Motilal Oswal Financial Services Reports Robust Growth with 55% AUM Increase and Record Operating Profit

Motilal Oswal Financial Services has reported impressive quarterly results, showcasing strong growth across various segments despite market volatility. The company's performance highlights its resilience and strategic diversification in the face of regulatory changes and market fluctuations.

Key Highlights

Assets Under Management (AUM) grew by 55-56% year-over-year
Record operating profit of ₹554 crore, representing 30% YoY growth in core business profitability
Asset management and private wealth divisions drove significant growth
Housing finance segment posted strong growth in AUM and disbursements

Segment-wise Performance

Segment	Key Metrics	Performance
Asset Management	Net Inflows	₹14,000 crore
	New SIPs Added	1.7 million
	Flow Market Share	8.3%
	AUM Market Share	2.6%
Private Wealth	Net Inflows	₹7,500 crore
Housing Finance	AUM Growth	24%
	Quarterly Disbursements	₹500 crore
	Gross NPAs	1.4%
	Net NPAs	0.8%

Financial Metrics

Treasury mark-to-market loss: ₹270 crore
Brokerage revenue: 24% decline due to regulatory changes
Cost of funds: Decreased by 20-25 basis points YoY
Spreads: Improved to 5.3%
Net Interest Margins: Stable at 7%

Business Mix Diversification

Motilal Oswal Financial Services has successfully diversified its revenue streams, with brokerage now contributing only 30% of total revenue. This strategic shift has helped the company maintain strong overall performance despite challenges in specific segments.

Conclusion

Motilal Oswal Financial Services has demonstrated robust growth and resilience in its latest quarterly results. The company's strong performance in asset management, private wealth, and housing finance segments has offset challenges in the brokerage business. With record operating profits and significant AUM growth, the company appears well-positioned to navigate the evolving financial services landscape.

Investors and market observers may want to keep a close eye on how Motilal Oswal Financial Services continues to adapt to regulatory changes and market conditions in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.27%	-9.65%	+5.43%	+41.61%	+4.60%	+614.86%

Motilal Oswal Financial Services Limited (MOFSL) has announced its financial results for the second quarter and first half of fiscal year 2026, showcasing resilient performance led by its annuity businesses.

Key Highlights

Highest-ever quarterly operating PAT of ₹554 crore in Q2FY26
H1FY26 operating PAT grew 11% year-on-year to ₹1,088 crore
Asset Management and Private Wealth Management segments drive growth
Long-term credit rating upgraded to AA+ (Stable) by ICRA

Financial Performance

MOFSL reported a consolidated net revenue of ₹2,888.00 crore for H1FY26, marking a 15% increase from the previous year. The company's operating profit after tax (PAT) for Q2FY26 stood at ₹554.00 crore, while H1FY26 PAT reached ₹1,088.00 crore, up 11% year-on-year.

Segment-wise Performance

Asset Management and Private Wealth Management

This segment emerged as a key growth driver:

PAT grew 46% year-on-year to ₹180.00 crore in Q2FY26
Total Assets Under Management (AUM) increased 46% to ₹1.77 lakh crore
Mutual Fund AUM growth of 57% year-on-year
Net sales market share at 8.2%
SIP inflows surged 2.2x year-on-year to ₹4,172.00 crore

Private Wealth Management

PAT grew 23% year-on-year to ₹110.00 crore in Q2FY26
Net Sales grew 3x in Q2FY26 to ₹7,358.00 crore
AUM up 19% year-on-year to ₹1.87 lakh crore

Wealth Management

Despite a 24% decline in PAT to ₹170.00 crore, this segment maintained strong market shares:

Cash volume market share at 7.1%
F&O Premium market share at 8.7%
Distribution net flows grew 29% to ₹3,079.00 crore in Q2FY26

Capital Markets

PAT grew 24% year-on-year to ₹90.00 crore
Ranked #1 across IPOs, QIPs, and Rights Issues in H1FY26

Housing Finance

PAT grew 27% to ₹34.00 crore
Disbursement growth of 48% year-on-year to ₹544.00 crore
AUM grew 24% year-on-year to ₹5,236.00 crore

Treasury and Investments

The company's treasury book grew 14% year-on-year to ₹8,957.00 crore, delivering an XIRR of 18.7% since inception.

Credit Rating Upgrade

ICRA upgraded MOFSL's long-term credit rating to AA+ (Stable) from AA (positive), marking the highest rating awarded to any capital markets company in India.

Management Commentary

Motilal Oswal, Managing Director and CEO, commented, "Our Q2FY26 results demonstrate the strength of our diversified business model and the growing contribution of our annuity-based businesses. The stellar performance in Asset Management and Private Wealth Management segments underscores our strategic focus on these areas. The credit rating upgrade is a testament to our robust financial position and growth trajectory."

Outlook

With its strong market position across segments and the recent credit rating upgrade, MOFSL is well-positioned for sustained growth. The company's focus on expanding its asset management and wealth management businesses, coupled with its strong capital market presence, provides a solid foundation for future performance.

As Motilal Oswal Financial Services continues to leverage its diverse revenue streams and strong brand presence, investors and market watchers will be keenly observing its ability to maintain this growth momentum in the coming quarters.