News ArticleMotilal Oswal Financial Services Reports 29% YoY Operating PAT Growth in Q2FY27 and Secures SEBI Custodian Licence
Highest-ever half-yearly total PAT of ₹2,583 crore achieved; Asset Management PAT surges 69% YoY; SEBI custodian licence enables new institutional capabilities from Q4FY27
Motilal Oswal Financial Services reported a 29% year-on-year increase in operating PAT for Q2FY27 to ₹718 crore, driven by 69% growth in Asset Management. The company also achieved its highest-ever half-yearly total PAT of ₹2,583 crore, up 51% YoY. Additionally, Motilal Oswal secured a SEBI custodian licence, enabling comprehensive institutional services, with operations expected to start in Q4FY27. Asset under advice rose 26% YoY to ₹3.2 lakh crore, while annual recurring revenue share increased to 66%.
Motilal Oswal Financial Services Limited
Investor Presentation
Motilal Oswal Financial Services announced a 29% year-on-year rise in operating profit after tax to ₹718 crore for the quarter ended September 30, 2026, mainly driven by 69% growth in its Asset Management segment. The company posted a record half-yearly total profit after tax of ₹2,583 crore, up 51% from the previous year, supported by rising annual recurring revenue and increased assets under advice.
The Asset Management business became the largest profit contributor, accounting for 43% of operating PAT, with total assets under management increasing 26% year-on-year to approximately ₹2.23 lakh crore. Mutual fund net flow market share improved to 4.0% for Q2FY27 and rose further to 6.0% by September 2026.
Motilal Oswal's annual recurring revenue assets grew 26% year-on-year to ₹3.2 lakh crore, with recurring revenue making up 66% of total revenue, enhancing earnings predictability. Other business segments also showed sequential revenue and profit growth, with net operating revenue increasing 14% quarter-on-quarter and operating PAT rising 18% quarter-on-quarter.
The company secured a custodian licence from the Securities and Exchange Board of India (SEBI) during the quarter. This new licence authorizes Motilal Oswal to offer safekeeping of securities, trade settlement, corporate action processing, and regulatory reporting for institutional clients, including alternative investment funds and mutual funds. Operational readiness is targeted for Q4FY27.
Credit rating agencies upgraded Motilal Oswal’s long-term credit rating to AA+ Stable, reflecting its strong franchise and sustainable business model. The treasury book grew 27% year-on-year to ₹11,346 crore, contributing to improved financial strength.
Segment performance highlights for Q2FY27 included 43% year-on-year growth in Asset and Private Wealth Management operating PAT, 3% rise in Wealth Management PAT, and 7% increase in Housing Finance operating PAT. Capital Markets segment faced a 5% year-on-year decline but improved sequentially.
Highlights
- Operating PAT increased 29% YoY to ₹718 crore in Q2FY27 and 22% YoY to ₹1,327 crore in H1FY27.
- Half-yearly total PAT, including other comprehensive income, reached ₹2,583 crore, a 51% YoY increase.
- Asset Management PAT soared 69% YoY to ₹304 crore, contributing 43% of operating PAT.
- Annual recurring revenue share rose to 66%, reflecting higher quality earnings.
- SEBI granted Motilal Oswal a custodian licence during Q2FY27; operations to start in Q4FY27.
- Total assets under advice rose 26% YoY to ₹3.2 lakh crore; Asset Management AUM increased 25% YoY to ~₹2 lakh crore in AMC business alone.
Key Data Snapshot
What happened
- Motilal Oswal Financial Services reported a 29% year-on-year increase in operating PAT to ₹718 crore for Q2FY27, driven by strong Asset Management growth.
- The company posted its highest-ever half-yearly total PAT of ₹2,583 crore, up 51% year-on-year including other comprehensive income.
- Motilal Oswal secured a SEBI custodian licence, allowing it to commence custodial services for institutional clients starting Q4FY27.
Key details
- Asset Management became the largest profit contributor with 43% share of operating PAT and PAT growth of 69% year-on-year.
- Annual recurring revenue (ARR) share rose to 66%, with ARR assets increasing 26% year-on-year to ₹3.2 lakh crore.
- Mutual fund net flow market share reached 4.0% in Q2FY27 and rose to 6.0% in September 2026.
- Other business segments showed sequential improvements in revenue and profitability.
- Credit rating agencies upgraded Motilal Oswal's long-term rating to AA+ Stable from all three leading agencies.
Financial performance
- Operating PAT for H1FY27 rose 22% year-on-year to ₹1,327 crore, excluding treasury and other comprehensive income.
- Total PAT for H1FY27 including other comprehensive income grew 51% year-on-year to ₹2,583 crore.
- Treasury book increased 27% year-on-year to ₹11,346 crore, contributing to overall financial strength.
Operational performance
- Asset under management (AUM) in Asset Management segment increased 25% year-on-year to approximately ₹2 lakh crore.
- Private Wealth Management AUM grew 58% year-on-year to ~₹3 lakh crore, with lending book up 90% year-on-year.
- Capital Markets segment ranked among India's top 3 investment banks, #1 in Qualified Institutional Placements (QIPs) for H1FY27.
Regulatory and governance context
- Received custodian licence from SEBI, enabling safekeeping and settlement services for institutional clients, including AIFs, PMS, mutual funds, insurance companies, and pension funds.
- Credit rating upgraded to AA+ Stable by CRISIL, India Ratings, and ICRA, reflecting business model strength.
- Operations under custodian licence to commence after operational readiness, targeted in Q4FY27.
Highlights
- Operating PAT increased 29% YoY to ₹718 crore in Q2FY27 and 22% YoY to ₹1,327 crore in H1FY27.
- Half-yearly total PAT, including other comprehensive income, reached ₹2,583 crore, a 51% YoY increase.
- Asset Management PAT soared 69% YoY to ₹304 crore, contributing 43% of operating PAT.
- Annual recurring revenue share rose to 66%, reflecting higher quality earnings.
- SEBI granted Motilal Oswal a custodian licence during Q2FY27; operations to start in Q4FY27.
- Total assets under advice rose 26% YoY to ₹3.2 lakh crore; Asset Management AUM increased 25% YoY to ~₹2 lakh crore in AMC business alone.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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