1. At a Glance
Nuvama Wealth Management just delivered another quarter where profit margins strut around like they own Dalal Street — 54% operating margin in Q1 FY26, net profit of ₹264 crore, and client assets at a massive ₹3.46 lakh crore. This is the second-largest independent wealth management player in India, focusing on the rich, the richer, and the “I bought a penthouse in Dubai just for weekends” crowd. The only wrinkle in the tailored blazer? A chunky 62.8% of promoter holding is pledged — so while your RM is selling you “debt-free lifestyle” plans, the company itself is in a bit of leverage couture.
2. Introduction
Nuvama Wealth Management (NWML) is essentially the Rolls-Royce of financial services — minus the flying lady hood ornament. Born in 1993, the company now operates across wealth management, asset management, and capital markets, targeting India’s affluent and ultra-high-net-worth individuals (UHNI). Think portfolio reviews over cappuccinos, private equity placements whispered in conference rooms, and family office solutions that make sure heirs get trust fund cheques on time.
Its scale is intimidating: 1.2 million affluent clients, 3,600+ wealthy families served, and one of the deepest product suites in the game — from broking to lending to estate planning. Post its 2023 spin-off from Edelweiss, Nuvama has been on an aggressive expansion drive, including setting up shop in Dubai to cater to the globe-trotting Indian millionaire.
But the company’s crown jewel? The sheer spread of its assets under management (AUM) — ₹3.45 lakh crore. At this scale, every 1% movement in assets is worth more than the GDP of some small island nations.
3. Business Model (WTF Do They Even Do?)
Nuvama is a financial supermarket for the wealthy, operating across three tailored suits of service:
a) Wealth Management (65% revenue)– The bread, butter, and imported truffle oil of the company. They offer managed portfolios, advisory, lending against securities, structured products, ETFs, estate planning, and full-blown family office management.
b) Capital Markets (31% revenue)– Institutional broking, investment banking, equity & debt placements, and research coverage. Think IPO allocations, block deals, and more Bloomberg Terminal activity than your average mutual fund office.
c) Asset Management
(4% revenue)– Still the new kid on the block, managing ₹6,967 crore AUM. Includes private markets, public market mandates, and real estate investments.
Their business is designed for sticky, long-term relationships. Once a UHNI signs on, they’re unlikely to leave unless their RM forgets to invite them to the Diwali cocktail party.
4. Financials Overview – Q1 FY26 vs Q1 FY25 & Q4 FY25
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,123 | 949 | 1,120 | 18.3% | 0.3% |
| EBITDA (₹ Cr) | 612 | 493 | 575 | 24.1% | 6.4% |
| PAT (₹ Cr) | 264 | 221 | 255 | 19.5% | 3.5% |
| EPS (₹) | 73.31 | 62.44 | 71.00 | 17.4% | 3.3% |
Commentary:
- Growth is steady — no fireworks, but margins remain rock-solid.
- OPM above 50% is rare in financial services, making Nuvama’s cost structure look like a Swiss watch.
- EPS growth is healthy, and the P/E of ~24 isn’t obscene compared to peers like 360 ONE (P/E ~40).
5. Valuation (Fair Value Range Only)
Method 1 – P/E Approach
- EPS (TTM) = ₹286.71
- Peer average P/E (Motilal, Angel, IIFL) ~ 26x
- FV Range = ₹7,050 – ₹7,700 per share.
Method 2 – EV/EBITDA
- EV ≈ ₹25,064 Cr MCap + ₹7,839 Cr Debt – ₹(Cash negligible in this context) ≈ ₹32,900 Cr
- EBITDA (TTM) = ₹2,331 Cr
- EV/EBITDA ≈ 14.1x vs peer avg ~ 16x → FV Range = ₹6,800 – ₹7,500.
