Motilal Oswal Q2 results: PAT declines 68% YoY to Rs 362 crore, but posts record operating profit

Motilal Oswal Financial Services Ltd (MOFSL) reported a 68% year-on-year (year-on-year) decline in consolidated net profit at Rs 362 crore. However, the company’s operating profit rose to Rs 554 crore, while half-year profit for FY26 stood at Rs 1,088 crore, up 11% year-on-year.

Revenue from operations fell 35% year-on-year to Rs 1,849 crore.

Healthy asset management

The asset management business remained MOFSL’s biggest growth driver, with PAT rising 46% year-on-year to Rs 180 crore.

Total assets under management (AUM) rose 46% to Rs 1.77 lakh crore, led by a robust 57% increase in mutual fund AUM. The company’s net revenue market share stood at 8.2%, while SIP inflows rose 2.2 times YoY to Rs 4,172 crore, underscoring the participation of retail investors.

MOFSL also completed the first close of its IBEF V private equity fund at Rs 6,900 crore and plans to close the fund at twice the size of the previous raise, indicating that investors are still interested in its alternative investment products.

Private wealth is increasing

The private wealth management business delivered another strong quarter with PAT rising 23% year-on-year to Rs 110 crore. Net sales tripled to Rs 7,358 crore, driven by robust customer acquisition and rising productivity. The company’s assets under management stood at Rs 1.87 lakh crore, registering an increase of 19% year-on-year.

Retail is experiencing a softer quarter

In contrast, the retail brokerage and distribution segment saw a moderation in profitability, with PAT declining 24% year-on-year to Rs 170 crore.

However, operating numbers remained resilient, with the company’s market share in cash volumes at 7.1% and its F&O premiums market share at 8.7%, bringing the total blended ADTO market share to 8%.

The distribution business continued its steady growth with net inflows increasing 29% to Rs 3,079 crore, while the distribution portfolio grew at a CAGR of 34% since FY21 to reach Rs 40,544 crore by September 2025.

Capital markets and housing finance shine

The capital markets business recorded 24% YoY growth in PAT to Rs 90 crore, driven by healthy deal activity. Meanwhile, the housing finance department recorded a 27% year-on-year increase in PAT to Rs 34 crore, with disbursements rising 48% to Rs 544 crore and AUM up 24% to Rs 5,236 crore, reflecting strong growth in affordable housing loans.