Nuvama Wealth shares rise 3% after in-line Q1 results; should you buy?

Nuvama Wealth shares rose 3 per cent after its June-quarter earnings came in line with the street estimates

Shares of Nuvama Wealth Management rose over 3 per cent on Thursday after its first-quarter profit and revenue came in line with the street estimates. 

 

The wealth management company's stock rose as much as 3.08 per cent during the day to ₹7,143.5 per share, the biggest intraday rise since August 5 this year. The stock pared gains to trade 0.2 per cent higher at ₹6,939 apiece, compared to a 0.17 per cent advance in Nifty 50 as of 11:00 AM. 

 

Shares of the company rose for the fourth straight session and currently trade at over 1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 0.3 per cent this year, compared to a 4.2 per cent advance in the benchmark Nifty 50. Nuvama Wealth has a total market capitalisation of ₹24,897.53 crore. 

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Nuvama Wealth Q1 results 

Nuvama Wealth Management reported a strong performance in the first quarter of fiscal 2026 (Q1FY26), with consolidated revenue rising 18 per cent to ₹1,122.65 crore from ₹951 crore in the year-ago period.

 

Net profit increased 19 per cent to ₹263.96 crore from ₹221.02 crore, while Ebitda grew 24 per cent to ₹611.58 crore from ₹494.40 crore. Operating margin improved to 54.5 per cent from 52.0 per cent a year earlier.

 

The company said it maintained strong momentum during the quarter. Wealth and asset management revenues grew 18 per cent year-on-year (Y-o-Y), while asset services revenue surged 46 per cent, supported by the scale-up of existing business and the addition of new clients.

 

"Looking ahead, US tariffs and global trade tensions could weigh on sentiment, but India’s long-term growth fundamentals remain strong despite near-term earnings pressures...We remain confident in our differentiated value proposition, positioning us well to capture client interest and deliver sustainable, long-term growth," said Ashish Kehair, managing director and chief executive officer of Nuvama Group. 

Analysts on Nuvama earnings

Motilal Oswal expects Nuvama to deliver a compound annual growth rate of 21 per cent in average assets under management, 19 per cent in revenue, and 20 per cent in profit after tax over fiscal years 2025-2027, driven by growth in its wealth management and capital markets businesses. 

 

The brokerage reiterated its 'buy' rating on the stock with a target price of ₹9,600, based on 24 times its March 2027 estimated earnings per share.

 

JM Financial said the results were in line with its estimates and added that it will wait for the earnings call before revising projections. The brokerage said it is looking forward to management commentary on the asset services business and guidance on flows into the private and wealth segment.

 

It noted that the wealth segment remained stable, with strong annualised inflows of 12 per cent and steady revenue growth of 3 per cent quarter-on-quarter (Q-o-Q) and 17 per cent Y-o-Y. The capital markets business delivered robust revenues and a cost-to-income ratio of 40 per cent, with revenue growth of 3 per cent quarter-on-quarter and 13 per cent year-on-year, which appeared modest due to a high base.