Motilal Oswal Financial Services Limited (MOFSL) has reported its highest-ever quarterly operating profit after tax (PAT) of Rs 554.00 crore in Q2FY26, showcasing the company's resilient performance led by its annuity businesses. The financial services giant demonstrated strong growth across its key segments, particularly in Asset Management and Private Wealth Management.

Key Financial Highlights

• Consolidated operating PAT reached Rs 554.00 crore in Q2FY26, marking a 2% year-on-year increase.
• For H1FY26, the operating PAT grew by 11% to Rs 1,088.00 crore.
• The company's net worth expanded to Rs 12,871.00 crore as of September 30, 2025, reflecting a 16% year-on-year growth.
• MOFSL raised Rs 500.00 crores through private placement of Non-Convertible Debentures during the quarter, with funds fully utilized as per offer documents.

Segment Performance

Asset Management and Private Wealth Management

• PAT from this segment surged by 36% year-on-year to Rs 290.00 crore in Q2FY26.
• Total Assets Under Management (AUM) stood at Rs 1.77 lakh crore, up 46% year-on-year.
• The company maintained a robust net sales market share of 8.2% in the mutual fund industry.

Private Wealth Management

• PAT grew by 23% year-on-year to Rs 110.00 crore.
• Assets Under Advice (AUA) increased by 19% year-on-year to Rs 1.87 lakh crore.
• Net sales saw a significant jump, growing threefold to Rs 7,358.00 crore in Q2FY26.

Wealth Management

• Despite a 24% decline in PAT to Rs 170.00 crore, the segment maintained strong market shares:
  • 7.1% in cash volume market share
  • 8.7% in F&O Premium market share
• Distribution net flows grew by 29% to Rs 3,079.00 crore in Q2FY26.

Capital Markets

• PAT increased by 24% year-on-year to Rs 90.00 crore.
• MOFSL ranked #1 across IPOs, QIPs, and Rights Issues in H1FY26.

Housing Finance

• PAT rose by 27% to Rs 34.00 crore.
• Disbursements grew by 48% year-on-year to Rs 544.00 crore.
• AUM expanded by 24% year-on-year to Rs 5,236.00 crore.

Strategic Developments

• ICRA upgraded MOFSL's long-term credit rating to AA+ (Stable outlook) from AA (Positive outlook) on October 10, 2025, marking the highest rating for any capital markets company.
• The company ranked 99th on FY25 Profits and 171st on Market Capitalisation among listed Indian companies.
• MOFSL's treasury book grew by 14% year-on-year to Rs 8,957.00 crore, delivering a healthy XIRR of 18.7% since inception.

Board and Management Changes

• The Board appointed four new directors:
  • Mr. Pratik Oswal and Mr. Vaibhav Agrawal as Non-Executive Directors from the promoter group
  • Mr. Joseph Conrad Agnelo DSouza and Mr. Ashok Kumar P Kothari as Independent Directors for a 3-year term starting November 1, 2025
• Mr. Sandeep Walunj, Group Chief Marketing Officer, resigned effective October 31, 2025, citing personal reasons.

Management Commentary

Motilal Oswal, Managing Director and CEO, commented, "Our Q2FY26 results demonstrate the strength of our diversified business model and our ability to capitalize on market opportunities. The record operating PAT is a testament to our focus on building sustainable, annuity-based revenue streams."

Outlook

With its strong performance across key segments and strategic positioning in high-growth areas of the financial services sector, MOFSL appears well-positioned to capitalize on India's growing wealth management and capital markets opportunities. The company's focus on expanding its asset and wealth management businesses, coupled with its strong market position in capital markets, sets a solid foundation for future growth.

Note: All figures are based on the consolidated financial results for Q2FY26 and H1FY26 ended September 30, 2025.

Motilal Oswal Financial Services Limited (MOFSL), a leading financial services company, has reported a significant decline in its Q2 consolidated net profit while simultaneously announcing strategic board appointments and ambitious growth targets for the coming years.

Financial Performance

For the quarter ended September 30, MOFSL reported:

• Consolidated net profit of ₹36.26 crore, down from ₹111.2 crore in the same period last year
• Revenue stood at ₹184.9 crore, compared to ₹284 crore year-over-year
• EBITDA for the quarter was ₹84 crore, down from ₹181 crore in the previous year
• EBITDA margin decreased to 45.42% from 63.92% in the prior year period

The company successfully raised ₹5 crore through private placement of Non-Convertible Debentures (NCDs) during the quarter.

Board Strengthening Initiatives

In a move to bolster its strategic leadership and governance, MOFSL announced key appointments to its Board of Directors:

1. Promoter Group Appointments:

   • Mr. Pratik Oswal and Mr. Vaibhav Agrawal from the Promoter Group have been appointed to the Board.

2. Independent Directors:

   • Mr. Joseph Conrad Agnelo D'Souza (Mr. Conrad D'Souza), a senior HDFC Group veteran with four decades of experience.
   • Mr. Ashok Kumar P. Kothari, a senior IRS officer with three decades of distinguished career.

These appointments are subject to shareholder approval and necessary regulatory clearances.

Strategic Implications and Future Outlook

Mr. Motilal Oswal, Co-founder and Chief Executive Officer of MOFSL, commented on the appointments: "I am delighted to welcome the next generation of our Promoter Group to the Board. Pratik and Vaibhav bring along the values, vision, and entrepreneurial spirit on which the Motilal Oswal Group was built. Their presence marks an important milestone in the Group's journey that blends legacy with fresh thinking and long-term ambition."

He added, "We are also pleased to welcome Mr. Conrad D'Souza and Mr. Ashok Kumar P Kothari to the Board. Their leadership, integrity, and domain expertise will add immense value to our governance processes and strategic direction."

Despite the decline in quarterly profits, MOFSL has set targets for the future:

• The company expects 20-22% compounded PAT growth through FY27.
• Assets Under Administration (AUA) are projected to surpass ₹6 trillion.
• Fee-based revenue share is expected to rise to 80%.
• MOFSL plans continued expansion in AMC, private wealth, and alternative investments.

The company's strategy focuses on deepening retail and institutional participation through FY27. This approach builds on MOFSL's track record, having achieved a 24% CAGR in net worth and 39% CAGR in AUA over the past decade.

Current Position

Motilal Oswal Financial Services currently employs over 13,250 professionals, serves more than 13.6 million clients across 550+ cities, and manages assets under advice (AUA) of approximately ₹6.5 lakh crore.