages variable costs in line with revenue. |
Geographic & Segment Commentary
- Nuvama Wealth: Managed Products and Investment Solutions (MPIS) revenue grew 48% YoY in 9M, contributing 60% of segment revenue. Strategic focus is shifting towards higher-quality RM talent to service affluent and HNI segments.
- Nuvama Private: ARR assets reached ₹50,000+ crores with a blended retention of 90 bps. Offshore build-out in Dubai has broken even, with Singapore expected to follow in two quarters; offshore now contributes 5% of private revenue.
- Asset Management: Commercial Real Estate (CRE) AUM hit ₹3,000 crores with 40% deployment. Management is transitioning AIF strategies to a Specified Investment Fund (SIF) structure following in-principle mutual fund license approval.
- Asset Services: Revenues grew 15% YoY as float balances recovered to Q1 levels following the loss of a large client in July. Focus is on backward integration through new RTA and Trustee service launches.
Company-Specific & Strategic Commentary
- One Nuvama Program: Accelerated synergy initiative launched in FY24 to integrate segments and maximize wallet share; management is assessing further structural alignments to leverage these synergies.
- M&A Strategy: Actively seeking “Alternatives” managers who possess strong investment skill sets but lack capital-raising platforms to fold into the Nuvama ecosystem.
- Product Innovation: Launching a specialized REIT/InvIT fund and a Dynamic Asset product to provide evergreen investment options to clients across market cycles.
- Digital/Backward Integration: Implementing in-house RTA services for PMS and AIF clients to become a one-stop-shop, expected to go live within 3 months.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% - 25% (Long-term) | Target for post-FY26 once the Asset Services base effect stabilizes. |
| Net New Money | ₹25,000 - ₹26,000 crores (FY27) | Expected increase driven by new product launches in Credit, CRE, and SIF migration. |
| Opex Growth | 10% - 12% (FY26) | 50% allocated to business expansion (branches/verticals), 50% to inflation-linked costs. |
| RM Capacity | ~10% annual increase | Continuous talent acquisition strategy to maintain competitive edge in Private Wealth. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competitive Intensity | PE-backed platforms are aggressively poaching teams and targeting the HNI/Affluent space, potentially impacting RM retention and margins. |
| Regulatory Litigation | The Anugrah litigation remains active in the Supreme Court; while management is confident, final resolution may take several years. |
| Fee Yield Volatility | Yields in Asset Services and Wealth vary based on the mix of G-Sec vs. Cash and the lumpy nature of transaction-based syndication deals. |
Q&A Highlights
Asset Services Yields
- Question: How sustainable is the bump in yield to 2.8% in Asset Services? (Manas Agrawal)
- Answer: Yield is a function of the collateral split between deposits and G-Sec. Management expects a range of 2.6% to 2.9% for the next 12 months, barring major interest rate shifts (Ashish Kehair).
Net New Money Targets
- Question: Are you confident in meeting the ₹20k Cr flow target given recent market weakness? (Sanketh Godha)
- Answer: Confidence stems from a product calendar non-correlated to equity markets, including alternates, fixed income, and MLDs. Target for FY27 is upped to ₹25k-26k Cr (Ashish Kehair).
Management of Variable Costs
- Question: What led to the sequential drop in costs and will this continue? (Mohit Mangal)
- Answer: Variable provisions were adjusted in Private Wealth and Capital Markets to align precisely with revenue performance. This ensures no “shocks” to the bottom line (Bharat Kalsi).
Asset Management (SIF) Migration
- Question: Why migrate AIF strategies to SIF? (Prayesh Jain)
- Answer: SIF offers a significantly improved tax profile for customers and opens distribution to a larger IFA community, which will drive growth in public market strategies (Ashish Kehair).
Key Takeaway
Nuvama delivered a resilient Q3 FY26, characterized by the continued rotation of its revenue mix toward Wealth Management, which now accounts for 57% of total income. Despite a sequential dip in lumpy Investment Banking fees, core Wealth MPIS revenues grew 48% YoY, and the lending book expanded 39% YTD to ₹4,300 crores. Management is aggressively pivoting toward a “platform-plus-people” strategy, adding 10% RM capacity and launching backward-integrated RTA/Trustee services to capture the domestic AIF/PMS market. While Asset Services faced a yield and float reset earlier in the year, recovery to Q1 levels is underway. Looking ahead, Nuvama targets a significant step-up in Net New Money to ₹25,000–26,000 crores in FY27, supported by a robust pipeline of Credit and Real Estate funds and the launch of its Mutual Fund/SIF platform. Business momentum remains strong despite rising competitive intensity and macro volatility.
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