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Nuvama FY26: Wealth growth offsets softer capital markets

Nuvama Wealth Management closed FY26 with steady consolidated growth in a year that management described as volatile and uncertain. Consolidated revenue for FY26 rose to 3,122 crore, up 8% year-on-year, while operating PAT increased to 1,049 crore, up 6%. In Q4 FY26, revenue was 825 crore, up 7% YoY, and operating PAT was 269 crore, up 5%.

The year was defined by a clear mix shift. Wealth Management continued to scale and expanded its share of revenues, while Capital Markets tracked broader market moderation. Asset Services delivered strong execution and management characterized it as an infrastructure-like, recurring business that stayed resilient through market volatility.

Consolidated performance: steady growth and disciplined costs

For FY26, total costs increased to 1,740 crore, up 9% YoY, with employee cost at 1,276 crore and opex at 464 crore. The consolidated cost-to-income ratio edged up to 56% from 55% in FY25. Return on equity was 28.1% in FY26 versus 31.5% in FY25.

The company also announced a dividend of 14 per share. The presentation states that the FY26 dividend payout was about 49% of annual operating profits.

Wealth Management: core growth engine across segments

Wealth Management was the primary driver of growth. FY26 Wealth Management revenue increased to 1,718 crore, up 20% YoY, and PBT increased to 585 crore, up 23% YoY. Client assets for Wealth Management were 3,13,787 crore at end of Q4 FY26.

Within Wealth, both operating segments posted strong growth.

Nuvama Wealth, focused on affluent and HNI clients, delivered FY26 revenue of 960 crore, up 18% YoY, and PBT of 330 crore, up 22% YoY. The company attributed growth to MPIS and lending. MPIS net flows were reported at 8,920 crore in FY26, up 38% YoY and representing 30% of opening MPIS assets. Management also discussed that the lending book grew materially, with closing loan book around 4,900 crore, and clarified that net interest income can lag loan growth due to provisioning and the timing of processing fee recognition.

Nuvama Private, focused on UHNI and family offices, delivered FY26 revenue of 758 crore, up 24% YoY, and PBT of 256 crore, up 24% YoY. Client assets were reported at 2,06,677 crore as of end of FY26, up 4% YoY, while ARR earning assets grew faster, to 54,021 crore, up 22% YoY. The company reported recurring net new money of 9,630 crore for FY26.

Management also highlighted investments to strengthen client proposition through talent, AI technology, product capabilities and offshore build-out.

Asset Services and Capital Markets: resilience plus cyclicality

The combined Asset Services and Capital Markets segment reported FY26 PBT of 830 crore, down 3% YoY. The internal mix mattered.

Asset Services reported FY26 revenue of 734 crore, up 12% YoY, and client assets under clearing and custody of 1,25,954 crore at the end of Q4. Management noted the business recovered after earlier disruptions and highlighted ongoing investments in international and domestic segments. On the call, management discussed pursuing global custodian-local custodian tie-ups and mentioned that RTA and trusteeship services are expected to go live by middle of Q3.

Capital Markets revenue declined to 613 crore in FY26, down 19% YoY, reflecting softer market conditions. However, fixed income grew strongly. The earnings release cited fixed income revenue growth of 34% YoY, and management stated they maintained a leading position in public debt issuances.

Asset Management: building the alternatives platform

Asset Management remains a smaller contributor to consolidated revenue but is positioned as a scaling opportunity. Management fee revenue was reported at 77 crore in FY26, up 31% YoY. Closing AUM stood at 12,807 crore, up 13% YoY, with growth led by commercial real estate while public markets faced headwinds.

Management commentary focused on expanding strategies and building leadership capacity. In the call, management stated that a private credit CIO has joined and the team is being built, with an expectation to launch the first private credit fund by end of Q2. They also discussed a second commercial real estate fund launch in the second half of the year, and progress toward a mutual fund license with the expectation of an outcome in around two months and subsequent SIF launch after that.

Takeaways

FY26 reinforced Nuvama’s positioning as an integrated wealth platform with a growing share of earnings from wealth and other recurring businesses. Wealth Management delivered strong growth in both revenue and profitability, while Asset Services sustained momentum and management emphasized its infrastructure-like characteristics. Capital Markets remained cyclical, though fixed income continued to scale. The company’s narrative for FY27 is centered on scaling capacity in Wealth, expanding Asset Services offerings, and steadily building Asset Management capabilities, particularly in alternatives.