Motilal Oswal Financial shares surge 10% on record quarterly operating profit
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Shares of Motilal Oswal Financial Services (MOFSL) jumped as much as 10.5% during intraday trade on Wednesday, reaching a high of ₹808.80 on the national stock exchange. The rally follows the company’s announcement of its highest-ever quarterly operating profit for the period ended December 31, 2025.
Record operating performance
The company reported its "highest-ever" operating profit after tax (PAT) of ₹611 crore, a 16% year-on-year (YoY) increase. Consolidated net profit for the quarter was up 58% YoY to ₹721 crore, bolstered by strong performance in the asset and private wealth management segments.
The group's total assets under advice (AUA) crossed the ₹7 lakh crore milestone during the quarter. Key growth drivers included:
Asset management: PAT increased 65% YoY to ₹227 crore, supported by a 33% rise in total AUM to ₹1.89 lakh crore.
Capital markets: Net revenue rose 9% YoY, with the company maintaining its leadership in IPO and QIP rankings.
Housing finance: Revenue grew 21% YoY to ₹116 crore.
Interim dividend and analyst views
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The board has declared an interim dividend of ₹6 per equity share (on a face value of ₹1) with the record date set as January 31, 2026.
Analysts noted that the results mark a transition from "negative to flat" financial performance, which signals a halt in recent profit declines. However, they remained cautious regarding the lack of immediate revenue growth in certain segments. The company’s successful pivot toward fee-based income, which now accounts for 45% of total revenues, was also highlighted as providing a more sustainable and predictable earnings profile.
Management has expressed confidence in maintaining this trajectory, citing "focused execution" and "sturdy growth" in its core wealth and asset management verticals. The company also noted a one-time provision of ₹14.4 crore recognised during the quarter to account for the impact of new labour codes on employee benefits.
Over the past 12 months, MOFSL has outpaced the broader market, delivering returns of over 20% compared to the Nifty 50’s 11% during the same period.