Nuvama Wealth posts 20% profit rise, shares jump 6% on Q2 FY27 results
Nuvama Wealth Management reported a 19.5% YoY increase in Q2 FY27 net profit to ₹303.5 cr and 20.35% revenue growth, sending the stock up 6.6% and near its July 2026 peak.
Key Takeaways
- Q2 FY27 net profit rose 19.5% YoY to ₹303.5 cr, driven by wealth management (14% revenue growth) and asset services (53% revenue jump).
- Total operating revenue reached ₹1,366 cr, up 20.35% YoY, while the cost‑to‑income ratio improved to 54.1% from 56.6% a year earlier.
- Motilal Oswal reiterated a Buy rating with a revised target of ₹2,160, implying ~17% upside from the prior close.
- Risks include higher employee expenses (+19% YoY) and a one‑time pre‑closure of a venture‑debt fund that trimmed PAT by 8% versus broker estimates.
Nuvama Wealth Management reported a robust Q2 FY27 performance on November 12, 2026, with net profit climbing 19.5% YoY to ₹303.5 cr and revenue rising 20.35% to ₹1,366 cr. The results lifted the stock 6.6% to an intraday high of ₹1,963.95, narrowing the gap to its July 2026 peak.
What Happened
- The brokerage posted consolidated net profit of ₹303.5 cr, up from ₹254 cr a year ago.
- Revenue from operations grew to ₹1,366 cr from ₹1,135 cr, driven by:
- Wealth Management: ₹501 cr (+14% YoY)
- Asset Services: ₹245 cr (+53% YoY)
- Capital Markets: ₹175 cr (+9% YoY)
- Client assets expanded to ₹5.5 lakh cr, a 25% YoY increase.
- Operating expenses rose 16% YoY to ₹5.1 cr, with employee costs up 19%.
- Cost‑to‑income ratio improved to 54.1% from 56.6% in Q2 FY26.
Financial Analysis & Context
| Metric | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue (₹ cr) | 1,366 | 1,135 | +20.35% |
| Net Profit (PAT, ₹ cr) | 303.5 | 254 | +19.5% |
| Operating Expenses (₹ cr) | 5.1 | 4.4 | +16.0% |
| Cost‑to‑Income Ratio | 54.1% | 56.6% | –2.5 pts |
| Client Assets (₹ cr) | 5,50,000 | 4,40,000 | +25.0% |
Motilal Oswal reiterated its Buy call, raising the price target to ₹2,160 (based on a Sum‑of‑the‑Parts valuation) and implying roughly 17% upside from the prior close. The broker noted that while revenue growth was broadly in line with its estimates, asset‑services revenue missed by 40% and employee costs pressured margins.
Independent Analysis & Key Risks
Implication: The double‑digit profit and revenue expansion, coupled with a better cost‑to‑income ratio, suggest improving operating leverage. Wealth management’s steady inflow of client assets and record net flows underpin the upside, while asset‑services momentum, despite a short‑term miss, could become a larger profit driver as the business scales.
Risks:
- Cost pressure: Employee expenses rose 19% YoY, and further hiring could erode margin improvements if revenue growth slows.
- One‑time items: PAT was 8% below broker forecasts due to a pre‑closure of a venture‑debt fund, indicating earnings volatility from non‑core activities.
- Competitive landscape: Larger Indian brokerages are also expanding wealth and asset‑services platforms, which could intensify pricing pressure and client acquisition costs.
- Macro environment: A softer capital‑markets backdrop, referenced by the broker, may limit capital‑markets revenue growth.
Disclaimer: This report is for informational purposes only and does not constitute investment advice.
Sources & References
- View sourceLivemintNews Report
Nuvama Wealth share price: Brokerage stock up over 6% today, just 5% away from peak on strong Q2 results | Check target
- View sourceThe Financial ExpressNews Report
BSE shares jump over 6% after Q3 results: Nuvama sees 30% upside — Time to Buy?
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