Motilal Oswal Financial Services Limited — Q4 FY26 earnings call

Call held 7 May 2026

Management summary

Motilal Oswal Financial Services reported a strong Q4 and FY26, driven by robust growth in its annuity businesses, particularly Asset and Private Wealth Management. Despite market volatility and regulatory headwinds, operating PAT grew significantly. The company continues to invest in technology and talent, with a positive outlook for continued growth across all segments, although mark-to-market losses on the investment book impacted reported PAT for the quarter.

Highlights

  • Operating profit after tax for FY26 grew by 16% YoY to ₹2,360 crores, demonstrating robust performance.

  • Asset and Private Wealth businesses showed strong momentum with 33% profit growth in FY26 and ₹70,000 crores in net flows.

  • AMC AUM crossed ₹1.5 Lakh Crores, with SIP flows for FY26 up 78% YoY to ₹16,000 Cr.

  • Investment Banking fees income grew 39% YoY to ₹309 Cr, completing 52 deals with a cumulative raise of ₹83,600 cr.

  • Housing Finance business delivered strong growth with 28% YoY disbursement growth and 25% YoY AUM growth.

Concerns

  • Q4 FY26 PAT was impacted by a notional mark-to-market loss of ~₹1,000 crores on the investment book, though largely recouped in April 2026.

  • Regulatory changes (F&O, higher margins) and weak markets impacted market breadth and broking revenue in parts of FY26.

  • AMC SIP market share saw a slight dip in Q4, attributed to international funds not taking new money and a locked microcap fund.

Key financials

3 periods

Headline

  • Total AUM
    ₹3.70L Cr
    YoY +34%
  • Net Flows (Asset & Private Wealth)
    ₹70,000 Cr
  • IB Fees Income
    ₹309 Cr
    YoY +39%
  • Housing Finance Disbursement
    ₹2,291 Cr
    YoY +28%

Q4FY26

  • Operating PAT Growth
    25%

FY26

  • Operating PAT
    ₹2,360 Cr
    YoY +16%

What they filed

Q1 FY27: revenue up 25.2%, net profit up 9.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,841 1,993 1,190 2,737 1,849 −35%2,112 +6%2,676 +125%3,426 +25%
EBITDA1,816 1,061 280 1,720 840 −54%1,105 +4%205 −27%1,970 +15%
Net profit1,122 566 -63 1,163 363 −68%566 +0%-219 −248%1,274 +10%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Asset Management
    ₹1.50L Cr AMC AUM (crossed)₹1.80L Cr AMC AUM (April exit)₹16,000 Cr SIP Flows (FY26)₹30,000 Cr SIP AUM Book (Mar'26)33% Contribution to Group Operating PAT (FY26)
  • Alternates / Private Markets
    ₹21,000 Cr Fee Accruing AUM (closing)₹3,000 Cr Maiden Private Credit Fund
  • Private Wealth Management
    ₹46,000 Cr ARR AUM₹40,662 Cr Distribution Book (Mar'26)₹6,094 Cr Loan Book₹450 Cr AUM per RM (Mar'26)
  • Capital Market Business
    ₹309 Cr IB Fees Income52 IB Deals (FY26)₹83,600 Cr Cumulative Raise (IB, FY26)8.6% Retail Broking Equity Market Share (FY26)40% MTF Book Growth (FY26)33% Brokerage Revenue Growth (Q4FY26)
  • Housing Finance Business
    ₹2,291 Cr Disbursement (adjusted)₹6,100 Cr AUM (adjusted)

Guidance & targets

Profitability

  • Operating PAT share from Asset and Private Wealth businesses Profitability · Going forward · Medium confidence Continue to rise
    These businesses now contribute around 50% of the total operating profit, and we expect their share to continue to rise as these businesses continue to grow at a faster pace.

    — Navin Agarwal, Group Managing Director

AUM Growth

  • AMC AUM growth driver AUM Growth · Going forward · High confidence Supported by strong ₹18,000 cr annualised SIP run rate
    AUM growth will be further supported by strong 18,000 cr of annualised SIP run rate.

