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| Product | Quantum (Rs. Cr) (SEBI) | Quantum (Rs. Cr) (Other FSR) | Long Term Rating | Short Term Rating | Regulated By |
| Non Convertible Debentures (NCD) | 0.00 | 1.96 | ACUITE AA | Stable | Upgraded | - | MCA |
| Non Convertible Debentures (NCD) | 132.41 | 0.00 | ACUITE AA | Stable | Upgraded | - | SEBI |
| Total Outstanding | 132.41 | 1.96 | - | - | - |
| Total Withdrawn | 0.00 | 0.00 | - | - | - |
| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
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Rating Rationale |
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Acuité has upgraded the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) to ‘ACUITE AA’ (read as ACUITE double A) on the Rs. 132.41 Cr. Non-Convertible Debentures of NUVAMA WEALTH AND INVESTMENT LIMITED. The outlook is ‘Stable’.
Acuité has upgraded the long-term rating of ‘ACUITE AA-’ (read as ACUITE double A minus) to ‘ACUITE AA’ (read as ACUITE double A) on the Rs. 1.96 Cr. proposed Non-Convertible Debentures of NUVAMA WEALTH AND INVESTMENT LIMITED. The outlook is ‘Stable’. Rationale for the rating: The rating upgrade factors the sustained growth in business and improvement in the financial risk profile of the Nuvama group. The group’s total revenue increased from Rs. 2,901 Cr. in FY2025 to Rs. 3,122 Cr. in FY2026. Subsequently, PAT of the entity increased from Rs. 985.06 Cr. in FY2025 to Rs. 1,040.26 Cr. in FY2026. The wealth management and asset services account for 55 percent and 24 percent of the revenue, respectively, for FY2026. Revenue diversification across business segments supports a relatively stable earnings profile, mitigating the impact of volatility in capital market movements. The rating movement also factors the healthy capital base and the strong and established market position of Nuvama group. The group’s consolidated networth stood at Rs. 4,123.15 Cr. as on March 31, 2026 with a gearing of 2.80 times. PAG holds a controlling stake of 54.13 percent in Nuvama Wealth Management Limited as on March 31, 2026. However, Acuite notes its planned exit and it remains a monitorable event from a governance and ownership perspective. The company’s client assets (AUM) grew from Rs. 4,30,651.05 Cr. as on March 31, 2025 to Rs. 4,52,548.35 Cr. as on March 31, 2026. These strengths are partially offset by high volatility in the capital market and risk associated with changes in regulatory environment which might have a bearing on the overall business profile of the company. The rating additionally factors the specified scenarios of non-payment of debt (principal and/or interest) due to reasons beyond the control of the issuer vide SEBI circular SEBI/HO/DDHS/DDHS-PoD-3/P/CIR/2024/160 dated November 18, 2024. The same has been disclosed in the 'Any other information' section of this press release. The debt-servicing is processed through an escrow account which is funded by the issuer and any failed payments are credited back into the designated escrow account. Consequently, interest payment amounting to Rs. 1,74,260 which was due on July 15, 2026 under ISIN INE523L07751 has been credited back into the escrow account of the issuer due to absence of correct information on investor details. |
| About the Company |
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Mumbai based, Nuvama Wealth And Investment Limited was incorporated in 2008. It is a 100 percent subsidiary of Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited). It is registered as a trading member with National Stock Exchange of India Limited, BSE Limited, Metropolitan Stock Exchange of India Limited, Multicommodity Exchange of India Limited, National Commodity and Derivatives Exchange Limited and provides broking services to its clients. NWIL is a distributor for various financial products such as mutual funds, bonds, NCDs, structured products, PMS and alternative investment funds, etc. Mr. Rahul Jain is the Managing Director & CEO. Mr. Birendra Kumar serves as the Chairman & Independent Director.
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| About the Group |
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Mumbai based, Nuvama Wealth Management Limited is a public limited company, incorporated in 1993. The company is a stock broking entity registered in India and is licensed with and regulated by the Securities and Exchange Board of India to, among other things, conduct trading and broking activities for institutional and retail clients. The company is also licensed with SEBI to distribute research reports on Indian Securities to its clients. The company is also registered as an Investment Adviser with SEBI. The company is also a member of multiple stock exchanges in India including BSE Limited, National Stock Exchange of India Limited, Multi Commodity Exchange of India Limited, National Commodity & Derivatives Exchange Limited and Metropolitan Stock Exchange of India Limited. PAG is the largest shareholder of Nuvama Wealth Management Limited (Formerly known as Edelweiss Securities Limited) with a shareholding of 54.13 percent as on March 31, 2026.
