Motilal Oswal Financial Services (MOTILALOFS) Q3 24/25 earnings summary

Executive summary

• Operating revenue for Q3 FY25 reached ₹1,345 crore, up 43% YoY, with operating PAT at ₹525 crore, up 38% YoY; 9MFY25 PAT was ₹2,718 crore, up 36% YoY.

• Assets under advice surpassed ₹6 lakh crore, a 62% YoY increase, and the client base crossed 10 million.

• Interim dividend of ₹5 per share declared for FY25, reflecting profit growth.

• Annual recurring revenues accounted for 56% of group revenues in Q3.

• Achieved record nine-month profit of ₹2,718 crore and highest-ever yearly profit of ₹2,626 crore as of Dec'24.

Financial highlights

• Net worth as of December 2024 was ₹11,569 crore, up 40% YoY; annualized ROE at 36%.

• Treasury investments grew to ₹8,464 crore, up 44% YoY, with a 10-year CAGR of over 40%.

• Fee-based revenue contribution rose to 41% from 30% YoY.

• Lending book at ₹12,254 crore, up 44% YoY.

• Basic EPS for Q3FY25 was ₹9.43; for 9MFY25, ₹42.94 (adjusted for bonus issue).

Outlook and guidance

• Expect continued growth in financial savings, mutual fund folios, and Demat accounts, driven by low penetration and rising investor base.

• Housing finance AUM growth guidance maintained at 20% for FY25, with expectations for further improvement as RM capacity expands.

• Mega trend of financialization of household savings projected to drive business growth across all segments.

• Aims to sustain compounding growth through a double-engine model: operating businesses and treasury investments.

• Plans to maintain or improve IRR of 20% on treasury investments and uphold a 20% dividend payout ratio, subject to business needs.