Nuvama Q1 consolidated PAT +16% YoY to ₹306 Cr on 23% revenue growth; margins slip on reinvestment
PAT +15.83% YoY · revenue +22.59% · margins compressing · inline vs street
₹1,376.22 Cr
+22.59% YoY
₹305.64 Cr
+15.83% YoY
22.12%
-1.3pp YoY
₹16.78
Nuvama Wealth's Q1 FY27 (quarter ended June 30, 2026) delivered strong topline momentum with lagging profit conversion. Consolidated total revenue from operations rose 22.6% YoY to ₹1,376.22 Cr and net profit for the period grew 15.8% YoY to ₹305.64 Cr (up 13.7% sequentially from ₹268.79 Cr). Because profit growth trailed revenue growth, net profit margin compressed to 22.1% from 23.5% a year ago — the story of the quarter is a growth print with a margin squeeze, not a clean beat. There are no material one-off items on either side, so reported and underlying growth are effectively the same ~16%.
Q1 FY-2027 vs prior quarters
The engine is the wealth management franchise: segment revenue jumped 32.5% YoY to ₹783.54 Cr with segment profit up ~25% to ₹147.43 Cr, consistent with the strong net-flows-and-lending narrative management set out on the Q4 concall. The margin drag sits on the cost lines — finance costs climbed to ₹294.97 Cr (from ₹240.07 Cr) as the lending book scaled, and employee costs rose to ₹376.30 Cr (from ₹319.10 Cr), the reinvestment-into-capacity that management flagged. Capital markets was broadly flat YoY (segment revenue ₹596.89 Cr vs ₹593.99 Cr), the cyclical recovery management is banking on not yet visible. Asset management remains an investment phase: revenue slipped to ₹37.59 Cr and the segment ran a ₹7.71 Cr loss versus a small profit a year ago.
The stock went into the print at ₹1,793.4, up 0.3% over the past month of trading.
For context: this is the highest quarterly PAT in the last 4 quarters on our records; revenue is at a 4-quarter high.
What the summary numbers don't show
Enabling resolution to raise up to ₹500 Cr via NCDs on private placement — net worth ₹4,192.19 Cr, debt-equity 2.88
Management guides for continued robust growth in the core wealth businesses, driven by strong net flows, AI-led productivity gains, and an increasing focus on lending. They project a gradual 100 bps annual improvement in the cost-to-income ratio over the medium term, balanced with reinvestments into capacity. The key s
— This quarter: met
The board actions reinforce the AMC/lending strategy rather than distract from it: approval of a ₹100 Cr equity infusion into Nuvama Asset Management (NAML), the buy-out of the remaining 26% of Pickright (making it a wholly-owned subsidiary), and an enabling resolution to raise up to ₹500 Cr via NCDs. This follows the SEBI mutual-fund licence granted June 9, 2026 — the public-markets/AMC expansion management guided to is now being funded. On the same day a ₹14 interim dividend was paid (declared May 12). Set against prior guidance, growth is on-plan and robust, but the promised gradual improvement in the cost-to-income ratio is not yet showing through — margins moved the other way this quarter as capacity build ran ahead of monetisation.
W1
Cost-to-income trajectory: management guided ~100 bps annual improvement, but NPM slipped to 22.1% from 23.5% YoY this quarter — watch whether reinvestment-led margin drag reverses in H2
W2
Asset management ramp: NAML at ₹37.59 Cr revenue and a ₹7.71 Cr segment loss; track monetisation of the new MF platform after the ₹100 Cr capital infusion
W3
Capital markets recovery: segment revenue flat YoY at ₹596.89 Cr — management expects a cyclical rebound; confirm next quarter
Clean digital PDF, headers unambiguous. Consolidated PBT of 410.52 includes share of associate 0.82 + JV 1.63; net profit for period 305.64, of which owners 305.79 and NCI (0.15). No material exceptional item either period. EPS 16.78 (basic, consolidated) is post the 1:5 stock split (FV Rs.2). Standalone is dominated by dividend income (250.17) from subsidiaries, so consolidated is the operative view.
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