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ICRA upgrades Nuvama Wealth Management’s long-term rating to AA; outlook stableShares of Nuvama Wealth Management Ltd ended at ₹1,268.80, down by ₹22.85, or 1.77%, on the BSE today, February 23. The group oversees more than ₹4.6 lakh crore of client assets, serving approximately 13 lakh affluent and HNIs and around 4,700 ultra-high-net-worth families as of December 31, 2025.By Jomy Jos Pullokaran  February 23, 2026, 6:56:22 PM IST (Published)3 Min ReadRating agency ICRA Ltd has upgraded the long-term rating of Nuvama Wealth Management Ltd to AA with a stable outlook. The company’s short-term rating has been reaffirmed.

Nuvama oversees more than ₹4.6 lakh crore of client assets, serving approximately 13 lakh affluent and high-net-worth individuals and around 4,700 ultra-high-net-worth families as of December 31, 2025.

The group has a pan-India presence across major cities and offers tailored financial solutions, including loans against securities (LAS) through its NBFC, Nuvama Wealth Finance Ltd, which had a loan book of ₹4,375 crore as on December 31, 2025. Nuvama Wealth and Investment Ltd, the group’s broking entity offering ESOP and margin trade funding, had a loan book of ₹2,462 crore on the same date.

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The group reported a net profit of ₹771 crore in 9MFY2026, with a profit-to-income ratio of 32% and annualised RoE of 28%, building on a five-year average RoE of 21%. The consolidated net worth stood at ₹3,839 crore with a gearing of 2.6 times as on December 31, 2025. Strong profitability has been driven by scale-up in the wealth management business and stable performance in asset services, even amid market volatility and evolving regulatory requirements.

Revenue from wealth management, asset management, and advisory businesses accounted for 54% of total income in 9MFY2026, up from 48% in 9MFY2025. Core capital market businesses, including institutional equities and investment banking, remain significant contributors but are exposed to market volatility. The group’s focus on debt capital market transactions within its advisory franchise has helped stabilise revenue streams.

Nuvama Group’s client franchise is diverse, comprising individuals, institutions, senior executives, professional investors, corporates, and family offices. Its integrated platform enables seamless cross-selling and service delivery, while relationships with PAG, a leading Asia-focused private investment firm holding  around 54% of the group, provide additional financial support and strategic guidance.

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ICRA noted that Nuvama faces inherent risks from capital market volatility, intense competition, franchise and reputational risks, and reliance on technology for trade execution, fund management, and clearing operations. Technical failures or disruptions could pose operational and reputational challenges.

Regulatory changes, including revisions to revenue recognition for alternative investment funds, higher margin requirements, and taxation adjustments for structured products, may increase working capital requirements and borrowing needs.

Despite these risks, the group’s capitalisation remains adequate, supported by strong accruals, prudent dividend policy, and moderate incremental sponsor investments in asset management. Technology upgrades, operational efficiencies, and employee base seasoning are expected to reduce earnings volatility and underpin long-term performance.

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Nuvama is expected to maintain stable growth across its businesses, leveraging its diversified platform, strong market position, and growing recurring revenues in wealth management to navigate market fluctuations and evolving regulatory conditions.

Shares of Nuvama Wealth Management Ltd ended at ₹1,268.80, down by ₹22.85, or 1.77%, on the BSE today, February 23.

Continue Reading(Edited by : Shoma Bhattacharjee)TagsICRANuvama Wealth