Motilal Oswal Q2 profit jumps 198% to ₹1,081 crore, revenue up 64.5%
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Motilal Oswal Financial Services Ltd on Thursday reported a nearly threefold year-on-year jump in consolidated net profit to ₹1,080.74 crore for the September quarter, compared with ₹362.42 crore in the year-ago period.
Revenue from operations rose 64.4% to ₹3,041.67 crore in Q2 FY27 from ₹1,849.86 crore a year earlier.
The rise in reported profit was accompanied by a sharp increase in gains from fair value changes, which climbed to ₹833.05 crore in the September quarter from ₹9.15 crore a year earlier.
However, the company’s operating profit after tax (PAT), which excludes treasury income, grew at a more moderate pace of 29% to ₹718 crore. Operating PAT increased 18% sequentially.
Asset management leads growth
Asset management emerged as the largest contributor to operating profit, with profit after tax rising 69% year-on-year to ₹304 crore. The business accounted for 43% of the group’s operating PAT.
The company’s asset and private wealth management segment reported operating PAT of ₹416 crore, up 43% from ₹290 crore a year earlier. Wealth management PAT increased 3% to ₹175 crore, while capital markets PAT declined 5% to ₹85 crore. Housing finance PAT rose 7% to ₹36 crore.
Assets under advice from the group’s asset management business increased 26% year-on-year to ₹3.2 lakh crore. Revenue from annual recurring revenue (ARR)-generating assets rose 27% to ₹1,182 crore, while recurring revenue accounted for 66% of total revenue.
Commenting on the results, Motilal Oswal, managing director and chief executive officer of the company, said, “Q2FY27 reflects the deliberate shift in our earnings mix. Asset Management is now our largest profit pool, and two-thirds of our revenue is recurring, which makes our earnings more resilient through market cycles.”
Custodian licence secured
During the quarter, the group received approval from the Securities and Exchange Board of India (Sebi) to operate as a custodian of securities. The licence allows it to offer services including safekeeping of securities, trade settlement, corporate action processing and regulatory reporting for institutional clients.
The company said it expects to commence operations in the fourth quarter of FY27, subject to completing operational readiness requirements.
For the first half of FY27, operating PAT rose 22% year-on-year to ₹1,327 crore. Total comprehensive income, including other comprehensive income, increased 51% to ₹2,583 crore, the highest half-yearly figure in the company’s history.
Motilal Oswal said the group was well placed to deliver growth, supported by AA+/Stable credit ratings from three rating agencies and a rising contribution from recurring revenue.