Nuvama Wealth Management (NUVAMA) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenues reached ₹740 crore, up 50% YoY, with H1 FY25 revenues at ₹1,407 crore, and client assets surpassing ₹4.2 lakh crore; interim dividend of ₹63 per share declared.

• Operating PAT for Q2 FY25 was ₹258 crore, up 77% YoY; H1 FY25 net profit after tax was ₹478.08 crore, up from ₹218.69 crore in H1 FY24.

• Financials reviewed by independent auditors with unmodified reports for both consolidated and standalone results.

Financial highlights

• Consolidated total income for H1 FY25 was ₹2,009.52 crore, up from ₹1,386.52 crore in H1 FY24; Q2 FY25 income was ₹1,056.84 crore.

• Wealth Management Q2 FY25 revenue grew 24% YoY; Asset Management revenue (ex-carry) up 45% YoY; Capital Markets revenue up 98% YoY.

• Total costs for Q2 FY25 were ₹392 crore, up 30% YoY; staff costs rose 41% YoY.

• Cost-to-income ratio improved to 54% in H1 FY25 from 65% in H1 FY24.

• Return on Equity increased to 31.5% in H1 FY25 from 20.3% in H1 FY24.

Outlook and guidance

• Wealth and Asset Management expected to drive 75-80% of future earnings.

• Plans to double RM capacity in 3-5 years and grow client assets 2-2.5x over five years.

• Asset Management AUM targeted to grow 6-8x in five years.

• Dividend payout policy to remain in the 40%-60% range of profits.