💰 Financial Performance

Revenue Growth by Segment

Consolidated Net Revenue grew 19% YoY to INR 2,888 Cr in H1FY26 from INR 2,436 Cr in H1FY25. Segmental growth: Management & Advisory Fees grew 51.8% (INR 756 Cr vs INR 498 Cr), Distribution Fees grew 94.2% (INR 567 Cr vs INR 292 Cr), Net Interest Income grew 12.6% (INR 901 Cr vs INR 800 Cr), and Brokerage Income grew 27.3% (INR 854 Cr vs INR 671 Cr).

Geographic Revenue Split

Not explicitly disclosed by region, but the group operates through an extensive network of 9,340+ external wealth managers and a significant franchisee base across India, with a strategic focus on expanding presence in Tier 2 locations to capture growing retail participation.

Profitability Margins

PBT Margin stood at 50% for H1FY26. Return on Net Worth (RoNW) was 25.3% for FY25, compared to 32.6% in FY24. Q1FY26 RoNW showed a sharp increase to 39.2% due to high treasury gains and operating leverage.

EBITDA Margin

Operating PAT (excluding treasury) grew 11% YoY in H1FY26 to INR 1,088 Cr from INR 976 Cr. Operating profit margins are supported by a variable cost structure where 2/3rd of costs in the wealth management segment are variable, protecting margins during market downturns.

Capital Expenditure

Fixed assets (net block) increased to INR 884 Cr as of September 2025 from INR 869 Cr in March 2025. The company primarily invests in technology infrastructure and office space to support its growing RM base of 1,750+ employees.

Credit Rating & Borrowing

Long-term credit rating upgraded to ICRA AA+ (Stable) in 2025, the highest among non-bank domestic capital market players. CRISIL reaffirmed 'AA/Positive'. Total borrowings stood at INR 15,698 Cr as of September 2025 with a comfortable gearing of 1.2x to 1.3x.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; however, human capital (1,750+ RMs) and technology infrastructure are the primary operational inputs, with employee costs being a significant portion of the 1/3rd fixed cost base.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable for financial services; technology partners include AWS, Google Cloud, Salesforce, and Microsoft to power their digital-first, AI-driven ecosystem.

Capacity Expansion

Assets Under Advice (AUA) reached ~INR 6.8 lakh Cr as of September 2025, posting a 39% CAGR over the last decade. AMC folios have scaled to 9.4+ million and broking clients to 5.1+ million.

Raw Material Costs

Not applicable; however, commission and interest expenses are the primary variable costs. Net Revenue is calculated after excluding these, which stood at INR 1,460 Cr for Q2FY26, up 7% YoY.

Manufacturing Efficiency

Productivity focus: Wealth Management AUM per RM stands at INR 484 Cr across 18 families. AMC outperformance is high, with 91% of strategies (by AUM) outperforming their benchmarks as of Sept 2025.

Logistics & Distribution

Distribution fees contributed 19% of total operating net revenue in H1FY26, up from 11% in FY21, reflecting a shift toward a fee-based, open-architecture distribution model.

📈 Strategic Growth

Expected Growth Rate

31%

Growth Strategy

Achieved through a 'Twin-Engine' model: Engine 1 (Operating Businesses like AMC, Wealth, and Broking) generates high RoE with low capital intensity; Engine 2 (Treasury) reinvests these profits into the firm's own investment products. Growth is driven by increasing the share of fee-based revenue (now ~75%), expanding the RM base, and leveraging a 5 million+ client base for cross-selling (current ratio ~13%).

Products & Services

Mutual Funds, Portfolio Management Services (PMS), Alternate Investment Funds (AIF), Retail and Institutional Broking, Wealth Management, Housing Finance, Loan Against Shares (LAS), and Investment Banking.

Brand Portfolio

Motilal Oswal

New Products/Services

Expansion into Private Credit and Quant Funds; Mr. Pratik Oswal was appointed to lead the Passive and Quant Funds division to capture the growing ETF market.

Market Expansion

Targeting Ultra High Net Worth Individuals (UHNI) and Family Offices; expanding physical presence in Tier 2 cities to tap into the 5x projected growth of the Indian alternates industry by 2032.

Market Share & Ranking

Ranked #1 full-service broking house by gross brokerage revenue; Cash market share at 7.1% and F&O Premium turnover share at 8.7% as of Q2FY26.

Strategic Alliances

Open architecture distribution model selling third-party financial products alongside Motilal Oswal products to 5 million+ clients.

🌍 External Factors

Industry Trends

The Indian alternates industry (AIF/PMS) is expected to grow 5x in the next decade. MOFSL is positioned to capture this via its AMC and Wealth segments, which already contribute ~50% of group PAT.

Competitive Landscape

Faces competition from discount brokers (Zerodha, Groww) in retail broking and large banks (HDFC, ICICI) in wealth management and AMC segments.

Competitive Moat

Durable moat built on 'Think Equity' brand positioning, a 30-year track record in research, and 'skin in the game' with INR 10,000 Cr+ of promoter/corporate capital invested in their own products.

Macro Economic Sensitivity

Highly sensitive to capital market cycles; a 10% decline in equity markets typically leads to a corresponding drop in AUM-based fee income and retail trading volumes.

Consumer Behavior

Shift from physical assets (gold/real estate) to financial assets is driving record SIP flows, which MOFSL captures through its distribution and AMC arms.

Geopolitical Risks

Geopolitical tensions affecting FII (Foreign Institutional Investor) flows can impact market liquidity and the valuation of the INR 10,838 Cr investment book.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI regulations on brokerage charges, margin requirements, and AMC fee structures. Housing finance business (MOHFL) is regulated by the RBI/NHB.

Environmental Compliance

CRISIL ESG rating upgraded from 'Adequate' to 'STRONG'; launched an online ESG profile platform adhering to IFC and GRI frameworks.

Taxation Policy Impact

Effective tax rate is influenced by the mix of operating income (standard corporate tax) and treasury income (capital gains tax).

Legal Contingencies

Not disclosed in available documents; however, the company maintains a Chief Compliance Officer and a robust risk management framework to handle regulatory evolving dynamics.

⚠️ Risk Analysis

Key Uncertainties

Market volatility remains the single largest risk, with treasury profits (INR 1,286 Cr in H1FY26) being highly cyclical and impacting reported PAT.

Geographic Concentration Risk

Pan-India presence, but revenue is likely concentrated in major financial hubs and Tier 1 cities, with a strategic push to diversify into Tier 2.

Third Party Dependencies

Significant dependency on 9,340+ external wealth managers for the distribution of products; loss of key partners could impact AUM growth.

Technology Obsolescence Risk

High risk due to the rise of AI-driven discount platforms; MOFSL is mitigating this by appointing a Chief AI Officer and investing in a digital-first IT ecosystem.

Credit & Counterparty Risk

Housing finance GNPA stood at 0.8% in FY25, showing improvement from 1.1% in FY23. Capital market exposure (LAS/MTF) of INR 7,901 Cr is collateralized by liquid stocks.