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

Executive summary

• Q3 FY25 operating revenue 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, up 62% YoY; client base exceeded 11.5 million, growing 80% YoY.

• Annualized ROE stood at 36%; interim dividend of ₹5 per share declared for FY25.

• Employee base expanded 27% YoY to over 13,600.

• Board declared 44.78 crore bonus shares in June 2024 (3:1 ratio), with EPS adjusted accordingly.

Financial highlights

• Net worth as of December 2024 was ₹11,569 crore, up 40% YoY.

• Lending book (including HFC) at ₹12,254 crore, up 44% YoY; treasury investments at ₹8,464 crore, up 44% YoY.

• Fee-based revenue rose to 41% of total revenues from 30% last year; annual recurring revenues accounted for 56% of group revenues in Q3.

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

• PBT margin for Q3FY25 was 52%.

Outlook and guidance

• Management expects continued growth in financial savings, mutual fund folios, and Demat accounts, supporting long-term business expansion.

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

• Targeting to maintain or improve 20% IRR on treasury investments and 22% CAGR in net worth.

• Dividend payout to remain at 20% of operating PAT, subject to business needs.

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