Nuvama profit plunges as operating margin collapses in Q4FY26
Revenue fell 57.35% sequentially while expenses rose 55.23%, and the stock's five-day decline was larger than its usual post-results move.
Filed 11 May 2026, 21:13 IST · after market close · Nuvama Wealth Management Ltd (NUVAMA)
Key takeaways
- Standalone net profit fell 93.18% sequentially to Rs 19.11 cr as revenue dropped 57.35% and expenses rose 55.23%.
- Operating margin narrowed 59.55 percentage points sequentially to 17.89%, leaving Nuvama 41.52 percentage points below the Financial Services peer median.
- Other income contributed 39.83% of pre-tax profit, while the lower tax rate limited the net-profit decline to 30.43% year on year.
Price around the results
Q4FY26 earnings lost the Q3FY26 momentum
Nuvama's standalone revenue fell 57.35% sequentially and 20.94% year on year, while operating profit declined 90.15% sequentially and 51.66% year on year. Net profit fell 93.18% sequentially to Rs 19.11 cr and was down 30.43% year on year. The quarter followed a sharp rise in operating margin to 77.44% in Q3FY26, making the latest 17.89% margin a steep reversal rather than a continuation of that performance.
Costs widened the sequential margin drop
Sequentially, expenses rose 55.23% even as revenue fell 57.35%, pulling operating margin down 59.55 percentage points. Year on year, expenses declined 8.22%, but revenue fell faster at 20.94%, narrowing margin by 11.38 percentage points. Interest rose 8.88% sequentially, adding to the pressure below operating profit.
Profit quality was helped by tax and other income
Other income accounted for 39.83% of pre-tax profit, so reported earnings were materially supported outside operations. The tax rate fell 0.72 percentage points sequentially and 19.81 percentage points year on year, cushioning the decline in net profit relative to the fall in pre-tax profit. Nuvama's 17.89% operating margin was 41.52 percentage points below the 59.41% median for 52 Financial Services peers that had reported, ranking eighth from the bottom.
The market reaction was weaker than Nuvama's usual result-day move
The stock fell 3.16% on the first day after the results, 4.97% after one day and 8.23% after five days. The five-day decline was larger than the 2.24% median absolute move across its last eight results reactions. Its recent record was mixed, with five rises and three falls, so the latest direction was negative but the magnitude was notably larger than usual.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹172 cr | ₹404 cr | -57.35% | -20.94% |
| Other income | ₹8 cr | ₹3 cr | +180.07% | +197.77% |
| Expenses | ₹141 cr | ₹91 cr | +55.23% | -8.22% |
| Operating profit | ₹31 cr | ₹313 cr | -90.15% | -51.66% |
| Operating margin (%) | 17.89% | 77.44% | — | — |
| Interest | ₹15 cr | ₹14 cr | +8.88% | -42.23% |
| Depreciation | ₹4 cr | ₹5 cr | -16.59% | -8.29% |
| Profit before tax | ₹20 cr | ₹297 cr | -93.23% | -44.93% |
| Tax | ₹1 cr | ₹17 cr | -94.08% | -88.95% |
| Net profit | ₹19 cr | ₹280 cr | -93.18% | -30.43% |
| EPS (₹) | ₹1.05 | ₹15.48 | -93.22% | -86.27% |
Operating margin of 17.89% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.16% | -1.33% |
| Next session | -4.97% | — |
| 5 sessions | -8.23% | -7.40% |
| 15 sessions | -2.55% | — |
| 30 sessions | +8.60% | — |
Volume on the results session was 1.05× its 20-day average.
What to watch
- Whether operating margin recovers from 17.89% after its 59.55-percentage-point sequential decline.
- Whether revenue moves back from the Q4FY26 level after the 57.35% sequential fall.
- Whether other income remains near 39.83% of pre-tax profit.