Inside India's wealth-management paradox: More clients, less profit, how managers are dealing with it

Subscribe to enjoy similar stories. Strained net income margins has pushed Indian wealth management firms to accelerate expansion even as rising operating costs, dropping fees, hard-as-nails competition, and frequent regulatory changes erode profitability across the sector. Competition has intensified in the wealth management space with the surge of affluent people in the country—India has 870,000 dollarmillionaire households, up 90% from 460,000 lakh in 2021, according to the Mercedes-Benz Hurun India Wealth Report 2025.

This resulted in all wealth managers fighting for the same target clients, each vying to attract high and ultra high net worth individuals by offering tailored advisory services and comprehensive wealth solutions. India’s wealth-management assets are estimated to grow at a pace of 12%-14% annually through FY27 to ₹47 trillion from ₹33.3 trillion in FY24, according to a March report by CRISIL and Jainam Broking. The net income margins of the leading players in the 360 ONE’s margins have slipped from 33.3% in FY23 to 30.8% in FY25, while Nuvama Wealth, a relatively new player, has seen its margin moderate to 23.7% from a high of 48.3% in fiscal 2022.

"Competition is helping investors to benefit from reduced costs that leads to margins seeing some suppression at the wealth manager’s end," said Vinay Ahuja, co-CEO, 360 ONE Wealth. “This trend could continue for a while". Net income margins showed mixed trends across listed wealth managers in Q2 of this fiscal year.

360 ONE saw margins fall to 28.3% in Q2 2026 from 28.62% a year earlier. Anand Rathi Wealth improved to 33.41% from 31.39%. Nuvama Wealth also declined to 22.4% versus 24.51%, though still above its Q2 FY2024 level.