Nuvama Wealth Q1 FY26 Earnings Analysis

- Wealth business lending book expected to grow by about 20% YoY, targeting INR1,800-2,000 crores growth by end FY26 (Page 18). - Asset Management aiming for INR7,000-8,000 crores net flows overall in FY26, with breakeven expected around INR20,000 crores AUM, possibly by mid FY27 (Page 18). - Private segment net flows targeted at INR10,000-11,000 crores, implying 25-30% growth on existing INR44,000 crores ARR book (Page 15). - Asset Management AUM to grow minimum 20% YoY, driven by commercial real estate and public markets (Page 15). - Investment banking sees renewed IPO action over next 6 months if markets sustain, but 2-year prediction is uncertain (Page 19). - Alternative Investment Funds (AIF) industry expected to grow by 30-40% over next 1 year (Page 19). - Capital Markets and Asset Services revenues expected to see stable or moderate growth, with focus on mandates and improving market conditions (Pages 12-13).

- The company expects steady growth in its lending book aligned with overall business growth, targeting about 20% growth in loan book for FY '26 and FY '27. - Cost-to-income ratios are expected to improve slightly, with the Wealth business targeting a 100 basis points reduction in FY '26. - Asset Management aims for breakeven around INR 20,000 crores AUM, expected by mid-FY '27. - The Private wealth segment aims for strong net flows (~INR 10,000-11,000 crores) and ARR assets growing about 25-30%. - Earnings are supported by diversified revenue streams including IPO mandates, custody clearing, and asset services. - PAT growth was 65% in FY '25 with continued focus on investing in talent for long-term growth. - AIF industry expected to grow at 30-40% next year. - Given these, steady improvements in operating earnings, profits, and EPS growth over the next 1-2 years are anticipated, though exact 2-year predictions remain uncertain.

- Investments in marketing spends to build the Nuvama brand (mentioned on Page 8). - Technology upgrades including modernizing key systems, APIs, and applications (Page 8). - Building capacity in Wealth and Private businesses, including recruitment and onboarding of Relationship Managers (Page 10). - Offshore expansion fully functional in Dubai, with plans to add more capacity there (Page 5). - Launching a private credit strategy, with team identification and closing underway, expected to be operational by Q3 or Q4 FY '26 (Page 6). - Commercial real estate fund first close accomplished; plans to scale the fund from INR1,700 crores to INR4,000 crores in next 2-3 quarters (Page 5). - Raising fourth crossover fund within this year after deploying remaining capital from the third fund (Page 5). - Potential inorganic growth considered only if strategic fit and compelling addition available, including global collaborations (Page 17).

- Nuvama Wealth Management plans to launch a private credit strategy, expected to be operational by Q3 or Q4 of the current year. - The commercial real estate fund, already raised INR1,700 crores at first close, aims to grow to INR4,000 crores in the next two to three quarters. - They are preparing to start raising their fourth crossover fund within this year. - On the equity/front, the IPO pipeline is strong with 30-35 mandates signed, pending market conditions and investor appetite. - Intense focus on mandates beyond ECM, including advisory transactions, with about 10-15 mandates mostly on the sell side. - No specific mention of immediate equity fundraising in the transcript, but ongoing fundraises and pipeline suggest continued capital raising activity.

- The Investment Banking (IB) pipeline on the equity capital markets (ECM) side looks strong with 30 to 35 mandates signed, awaiting favorable market conditions and investor appetite. - There are about 10-15 advisory mandates, mostly sell-side, in the IB pipeline. - The fixed income practice shows secular growth with repeat business due to refinancing needs. - Despite a slowdown, the mandate creation and pipeline in IB remain extremely strong. - In Asset Services, significant client interest and pipeline are reported, especially after regulatory uncertainties have been addressed. - The commercial real estate fund of INR1,700 crores has made its first deployment; plans to grow to INR4,000 crores in the next two to three quarters. - Overall, the quality of the IB pipeline and private client mandates indicates a positive outlook for upcoming deal flow.