Motilal Oswal's Q3FY26: A Deep Dive into Record Profits and Strategic Growth

Motilal Oswal Financial Services Limited (MOFSL), a prominent player in India's capital markets, has reported an exceptional performance for Q3FY26 and the nine months ended December 31, 2025. The company achieved its highest-ever operating Profit After Tax (PAT) of ₹611 crore in Q3FY26, marking a robust 16% year-on-year (YoY) and 10% quarter-on-quarter (QoQ) growth. This impressive financial outcome was primarily driven by strong momentum in its annuity businesses, particularly the Asset and Private Wealth Management segments. The total PAT, including treasury and Other Comprehensive Income (OCI), stood at ₹721 crore, reflecting a significant 58% YoY increase. The Board also declared an interim dividend of ₹6 per share, a 20% increase from the previous year, underscoring the company's commitment to shareholder returns.

The company's strategic focus on sustainable and fee-based revenues continues to yield positive results. For the nine months ended December 31, 2025 (9MFY26), the total fees and Net Interest Income (NII) based revenue share increased to 74% from 58% in FY21, indicating a healthier and more predictable revenue mix. This shift is a testament to Motilal Oswal's efforts to diversify beyond traditional brokerage, which now accounts for 23% of 9MFY26 operating net revenue, down from 37% in FY21.

Segmental Performance and Strategic Initiatives

The Asset & Private Wealth Management (APWM) segment has been a key growth engine, contributing significantly to the group's operating PAT. For 9MFY26, APWM operating PAT grew by 30% YoY. The Asset Management business (AMC + Alternates) saw robust net flows of ₹11,600 crore in Q3FY26, with total AUM reaching ₹1.89 lakh crore, up 33% YoY. A notable achievement is that 91% of the company's AUM outperformed their respective benchmarks over the past three years, highlighting strong investment performance. The company also launched its maiden Private Credit Fund in January 2026 with a target fund size of ₹3,000 crore, marking its entry into this emerging segment.

In Private Wealth Management, AUM grew 31% YoY to ₹1.96 lakh crore, serving over 8,200 families. The segment's PAT for 9MFY26 stood at ₹280 crore, up 14% YoY, with an improved cost-to-income ratio of 53%. The company is actively enhancing its digital engagement through initiatives like the MO Private Wealth App and the relaunched RiiSE App, which offers AI-led research and advanced portfolio insights for retail customers.

The Capital Markets business, encompassing Institutional Equities and Investment Banking, reported a PAT of ₹70 crore in Q3FY26, a 15% YoY increase. The Institutional Equities segment covers over 350 companies across 27 sectors, representing about 74% of India's market capitalization, with plans to expand coverage to 400 stocks by the end of the year. The Investment Banking division successfully completed 51 deals in 9MFY26 with a cumulative issue size exceeding ₹77,150 crore, securing the #1 rank in IPOs and QIPs for CY25.

Motilal Oswal's Housing Finance business also demonstrated strong growth, with AUM increasing 24% YoY to ₹5,379 crore. Disbursements grew by 47% YoY to ₹578 crore (adjusted for a one-time recognition change). The segment's PAT for Q3FY26 was ₹42 crore, up 12% YoY, and it maintains a strong capital adequacy ratio and low leverage, positioning it for continued growth in the next 2-3 years.

Outlook and Capital Allocation

Management remains highly optimistic about India's long-term growth trajectory, citing the