Nuvama Wealth Management shares rallied as much as 6.6% on Thursday, November 12, to hit an intraday high of ₹1,963.95 on the BSE after the wealth management company reported a strong performance for the September quarter of FY27. The company posted a nearly 20% year-on-year increase in consolidated net profit, supported by growth across its wealth management, asset services and capital markets businesses.
The stock is now just 5% away from its record high of ₹2,067, touched in July 2026. It had hit its 52-week low of ₹1,097.25 in March 2026. Nuvama Wealth shares have gained 1% over the past month, 11.5% in three months, 22% in six months and 29% over the last one year.
Nuvama Wealth Q2 results: Net profit rises 20%, revenue grows 21%
Nuvama Wealth Management reported a 19.5% year-on-year increase in consolidated net profit to ₹303.5 crore for the September quarter of FY27, compared with ₹254 crore in the corresponding period last year. Revenue from operations increased 20.35% to ₹1,366 crore in Q2 FY27 from ₹1,135 crore a year earlier.
The company’s wealth management business recorded 14% year-on-year revenue growth to ₹501 crore during the quarter. Asset services revenue jumped 53% to ₹245 crore, while revenue from the capital markets business increased 9% to ₹175 crore.
Nuvama’s client assets reached ₹5.5 lakh crore, registering 25% growth year-on-year, reflecting continued expansion across its businesses.
Commenting on the performance, Ashish Kehair, MD and CEO of Nuvama Group, said, “We delivered another quarter of strong performance, with Q2 operating profits growing 26 per cent YoY and RoE remaining strong at 29 per cent. Wealth Management continued its track record of consistent compounding with record net flows, Asset Services sustained strong momentum, and Capital Markets delivered a healthy performance despite a softer market environment.”
Should you buy Nuvama Wealth shares?
Brokerages remain constructive on Nuvama Wealth following its September quarter performance, citing healthy growth in its core businesses, improving operating efficiency and strong return ratios.
Motilal Oswal Securities (MOSL) has reiterated its Buy recommendation, with a revised price target indicating further potential upside from the stock’s previous closing price.
“We broadly retain our estimates, considering the in-line operational performance in 2QFY27. Reiterate BUY with a revised TP of INR2,160 (based on SoTP valuations), implying an FY28E P/E of 24x.”
The revised target price of ₹2,160 implies an upside potential of around 17% from the previous closing price.
In its assessment, MOSL noted that Nuvama Wealth’s Q2 FY27 operating revenue increased 21% year-on-year to ₹9.4 billion, broadly in line with its estimates. Wealth management revenue grew 14%, while asset management business revenue increased 6%, missing the brokerage’s estimates by 40%. The overall capital markets business reported 31% year-on-year growth. For the first half of FY27, operating revenue increased 20%.
Total operating expenses rose 16% year-on-year to ₹5.1 billion, in line with expectations, with employee expenses increasing 19%. Despite the rise in costs, the cost-to-income ratio improved to 54.1% from 56.6% in Q2 FY26, compared with MOSL’s estimate of 53.9%.
Profit after tax (PAT) stood at ₹3 billion, up 19% year-on-year, although it was 8% below the brokerage’s estimate due to the one-time impact of the pre-closure of a venture debt fund. PAT grew 18% year-on-year in H1 FY27.
MOSL also highlighted that hiring in Wealth and Private Relationship Management (RM) had reached a steady state. The brokerage expects a 100-200 basis points improvement in the cost-to-income ratio in wealth management during the current year, with further improvements over the next few years. In the asset management business, it expects the cost-to-income ratio to improve over the next 12-15 months.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
