Nuvama's margin recovers sequentially but stays below the year-ago level
Revenue growth outpaced costs QoQ, but faster expense and interest growth YoY kept profit growth below the pace of revenue growth.
Filed 30 Jul 2026, 19:13 IST · after market close · Nuvama Wealth Management Ltd (NUVAMA)
Key takeaways
- Consolidated net profit rose 15.83% YoY to Rs 305.64 cr, while EPS fell 77.13% to Rs 16.78.
- Operating margin recovered 3.09 percentage points QoQ to 52.62%, as revenue growth of 8.44% outpaced expense growth of 1.79%.
- Nuvama's 52.62% operating margin was 10.39 percentage points below the 63.01% median for 35 Financial Services peers.
Price around the results
Revenue growth outpaced sequential costs
Consolidated revenue grew 8.44% QoQ, while expenses increased 1.79%, lifting operating profit 15.21% and expanding operating margin by 3.09 percentage points. The YoY picture was less favourable: revenue rose 22.59%, but expenses grew faster at 27.58%, narrowing the margin by 1.86 percentage points. This marks a recovery from the 49.53% margin in Q4FY26, though it remains below 54.48% in Q1FY26.
Higher interest growth limited profit conversion
Interest expense rose 14.50% QoQ and 22.87% YoY, outpacing the sequential growth in profit before tax and limiting the conversion of operating gains into net profit. The tax rate increased to 25.55% from 24.29% QoQ and 24.76% YoY, adding another modest drag. Other income contributed only 2.00% of pre-tax profit, so reported earnings were not materially dependent on it.
Margin direction is mixed across recent quarters
Operating margin moved from 54.48% in Q1FY26 to 52.29% in Q2FY26, rose to 55.05% in Q3FY26, and then fell to 49.53% in Q4FY26 before the current QoQ recovery. Against 35 reported Financial Services peers, Nuvama was below the 63.01% median by 10.39 percentage points and ranked 11th from the bottom.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no post-results stock move to assess yet. Across the last eight result reactions, the stock rose four times and fell four times, with a median absolute move of 2.60%, indicating a balanced but typically moderate response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,376 cr | ₹1,269 cr | +8.44% | +22.59% |
| Other income | ₹8 cr | ₹20 cr | -59.62% | +135.34% |
| Expenses | ₹652 cr | ₹641 cr | +1.79% | +27.58% |
| Operating profit | ₹724 cr | ₹629 cr | +15.21% | +18.42% |
| Operating margin (%) | 52.62% | 49.53% | — | — |
| Interest | ₹295 cr | ₹258 cr | +14.50% | +22.87% |
| Depreciation | ₹27 cr | ₹36 cr | -25.66% | +10.92% |
| Profit before tax | ₹411 cr | ₹355 cr | +15.63% | +17.05% |
| Tax | ₹105 cr | ₹86 cr | +21.60% | +20.76% |
| Net profit | ₹306 cr | ₹269 cr | +13.71% | +15.83% |
| EPS (₹) | ₹16.78 | ₹14.79 | +13.46% | -77.13% |
Operating margin of 52.62% compares with a Financial Services sector median of 63.01% across 35 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 52.62% after recovering from 49.53% in Q4FY26.
- Whether expense growth remains below revenue growth, following 1.79% versus 8.44% QoQ.
- Whether interest growth moderates from 22.87% YoY and the tax rate from 25.55%.