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

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

Revenue from operations fell 35% YoY to Rs 1,849 crore.

Asset management healthy

The asset management business continued to be MOFSL’s biggest growth driver, with PAT up 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% rise in mutual fund AUM. The company’s net sales market share stood at 8.2%, while SIP inflows surged 2.2 times YoY to Rs 4,172 crore, underscoring retail investor participation.

MOFSL also completed the first close of its IBEF V private equity fund at Rs 6,900 crore and is planning to close the fund at twice the size of its previous raise, signalling continued investor appetite for its alternative investment products.

Private wealth scales up

The private wealth management business delivered another strong quarter, with PAT up 23% YoY to Rs 110 crore. Net sales tripled to Rs 7,358 crore, driven by robust client acquisition and rising productivity. The business’s AUM stood at Rs 1.87 lakh crore, marking a 19% year-on-year increase.

Retail broking sees softer quarter

In contrast, the retail broking and distribution segment saw a moderation in profitability, with PAT down 24% YoY to Rs 170 crore.

However, operational metrics remained resilient — the company’s cash volume market share stood at 7.1%, and its F&O premium market share at 8.7%, taking its overall blended ADTO market share to 8%.

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

Capital markets and housing finance shine

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