Motilal Oswal Q2 Results: Record Operating Profit with 68% Year-Over-Year Decline in PAT to Rs 362 Crore

News Desk">
October 30, 2025

Motilal Oswal Reports Mixed Earnings: Asset Management Fuels Growth

Mumbai, India – October 30, 2025 – Motilal Oswal Financial Services Ltd. has announced its financial results, revealing a complex picture of performance. while consolidated net profit experienced a decline, considerable gains were observed in key growth areas such as asset and private wealth management. The firm’s overall performance reflects the dynamic landscape of the Indian financial market.

Profitability Overview

The company reported a 68% year-over-year decrease in consolidated net profit, totaling Rs 362 crore. Despite this downturn, operating profit demonstrated resilience, rising to Rs 554 crore. The first half of Fiscal Year 2026 yielded a profit of Rs 1,088 crore,representing an 11% increase when compared to the same period last year. Revenue from operations, however, experienced a 35% decrease, reaching Rs 1,849 crore.

Asset Management drives Expansion

A significant highlight of the results was the robust performance of the asset management division. Profit after tax (PAT) for this segment surged 46% year-over-year to Rs 180 crore. Total assets under management (AUM) reached Rs 1.77 lakh crore,a 46% increase attributed to a substantial 57% growth in mutual fund AUM.The company secured an 8.2% market share in net sales, and Systematic Investment plan (SIP) inflows more than doubled, reaching Rs 4,172 crore, signaling strong retail investor confidence.

Did You Know? SIP inflows are widely considered a key indicator of retail investor participation in the Indian equity market,and a sustained increase suggests growing financial inclusion and investment awareness.

Private Wealth Management Gains Momentum

The private wealth management division also demonstrated impressive growth, with PAT rising 23% year-over-year to Rs 110 crore. Net sales tripled to Rs 7,358 crore, fueled by increased client acquisition and productivity enhancements. The division’s AUM now stands at rs 1.87 lakh crore, marking a 19% year-on-year increase.

Broking and Distribution: A Mixed Bag

The retail broking and distribution segment experienced a more moderate period, with PAT declining 24% year-over-year to Rs 170 crore. Though, key operational metrics remained stable. The company’s cash volume market share stood at 7.1%, and its F&O premium market share at 8.7%, resulting in an overall blended ADTO market share of 8%. The distribution business exhibited steady growth, with net inflows increasing by 29% to Rs 3,079 crore, and the distribution book growing at a compound annual growth rate (CAGR) of 34% as FY21, reaching Rs 40,544 crore as of September 2025.

Other Key Business Segments Perform Well

The capital markets segment showcased a 24% year-over-year increase in PAT, reaching Rs 90 crore, driven by a healthy volume of deals. Furthermore, the housing finance division recorded a 27% year-over-year rise in PAT to Rs 34 crore, with disbursements increasing 48% to Rs 544 crore, and AUM growing 24% to Rs 5,236 crore, demonstrating a strong preference for affordable housing loans.

Business segment	PAT Growth (YoY)	Key Highlights
Asset Management	46%	AUM up 46%, SIP inflows doubled.
Private Wealth Management	23%	Net sales tripled, AUM up 19%.
Retail Broking & Distribution	-24%	Stable market share, distribution book growth.
Capital Markets	24%	Increased deal activity.
Housing finance	27%	Disbursements & AUM grew significantly.

Pro Tip: Understanding the diverse performance of different business segments within a financial services company can provide valuable insights into its overall resilience and growth potential.

Looking ahead, Motilal Oswal completed the first close of its IBEF V private equity fund, raising Rs 6,900 crore, and plans to double in size its previous fundraising. This signals continued investor appetite for the company’s alternative investment products. What impact will the growth in alternative investment products have on the company’s future revenue streams? How will Motilal Oswal navigate the evolving regulatory landscape in the Indian financial market?

Understanding Financial market Trends

The Indian financial market is experiencing significant growth, driven by increasing domestic investment, favorable government policies, and a rising middle class. Understanding these trends is crucial for investors and financial professionals alike. The growth of asset management and private wealth management firms is a direct result of this positive market surroundings. investing in diversified portfolios and seeking professional financial advice are essential strategies for navigating the complexities of the market and achieving long-term financial goals.

Frequently Asked Questions about Motilal Oswal

• What is Motilal Oswal’s primary business? Motilal Oswal Financial services Ltd. is a diversified financial services company offering asset management, private wealth management, retail broking, and housing finance services.
• what is AUM in financial terms? AUM stands for Assets Under Management, representing the total market value of financial assets that a firm manages on behalf of its clients.
• What are SIPs and why are they vital? SIPs are systematic Investment Plans, allowing investors to invest a fixed amount regularly in mutual funds, promoting disciplined investing.
• What is the outlook for the Indian financial market? The Indian financial market is expected to continue its growth trajectory,driven by economic reforms and increasing investor participation.
• How has Motilal Oswal’s housing finance business performed? The housing finance arm has shown strong growth,with increased disbursements and AUM,reflecting demand for affordable housing.
• What is the importance of the IBEF V fund close? The completion of the first close of the IBEF V fund shows strong investor confidence in Motilal Oswal’s alternative investment capabilities.
• What are the key challenges for Motilal Oswal? Balancing growth across different business segments and navigating market volatility are key challenges for the company.

