Motilal Oswal Q3FY26 Results: PAT Soars 58% to ₹721 Crore

Introduction

Motilal Oswal Financial Services Ltd. (MOFSL) announced strong financial results for the third quarter of fiscal year 2026, ending December 2025. The company reported a 58% year-over-year (YoY) increase in its total Profit After Tax (PAT) to ₹721 crore. This performance was largely driven by significant growth in its Asset and Private Wealth Management divisions. In response to the strong quarter, the company's board has declared an interim dividend of ₹6 per share for its investors.

Q3FY26 Financial Highlights

The quarter marked a record-breaking performance for MOFSL, achieving its highest-ever operating PAT of ₹611 crore, which represents a 16% increase YoY and a 10% rise from the previous quarter. The total PAT, which includes treasury gains and Other Comprehensive Income (OCI), reached ₹721 crore, underscoring a substantial 58% YoY growth. This robust bottom-line performance reflects the company's effective operational strategies and favorable market conditions across its key business segments.

Segment-wise Performance Breakdown

A detailed look at the segmental performance reveals broad-based growth across the company's verticals. Each division contributed to the overall positive results, showcasing the strength of MOFSL's diversified financial services portfolio.

Asset Management: This segment was a standout performer, with its PAT growing by an impressive 65% YoY to ₹227 crore. The total Assets Under Management (AUM) for this division increased by 33% YoY to ₹1.89 lakh crore. This growth was fueled by a 40% rise in Mutual Fund AUM and a 62% increase in Private Alternates AUM. Systematic Investment Plan (SIP) inflows also saw a significant surge of 55% YoY, reaching ₹4,515 crore.

Private Wealth Management: The Private Wealth Management arm reported a PAT of ₹82 crore. The growth was supported by strong net new flows of ₹4,314 crore during the quarter. The AUM for this segment grew by 31% YoY, reaching ₹1.96 lakh crore.

Wealth Management: The broader Wealth Management business delivered a PAT of ₹181 crore. Brokerage revenue saw a healthy 15% increase quarter-over-quarter. The distribution book expanded by 34% YoY to ₹42,775 crore, indicating strong client acquisition and retention.

Capital Markets: The Capital Markets division, which includes institutional equities and investment banking, posted a PAT growth of 15% YoY to ₹70 crore. The company maintained its leadership position, ranking number one across IPOs and QIPs in the calendar year 2025.

Housing Finance: The housing finance subsidiary also contributed positively, with its PAT growing by 12% YoY to ₹42 crore. Its AUM expanded by 24% YoY to ₹5,379 crore, reflecting steady growth in its loan book.

Performance Summary Table

Treasury and Balance Sheet Strength

The company's treasury operations continued to deliver solid returns. The treasury book grew by 16% YoY to ₹9,562 crore and has generated a healthy Extended Internal Rate of Return (XIRR) of 18.5% since its inception. This performance highlights the firm's adeptness in managing its proprietary capital.

Over the long term, MOFSL has demonstrated consistent financial strength. The company's net worth has grown nearly tenfold since March 2015, reaching ₹13,632 crore. This sustained growth is also reflected in its Operating PAT, which has grown at a Compound Annual Growth Rate (CAGR) of 31% over the last decade.

Market Reaction and Stock Performance

On January 27, 2026, the day of the announcement, the stock of Motilal Oswal Financial Services closed at ₹732.10 on the NSE, down 2.52% from its previous close. The stock has a 52-week high of ₹1,097 and a 52-week low of ₹487.85. The company's market capitalization stands at approximately ₹44,363.48 crore. The current Price-to-Earnings (P/E) ratio is 44.03, and the Price-to-Book (P/B) ratio is 5.49.

Outlook and Forward Steps

Motilal Oswal Financial Services has scheduled an earnings conference call with investors and analysts for January 28, 2026, to discuss the quarterly financial performance in greater detail. The company's consistent growth across its core businesses, coupled with a strong balance sheet, positions it well to capitalize on future market opportunities. The declared interim dividend further reinforces its commitment to delivering value to shareholders. Investors will be watching the upcoming conference call for further insights into the company's strategy and outlook for the coming quarters.