Prime Highlights
- Asset Management PAT jumped 73% and contributed 40% of the company’s overall PAT.
- Operating profit rose 14% as strong growth in asset management and housing finance offset weaker capital markets.
Key Facts
- Motilal Oswal Financial Services Ltd is an Indian financial services company offering wealth management, asset management, capital markets and housing finance services.
- Total AUM increased 31% year on year to ₹2.12 lakh crore in the first quarter of FY27.
Background
Motilal Oswal Financial Services Ltd reported a 14.04% year-on-year rise in operating profit to ₹609 crore in the first quarter of FY27, supported by strong performance in its asset management, private wealth and housing finance businesses. The company’s asset management business emerged as the biggest contributor to earnings, while the capital markets segment reported lower profit during the quarter.
The asset and private wealth management business posted a 46% increase in operating profit after tax (PAT) to ₹335 crore. Within this, the asset management business recorded a 73% rise in PAT to ₹245 crore and contributed 40% of the company’s overall PAT. Total assets under management (AUM) grew 31% to ₹2.12 lakh crore.
The company’s mutual fund business reported higher market share in net inflows than its AUM share. SIP inflows increased 16% to ₹4,064 crore, while AMC AUM rose 26% to ₹1.90 lakh crore. Motilal Oswal Alternates nearly doubled its AUM and completed the second close of its first private credit fund, raising ₹2,435 crore toward a target of ₹3,000 crore in July.
Private Wealth Management reported 42% growth in annual recurring revenue and 37% growth in AUM. Housing Finance also performed well, with PAT rising 36%, disbursements increasing 64%, and AUM growing 23%.
However, the Wealth Management business reported a 7% decline in operating PAT, while the Capital Markets business posted a 25% fall in operating PAT despite a sharp increase in fee income.
The company said annuity revenues accounted for 66% of its business, improving earnings stability. Its treasury book also expanded 22% year on year to ₹10,482 crore.