Motilal Oswal Financial Services (MOTILALOFS) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever quarterly profit after tax at ₹1,430 crore in Q1FY26, up 40% year-on-year, with operating profit after tax rising 21% to ₹522 crore, driven by asset, private wealth, and capital market businesses.

• Net operating revenue rose 24% YoY to ₹1,412 crore; assets under advice reached ₹6.5 lakh crore, up 28% YoY; total client base expanded to over 13.6 million.

• Crossed major milestones: AMC equity AUM at ₹1.5 lakh crore, housing finance AUM at ₹5,000 crore, and assets under advice at ₹6.5 lakh crore.

• Market capitalization stood at ₹55,850 crore as of July 2025.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025.

Financial highlights

• Net worth rose 28% year-on-year to ₹12,537 crore; ROE at 48% for the quarter.

• Treasury investments delivered PAT of ₹908 crore in Q1FY26, with IRR over 20% since inception.

• Profit margin for the quarter at 49%, with operating PAT margin at 37%.

• Consolidated revenue from operations for Q1 FY26 was ₹2,73,703 lakh, up from ₹2,31,431 lakh in Q1 FY25.

• Basic EPS for Q1 FY26 was ₹19.39, compared to ₹14.78 in Q1 FY25.

Outlook and guidance

• Strong double-digit growth expected across all businesses, with a focus on outgrowing market leaders and robust deal pipeline in capital markets.

• Optimistic about future growth, aiming to maintain or improve IRR on treasury investments and sustain dividend payout.

• Affirmed and upgraded credit ratings for NCDs, bank loans, and commercial paper by India Ratings and ICRA.

• Employee expenses expected to remain at similar levels as last year for FY26.

• Anticipates nearly doubling of AUM in alternatives and recurring fee income in the current year.