    — Navin Agarwal, Group Managing Director

Product Portfolio

  • AMC products crossing 3-year vintage Product Portfolio · Mar'27, Mar'28 · High confidence 8 funds by Mar'27, 16 funds by Mar'28
    We expect 8 funds to cross 3 years vintage by Mar'27 and 16 funds by Mar'28.

    — Navin Agarwal, Group Managing Director

Business Strategy

  • AMC business role Business Strategy · Going forward · High confidence Key growth and ARR driver
    To Summarise – AMC business will be key growth and ARR driver for MOFSL...

    — Navin Agarwal, Group Managing Director

  • Alternates Asset Management role Business Strategy · Going forward · High confidence Key growth and ARR driver
    To Summarise – Alternates Asset Management Business too will a key growth and ARR driver for MOFS...

    — Navin Agarwal, Group Managing Director

Investment

  • Investment in senior leadership/RMs (Private Wealth) Investment · FY27 · High confidence Continue investment
    We have made large investment in senior leadership / RMs and we will continue to do so in a calibrated manner in FY27 as well.

    — Navin Agarwal, Group Managing Director

Market Share

  • MTF market share Market Share · Going forward · Medium confidence Improve
    Our MTF market share is close to 7% and is expected to improve going forward.

    — Navin Agarwal, Group Managing Director

  • ADTO market share Market Share · Going forward (as global uncertainty subsides) · Medium confidence Improve
    We expect our ADTO market share to improve as the global uncertainty subsides as we have witnessed historically.

    — Navin Agarwal, Group Managing Director

Business Expansion

  • IB coverage Business Expansion · Going forward · High confidence Up from 360 to nearly 500 companies
    In IE, we aspire to take our coverage up from the current 360 to nearly 500 companies.

    — Navin Agarwal, Group Managing Director

Growth

  • Housing Finance business growth Growth · Over 2-3 years · High confidence Strong growth
    We expect Housing Finance business... to witness strong growth over 2-3 years.

    — Navin Agarwal, Group Managing Director

Revenue

  • Broking revenue Revenue · Coming periods · Medium confidence Catch up
    we expect the brokerage line item to catch up for coming periods, given that the regulatory impact is behind and our volumes are up.

    — Shalibhadra Shah - CFO

SIP Book Growth

  • AMC SIP books SIP Book Growth · As we speak (near-term) · High confidence Climb back to last year levels
    As we speak, they are at last year levels itself.

    — Prateek Agrawal, MD and CEO, Asset Management

Net Flows Diversification

  • AMC inflows Net Flows Diversification · Next leg of growth · Medium confidence More diversified
    We think in the next leg of growth versus the last one, our inflows will be way more diversified versus what we had.

    — Prateek Agrawal, MD and CEO, Asset Management

Variable Returns

  • Variable additional returns Variable Returns · Coming financial periods · Medium confidence Meaningful accruals
    we expect meaningful variable returns to accrue in the coming financial periods.

    — Shalibhadra Shah - CFO

Annuity Revenue Share

  • Annuity stream of revenue Annuity Revenue Share · FY27 · High confidence Continue to rise
    Our annuity stream of revenue has consistently gone up. They are now at over 60% of the total revenues... that trend will continue to rise in FY27.

    — Navin Agarwal, Group Managing Director

What to watch in Q1 FY27

Recouping of MTM Losses on Investment Book

April 2026 (to be verified in next report)
Current ~₹1,000 crores unrealized loss in Q4FY26
Target Mostly recouped

Why it matters

Directly impacts reported PAT and OCI, and its recovery is crucial for investor confidence.

most of these MTM losses have been recouped back in the month of April 2026.

Risks & concerns

  • Market Volatility and Mark-to-Market Losses

    medium

    Unrealized mark-to-market losses of ~₹1,000 crores on the investment book impacted Q4 PAT, though largely recouped in April 2026.

