The Asset and Private Wealth Management segment reported a remarkable 46% year-on-year increase in operating profit after tax (PAT), rising to ₹335 crore from ₹230 crore. The Wealth Management sector recorded an operating PAT of ₹161 crore for the quarter, marking a 7% decline from ₹173 crore in the previous year’s corresponding quarter.
The Capital Markets division experienced a 25% year-on-year drop in operating PAT, falling to ₹76 crore from ₹101 crore. In contrast, Motilal Oswal’s Housing Finance segment saw a 36% increase in operating PAT, up to ₹32 crore from ₹24 crore a year prior.
ALSO READ | Bajaj Auto ‘bulls’ predict share price targets surpassing ₹13,000 each; Motilal Oswal upgrades post Q1
The Asset Management business, encompassing both Asset Management Company (AMC) and Motilal Oswal Alternates, reported a remarkable 73% year-on-year growth in PAT, totaling ₹245 crore in Q1 FY27, which contributed 40% to total PAT. The total assets under management (AUM) surged by 31% year-on-year, reaching ₹2.12 lakh crore.
Within the AMC framework, which includes Mutual Funds (MF), Portfolio Management Services (PMS), and Alternative Investment Funds (AIF), the net mutual fund flows market share was recorded at 4.2%, outpacing the AUM market share of 2.9%. Systematic Investment Plan (SIP) inflows rose by 16% year-on-year, totaling ₹4,064 crore, holding a market share of 4.3%. AMC AUM increased by 26% year-on-year to reach ₹1.90 lakh crore.
Motilal Oswal Alternates posted an impressive 99% year-on-year AUM growth. The business successfully completed the second close of its inaugural Private Credit Fund, raising ₹2,435 crore, with plans to reach a target of ₹3,000 crore.
The Private Wealth Management segment reported a 42% year-on-year growth in annual recurring revenue (ARR), reaching ₹157 crore. Net flows improved by 37% to ₹3,929 crore, bolstered by a 37% increase in AUM to ₹2.4 lakh crore. The base of relationship managers rose by 26%, totaling 441.
ALSO READ | Here’s why Motilal Oswal downgraded and reduced its price target on JSW Energy by nearly 17%
The Wealth Management division experienced a 26% year-on-year ARR revenue growth, amounting to ₹304 crore. The distribution book climbed by 29% to ₹45,575 crore, while the loan book grew by 33% to ₹7,388 crore. The group’s Margin Trade Funding (MTF) book rose by 55% year-on-year, reaching ₹7,800 crore. Brokerage revenue saw a 6% year-on-year increase, and the overall Average Daily Turnover (ADTO) market share, including commodities, stood at 7.6% in Q1 FY27.
The Capital Markets segment reported a 48% quarter-on-quarter increase in fee income, securing the second position in the Qualified Institutional Placement (QIP) and Initial Public Offering (IPO) league tables for Q1 FY27.
The Housing Finance division showed a 36% year-on-year PAT growth, amounting to ₹32 crore. Disbursements surged 64% to ₹646 crore, while AUM grew by 23% year-on-year to ₹6,164 crore. Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) stood at 1.1% and 0.6%, respectively.
ALSO READ | LTTS shares rise 9%: Motilal Oswal prioritizes consistent deal execution before turning positive
Motilal Oswal Financial Services’ treasury book expanded by 22% year-on-year, totaling ₹10,482 crore. The company indicated that annuity revenues accounted for 66% of the business, enhancing revenue quality and predictability.
Over the past decade, Motilal Oswal Financial Services reported a compound annual growth rate (CAGR) of 33% in operating PAT, a CAGR of 28% in earnings per share (EPS), and an average return on equity (ROE) of 23%. The company noted this growth was achieved through internal accruals without equity dilution, while the net worth CAGR stood at 25% following three buybacks and consistent dividend payments.
Shares of Motilal Oswal Financial Services Ltd closed at ₹944.80, down by ₹0.55, or 0.058%, on the BSE.
ALSO READ | Three EMS stocks Motilal Oswal is most optimistic about after recent cabinet decisions
