CRISIL Revises Outlook On Nuvama Wealth Management To 'Positive'

Nuvama Wealth Management Ltd. on Tuesday said CRISIL Ratings Ltd. has revised the outlook on its long-term debt instruments to 'positive' from 'stable', while reaffirming the rating at 'AA-'. The agency also maintained its rating on the company’s short-term debt at 'CRISIL A1+', according to an exchange filing.

CRISIL has similarly revised the outlook for the long-term instruments of Nuvama Wealth Finance Ltd. and Nuvama Wealth and Investment Ltd.; both subsidiaries of Nuvama Wealth Management; to 'positive' from 'stable'. The short-term ratings were reaffirmed at 'CRISIL AA-' and 'CRISIL A1+', respectively.

The improved outlook reflects the Nuvama group’s healthy capital base and strong position in the wealth management space, CRISIL said. These advantages are, however, partly offset by earnings sensitivity to capital market cycles and a high concentration in its lending portfolio.

CRISIL noted that the outlook upgrade was supported by the company’s strong footing in wealth management, growing presence in other verticals, and a better earnings profile thanks to broader revenue streams. Capitalisation remains comfortable, underpinned by improving internal accruals. As of December 31, the group’s net worth stood at ₹32.16 billion, positioning it well to fund medium-term growth plans.

The rating agency also said most of Nuvama’s operations are fee-based, with borrowings largely used for working capital and short-term lending to wealth clients, including margin loans, ESOP financing, and loans against shares.

Looking ahead, CRISIL said a meaningful rise in Nuvama’s market position across products and a sustained improvement in profitability, keeping return on equity above 18%; could trigger a rating upgrade. Conversely, regulatory setbacks impacting business risk may result in a downgrade.