Motilal Oswal Q3 Results: Revenue Jumps 18%, Declares ₹6 Dividend

Introduction to Q3 Performance

Motilal Oswal Financial Services Ltd. (MOFSL) announced a solid performance for the third quarter of the fiscal year 2026, ending December 31, 2025. The company reported an 18% year-on-year increase in consolidated revenue, reaching ₹2,111.6 crore. This growth was accompanied by a 5.9% rise in consolidated net profit, which stood at ₹565.9 crore. The board also declared an interim dividend, signaling confidence in the firm's financial health and operational strength. The results underscore the success of the company's diversified business model, with its asset and wealth management verticals serving as the primary growth engines during the quarter.

Detailed Financial Highlights

The company achieved its highest-ever operating profit after tax (PAT) in Q3 FY26, which came in at ₹611 crore. This represents a significant 16% increase compared to the same period last year and a 10% rise from the preceding quarter. When including treasury and Other Comprehensive Income (OCI) gains, the total PAT surged by an impressive 58% year-on-year to ₹721 crore. This comprehensive growth reflects strong execution across its core business activities. In a move that will benefit shareholders, the company's board of directors has approved an interim dividend of ₹6 per equity share for the financial year 2025-26.

Powering Growth: A Look at Segment Performance

The quarter's strong results were largely attributable to the outstanding performance of key business segments, particularly asset and private wealth management. These divisions demonstrated robust growth in both profitability and assets under management (AUM), reinforcing their importance to the company's overall strategy.

Asset Management

The Asset Management business was a standout performer, with its PAT jumping 65% year-on-year to ₹227 crore. The total AUM for this segment grew by 33% to reach ₹1.89 lakh crore. This expansion was broad-based, with Mutual Fund AUM increasing by 40% and Private Alternatives AUM expanding by 62%. Furthermore, Systematic Investment Plan (SIP) inflows saw a remarkable 55% year-on-year surge, totaling ₹4,515 crore, giving Motilal Oswal a leading market share of 5% in this category.

Wealth and Private Wealth Management

The Private Wealth Management division also delivered a strong performance, reporting a PAT of ₹82 crore. Its AUM increased by 31% year-on-year to ₹1.96 lakh crore, supported by consistent net inflows and enhanced productivity from relationship managers. The broader Wealth Management segment, which includes brokerage, recorded a PAT of ₹181 crore, with brokerage revenue climbing 15% sequentially, indicating market share gains in both cash and derivatives markets.

Performance of Other Key Verticals

Beyond the primary growth drivers, other business segments also contributed positively to the quarterly results.

• Capital Markets: The Capital Markets business, which includes institutional equities and investment banking, saw its PAT grow by 15% year-on-year to ₹70 crore. The firm solidified its leadership position, ranking first in IPOs and QIPs during the calendar year 2025.

• Housing Finance: The housing finance arm reported a 12% increase in PAT, reaching ₹42 crore for the quarter, indicating steady growth in its loan book and operations.

• Treasury Operations: The company's treasury book expanded by 16% year-on-year to ₹9,562 crore. This segment delivered a healthy XIRR (Extended Internal Rate of Return) of 18.5% since its inception, showcasing efficient capital management.

Key Financial Metrics Summary

Segment-wise Profitability

Market Reaction and Stock Performance

In the trading session preceding the announcement of the financial results, the shares of Motilal Oswal Financial Services experienced a slight decline. The stock closed at ₹738 per share on the National Stock Exchange (NSE), marking a decrease of 1.4%. The market's reaction in the coming days will be watched closely as investors and analysts digest the details of this strong quarterly report.

Conclusion and Forward Outlook

Motilal Oswal Financial Services has delivered a resilient performance in the third quarter of FY26, characterized by strong revenue growth and record operating profitability. The results highlight the strength of its diversified business model, where the asset and wealth management verticals have more than compensated for any potential headwinds in other areas. The declaration of an interim dividend further reinforces the company's commitment to creating shareholder value. Looking ahead, the company has scheduled an earnings conference call with investors and analysts on January 28, 2026, to discuss the financial performance in greater detail and provide insights into its future strategy.