    Management acknowledged

  • Regulatory Changes in Capital Markets

    medium

    F&O changes and higher margin requirements impacted market breadth and broking revenue in parts of FY26, but management expects recovery.

    Management acknowledged

  • Competition from Fintech/Digital Brokers

    medium

    Advent of digital brokers impacting market share in capital markets, prompting a focus on research/advisory model for high-value clients.

    Analyst acknowledged

Q&A highlights

7 direct
AMC SIP market share and revenue yields Direct
On active MF side also, we have seen a small drop in SIP. SIP book growth is linked to strong performance & as that comes back to us, especially in the main categories, you should again expect SIP books to climb. As we speak, they are at last year levels itself. Our fees as a consequence of the TER changes continued to remain unimpacted. In fact, they have slightly improved for our cohort of AUM as that category did not get impacted.

Addresses concerns about a dip in a key growth driver (SIP) and clarifies the impact of regulatory changes on revenue yields, attributing some yield pressure to a mix effect.

Asked by Mahek - Participant

Growth in Private Wealth Management lending assets Direct
On the lending side in Private Wealth, it's a stated strategy to provide solutions to ultra HNIs, family offices and HNIs to enhance yields. It's a combination of lending against securities & lending against investment assets that contribute to growth in assets as well as ARR revenues.

Explains the strategic rationale behind the strong growth in lending assets within the Private Wealth segment, linking it to client solutions and ARR.

Asked by Mahek - Participant

Sequential growth in other expenses Direct
Q4FY26 includes a predominant impact of higher marketing, brand promotion and CSR expenses. Bulk of which have actually been incurred in this quarter resulting in a delta slightly higher on a sequential basis. However, for FY26, the overall other expenses are up about 10% YoY.

Clarifies the reason for a significant sequential increase in other expenses, attributing it to specific Q4 marketing and CSR initiatives rather than a sustained cost increase.

Asked by Mahek - Participant

Guidance on MTF book growth Direct
If we look at our MTF book, it has grown by ~ 40% in FY26, indicating a strong surge. Our cash market share is about 7% in FY26 and MTF market share is also a replica of that. We definitely have a very strong balance sheet to grow this book. ... It's more of a market impact. Across the industry, the book is marginally lower & it's a very marginal reduction in our book as well. We're very confident of growing this book in the future.

Provides context on the MTF book's strong FY26 growth despite a recent slowdown, clarifying it as a market-driven fluctuation rather than a strategic reduction.

Asked by Deep Vakil- Participant

Impact of MTM loss on treasury book Direct
It is a notional mark-to-market loss. We revalue all our Long-only investments at mark-to-market based on the Ind AS requirements & that's why these are notional losses. We disclose Treasury performance and operating performance separately. As explained earlier, most of these MTM losses have been recouped back in the month of April 2026.

Clarifies the nature of the ~₹1,000 crores loss as notional and largely recovered post-quarter, alleviating concerns about its permanent impact on profitability.

Asked by Deep Vakil- Participant

Asset Management investment team leadership and net flows Partial
Over the last period, we have increased the team size on both the alternate and mutual fund in terms of managers and research. Overall, the investment team, inclusive of passive is now over 50 members strong. As far as the leadership on the mutual fund side goes, we are evaluating both internal team members and external members & we will take a decision soon. In terms of net flows, they have declined in Q4FY26. Jan'26 was a bad month for our active net flows but passives did very well.

Provides an update on team expansion and ongoing leadership evaluation, while acknowledging and explaining the Q4 decline in net flows for active funds.

Asked by Nidhesh Jain - Participant

Strategy for capital market segment amidst fintech competition Direct
Our Wealth Management business, that we are building on, have always been focused on the research and advisory model. If you look at our model, whether it is the franchisee segment, the direct side and the branch model, we are very well aligned with our research and advisory-led model, along with technology in the overall business. We are focusing on the quality of the customer, where we can add value.

