Nuvama Q1 FY27: Record profit, client assets cross INR5.36 trillion

Nuvama Wealth Management opened FY27 with its strongest quarter to date. Consolidated revenue rose to INR909 crore in Q1 FY27, up 18% year on year, while profit after tax increased to INR306 crore, up 16%. The quarter also marked a scale milestone: client assets crossed INR5 lakh crore, reaching INR5,36,139 crore. Management framed the results as a validation of the company’s diversified, full-platform model and highlighted that performance was supported by Wealth Management, Asset Services momentum, and a strong fixed income quarter in Capital Markets.

The group’s cost discipline remained intact despite ongoing investments. Total costs increased to INR501 crore, up 19% YoY, with employee costs at INR371 crore (up 17%) and opex at INR131 crore (up 24%). Cost-to-income stayed at 55% in Q1, and return on equity remained high at 29.5%. Management also noted a credit rating upgrade by CRISIL from AA- to AA (Stable), indicating improved external assessment of financial strength.

A quarter led by wealth, supported by institutional engines

Wealth Management remained the largest contributor to revenue. Segment revenue was INR447 crore in Q1 FY27, up 19% YoY and representing 49% of consolidated revenue. Segment PBT grew to INR149 crore, up 20% YoY. Within Wealth Management, the company continues to run two distinct franchises: Nuvama Wealth (affluent and HNI) and Nuvama Private (UHNI and family offices).

Nuvama Wealth delivered Q1 revenue of INR250 crore (up 13% YoY) and PBT of INR90 crore (up 19% YoY). The managed products and investment solutions engine remained a key driver. MPIS assets stood at INR42,795 crore, up 32% YoY, while MPIS net new money reached a record INR3,044 crore. Management also highlighted that Tier 2 and beyond is now contributing more than 35% in MPIS, and said the platform continues to invest in seniorization of teams, adding about 40 net relationship managers in the quarter.

Nuvama Private posted Q1 revenue of INR198 crore, up 27% YoY, and PBT of INR59 crore, up 22% YoY. Client assets increased to INR2,40,197 crore, up 10% YoY. Annual recurring revenue remained meaningful, but the quarter’s ARR net new money was softer at INR1,083 crore. Management attributed this to exiting select low-cost historical mandates and stated that underlying flows, excluding these outflows, were over INR1,800 crore.

On the institutional side, Asset Services revenue grew 34% YoY to INR259 crore. The company indicated that growth was supported by deeper engagement with existing clients and new mandates. Client assets in custody and clearing stood at INR1,58,986 crore, up 25% YoY. Management flagged that quarterly growth could moderate as some client collateral shifts from cash to G-secs, which may also affect yields, but it still guided for full-year revenue growth of more than 20% to 25%.

Capital Markets revenue was INR182 crore, up 1% YoY, reflecting a flat environment overall. However, management highlighted that fixed income performed exceptionally well in Q1, with some contribution linked to market-led opportunities. It also cautioned that about INR15 crore to INR20 crore of Q1 fixed income benefit may not repeat in subsequent quarters.

Financial snapshot (Consolidated)

Asset Management: product expansion with a near-term profit drag

Asset Management remains the group’s most investment-heavy segment, even as strategy-level profitability improves. In Q1 FY27, management fee revenue was INR22 crore, up 24% YoY, while AUM was INR13,261 crore, up 12% YoY. A major operational milestone in the quarter was the final close of the PRIME Offices Fund, a commercial real estate strategy, at approximately INR4,000 crore against an initial target of INR3,000 crore.

Management described an active deployment plan, with around 40% already deployed across 3 to 4 assets and a target to deploy about 70% over the next 2 to 3 months. It also stated an intent to launch a second CRE fund by end of Q3 FY27 and, over roughly 24 months, explore building a REIT platform for marquee assets.

In public markets, management acknowledged volatility and redemptions in certain strategies, while highlighting that the mutual fund license has been received and the regulatory approval process for SIF strategies has been initiated. Importantly, management provided explicit P&L guidance for Asset Management, stating that FY27 could end with a cumulative loss of about INR35 crore to INR40 crore as the company builds new verticals and the mutual fund setup. The quarterly cost run-rate was stated at INR30 crore to INR33 crore, expected to peak at INR35 crore to INR36 crore.

This explicit guidance helps investors frame Asset Management as a medium-term earnings option rather than a near-term margin driver. Management also suggested that revenue should start inching up by end of Q4 FY27 as new products are launched.

Strategy themes: full platform, offshore build-out, and AI productivity

Across both the presentation and the conference call, management repeatedly emphasized three themes.

First is the full platform model. It argued that value is shifting toward integrated firms that can combine wealth, asset management, asset services, and capital markets capabilities. In its view, this improves client relevance across cycles and increases resilience when certain market-linked businesses soften.

Second is offshore wealth. Management said it has built hubs in Dubai and Singapore. Dubai has already broken even, and Singapore is expected to break even by end of FY27. Offshore revenue contribution is guided at 5% to 7% for FY27. It also stated offshore lending sits on partners’ books, implying limited capital usage and strong RoE accretion once the platform crosses break-even.

Third is technology and AI-led operating leverage. Management discussed tools including an AI chatbot called Nuggets, an RM Buddy voice-enabled assistant, and an AI-based customer profiler that has been tested with about 200 people with a broader rollout planned. It linked these to improved productivity, citing a more than 25% YoY jump in MPIS revenue and net new money per RM, and about 17% YoY improvement in overall revenue per RM.

What to watch after a strong start

The quarter delivered strong headline outcomes, but management also outlined areas where results may normalize. Asset Services yields could adjust if collateral moves from cash into government securities. Fixed income performance in Capital Markets may moderate from the unusually strong Q1 level, with management flagging a potential INR15 crore to INR20 crore non-repeatable benefit. Asset Management is expected to remain loss-making in FY27 as investments peak.

Still, the platform is scaling with high profitability, strong cost-to-income discipline, and expanding client assets. With clear guidance on key moving parts, the Q1 FY27 communication signals a company focused on growing its wealth franchises while deliberately building medium-term options in alternatives, offshore wealth, and new regulated asset management structures.