Nuvama Wealth and Investment Limited
Rating Action
Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to annexure for Details of Instruments & Bank Facilities
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA-/Crisil PPMLD AA-/Positive/Crisil A1+/Crisil PPMLD A1+’ ratings on the existing debt instruments and bank facilities of Nuvama Wealth and Investment Limited [NWIL, part of Nuvama Group].
Crisil Ratings has withdrawn Rs 20.4 crore of long term principal protected market linked debentures and Rs 165.63 crore of non-convertible debentures as the same has been repaid as on date (See ‘Annexure - Details of Rating Withdrawn' for details). The withdrawal is in line with the Crisil Ratings withdrawal policy.
The ratings continue to be driven by the expectation of sustained improvement in the business risk profile of the group – as evidenced by steady increase in managed assets with segmental diversity; and also factors in the group’s improving earnings profile.
The ratings continue to reflect the Nuvama group’s comfortable capitalisation and its strong market position among non-banking players in the wealth management business. These strengths are partially offset by the susceptibility of earnings to cyclicality and volatility in capital-market-related businesses as well as high concentration in lending operations.
The Nuvama group is a prominent player in wealth management serving Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI) and Affluent client segments. It offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices. It also offers related products focused on HNI, UHNI, family offices and institutional clients, and is a leading player in asset services (clearing and custody) and capital markets [comprising institutional equities (IE) and investment banking (IB) businesses.
Consolidated client assets of the group stood at Rs 4,30,651 crore as on March 31, 2025, marking a growth of 24% and a three-year compounded annual growth rate (CAGR) of 26% from March 31, 2022 to March 31, 2025. It stood at Rs 4,36,452 crore as on September 30, 2025. This growth has been a factor of healthy traction across most segments, particularly the wealth management portfolio which remains the largest business for the group – accounting for 73% of the total clients’ assets as on September 30, 2025. Furthermore, the asset services business (~24% of client assets) also grew at a healthy CAGR of 48% from March 31, 2022, through March 31, 2025, and stood at Rs 1,06,000 crore as on September 30, 2025. Lastly, the asset management business, which started only in fiscal 2022, had a portfolio of Rs 11,878 crore on September 30, 2025, whereas the lending book (LAS, ESOP, SMTF) of the group stood at Rs 6,445 crore on the same date.
Alongside scale, the earnings profile of the company has also improved, supported by increased diversity in revenue streams, which mitigates the impact of the cyclicality inherent to different businesses on overall profitability. The wealth management business remains the highest contributor to the overall revenue base, at 53% for first half of fiscal 2026 (compared with 57% for the full fiscal 2022), followed by an increased share of 23% (as compared to 13% in fiscal 2022) from asset services portfolio and 22% from the capital markets business.
For fiscal 2025, consolidated profit of the group was Rs 985 crore, higher than Rs 625 crore for fiscal 2024. Correspondingly, the return on equity for the respective periods was 30.8% and 24.2%. This steady improvement in profitability and thus, internal accretion has supported the group’s overall capital position. Consolidated profit for the first half of this fiscal stood at Rs 518 crore with return on equity of 28.4% as against Rs 478 crore and return of equity of 31.2% in the corresponding period of previous fiscal. On September 30, 2025, the consolidated networth was Rs 3,792 crore whereas gearing was comfortable at 2.4 times. |
Analytical Approach Crisil Ratings has consolidated the business and financial risk profiles of Nuvama Wealth Management Limited (NWML) and its subsidiaries. This is because these entities, collectively referred to as the Nuvama group, have significant operational, financial, and managerial linkages, and operate under the common brand name, Nuvama.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Strong market position in the wealth management business with expanding presence in other segments The Nuvama group is one of the leading non-bank wealth management players with client assets [1] of Rs 3,45,957 crore as on March 31,2024 (Rs 2,31,079 crore as on March 31, 2023) which further grew to Rs 4,30,651 crore as on March 31, 2025 and Rs 4,36,452 crore as on September 30, 2025.
The group largely caters to affluent and high-networth individuals (HNIs), ultra HNIs (UHNIs), family offices and institutional clients across various business segments. Nuvama, as a provider of wealth management solutions, has a recognised market presence in the UHNI, HNI, and affluent client segments and remains a fast-growing franchise in this segment. Apart from wealth management (HNI and UHNI segment), it also operates in verticals such as asset services (clearing and custody business), capital market business including institutional equities business and investment banking, and asset management. Client assets under asset services, the second largest portfolio for the group, stood at Rs 1,06,000 crore on September 30, 2025. Of this, 79% were assets under custody whereas balance was assets under clearing.
In the institution equities business, the group is one of the largest domestic brokerage houses. It is also a leading player in the investment banking business, operating across segments such as initial public offers, mergers and acquisitions, private equity and fixed income. The asset management business is at a relatively nascent stage, comprising alternate investment funds (AIFs) and portfolio management schemes (PMS). This business had an AUM of about Rs 11,307 crore as on March 31, 2025 – 62% higher than that as on March 31, 2024, and stood at Rs 11,878 crore as on September 30, 2025.
The group holds a competitive position in majority of businesses and is expected to further strengthen its market position through growth and diversification, over the medium term.
Improving earnings profile, backed by increased diversity in revenue streams The earnings profile of the group has improved, additionally benefiting from a more diversified asset mix. Return on equity (RoE) has sequentially improved to 30.8% in fiscal 2025, from 24.2% in fiscal 2024 and 14.6% in fiscal 2023. For the respective periods, the group reported a total income of Rs 4,169 crore as against a total income of Rs 3,158 crore for fiscal 2024 and Rs 2,230 crore in fiscal 2023. Similarly, the consolidated profit for fiscal 2025 was Rs 985 crore vis-à-vis Rs 625 crore of PAT (profit after tax) for fiscal 2024 and Rs 305 crore for fiscal 2023. Consolidated PAT for the first half of this fiscal stood at Rs 518 crore with return on equity of 28.4% as against Rs 478 crore and return of equity of 31.2% in the corresponding period of previous fiscal.