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| Unsupported Rating |
| Not applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuite has taken a consolidated view of Nuvama Wealth Management Limited and its subsidiaries (hereafter referred to as NWML Group or the Group) due to the common senior management team, shared brand name, and financial and operational linkages. |
| Key Rating Drivers |
| Strength |
| Healthy operating performance
The group’s total revenue increased from Rs. 2,901 Cr. in FY2025 to Rs. 3,122 Cr. in FY2026. Subsequently, PAT of the entity increased from Rs. 985.06 Cr. in FY2025 to Rs. 1,040.26 Cr. in FY2026. The wealth management and asset services account for 55 percent and 24 percent of the revenue, respectively, for FY2026. The company’s loan book grew from Rs. 4,719.35 Cr. as on March 31, 2025 to Rs. 7,851.59 Cr. as on March 31, 2026. The group’s major sources of income are in the form of fee/commission income and interest income. Revenue diversification across business segments supports a relatively stable earnings profile, mitigating the impact of volatility in capital market movements. Strong market position The group’s offerings include private wealth management, advisory/investment banking, institutional equities, asset management, broking and distribution services to affluent, high-networth individuals (HNIs), ultra HNIs and institutional clients. NWML’s client assets (AUM) grew from Rs. 4,30,651.05 Cr. as on March 31, 2025 to Rs. 4,52,548.35 Cr. as on March 31, 2026 with the wealth management segment having the majority contribution. The group serves more than 4,750 UHNI households, ~12 lakh affluent and HNI, and ~1000 corporates and institutions. Comfortable capital base The group’s consolidated networth stood at Rs. 4,123.15 Cr. as on March 31, 2026 as compared to Rs. 3,493.11 Cr. as on March 31, 2025. The total borrowings increased from Rs. 7,838.83 Cr. as on March 31, 2025 to Rs.11,543.52 Cr. as on March 31, 2026. The company’s borrowing profile as on March 31, 2026 consists majorly of CPs (35 percent), NCDs (31 percent) and MLDs (25 percent). The borrowings largely comprise short term financing to wealth business clients for margin and ESOP financing. The gearing has increased from 2.24 times as on March 31, 2025 to 2.80 as on March 31, 2026. PAG holds a controlling stake of 54.13 percent in Nuvama Wealth Management Limited as on March 31, 2026. However, Acuite notes its planned exit and it remains a monitorable event from a governance and ownership perspective. |
| Weakness |
| Susceptibility to market and regulatory risk Broking and wealth management remains a highly volatile business. The company's operating performance is majorly linked to the capital markets, which are inherently volatile as they are driven by economic and political factors as well as investor sentiments. Any fluctuations in market may impact new client assets which in turn may have a bearing on the revenue. Any changes in regulatory environment might have a potential impact on the overall business and financial risk profile of NWML. |
| ESG Factors Relevant for Rating |
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The company adopted a structured ESG framework aligned with the United Nations Sustainable Development Goals, with initiatives spanning environmental sustainability, social responsibility, and governance practices. On the governance front, it has implemented a board-approved ESG policy and established a dedicated ESG Committee. It published Business Responsibility and Sustainability Report (BRSR) for FY25 and conducted its first Information Security Systems Audit in FY26. All employees have been trained on data privacy and security, and the company reported zero instances of non-compliance, corruption, or data breaches during the year. NWML has four experienced independent directors (including one female independent director) with good mix of business and functional skills. The BRSR for FY 2025–26 is currently undergoing third-party assurance, as per SEBI requirements.
