Motilal Oswal Q3FY26 Profit Soars 58% to ₹721 Crore

Introduction to Q3FY26 Performance

Motilal Oswal Financial Services Limited (MOFSL) announced a robust financial performance for the third quarter of fiscal year 2026, which concluded on December 31, 2025. The company achieved its highest-ever operating Profit After Tax (PAT) of ₹611 crore, reflecting a significant 16% year-over-year (YoY) growth and a 10% sequential increase. The total PAT, which incorporates treasury gains and other comprehensive income, surged by an impressive 58% YoY to reach ₹721 crore. This strong performance prompted the company's board to declare an interim dividend of ₹6 per share, signaling confidence in its financial health and commitment to shareholder returns.

Detailed Financial Highlights

The company's strong bottom-line growth was supported by a healthy increase in revenue. Total net revenues for Q3FY26 stood at ₹1,497 crore, an 11% rise compared to the same period last year. The Profit Before Taxes (PBT) for the quarter was ₹814 crore, marking a 16% YoY increase and resulting in a healthy PBT margin of 54%. For the nine months ending in December 2025, the operating PAT grew by 13% YoY to ₹1,699 crore, while total net revenues for the same period increased by 14% YoY to ₹4,385 crore. This consistent growth demonstrates the company's effective execution of its strategic initiatives and its ability to capitalize on market opportunities.

Segment-wise Performance Breakdown

MOFSL's diversified business model showed its strength, with most segments contributing positively to the overall results. The Asset & Private Wealth Management (APWM) division was the standout performer, delivering a PAT of ₹309 crore, a substantial 32% increase YoY. This growth was fueled by a 33% YoY expansion in the Asset Management AUM to ₹1.89 lakh crore and a 31% YoY rise in Private Wealth AUM to ₹1.96 lakh crore. The Capital Markets segment, which includes Institutional Equities and Investment Banking, also performed well, posting a 15% YoY PAT growth to ₹70 crore and maintaining its top ranking in IPOs and QIPs during calendar year 2025. The Housing Finance business reported an 11% YoY increase in PAT to ₹40 crore, with its AUM growing 24% to ₹5,379 crore. The Wealth Management segment, encompassing retail broking, recorded a PAT of ₹181 crore. While this was a slight 5% decline YoY, the segment's underlying operational metrics remained strong, with brokerage revenue growing 15% quarter-over-quarter.

The Strategic Twin-Engine Model

A core component of MOFSL's strategy is its unique "Twin-Engine Model," which combines its diverse operating businesses with a substantial treasury investment book. This model provides strategic synergy, liquidity, and stability, allowing the company to fund growth in its operating segments without raising external equity capital since its IPO in 2007. The treasury book itself grew 16% YoY to ₹9,562 crore and has consistently delivered a strong Extended Internal Rate of Return (XIRR) of 18.5% since its inception. This approach has been instrumental in the company's long-term value creation, supporting a 31% PAT CAGR since FY14.

Balance Sheet Strength and Long-Term Vision

MOFSL's financial position remains robust, providing a solid foundation for future expansion. As of December 2025, the company's net worth stood at ₹13,632 crore, an 18% increase year-over-year. The group's total Assets Under Management (AUM) also saw significant growth, expanding by 17% YoY to surpass the ₹7 lakh crore mark. A key aspect of the company's strategy has been the shift towards more stable, recurring revenue streams. The share of fees and Net Interest Income (NII) in total operating net revenue rose to 74% in the first nine months of FY26, a notable increase from 58% in FY21. This transition enhances the predictability and stability of earnings, which is crucial for sustainable long-term growth.

Conclusion and Forward Outlook

Motilal Oswal Financial Services has delivered a commendable performance in Q3FY26, highlighted by record operating profits and broad-based growth across its key business verticals. The results underscore the success of its diversified business model and its strategic focus on building sustainable, fee-based revenue streams. The strong performance of the Asset and Private Wealth Management businesses, combined with solid contributions from other segments, positions the company well for the future. With a strong balance sheet, a clear strategic vision, and a commitment to prudent capital allocation, MOFSL is well-equipped to leverage the ongoing financialization trend in the Indian economy and continue delivering value to its shareholders.