Motilal Oswal Financial Services reported a 12% rise in FY26 revenue to ₹9,416 crore, but net profit fell 18% to ₹2,043 crore due to higher expenses. The company's AUA grew to ₹6.6 lakh crore, and its credit rating was upgraded.
Motilal Oswal Financial Services FY26 Results
Consolidated Revenue: ₹9,416.42 crore
Consolidated Net Profit: ₹2,043.42 crore
Reader Takeaway: Strong revenue growth and asset inflow offset by rising expenses impacting net profit.
What just happened
Motilal Oswal Financial Services announced its financial results for the fiscal year 2025-26. The company reported a consolidated revenue of ₹9,416.42 crore, an increase of 11.87% compared to the previous fiscal year. However, the consolidated net profit after tax and minority interest (PAT & MI) saw a decline of 18.06%, coming in at ₹2,043.42 crore for FY 2025-26, down from ₹2,493.95 crore in FY 2024-25.
Why this matters
The results indicate strong top-line growth driven by market tailwinds and the company's business model. However, the decline in net profit highlights increased operational costs. The rise in total assets under advice (AUA) to ₹6.6 lakh crore and a credit rating upgrade to AA+/Stable by ICRA are positive indicators for the company's financial health and market position.
The backstory
Motilal Oswal Financial Services operates a 'twin-engine' business model, combining operating businesses with treasury investments. The company has been focusing on growing its annuity-based income streams, which include asset management, private wealth, and distribution services. These businesses contribute significantly to its revenue stability.
What changes now
Investors will be watching how the company manages its expenses going forward to improve profitability. The positive credit rating and growing AUM provide a strong foundation. The management's confidence in India's growth story and the shift of household savings to financial instruments is a key driver.
Risks to watch
Potential risks include global market volatility and increasing regulatory scrutiny, which could impact profitability. Expense management remains a critical watch point for investors.
Peer comparison
While specific peer profit figures for the same period are not provided in the filing, Motilal Oswal's AUA crossing ₹6.6 lakh crore and its AMC business AUM growing 26% YoY are significant achievements in the asset management space.
Context metrics (time-bound)
- Consolidated revenue for FY 2025-26: ₹9,416.42 crore (up 11.87% YoY).
- Consolidated Net Profit (PAT & MI) for FY 2025-26: ₹2,043.42 crore (down 18.06% YoY).
- Total Group Assets Under Advice (AUA): ₹6.6 lakh crore.
- AMC business AUM: ₹1.5 lakh crore (up 26% YoY).
- Credit Rating: AA+/Stable (ICRA).
What to track next
Investors should monitor the company's ability to control its rising expenses, sustain revenue growth, and maintain its asset quality, particularly in its housing finance division.