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Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| All Covenants |
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The major covenants for the ISINs rated by Acuite are as follows:
(i) Debentures to rank "pari passu" The Debentures issued under these presents shall rank pari passu inter se without any preference or priority of one over the other or others of them except that priority for payment shall be as per applicable date of redemption. (ii) Redemption The Company agrees and undertakes to redeem the Debentures as specified in the Prospectus and the terms are set out in Part B of this Debenture Trust Deed. (iii) Further borrowings The Company shall, without the approval of or intimation to the Trustee or the Debenture Holder(s), be entitled to make further issue(s) of debentures, raise further loans and advances and/or avail further deferred payment guarantees or other financial facilities from time to time from such persons/ banks/ financial institutions or body corporate/ any other agency subject to the maintenance of Required Security Cover. (iv) The Company further acknowledges, agrees, and shall cause the Account Bank to acknowledge and agree, that the Debenture Trustee is authorised to seek redemption payment related details and information from the Account Bank in terms of the extant SEBI guidelines. The format for the letter to be issued by the Company seeking pre-authorisation for the Debenture Trustee from the Account Bank is annexed herewith as the Sixth Schedule. A duly accepted and acknowledged pre-authorization letter is to be issued by the Account Bank to the Debenture Trustee in the format annexed herewith as the Seventh Schedule. Further, in case of change of Account Bank, the Debenture Trustee shall accept such change only upon submission of the duly acknowledged and accepted pre-authorisation letter from the successor /new account bank. (v) Security Creation In case of a delay in execution a/Trust Deed and Security Documents, the Issuer will refund the subscription with agreed rate of interest or will pay penal interest of atleast 2% p.a. over the Coupon Rate till these conditions are complied with at the option of the investor. (vi) Default in Payment and Other Defaults In case of default in payment of interest and/or principal redemption on the due dates or observance of any other terms, conditions or covenants as per this Deed, Disclosure Document(s) in respect of series of the Debentures, additional interest/ default interest of atleast @ 2% p.a. or such other rate as may be prescribed under the Applicable Law over and above the applicable implicit yield/ Coupon Rate/ Interest Rate will be payable by the Issuer for the defaulting period in respect of such series of the Debentures. (vii) Authorisations The Company shall promptly: (a) obtain, comply with and do all that is necessary to maintain in full force and effect; and (b) supply certified copies to the Trustee of, any authorisation required under any law or regulation to enable it to perform its obligations under the Transaction Documents (including, without limitation, in connection with any payment to be made hereunder) and to ensure the legality, validity, enforceability or-admissibility in evidence in its jurisdiction of incorporation of the Transaction Documents. (viii) The Company shall discharge its obligations in connection with the Debentures in a reasonable and prudent manner (xi) The Company shall intimate the Debenture Trustee, prior to undertaking or entering into any amalgamation, demerger, merger or corporate restructuring or reconstruction scheme proposed. (x) The Company shall so long as any Debentures are outstanding, not declare any dividend to the shareholders in any year until the Company has paid or made satisfactory provision for the payment of the instalments of principal and interest due on the Debentures. (xi) The Company shall take all steps for completion of the formalities for listing and commencement of trading at the Stock Exchange where the Debentures are to be listed and taken by not later than 6 (six) Working Days from the Issue Closing Date. (xii) The Company shall pay and discharge all taxes, rates, rents and governmental charges upon the Company or its assets under Applicable Laws (xiii) The Company shall attend to the complaints received in respect of the Debentures expeditiously and satisfactorily. (xiv) The Company hereby covenants with the Trustee that so long as the Debentures are outstanding, without the prior written approval of the Trustee, the Company shall not make material modification to the structure of the Debenture in terms of coupon, conversion, redemption, or otherwise. Provided that prior approval of the Stock Exchange would also be required to make such modifications. (xv) The Company shall not forfeit unclaimed interest/dividend and such unclaimed interest/dividend shall be transferred to Investor Education and Protection Fund as per Section 125 of the Companies Act, 2013. |
| Liquidity Position |
| Strong |
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The company has strong liquidity position as reflected by unencumbered assets of Rs. 4,212 Cr. of which cash and cash equivalents account for ~30 percent and securities held for trade (G-Sec, Mutual funds, etc.) account for ~45 percent. The company’s liquidity position is strong, as reflected in its ability to maintain sufficient liquidity cover as the total debt obligations for FY2027, on a consolidated basis, stands at Rs. 6,418 Cr.
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| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
**Debt includes derivative financial instruments ***All ratios are as per Acuite's calculation |
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| Key Financials (Consolidated) | ||||||||||||||||||||||||||||||||||||||||
**Debt includes derivative financial instruments ***All ratios are as per Acuite's calculations |
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| Status of non-cooperation with previous CRA (if applicable) |
| Not applicable |
| Any Other Information | ||||||||||||||
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| Applicable Criteria |
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• Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on complexity levels of the rated instrument |
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| Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||
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Contacts |
List of instruments and names of regulators of the instruments |
