Nuvama Wealth Q2 profit rises 19% to ₹304 crore

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Nuvama Wealth Management Limited ( NUVAMA ) reported a 19.5% year-on-year increase in consolidated net profit to ₹303.5 crore in Q2 FY27. Revenue from operations grew 20.4% to ₹1,366 crore. What happened? The company's operating performance remained stronger than its reported profit growth. Operating PAT increased 26% to ₹319 crore, while total revenue rose 21% to ₹937 crore and costs increased 16% to ₹507 crore. Business-wise: Wealth Management revenue grew 14% to ₹501 crore. Asset Services revenue increased 53% to ₹245 crore. Capital Markets revenue rose 9% to ₹175 crore. Client assets reached ₹5.5 lakh crore, registering 25% year-on-year growth. Return on equity remained strong at 29%. Reported PAT was lower than operating PAT due to a one-time charge of ₹16 crore related to the pre-closure of a venture debt fund. Why does it matter? Revenue growing faster than costs helped improve operating profitability. The growth in client assets and wealth management flows also indicates continued demand for the company's services. My view The diversified business model is supporting growth across wealth management, asset services and capital markets. The improvement in operating PAT and cost efficiency is encouraging. However, sustaining client asset growth and converting it into recurring fee income will remain important. What I am watching next I would track net client flows, growth in recurring fee income, cost-to-income ratio and the contribution of each business segment. The sustainability of operating margins will also be important. No Recommendations Source: Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Nuvama Wealth Management Limited.