Outlines the company's strategy to counter fintech disruption by focusing on a research- and advisory-led model for high-value clients, rather than competing on pure digital brokerage.

Asked by Nidhesh Jain - Participant

Private Wealth clientele quality and transactional revenue pipeline Direct
Essentially, there are broadly 3 segments in the Private Wealth Management Business; HNI segment (₹50 Crs to ₹100 Crs), UHNI segment (100 Crs+) and Family Offices. We operate in all 3 segments & we've put significant capabilities and resources to improve the value proposition in the UHNI and family office segment. ... The pipeline of transactions is very robust. In the near term, the markets could be cyclical and that could impact a particular asset class. But we have capabilities across asset classes.

Details the client segmentation and robust transaction pipeline in Private Wealth, highlighting diversified capabilities to manage cyclical market impacts.

Asked by Dipanjan Ghosh – Participant

3 min read 6 chapters

Detailed narrative

Strong Operating Performance Driven by Annuity Businesses

Motilal Oswal Financial Services reported a robust FY26 with operating profit after tax growing 16% YoY to ₹2,360 crores. The fourth quarter alone saw a 25% YoY growth in operating PAT, exiting with a run rate of ₹661 crores. This strong performance was primarily fueled by the Asset and Private Wealth Management businesses, which collectively saw their profits grow 33% in FY26 and now contribute approximately 50% of the total operating profit. Management expects this share to continue rising, highlighting the increasing quality and predictability of the group's cash flows.

Asset and Private Wealth Management Momentum

The Asset and Private Wealth Management businesses demonstrated significant momentum, achieving robust net flows of ₹70,000 crores and an AUM of ₹3.7 lakh crores, representing a 34% YoY increase. Within Asset Management, AMC AUM crossed ₹1.5 Lakh Crores, with SIP flows for FY26 reaching over ₹16,000 Cr, up 78% YoY, contributing to a SIP AUM book of ~₹30,000 cr. The company anticipates 8 funds to cross the 3-year vintage mark by March 2027 and 16 funds by March 2028, which is expected to further boost flows and market share.

Capital Markets Business Rebound and Investment Banking Strength

The Capital Markets business, despite facing regulatory headwinds and lower volumes in parts of FY26, showed signs of recovery in Q4. Brokerage revenue grew approximately 33% YoY in Q4FY26, with management expecting a catch-up in coming periods as regulatory impacts subside. The Investment Banking division had an eventful FY26, successfully completing 52 deals with a cumulative raise of ₹83,600 cr, leading to a strong 39% YoY growth in fees income to ₹309 Cr. The company aims to expand its IB coverage from 360 to nearly 500 companies.

Housing Finance Business Sustains Growth

The Housing Finance business concluded another solid year, with adjusted disbursements growing 28% YoY to ₹2,291 Crores. Consequently, its adjusted AUM grew 25% to ₹6,100 Crs. The company successfully raised $100 million from the Asian Development Bank, validating its strong franchise. Management expects the Housing Finance business to witness strong growth over the next 2-3 years, supported by its strong capital adequacy ratio and low leverage.

Impact of Mark-to-Market Losses and Regulatory Environment

The total profit after taxes for Q4 and FY26 was impacted by a notional mark-to-market loss of approximately ₹1,000 crores on the company's ₹9,000 crores investment book. Management clarified that these are unrealized losses, with most already recouped in April 2026. The operating performance was delivered amidst a challenging external environment, including weak markets and multiple regulatory changes such as F&O adjustments and higher margin requirements, which impacted market breadth and certain business segments.

Strategic Investments and Future Outlook

Motilal Oswal Financial Services continued its investments across the group in FY26, focusing on people, brand, and technology, including embedding AI in business processes. The company is now ranked among the top 150 companies by PAT and top 200 by market capitalization. Management expressed confidence in the next decade, anticipating equally exciting prospects driven by financialization of savings and the rising weight of the capital market sector within India's economy, which should further improve its rankings.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Financial Services earnings calls