Motilal Oswal Financial Services Q2 FY27 Results

Operating PAT for Q2 FY27 stood at Rs 718 crore, marking a 29% year-on-year growth. Total revenue for the quarter was reported at Rs 3,041.67 crore.

Reader Takeaway: Robust growth in recurring fee income and a strategic SEBI custodian license entry strengthen long-term profit visibility.

What just happened

Motilal Oswal Financial Services announced its consolidated financial results for the quarter ended September 30, 2026. Alongside strong earnings, the firm secured a custodian license from SEBI, becoming the first non-bank entity to achieve this in over a decade. The board also authorized the raising of Rs 3,000 crore via Non-Convertible Debentures (NCDs).

Why this matters

The company’s earnings profile is shifting toward recurring revenue, which now accounts for 66% of total income. This reduces reliance on volatile market-linked capital market activities. The custodian license allows the company to enter the institutional services market, while the AA+/Stable credit rating upgrade reflects improved balance sheet strength.

Business Performance

The Asset Management segment remains a key driver, posting a 69% YoY profit growth to Rs 304 crore. Private Wealth Management AUM expanded to Rs 3 lakh crore, a 58% increase. In the investment banking space, the firm holds a top-3 ranking and leads in Qualified Institutional Placements (QIPs) for the first half of FY27.

Risks to watch

As the company enters the custodial services space, execution risks and initial capital expenditure in Q4 FY27 will be key areas for investors. Furthermore, the planned Rs 3,000 crore NCD issuance will increase debt obligations on the balance sheet, though the company notes a history of growth via internal accruals.

Context metrics

The treasury book stood at Rs 11,346 crore as of September 30, 2026. The firm has successfully managed to scale operations without equity dilution over the past ten years.