Nuvama Asset Services revenue rose 53% to Rs 245 crore

Nuvama Asset Services reported Rs 245 crore of revenue in Q2 FY27, a 53% year-on-year increase from Rs 160 crore, while assets under custody and clearing stood at Rs 1.64 lakh crore. H1 FY27 revenue rose 43% to Rs 504 crore as existing clients scaled up and the business added new mandates.

How fast did Asset Services revenue grow in Q2 FY27?

Asset Services revenue grew 53% year on year to Rs 245 crore in Q2 FY27, compared with Rs 160 crore in Q2 FY26. Revenue for H1 FY27 increased 43% to Rs 504 crore from Rs 353 crore in H1 FY26. The Rs 85 crore quarterly increase was larger than the Rs 14 crore increase reported by Capital Markets over the same periods.

Asset Services generated Rs 734 crore in FY26, following Rs 655 crore in FY25 and Rs 329 crore in FY24. FY26 revenue was 12% above FY25, and the presentation reports a five-year compound annual growth rate, or CAGR, of 35% from FY21 to FY26. Revenue was Rs 167 crore in FY21, Rs 171 crore in FY22 and Rs 158 crore in FY23 before the acceleration in FY24.

What assets and clients does Asset Services serve?

Asset Services reported Rs 1.64 lakh crore of assets under custody and clearing and served more than 325 clients, including foreign institutional investors, alternative investment funds and portfolio management services. Its offering includes derivatives clearing, securities custody, fund set-up advisory, an order-management system and fund accounting.

The presentation separately records client assets of Rs 1,25,954 crore at FY26, compared with Rs 1,26,046 crore at FY25, a decline of Rs 92 crore. Client assets had increased from Rs 43,532 crore in FY23 to Rs 91,156 crore in FY24 and Rs 1,26,046 crore in FY25. This means the FY26 client-assets figure remained nearly three times its FY23 level despite being marginally below FY25.

The custody-and-clearing figure should not be used as a like-for-like growth comparison with FY26 client assets because the presentation uses different labels and gives no reconciliation between the measures. Management says client assets and revenue continued to scale through expansion by existing clients and new mandates. It also cites a pipeline and expansion into adjacent service offerings as support for continued growth.

Why does the institutional servicing market matter for Asset Services?

The institutional servicing market matters because foreign portfolio investor, or FPI, assets under custody were Rs 74 lakh crore as of September 2026, while alternative investment fund and portfolio management service assets were Rs 15 lakh crore. The presentation reports five-year CAGRs of 7% for FPI custody assets and 33% for alternative investment fund and portfolio management service assets.

Investor counts also grew through September 2026. The FPI investor base was 12,000, with a five-year CAGR of 13%, while the alternative investment fund and portfolio management service investor base was 2,600, with a CAGR of 23%. These industry measures provide context for Asset Services' focus on selected international and domestic institutional clients, rather than measuring its own market share.

Management identifies expanding wealth pools, capital markets and alternatives as the business's dual growth engines. It describes the platform as the only non-bank integrated offering spanning wealth management, asset management, asset services and capital markets. The company also says it won about 20% of relevant new clients in its selected segments, but does not provide the number of mandates or the period behind that approximate share.

How did Asset Services perform against Capital Markets?

Asset Services outgrew Capital Markets in Q2 FY27, with revenue increasing 53% against 9% for Capital Markets. Capital Markets revenue reached Rs 175 crore in Q2 FY27 from Rs 161 crore a year earlier, while H1 FY27 revenue was Rs 357 crore, compared with Rs 340 crore in H1 FY26.

The two businesses also moved differently in FY26. Asset Services revenue rose to Rs 734 crore from Rs 655 crore in FY25, while Capital Markets revenue declined to Rs 613 crore from Rs 759 crore. For Q2 FY27, management said Capital Markets' equity revenue was supported by secondary-market share gains and improving primary-issuance momentum, while fixed-income revenue increased 57% year on year.

Combined profit before tax for Asset Services and Capital Markets was Rs 259 crore in Q2 FY27, up 34% from Rs 193 crore in Q2 FY26. H1 FY27 combined profit before tax was Rs 527 crore, 26% above Rs 419 crore in H1 FY26. The presentation does not split profit before tax by business, so it does not establish Asset Services' standalone profitability.

What is driving Asset Services' recurring revenue model?

Asset Services generates revenue from custody, clearing and related operational services for investment managers rather than from investment-performance fees. Its service suite combines securities custody and derivatives clearing with fund accounting, order management and fund set-up support. The presentation describes these services as recurring and intended to address investment managers' non-investing requirements.

Technology, controls and tailored servicing are the operating features management identifies for the platform. The business served more than 325 institutional clients and reported Rs 1.64 lakh crore of custody-and-clearing assets, while revenue rose from Rs 158 crore in FY23 to Rs 734 crore in FY26. Management says risk-management solutions and bespoke servicing support efficiency and controls for clients.

Conclusion

Asset Services delivered the faster reported Q2 FY27 revenue increase among the two institutional businesses, rising 53% to Rs 245 crore compared with Capital Markets' 9% increase to Rs 175 crore. Its revenue increased from Rs 158 crore in FY23 to Rs 734 crore in FY26, while the presentation separately reported Rs 1.64 lakh crore of assets under custody and clearing and more than 325 clients.

The next measure to watch is whether the disclosed pipeline of mandates, client scale-up and expansion into adjacent service offerings produces further revenue and client-asset growth. Management identifies those initiatives as drivers of continued growth, but the presentation provides no revenue target, client-assets target or timetable for the adjacent offerings.