Share your thoughts on Motilal Oswal’s performance in the comments below!

What specific changes in tax regulations contributed to the higher tax expenses and the subsequent PAT decline?

Motilal Oswal Q2 Results: Record Operating Profit masks Notable PAT Decline

Key Highlights of Q2 FY26 Performance

Motilal Oswal Financial Services (MOFSL) announced its Q2 FY26 results, revealing a complex picture of growth and contraction. While the company achieved a record operating profit,the Profit After Tax (PAT) experienced a significant 68% year-over-year (yoy) decline,landing at Rs 362 crore. This divergence warrants a closer examination of the contributing factors. Investors analyzing Motilal Oswal stock will find this breakdown crucial.

Revenue Breakdown & Performance Drivers

HereS a detailed look at the revenue streams and their performance during the quarter:

* Brokerage Revenue: Remains a core contributor, though growth has been moderate. Increased market volatility in October 2025 likely provided a short-term boost, but sustained growth requires consistent client acquisition and higher trading volumes.

* Asset Management (MOAMC): Continued to demonstrate strong AUM (Assets Under Management) growth, driven by inflows into equity schemes. This segment is a key focus area for future expansion. Motilal Oswal AMC performance is increasingly significant to overall profitability.

* Wealth Management: Experienced steady growth, benefiting from the increasing HNI (High Net Worth Individual) segment in India. Personalized financial planning and investment advisory services are driving client retention and acquisition.

* Institutional Equities: Performance was impacted by a slowdown in primary market activity (IPOs). This segment is cyclical and heavily reliant on market conditions.

* Other Financial Services: Includes areas like corporate lending and investment banking. These segments contributed modestly to overall revenue.

The PAT Decline: Unpacking the Reasons

The significant drop in PAT isn’t simply a reflection of revenue performance. several factors contributed to this decline:

1. Higher Tax Expenses: A change in tax regulations or a one-time tax adjustment considerably impacted the bottom line. Detailed analysis of the tax expense line item is crucial.
2. Increased Operating Expenses: While operating profit rose, a closer look reveals increased expenses in areas like technology upgrades, employee costs, and marketing initiatives. These investments are aimed at long-term growth but impacted short-term profitability.
3. Remarkable Items: The presence of any exceptional items, such as provisions for bad debts or losses on investments, would have negatively affected PAT.
4. Base Effect: The 68% decline is calculated against a particularly strong Q2 FY25, creating a challenging base for comparison.

Operating Profit: A Deeper Dive

Despite the PAT decline, the record operating profit is a positive signal. This indicates that the core business operations are generating healthy returns. Key drivers of this operating profit increase include:

* Cost Optimization: MOFSL has been actively focusing on streamlining operations and improving efficiency.

* Scalability of Digital Platforms: Investments in digital platforms are yielding results,allowing the company to serve a larger client base with lower incremental costs. Fintech adoption within MOFSL is a key trend.

* Synergies from Acquisitions: Recent acquisitions, if any, are contributing to revenue growth and cost synergies.

Impact on Key Financial Ratios

The Q2 results have impacted several key financial ratios:

* Return on Equity (ROE): Decreased due to the lower PAT.

* Net Profit Margin: Significantly reduced, reflecting the decline in profitability.

* Earnings Per Share (EPS): Lower compared to the same period last year.

* price-to-Earnings (P/E) Ratio: Likely to be impacted,potentially leading to a re-evaluation of the motilal Oswal share price.

Future Outlook & Investment Strategy

Looking ahead, MOFSL’s growth trajectory will depend on several factors:

* Market Conditions: Continued market volatility and economic growth will influence brokerage and institutional equities revenue.

* AUM Growth in MOAMC: Sustaining AUM growth is critical for the asset management business.

* Expansion of Wealth Management Services: Targeting the growing HNI segment will drive revenue in this area.

* Successful Integration of Acquisitions: Realizing synergies from past acquisitions is essential.

Investment advice: Investors should carefully consider these factors before making any investment decisions related to Motilal Oswal Financial Services. A thorough analysis of the company’s financial statements and future growth prospects is recommended. Monitoring Indian stock market news and sector-specific trends will also be beneficial.

Benefits of Understanding MOFSL’s Q2 results

* Informed Investment Decisions: provides crucial data for investors evaluating MOFSL stock.

* Industry Insights: Offers a snapshot of the broader financial services sector in India.

* Risk Assessment: Helps identify potential risks and opportunities associated with investing in MOFSL.

* Comparative Analysis: Enables comparison with peers in the industry.

Practical Tips for Investors

1. Review the Full Financial Statements: Don’t rely solely on headline numbers.
2. Attend Investor Conference Calls: Gain insights