Motilal Oswal Financial Services Ltd. (MOFSL) has reported a significant 29% year-on-year increase in its operating profit after tax (PAT) for the second quarter of the fiscal year 2027, reaching ₹718 crore. This growth was primarily propelled by a robust 69% surge in the asset management segment. The company also achieved its highest-ever half-yearly total PAT of ₹2,583 crore, marking a 51% year-on-year rise, inclusive of other comprehensive income.
The asset management business emerged as the largest contributor to the operating PAT, accounting for 43% of the total. The assets under management (AUM) for this segment rose by 26% year-on-year to approximately ₹2.23 lakh crore. The asset management division, which includes mutual funds, portfolio management services, and alternative investment funds, recorded a 25% increase in AUM to about ₹2 lakh crore. The company’s mutual fund net flow market share climbed to 6% in September 2026, double its AUM market share of 2.7%.
In addition to the asset management success, MOFSL’s private wealth management segment saw a 58% year-on-year increase in AUM to approximately ₹3 lakh crore. The lending book for this segment also grew significantly by 90% year-on-year to ₹7,333 crore. The wealth management division, despite facing regulatory headwinds and flat markets over the past eight quarters, reported a 3% year-on-year increase in PAT. The capital markets segment, ranked among India’s top three investment banks, saw a 31% quarter-on-quarter increase in revenue.
During the quarter, MOFSL secured a custodian licence from the Securities and Exchange Board of India (SEBI), completing its institutional services value chain. This approval allows the company to offer a range of services including safekeeping of securities and trade settlement to institutional clients. The company plans to commence these operations in the fourth quarter of FY27, pending operational readiness.
Market analysts view MOFSL’s performance as a reflection of its strategic focus on asset management and recurring revenue streams, which now constitute 66% of its total revenue. The company’s strong financial results, coupled with an AA+ stable credit rating from all three leading rating agencies, underscore its robust business model and potential for sustainable growth in the evolving financial landscape.
