Motilal Oswal’s Net Profit Up by 31.6% in June Quarter

Mumbai, July 24, 2025 – Motilal Oswal Financial Services Ltd (NSE: MOTILALOFS) consolidated net profit after tax and associate income increased 31.6% year-on-year to ₹1,162.9 crore in the June quarter. This was supported by  gains from fair value changes and steady fee and commission income.

The company reported a total income of ₹2,74,415 lakh in Q1FY26, up 17.6% YoY and 30.2% QoQ. Revenue from operations hit ₹2,73,703 lakh. It is an 18.1% increase YoY. The surge in revenue indicates healthy business momentum across segments.

Key Financial Highlights (Consolidated)

• Total income for Q1 FY26 stood at ₹2,74,415 lakh, marking a 17.6% year-on-year (YoY) growth and a substantial 30.2% jump sequentially (QoQ) compared to Q4 FY25.
• Revenue from operations came in at ₹2,73,703 lakh, up 18.1% YoY and 29.9% QoQ, showing robust business performance across segments.
• The company posted a Profit Before Tax (PBT) of ₹1,40,559 lakh in Q1 FY26, a sharp turnaround from a loss of ₹2,666 lakh in Q4 FY25, and a 32.7% increase YoY.
• Profit After Tax (PAT) rose to ₹1,15,584 lakh, showing a 30.8% increase YoY from ₹88,358 lakh in Q1 FY25. The company had reported a loss of ₹6,319 lakh in the previous quarter.
• Including income from associates, the total PAT stood at ₹1,16,287 lakh, up 31.6% YoY.
• Basic Earnings Per Share (EPS) improved significantly to ₹19.39, up from ₹14.78 last year, registering a 31.2% YoY growth. EPS was negative in Q4 FY25 at ₹(1.08).

Expense Snapshot

• Total expenses rose to ₹1,33,856 lakh in Q1 FY26, reflecting a 5% increase year-on-year compared to ₹1,27,456 lakh in Q1 FY25.
• Finance costs came down by 9.7% YoY, from ₹32,654 lakh to ₹29,492 lakh, indicating improved debt servicing or reduced borrowings.
• Fees and commission expenses declined significantly by 17%, dropping to ₹30,424 lakh from ₹36,653 lakh in the same quarter last year.
• Employee benefit expenses surged 34.5% YoY, reaching ₹53,406 lakh compared to ₹39,699 lakh in Q1 FY25.
• Other expenses remained mostly stable, with a marginal decline of 3.5%, at ₹14,255 lakh versus ₹14,770 lakh in the year-ago quarter.

Employee expenses surged due to business expansion, while finance and commission costs saw rationalization.

Segment-Wise Overview

Motilal Oswal operates through five primary verticals: Wealth Management, Capital Markets, Asset & Private Wealth, Home Finance, and Treasury Investments.

• Wealth Management and Treasury Investments were major contributors to topline growth.
• Net gains from fair value changes in treasury operations recovered sharply from a Q4FY25 loss of ₹42,989 lakh to a gain of ₹1,06,787 lakh in Q1FY26.
• Fee and commission income remained steady across capital markets and asset management.

Strategic Developments

• The company allotted 1,96,854 equity shares under ESOP schemes during the quarter.
• A new DIFC-based step-down subsidiary, Motilal Oswal International Wealth Management Ltd, has received final approval from Dubai Financial Services Authority (DFSA) to commence operations.
• Mr. Suresh Sharma, a cybersecurity veteran, was appointed as Chief Information Security Officer (CISO)and designated as Senior Management Personnel (SMP) effective July 24, 2025.

Management Commentary

“Our first-quarter performance marks a strong beginning to FY26. We witnessed healthy performance across key verticals. This is noted especially in treasury and wealth management. Continued investments in technology and governance will further strengthen our resilience and positioning,” said Motilal Oswal, Managing Director & CEO.

Outlook

With a diversified business model, strong capital position, and expanding international footprint, Motilal Oswal is well-positioned to sustain growth. Continued focus on operational efficiency, product expansion, and digital transformation is expected to enhance long-term shareholder value.

Motilal Oswal Financial Services Stock Performance

Motilal Oswal Financial Services shares closed at ₹911.50 on July 24, 2025. This represents a 2.12% dip. Motilal Oswal Financial Services shares have gained 60% over the last year, dipped 6.07% year-to-date, and increased 5.9% in the previous month.

The stock opened at ₹935.00, reached a high of ₹955.00, and touched a low of ₹895.70 during the trading session. The company holds a market capitalisation of approximately ₹54,250 crore. It is currently trading at a P/E ratio of 22.23. Over the past 52 weeks, the stock has seen a high of ₹1,064.00 and a low of ₹513.00.

About Motilal Oswal Financial Services

Motilal Oswal Financial Services Ltd is a diversified, listed financial services firm engaged in capital markets, asset management, broking, wealth management, and home finance. The company is listed on NSE (MOTILALOFS) and BSE (532892).

REF:https://nsearchives.nseindia.com/corporate/MOTILALOFS_24072025130651_MOFSL_Board_Meeting_Outcome_24072025_Upload.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations