Motilal Oswal Financial Services (MOTILALOFS) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2FY25 consolidated PAT of INR 1,242 crore, up 123% YoY, with ROE at 48%.

• Operating net revenue for Q2FY25 was INR 1,366 crore, up 46% YoY; operating PAT at INR 541 crore, up 53% YoY.

• Assets under advice/AUA crossed INR 5.7 lakh crore, up 82% YoY; net worth at INR 11,070 crore, up 48% YoY.

• Client base expanded 57% YoY to 94 lakh; market capitalization as of Oct 25, 2024, was INR 52,226 crore.

• Both CRISIL and India Ratings upgraded the rating outlook to AA Positive.

Financial highlights

• Q2FY25 net operating revenue was INR 1,366 crore, up 46% YoY; H1FY25 net revenue was INR 2,499 crore, up 40% YoY.

• Wealth Management Q2FY25 PAT at INR 225 crore, up 71% YoY; AUA at INR 2,94,365 crore.

• Asset & Private Wealth Management Q2FY25 PAT at INR 213 crore, up 63% YoY; AMC AUM at INR 1,10,769 crore, up 101% YoY.

• Capital Market Q2FY25 PAT at INR 73 crore, up 45% YoY; net revenue at INR 174 crore, up 52% YoY.

• Housing Finance Q2FY25 PAT at INR 27 crore; AUM at INR 4,233 crore, up 13% YoY; GNPA at 1.3%, NNPA at 0.7%.

Outlook and guidance

• Expectation of continued best-in-class earnings growth and return ratios, supported by strong brand and balance sheet.

• Focus on compounding growth through operating businesses and treasury investments; targeting 20.8% IRR from treasury.

• Ongoing investments in RM capacity and distribution expected to drive future AUM and disbursement growth.

• Product suite expansion in AMC with new launches planned monthly, including first-of-kind passive products.

• Optimistic about leveraging India's economic expansion and increasing financialization of savings.