Nuvama Wealth Management reported a resilient Q2 FY26 performance, demonstrating growth across most businesses despite market volatility and the loss of a major client. Key highlights include a 10% revenue increase in H1, a 28-30% growth in managed product asset base, and a significant rise in Wealth and Private business contributions to the company’s PAT. The company declared an interim dividend of ₹70 per share and approved a share split.
Financial Performance Highlights
Nuvama Wealth Management Limited announced its Q2 FY26 results, showcasing a resilient performance despite challenges. Key highlights include:
- Overall revenue growth of approximately 10% for the first half of the fiscal year (H1 FY26).
- Assets Under Management (AUM) reached ₹4.4 lakh crores.
- The Wealth and Private business segments now contribute 57% of total revenue, a significant increase from 47% in Q2 of the previous year.
- Profit After Tax (PAT) contribution from Wealth and Private sectors increased from 35% to 45%.
Segmental Performance
The company experienced strong performance across several key segments:
- Nuvama Wealth: Asset base in managed products grew by approximately 28-30%, with revenues increasing by about 67% year-over-year. Managed Products and Investment Solutions (MPIS) now account for approximately 58% of total revenues for this segment.
- Nuvama Private: Recurring assets continue to show decent growth, and the company anticipates growth north of 25-26% on a full-year basis. ARR assets have crossed INR50,000 crores, doubling in 2.5 years.
- Asset Management: The Commercial Real Estate Fund reached approximately INR2,400 crores in fundraise, with a target size of approximately INR4,000 crores. The company anticipates launching its second Commercial Real Estate Fund in Q2 of the next year.
- Asset Services: Despite losing a major client at the beginning of the quarter, the business has recovered 50% of the lost revenue by the end of Q2.
Strategic Initiatives and Outlook
Nuvama is undertaking several strategic initiatives to drive future growth:
- Expanding geographically, with operations in Dubai and Singapore.
- Actively working on launching credit in the Asset Management side.
- Applied for a mutual fund license to operate the SIF vehicle, expecting to go live in April.
The company expects the positive momentum to continue and is focused on enhancing its Wealth and Private franchise. They forecast a 20-25% growth trajectory once the Asset Services rebasing occurs.
Dividend and Share Split
The Board of Directors has approved an interim dividend of ₹70 per share for FY26. Additionally, a share split from INR10 face value to INR2 face value has also been approved.
Source: BSE