Apart from the growth in total income, cost optimization has been another key driver for improvement in profitability. From 73% in fiscal 2021 and 70% in fiscal 2022, cost to income ratio has rationalized to 55% for fiscal 2025 and 56% for the first half of fiscal 2026. Crisil Ratings expects the same to sustain over the medium term.
Another driver for sustenance in earnings metrics has been the increased emphasis on, and thus share of, annual recurring revenue (ARR) in the wealth management business, growing scale and share from asset management business and improvement in market share for businesses such as clearing and custody. The contribution of operating profit before tax (PBT) from wealth declined from 54% in fiscal 2024 to 36% in fiscal 2025, reflecting a more diversified revenue mix with increased contributions from asset services and capital markets. These impart higher stability and predictability to the operating and overall earnings profile.
Comfortable capitalisation Capital position remains healthy, supported by improving internal accrual. The Nuvama group had a networth of Rs 3,792 crore as on September 30, 2025 (Rs 3,493 crore as on March 31, 2025) and is well-placed to support its growth plans for the medium term. Most of the businesses are fee-based, with borrowings largely comprising onward for working capital requirements and short-tenor lending to the wealth business clients for margin/ESOP financing and loan against shares (LAS).
The consolidated gearing of the group stood at 2.4 times as on September 30, 2025, against 2.2 times as on March 31, 2025, and has remained within 3 times since March 31, 2022.
[1]Earlier referred to as Assets Under Advisory (AUA) |
Key Rating Drivers - Weaknesses High concentration of LAS in lending operations Nuvama group extends LAS to its clients through its group company, Nuvama Wealth Finance Limited (NWFL). As on September 30, 2025, the total loan portfolio of the group stood at Rs 6,415 crore, having grown from Rs 4,600 crore as of March 31, 2025. More than half of this portfolio comprised of LAS, while the remaining was constituted by ESOP financing and other products, including margin trading facility. Typically, the size of this portfolio exhibits strong correlation to the ebbs and flows of capital and money market and remains susceptible to both domestic and international macro events.
Against this loan portfolio, Stage III assets have remained negligible since March 31, 2024 till date. Further, the gross non-performing assets remains nil as on September 30, 2025. However, asset quality here remains inherently vulnerable to the vagaries of capital markets and will remain a monitorable.
Susceptibility to cyclicality and volatility in capital-market-related businesses: Since corporate and investor sentiments drive portfolio flows in the wealth management business, business and earnings are susceptible to cyclicality and volatility in capital markets as well as various other political, social and macroeconomic factors.
The group is also exposed to regulatory risk. Unlike lending operations, wealth management is largely fee-based, and thus, any credit event has a relatively lower impact on the capital base. However, these businesses operate in a highly regulated environment, and any unanticipated change can adversely impact the business model. For instance, in the last few years, regulations that prohibited upfront commissions, led to a sharp erosion in commission income. Many players saw their margins getting eroded as they have adapted, or are in the process of modifying, their respective business models. Similarly, in the broking business, regulation on the upfront margin requirement by the Securities Exchange Board of India (SEBI) has increased borrowing requirements of players, thereby impacting their leverage and earnings.
While group has built a comprehensive platform that caters to multiple client segments through a wide range of products - which partially mitigates the risks, any regulatory change that could adversely impact the business, will remain a key monitorable. |
Liquidity Strong Liquidity profile of the Company has remained adequate, as evidenced by its demonstrated track record of maintaining adequate liquidity cover over debt obligations scheduled to be honoured over the succeeding two months. As on September 30, 2025, the group had liquidity of Rs 3,699 crore of which Rs 1,353 crore was in the form of cash and bank balances. |
Outlook Positive The Nuvama group will continue to scale its business through steady growth in managed assets across segments, while maintaining stability and diversity in earnings and adequate capitalisation metrics. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company NWIL is a wealth management company which provides managed products and investment solutions such as alternate investment funds, non-convertible debentures, bonds, PMS, structured products and mutuals funds. It is also a broking company registered on various stock exchanges in India, and with SEBI and Insurance Regulatory Development Authority of India. It was incorporated in fiscal 2008. |
About the Group The group comprises Nuvama Wealth Management Limited (NWML and its 14 subsidiaries and 1 associate and 1 joint venture. The group incorporated two wholly owned subsidiaries in the name of Nuvama Mutual Fund Trusteeship Services Limited and Nuvama Trusteeship Company Limited on November 14, 2025, and December 09, 2025 respectively.
The equity shares of NWML were listed on the NSE and BSE on September 26, 2023. As on September 30, 2025, PAG along with its affiliates (classified as promoter and promoter group), held ~55% stake in NWML while the balance was publicly held.
With an operational history of over 25 years, the group had client assets worth Rs 4,36,452 crore on September 30, 2025, and caters to a diverse set of clients that includes 12+ lakh affluent and HNIs and 4,200+ of India’s prosperous families. The group offers wealth management solutions, covering investment advisory, estate planning, investment management, lending and broking services for individuals, institutions, CXOs, professional investors, and family offices. It also offers a range of alternative asset management products and is a leading player in asset services and capital markets. |
Key Financial Indicators (Consolidated)
^For March 2024, the PAT figure includes the impact of net income accounted for the demerged undertaking in its books (Rs 44.28 crore). Upon adjusting the same, the normalized PAT and RoA for Fiscal 2024 would be Rs 584 crore and 3.53%, respectively. |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure - Details of Rating Withdrawn
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Annexure - List of Entities Consolidated
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