Nuvama reports resilient Q2 FY26 performance, approves dividend and share split

Nuvama Wealth Management Limited announced a resilient Q2 FY26 performance, with overall revenue reaching INR772 crores, a 4% year-on-year increase. The wealth and private businesses were key drivers, growing by 26% year-on-year and now contributing 57% to total revenue, up from 47% in Q2 last year. The company's Asset Under Management (AUM) for recurring assets has surpassed INR50,000 crores, doubling in 2.5 years with a Compound Annual Growth Rate (CAGR) of 32%. Despite a significant client loss in Asset Services at the beginning of the quarter, Nuvama has recovered 50% of the lost revenue, with full recovery expected by January-February.

The company's profit after tax (PAT) for the quarter stood at INR254 crores, with an ROE of nearly 29%. On the lending side, the book size grew by approximately 40%, although Net Interest Income (NII) did not reflect this immediately due to timing differences in booking expected credit losses and lower ESOP loan churning. Nuvama expects an uptick in NII in Q3 and Q4. Additionally, the Board has approved an interim dividend of INR70 per share for FY25-26 and a share split from INR10 to INR2 face value to enhance liquidity and retail investor accessibility. The firm anticipates a 20-25% growth trajectory to return once Asset Services rebasing is complete.