Nuvama Private lifts recurring revenue to 68% in Q2 FY27

Nuvama Private lifted annual recurring revenue to 68% of Q2 FY27 revenue after ARR revenue rose 60% year on year and quarterly ARR net new money reached a record Rs 4,986 crore. Total quarterly revenue increased 15% to Rs 226 crore, while ARR-earning assets rose 24% to Rs 62,862 crore in H1 FY27.

How did Nuvama Private's revenue mix change in Q2 FY27?

Nuvama Private said annual recurring revenue, or ARR, accounted for 68% of Q2 FY27 revenue, driven by 60% year-on-year growth in ARR revenue and growth in managed products. The business reported total Q2 FY27 revenue of Rs 226 crore, up 15% from Rs 197 crore in Q2 FY26. The figures show that recurring income grew faster than the overall revenue line during the quarter.

For H1 FY27, ARR represented 64% of revenue, compared with 56% in H1 FY26. Transactional revenue consequently represented 36% in H1 FY27, down from 44% a year earlier. H1 FY27 revenue rose 20% to Rs 424 crore from Rs 352 crore, showing that the mix shift was also evident across the six-month period, although the disclosed Q2 ARR share was higher than the H1 share.

Profit before tax, or PBT, increased faster than revenue in both disclosed periods. Q2 FY27 PBT rose 24% year on year to Rs 82 crore from Rs 66 crore, against 15% revenue growth, while H1 FY27 PBT rose 23% to Rs 141 crore from Rs 115 crore as revenue increased 20%.

What drove Nuvama Private's recurring revenue growth?

Nuvama Private attributed Q2 FY27 ARR growth to managed products, alongside higher ARR-earning assets and record quarterly inflows. ARR net new money, or NNM, was Rs 4,986 crore in Q2 FY27, the highest quarterly level disclosed. For H1 FY27, recurring NNM was Rs 6,068 crore, up 13% from Rs 5,360 crore in H1 FY26 and equal to 11% of opening ARR assets.

The presentation identifies managed products and the loan book as drivers of ARR-earning assets. Those assets reached Rs 62,862 crore in H1 FY27, compared with Rs 50,621 crore in H1 FY26, a 24% increase. Yield on average ARR assets also increased to 0.91% in H1 FY27 from 0.82% in H1 FY26.

Nuvama Private said transactional revenue moderated year on year in Q2 FY27 because Q2 FY26 included a large syndication deal. The presentation said TBR revenues remained stable on an H1 basis, but did not provide a rupee amount or define TBR. The revenue-mix comparison therefore reflects both faster growth in the recurring category and an uneven comparison in transactional revenue.

How did Nuvama Private's client assets change?

Nuvama Private reported closing client assets of Rs 2,41,952 crore in Q2 FY27, up 15% from Rs 2,10,805 crore in Q2 FY26. The presentation says its client-assets composition excludes held-away assets. In H1 FY27, it reported Rs 62,862 crore of ARR-earning assets and Rs 1,58,794 crore of transactional assets.

The asset mix increased in both disclosed components from H1 FY26. Transactional assets rose from Rs 1,39,498 crore to Rs 1,58,794 crore, while ARR-earning assets rose from Rs 50,621 crore to Rs 62,862 crore. ARR-earning asset growth of 24% exceeded the 15% year-on-year increase in total closing client assets.

Nuvama Private serves more than 4,900 families with more than 150 relationship managers and reported Rs 2,41,952 crore of client assets on its business overview page. Its offering covers investments, lending, estate planning, family office, corporate advisory and treasury services. The presentation also reported a Net Promoter Score of 66, but did not provide a prior-period score.

How profitable was Nuvama Private in Q2 and H1 FY27?

Nuvama Private's PBT rose 24% year on year to Rs 82 crore in Q2 FY27 from Rs 66 crore in Q2 FY26. This increase was larger than the 15% rise in quarterly revenue to Rs 226 crore. For H1 FY27, PBT grew 23% to Rs 141 crore from Rs 115 crore, while revenue rose 20% to Rs 424 crore.

The annual record shows operating PBT rising to Rs 256 crore in FY26 from Rs 206 crore in FY25, matching the stated 24% year-on-year growth. Revenue rose to Rs 758 crore in FY26 from Rs 611 crore in FY25, also a 24% increase. Cost to income was 66% in both FY25 and FY26, after 64% in FY23 and FY24.

How does Q2 FY27 fit Nuvama Private's longer-term record?

Nuvama Private reported a five-year compound annual growth rate, or CAGR, of 29% for revenue through FY26, when revenue reached Rs 758 crore from Rs 210 crore in FY21. Operating PBT recorded a 51% five-year CAGR, rising from Rs 32 crore in FY21 to Rs 256 crore in FY26. Client assets grew at a stated five-year CAGR of 16%, reaching Rs 2,06,677 crore in FY26 from Rs 98,570 crore in FY21.

The FY26 client-assets base followed 4% annual growth, from Rs 1,99,452 crore in FY25 to Rs 2,06,677 crore. By comparison, Q2 FY27 client assets of Rs 2,41,952 crore were 15% above Q2 FY26, while H1 FY27 ARR assets rose 24%. These interim figures do not establish a full-year result, but the recurring-asset category expanded faster than total client assets in the disclosed comparison.

Nuvama Private also said it enhanced artificial intelligence-powered platforms across the client lifecycle. Management said the platforms are intended to improve lead generation, conversion, engagement and servicing, which provides an operational mechanism alongside the Q2 FY27 revenue and asset data.

Conclusion

Nuvama Private's Q2 FY27 disclosure shows a larger recurring-income contribution: ARR reached 68% of quarterly revenue after 60% ARR growth, while quarterly ARR NNM reached Rs 4,986 crore. The H1 comparison points in the same direction, with ARR's revenue share increasing by 8 percentage points to 64% and ARR-earning assets increasing 24% to Rs 62,862 crore.

What to watch next is whether recurring NNM can remain above the H1 FY27 level of Rs 6,068 crore and whether the 0.91% yield on average ARR assets is maintained. Future disclosures can also indicate how transactional revenue compares after the prior-year syndication deal and whether the enhanced artificial intelligence-powered platforms improve the client-lifecycle measures management identified.