NAM India margin reverses after three-quarter rise; stock falls 3.67%
Year-on-year profit growth remained broad-based, but other income contributed 25.62% of pre-tax profit and the tax rate rose 7.91 percentage points sequentially.
Filed 22 Jul 2026, 17:39 IST · after market close · NAM-INDIA (NAM-INDIA)
Key takeaways
- Consolidated net profit rose 27.16% year on year to Rs 503.70 cr, helped by 26.42% revenue growth and a 1.65 percentage-point expansion in operating margin.
- Sequential operating margin fell 2.44 percentage points to 67.31% as expenses grew 12.19%, faster than revenue growth of 3.81%.
- The stock fell 3.67% in the initial reaction, versus a 1.92% median absolute move after the company's last eight results.
Price around the results
Year-on-year growth stays broad-based
Consolidated revenue increased 26.42% year on year, while expenses grew 20.36%, allowing operating profit to rise 29.59%. The 27.16% increase in net profit was therefore supported by operating performance rather than only non-operating gains. However, other income still contributed 25.62% of pre-tax profit, making reported earnings partly dependent on that line.
Sequential margin setback follows three quarters of expansion
Revenue grew 3.81% sequentially, but expenses rose 12.19%, so operating margin narrowed 2.44 percentage points. This reverses the margin improvement seen from 66.93% in Q2FY26 to 67.90% in Q3FY26 and 69.75% in Q4FY26. The higher tax rate also limited the conversion of pre-tax profit into net profit, rising 7.91 percentage points sequentially.
Below the reported Financial Services peer median
NAM India’s 67.31% operating margin was 4.91 percentage points below the 72.22% median for 22 Financial Services peers that had reported the same quarter. Management said market share increased 159 basis points year on year to 21.35%, while its digital business completed 4.49 million new-purchase and new-SIP transactions in Q1FY27.
Management points to wider alternative-product coverage
The company said its alternative-investment platform currently spans Public Equity, Real Estate, Private Credit and Venture Capital. Management also said it is raising funds for Equity Opportunities AIF Scheme 11, Digital Innovation AIF Scheme 2A and Credit Opportunities AIF Scheme 2. The presentation said NAM India plans to allocate up to Rs 300 million toward CSR initiatives in FY27.
Initial market reaction was larger than usual
The stock fell 3.67% in the initial reaction, with volume at 3.2 times the reference level. That decline was larger than the 1.92% median absolute move after the last eight results, when the stock rose five times and fell three times. The result was filed after market close on 22 July 2026.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹767 cr | ₹739 cr | +3.81% | +26.42% |
| Other income | ₹170 cr | ₹-34 cr | — | +16.58% |
| Expenses | ₹251 cr | ₹223 cr | +12.19% | +20.36% |
| Operating profit | ₹516 cr | ₹515 cr | +0.18% | +29.59% |
| Operating margin (%) | 67.31% | 69.75% | — | — |
| Interest | ₹2 cr | ₹2 cr | -3.68% | -12.78% |
| Depreciation | ₹12 cr | ₹12 cr | -1.73% | +41.71% |
| Profit before tax | ₹664 cr | ₹460 cr | +44.52% | +26.84% |
| Tax | ₹161 cr | ₹75 cr | +114.31% | +25.89% |
| Net profit | ₹504 cr | ₹385 cr | +30.93% | +27.16% |
| EPS (₹) | ₹7.89 | ₹6.04 | +30.63% | +26.44% |
Operating margin of 67.31% compares with a Financial Services sector median of 72.22% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.67% | -3.14% |
| Next session | -3.13% | — |
Volume on the results session was 3.20× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Digital Business completed 4.49 million new-purchase and new-SIP transactions in Q1 FY27.
Guidance & outlook
- NAM India plans to allocate up to INR 300 million towards CSR initiatives in FY27.
Expansion
- NIAIF currently offers products across Public Equity, Real Estate, Private Credit and Venture Capital.
- NIAIF is raising funds for Nippon India Equity Opportunities AIF Scheme 11.
- NIAIF is raising funds for Nippon India Digital Innovation AIF Scheme 2A, targeting early- to growth-stage start-ups.
- NIAIF is raising funds for Nippon India Credit Opportunities AIF - Scheme 2.
Competition
- NAM India reported market share of 21.35%, up 159 basis points year over year.
What to watch
- Whether operating margin recovers from 67.31% after the 2.44 percentage-point sequential decline.
- Whether market share holds above 21.35% after the 159-basis-point year-on-year increase.
- Whether digital-business activity remains near the 4.49 million new-purchase and new-SIP transactions recorded in Q1FY27.