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

Executive summary

• Achieved highest-ever quarterly profit after tax at ₹1,430 crore in Q1 FY26, up 40% year-on-year, with operating profit after tax rising 21% to ₹522 crore, driven by strong performance across asset, private wealth, and capital market businesses.

• 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, up 28% year-on-year; total client base expanded to over 13.6 million.

• Market capitalization stood at ₹55,850 crore as of July 23, 2025.

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

• Serviced over 8.6 million mutual fund folios and 5 million broking accounts.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹2,73,703 lakh, up from ₹2,31,431 lakh in Q1 FY25; net operating revenue grew 24% YoY to ₹1,412 crore.

• Profit after tax for Q1 FY26 stood at ₹1,15,584 lakh, compared to ₹88,358 lakh in Q1 FY25; basic EPS for Q1 FY26 was ₹19.39.

• Treasury investments grew to ₹8,853 crore, up 26% year-on-year, with a compounded IRR over 20% since inception.

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

• Profit margin for the quarter at 49%, with a slight sequential dip due to higher people costs.

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 subject to business needs.

• Affirmed and upgraded credit ratings for NCDs, bank loans, and commercial paper by India Ratings and ICRA; no change from Crisil.

• 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.