Nuvama Wealth Management (NUVAMA) Q3 24/25 earnings summary

Executive summary

• Client assets grew 36% year-on-year, surpassing ₹4.5 trillion, with strong flows in wealth, asset management, and asset services.

• Q3 revenue rose 30% year-on-year to ₹723 crore, and PAT increased 43% for the quarter and 76% for the nine months, reaching ₹731 crore.

• Consolidated revenue for the quarter ended December 31, 2024, was ₹1,031.82 crore, with net profit at ₹251.71 crore.

• Business resilience attributed to a diversified operating model, technology enhancements, and strategic focus on scaling Wealth and Asset Management.

• Offshore expansion began with DIFC (Dubai) now operational and contributing revenue.

Financial highlights

• Nine-month consolidated revenue reached ₹3,032.60 crore, up from ₹2,223.61 crore year-over-year.

• Cost-to-income ratio improved to 54% from 59% last year; ROE rose to 32% for the quarter and nine months.

• Net profit margin for the nine months improved to 23.97% from 19.79% year-over-year.

• Wealth AUM crossed ₹1 lakh crore, up 38% year-on-year; Nuvama Private client assets reached ₹2.1 lakh crore, up 24%.

• Asset Services assets under custody and clearing grew 57% year-on-year to ₹1.3 lakh crore.

Outlook and guidance

• Management expects Q4 yields in Private and NII in Wealth to recover to normal levels after temporary dips.

• AUM growth is expected to remain above 25% over the next two to three years, with continued productivity gains from new RMs.

• Asset Management is expected to break even within 12-15 months as AUM approaches ₹20,000 crore.

• Management remains optimistic about long-term growth, focusing on scaling capacity, technology, and revenue quality.

• The upcoming Union Budget 2025 is expected to influence near-term market sentiment.