Nuvama Q2 operating profit rises 26% to Rs 319 crore in FY27

Nuvama Wealth Management Limited reported operating profit after tax of Rs 319 crore in Q2 FY27, up 26% year on year, supported by revenue growth across Wealth Management, Asset Services and Capital Markets. Group client assets reached Rs 5.50 lakh crore, up 25%, while reported profit after tax was Rs 304 crore after a one-time Rs 16 crore charge.

What drove Nuvama's Q2 FY27 operating profit growth?

Nuvama's operating profit after tax rose because its Q2 FY27 revenue increased faster than costs. Revenue in the earnings-release presentation rose 21% year on year to Rs 937 crore for the quarter ended September 30, 2026, while costs increased 16% to Rs 507 crore. Operating profit after tax consequently rose to Rs 319 crore from Rs 254 crore in Q2 FY26.

The reported and operating measures differed because Nuvama excluded a one-time Rs 16 crore charge from operating profit after tax. The charge related to the pre-closure of a Venture Debt Fund in the Asset Management business. Reported Q2 FY27 profit after tax was Rs 304 crore, up 19% year on year, while the consolidated financial results recorded net profit of Rs 303.48 crore, compared with Rs 253.98 crore a year earlier.

Nuvama's first-half result showed a similar gap between revenue and cost growth. H1 FY27 revenue increased 20% to Rs 1,846 crore and costs rose 17% to Rs 1,008 crore, producing operating profit after tax of Rs 625 crore, up 21%. In the statutory consolidated results, Q2 FY27 profit before tax was Rs 410.31 crore, broadly unchanged from Rs 410.52 crore in the June 2026 quarter and above Rs 339.23 crore in Q2 FY26.

How did Nuvama's Wealth Management business perform?

Nuvama's Wealth Management segment increased Q2 FY27 revenue by 14% year on year to Rs 501 crore and profit before tax by 22% to Rs 184 crore. For H1 FY27, segment revenue rose 16% to Rs 948 crore and profit before tax increased 21% to Rs 332 crore. Wealth Management client assets stood at Rs 3.71129 lakh crore at the end of Q2, up 16% from a year earlier.

Nuvama Wealth reported Q2 revenue of Rs 275 crore, up 14%, and profit before tax of Rs 102 crore, up 21%. The company attributed revenue growth to sustained momentum in MPIS, or managed portfolio investment services, and growth in net interest income. Its cost-to-income ratio improved by 200 basis points year on year to 63%, while quarterly MPIS net new money reached a record Rs 3,289 crore.

Nuvama Private reported Q2 revenue of Rs 226 crore, up 15%, and profit before tax of Rs 82 crore, up 24%. Its annual recurring revenue, or ARR, increased 60% year on year in Q2 FY27. Quarterly ARR net new money reached a record Rs 4,986 crore, while H1 ARR net new money was Rs 6,068 crore, equivalent to 11% of opening ARR assets; Nuvama Wealth's H1 MPIS net new money was Rs 6,333 crore, or 16% of opening MPIS assets.

Which businesses grew faster outside Wealth Management?

Nuvama's Asset Services and Capital Markets businesses together reported Q2 FY27 profit before tax of Rs 259 crore, up 34% year on year. That growth exceeded the 22% increase in Wealth Management profit before tax, although the two groupings are not presented as directly comparable standalone profit pools in the release. Their H1 FY27 profit before tax increased 26% to Rs 527 crore, compared with Rs 332 crore for Wealth Management.

Asset Services recorded the fastest disclosed Q2 revenue growth among Nuvama's businesses. Revenue rose 53% year on year to Rs 245 crore in Q2 and 43% to Rs 504 crore in H1 FY27. Asset Services client assets were Rs 1.63835 lakh crore at the end of Q2, up 55% year on year, compared with the 16% increase in Wealth Management client assets.

Capital Markets generated Q2 revenue of Rs 175 crore, up 9% year on year, and H1 revenue of Rs 357 crore, up 5%. Managing director and chief executive officer Ashish Kehair said Capital Markets delivered a healthy performance despite a softer market environment. Asset Management followed a different trend: Q2 management fees were Rs 17 crore, down 2% year on year, though H1 management fees rose 11% to Rs 39 crore and closing assets under management were Rs 12,000 crore, up 1%.

What product and capital plans did Nuvama disclose?

Nuvama disclosed that it had received Securities and Exchange Board of India approval to launch the Numa SIF platform and offer specialized investment fund products through it. The disclosure did not give a launch date, expected assets under management or revenue target for the platform. The approval followed an Asset Management quarter in which management fee was Rs 17 crore and closing assets under management were Rs 12,000 crore.

Nuvama's board also approved potential equity subscriptions of up to Rs 400 crore in Nuvama Wealth Finance Limited and up to Rs 300 crore in Nuvama Wealth and Investment Limited. Both are wholly owned material subsidiaries, and the investments may be made in one or more tranches. The November 6, 2026 filing did not state a timetable, the amount of any initial tranche or the intended earnings effect of the combined Rs 700 crore authorisation.

Nuvama said group client assets were Rs 5.50 lakh crore at the end of Q2 FY27, while MPIS and ARR client assets across Nuvama Wealth and Nuvama Private increased 27% year on year to nearly Rs 1.10 lakh crore. The company also reported serving more than 13 lakh affluent and high-net-worth clients and more than 4,900 prosperous families as of Q2 FY27. These measures provide the disclosed asset and client context for the business expansion plans.

Conclusion

Nuvama's Q2 FY27 performance combined operating profit after tax growth of 26% to Rs 319 crore with revenue growth of 21% and cost growth of 16%. Wealth Management increased profit before tax by 22% to Rs 184 crore, while the combined Asset Services and Capital Markets grouping increased profit before tax by 34% to Rs 259 crore. Reported profit after tax of Rs 304 crore reflected the disclosed Rs 16 crore Venture Debt Fund pre-closure charge.

The next developments to watch are Nuvama's rollout of products through the SEBI-approved Numa SIF platform and the timing of equity subscriptions authorised for two wholly owned subsidiaries. Future disclosures can also show whether record Q2 flows of Rs 3,289 crore in MPIS and Rs 4,986 crore in ARR continue, and whether Asset Management management fees recover from the 2% Q2 decline.