News ArticleMotilal Oswal Financial Services Posts 29% YoY Operating PAT Rise in Q2FY27 and Secures SEBI Custodian License
Highest half-year total PAT of ₹2,583 crore recorded with 69% profit growth in Asset Management; custodian operations to begin in Q4FY27
Motilal Oswal Financial Services Ltd. announced a 29% year-on-year increase in operating PAT to ₹718 crore for Q2FY27, driven by a 69% rise in Asset Management profit after tax. The company achieved its highest-ever half-yearly total PAT of ₹2,583 crore, up 51% YoY, with strong growth in assets under management and receipt of SEBI custodian license, aiming to commence operations in Q4FY27.
Motilal Oswal Financial Services Ltd.
General / Other
Motilal Oswal Financial Services Ltd. reported a 29% year-on-year increase in operating profit after tax (PAT) to ₹718 crore for the quarter ended September 30, 2026. The growth was primarily driven by a 69% increase in PAT from its Asset Management segment. The company also achieved its highest-ever half-year total PAT of ₹2,583 crore, reflecting a 51% year-on-year increase.
The Asset Management business, including Mutual Fund, Portfolio Management Services, and Alternative Investment Funds, reported PAT of ₹304 crore in Q2FY27, contributing 43% of the company's operating PAT, with total assets under management (AUM) growing 26% year-on-year to approximately ₹2.23 lakh crore.
The company’s Annual Recurring Revenue (ARR) assets rose to ₹3.2 lakh crore, up 26% year-on-year, while ARR revenue increased 27% year-on-year to ₹1,182 crore, reflecting improved earnings quality and predictability.
Other business segments including Private Wealth Management, Wealth Management, Capital Markets, and Housing Finance also reported growth or stable performance, with Private Wealth Management AUM growing 58% year-on-year to about ₹3 lakh crore.
Motilal Oswal Financial Services received SEBI approval to act as a Custodian of Securities during Q2FY27. This approval enables the group to offer safekeeping of securities, trade settlement, corporate action processing, and regulatory reporting services to institutional clients. Operations are slated to commence in Q4FY27 subject to readiness.
The company also approved issuance of Non-Convertible Debentures (NCDs) up to ₹3,000 crore via public or private placements and designated Mr. Janak Dalal as Senior Management Personnel effective October 29, 2026.
Highlights
- Operating PAT for Q2FY27 rose 29% YoY to ₹718 crore and 18% quarter-on-quarter.
- Total PAT including Other Comprehensive Income for H1FY27 reached a record ₹2,583 crore, up 51% YoY.
- Asset Management PAT surged 69% YoY to ₹304 crore, now the largest contributor at 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.
- Motilal Oswal received SEBI custodian license and plans to start operations in Q4FY27.
- Non-Convertible Debentures issuance approved up to ₹3,000 crore in multiple tranches.
Key Data Snapshot
What happened
- Motilal Oswal Financial Services approved its unaudited consolidated and standalone financial results for Q2 and H1FY27 ending September 30, 2026.
- The company posted a 29% YoY increase in operating PAT for Q2FY27, reaching ₹718 crore and a 51% YoY rise in total PAT for H1FY27 to ₹2,583 crore.
- The Board approved the issuance of Non-Convertible Debentures up to ₹3,000 crore in one or more tranches.
- Mr. Janak Dalal was designated as Senior Management Personnel effective October 29, 2026.
- Motilal Oswal secured SEBI approval to act as a Custodian of Securities, planning to start custodian operations in Q4FY27.
Key details
- Asset & Private Wealth Management segment reported PAT of ₹416 crore in Q2FY27, up 43% YoY.
- Wealth Management PAT was ₹175 crore, up 3% YoY.
- Capital Markets segment faced a 5% YoY dip in PAT but improved 12% QoQ.
- Housing Finance segment saw PAT rise 7% YoY.
- ARR assets and revenue grew 26% and 27% YoY respectively, enhancing revenue quality and predictability.
Strategic context
- The SEBI custodian license approval positions Motilal Oswal among select institutions authorized to provide securities safekeeping and related services for institutional clients.
- Designation of Mr. Janak Dalal as Senior Management Personnel brings seasoned leadership with global experience in custody and securities services.
- Issuing NCDs up to ₹3,000 crore will provide additional capital flexibility.
Next milestones
- Commencement of custodian business operations planned for Q4FY27, subject to completing operational readiness.
- Presentation to investors and analysts scheduled for October 30, 2026, to discuss Q2/H1 FY27 financial performance.
Highlights
- Operating PAT for Q2FY27 rose 29% YoY to ₹718 crore and 18% quarter-on-quarter.
- Total PAT including Other Comprehensive Income for H1FY27 reached a record ₹2,583 crore, up 51% YoY.
- Asset Management PAT surged 69% YoY to ₹304 crore, now the largest contributor at 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.
- Motilal Oswal received SEBI custodian license and plans to start operations in Q4FY27.
- Non-Convertible Debentures issuance approved up to ₹3,000 crore in multiple tranches.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- SEBI Master Circular dated July 11, 2025
- Regulation 30, 33, 52, 54 of SEBI Listing Regulations
Source Information
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