News ArticleMotilal Oswal Financial Services Posts 29% Q2FY27 Operating PAT Growth Driven by 69% Asset Management Profit Increase
Total half-yearly PAT reaches record ₹2,583 crore; SEBI grants custodian licence with operations starting Q4FY27
Motilal Oswal Financial Services announced a 29% year-on-year increase in operating PAT to ₹718 crore for Q2FY27, driven by a 69% rise in its Asset Management segment. The company reported its highest-ever half-yearly total PAT of ₹2,583 crore, up 51% YoY, with Annual Recurring Revenue assets growing 26% to ₹3.2 lakh crore and strong segmental growth across business units.
Motilal Oswal Financial Services Limited
Financial Results
Motilal Oswal Financial Services Limited reported a 29% rise in operating profit after tax (PAT) to ₹718 crore for the quarter ended September 30, 2026, mainly driven by a 69% surge in profit from its Asset Management business. The half-yearly total PAT reached a record ₹2,583 crore, marking a 51% year-on-year improvement.
The company's Annual Recurring Revenue (ARR) assets increased 26% year-on-year to ₹3.2 lakh crore, while ARR revenue grew 27% to ₹1,182 crore. Sequentially, net operating revenue rose 14% and operating PAT increased 18%.
Motilal Oswal received SEBI approval to operate as a Custodian of Securities during Q2 and plans to commence custodian operations in Q4FY27 after completing operational readiness. This expands the group’s service capabilities to safekeeping, trade settlement, corporate action processing and regulatory reporting for institutional clients including mutual funds and alternative investment funds.
The Asset Management segment posted a PAT of ₹304 crore, a 69% increase year-on-year, now constituting 43% of the company's operating PAT. Its assets under management rose 26% to approximately ₹2.23 lakh crore.
Other business segments such as Private Wealth Management, Wealth Management, Capital Markets, and Housing Finance all recorded growth in revenues and profits with key highlights including a 58% year-on-year increase in Private Wealth AUM to ₹3 lakh crore and continued credit rating at AA+ with stable outlook from all major agencies.
The Board also approved the issuance of non-convertible debentures up to ₹3,000 crore and the designation of Mr. Janak Dalal as Senior Management Personnel, effective October 29, 2026.
Highlights
- Operating PAT grew 29% YoY to ₹718 crore in Q2FY27 and 22% YoY to ₹1,327 crore in H1FY27.
- Highest-ever half-yearly total PAT of ₹2,583 crore, up 51% YoY including other comprehensive income.
- Asset Management PAT rose 69% YoY to ₹304 crore, contributing 43% of operating PAT.
- Annual Recurring Revenue assets increased 26% YoY to ₹3.2 lakh crore, with ARR revenue up 27% YoY to ₹1,182 crore.
- Received SEBI custodian licence to start institutional securities safekeeping and related services in Q4FY27.
- Credit rating maintained at AA+ / Stable by all three leading agencies after India Ratings' upgrade.
Key Data Snapshot
What happened
- Motilal Oswal Financial Services reported a 29% YoY increase in operating PAT to ₹718 crore for Q2FY27.
- The Asset Management business led growth with a 69% YoY increase in PAT to ₹304 crore, now the largest profit-contributing segment.
- Total half-yearly PAT including other comprehensive income rose 51% YoY to ₹2,583 crore, the highest ever for the company.
- SEBI granted the group custodian licence, enabling it to provide securities safekeeping and related services to institutions starting Q4FY27.
Key details
- Annual Recurring Revenue (ARR) assets grew 26% YoY to ₹3.2 lakh crore while ARR revenue increased 27% YoY to ₹1,182 crore.
- All segments showed sequential growth in revenue and operating PAT, with net operating revenue up 14% QoQ and operating PAT up 18% QoQ.
- The Board approved issuing non-convertible debentures up to ₹3,000 crore through public/private issuance.
- Mr. Janak Dalal was appointed Senior Management Personnel from October 29, 2026.
- Credit ratings remained AA+ with stable outlook, including an upgrade from India Ratings.
Financial performance
- Q2FY27 asset management AUM reached approximately ₹2.23 lakh crore, up 26% year-on-year.
- Private Wealth Management AUM grew 58% YoY to about ₹3 lakh crore, with net lending book increasing 90% YoY to ₹7,333 crore.
- Capital Markets revenue rose 31% QoQ with PAT up 12% QoQ, maintaining the group’s position among top Indian investment banks.
- Housing Finance disbursements increased 29% YoY to ₹701 crore with asset quality metrics remaining strong: GNPA at 1.5% and NNPA at 0.9%.
Highlights
- Operating PAT grew 29% YoY to ₹718 crore in Q2FY27 and 22% YoY to ₹1,327 crore in H1FY27.
- Highest-ever half-yearly total PAT of ₹2,583 crore, up 51% YoY including other comprehensive income.
- Asset Management PAT rose 69% YoY to ₹304 crore, contributing 43% of operating PAT.
- Annual Recurring Revenue assets increased 26% YoY to ₹3.2 lakh crore, with ARR revenue up 27% YoY to ₹1,182 crore.
- Received SEBI custodian licence to start institutional securities safekeeping and related services in Q4FY27.
- Credit rating maintained at AA+ / Stable by all three leading agencies after India Ratings' upgrade.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- SEBI Master Circular dated July 11, 2025
- Regulation 30, 33, 52 and 54 of the Listing Regulations
Source Information
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