Motilal Oswal Financial Services Limited (MOFSL) has announced a significant development in its employee stock option program. The company's Finance Committee has approved the allotment of 2,72,379 equity shares to option grantees who exercised their stock options across four different Employee Stock Option (ESOP) schemes.

ESOP Allotment Details

The allotment, which took place on November 20, 2025, was distributed across four ESOP schemes as follows:

Key Points of the Allotment

• ESOP Scheme IX accounted for the largest portion of the allotment with 2,17,879 shares.
• The newly allotted shares will rank equally with existing equity shares in all respects.
• This move is part of MOFSL's ongoing commitment to employee ownership and retention.

Regulatory Compliance

The company has informed the BSE Limited and the National Stock Exchange of India Limited about this allotment, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This equity share allotment under the ESOP schemes demonstrates Motilal Oswal Financial Services' continued focus on aligning employee interests with those of the company and its shareholders. It provides eligible employees with an opportunity to participate in the company's growth and success.

Motilal Oswal Financial Services (MOFSL) has reported a 2% year-on-year growth in operating profit after tax (PAT) to ₹554.00 crore for the second quarter of fiscal year 2026. The company's performance was driven by strong growth in its Asset and Private Wealth Management businesses, which grew by 36% compared to the same period last year.

Key Highlights

• Customer base expanded to 14.5 million, comprising 9.4 million unique mutual fund folios and 5.1 million unique broking accounts
• Assets under Advice crossed ₹6.70 lakh crore
• Annual Recurring Revenue now represents 61% of total net revenues
• Asset Management and Private Wealth businesses grew 36% year-on-year
• Completed first close of ₹6,900.00 crore for its fifth Private Equity fund IBEF V
• Long-term credit rating upgraded to AA+ with stable outlook

Financial Performance

Business Segment Performance

Asset Management

• Mutual Fund AUM market share increased to 2.6%
• Net flow market share at 8.2%
• SIP flow market share reached 4.8%, the highest ever

Private Wealth Management

• AUM stood at ₹1.87 lakh crore
• Serving over 7,000 families with ₹1+ crore of AUM each

Investment Banking

• Executed 39 deals worth ₹49,000.00 crore in the first half of FY26
• Ranked #1 in IPO, QIP, and Rights Issues

Credit Rating Upgrade

MOFSL's long-term credit rating was upgraded to AA+ with a stable outlook. This is the highest rating ever granted to any non-bank domestic capital market player in India, reflecting the strength of the company's diversified business model, increasing share of predictable annual recurring revenue, strong balance sheet, and disciplined financial management.

Board Expansion

The company has expanded its board from 10 to 14 members, adding new directors including Pratik Oswal and Vaibhav Agarwal. Additionally, Mr. Joseph Conrad Agnelo D'Souza, a senior HDFC Group veteran, and Mr. Ashok Kumar P. Kothari, a senior IRS officer, have joined as Independent Directors, enhancing the Board's diversity and strategic depth.

Future Outlook

Navin Agarwal, Group Managing Director, expressed optimism about the company's future, stating, "We expect savings pool of USD126 trillion in 25 years ending 2047, compared with USD 14 trillion in the preceding 25 years. The financialisation and equitization of this large savings pool is a megatrend that will provide tailwinds to all our businesses in the future to continue delivering strong earnings growth."

The company aims to leverage its strong market position and diverse product offerings to capitalize on the growing financialization of savings in India. With a focus on expanding its Asset Management, Private Wealth, and Housing Finance businesses, Motilal Oswal Financial Services is well-positioned for continued growth in the coming years.

Motilal Oswal Financial Services continues to demonstrate resilience and growth across its business segments, maintaining its position as a leading player in India's financial services sector. The company's strategic focus on recurring revenue streams and its ability to adapt to changing market conditions bode well for its future prospects.