Motilal Oswal Financial Services Limited (NSE: MOTILALOFS) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Manish Kayal — Head of Investor Relations
Navin Agarwal — Group Managing Director
Prateek Agrawal — Managing Director & Chief Executive Officer, Asset Management
Ashish Shanker — Managing Director & Chief Executive Officer, Private Wealth Management
Shalibhadra Shah — Group Chief Financial Officer
Ajay Menon — Chief Executive Officer – Broking and Distribution
Analysts:
Mahek Shah — Analyst
Deep Vakil — Analyst
Nidhesh Jain — Analyst
Dipanjan Ghosh — Analyst
Lalit Mohan Deo — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to Motilal Oswal Financial Services Limited Q4 FY26 earnings conference call. [Operator Instructions]
I now hand the conference over to Mr. Manish Kayal. Thank you. And over to you. sir.
Manish Kayal — Head of Investor Relations
Thank you, Michel. Good afternoon, everyone. I welcome all the participants on behalf of Motilal Oswal Financial Services Limited to take time out to attend our Q4 and Full Year FY26 Earnings Conference Call. We hope that you had an opportunity to go through our investor deck and press release uploaded on the Stock Exchange and on our website yesterday. We have also uploaded the Excel Data book, which has all the operational and financial numbers.
Please note that today’s discussion may include some forward-looking statements. These forward-looking statements are based on our macro assessment, and actual outcome may vary. We have the entire senior leadership management on the call. We will start this call with an opening remark by Navin, and we’ll then have a Q&A session.
Over to you Navin. Thank you.
Navin Agarwal — Group Managing Director
Thank you, Manish, and good afternoon, everyone. A warm welcome to all of you to our earnings call for the quarter and the year ended March 2026. Starting with a broad backdrop, Motilal Oswal Financial Services Limited is the largest integrated capital markets player with strong and rising rankings across businesses, rising share of annuity revenues and with each business still offering a strong growth runway. Since our listing back in 2007, we have never diluted our equity while consistently paying out dividends and executing three buybacks. This has only been possible due to our unique twin engine business model, wherein our large investment book serves as a strong backbone to all the operating businesses, which has seen rising needs of capital over the years due to changing regulations or strong growth in terms of the scale of the businesses.
Our operating businesses have delivered a 10-year compounded operating profit after tax growth of 33% per annum, EPS growth of 28% per annum, return on equity of 23%. This strong growth is supported by our investment book, which grew by 40% compounded since inception, led by a combination of strong IRRs as well as reinvestment of the operating profits post distributions.
Our annuity businesses now contribute over 60% of the [Technical Issues] revenues have risen in the last five and 10 years, and we will continue to rise going forward, resulting in improved quality as well as predictability of our cash flows. This growth is powered by future-ready tech infrastructure. We have embedded AI in every facet of business process, improving internal productivity, strengthening execution and creating a long-term strategic differentiation.
We are now ranked among the top 150 companies based on the 2025 calendar year PAT, and among top 200 companies by market cap. We see the next decade offering equally exciting prospects, which should drive further improvement in these rankings.
In context, the capital Markets index is a rising part of NSE 500 Index and its shares — the capital market index shares in the NSE 500 has grown from near 0.13% 10 years ago to 0.84% five years ago, and now stands at over 2.5%. The number of companies in the capital market segment increased from just three, 10 years ago to 10 companies five years ago, and now at 18 companies.
Motilal Oswal Financial Services has generated alpha for all its shareholders by delivering a 10-year return of 26% versus 17% for NSE 50 and 12% for NSE 500. Strong growth in India’s total wealth from just over $10 trillion now to over $100 trillion in the centennial year of India. Financialization of these large wealth pool or savings, and continued industry consolidation augur well for MOFSL in the decade that is ahead.
Turning to FY26 performance. Our FY26 continues to witness strength in most of the businesses. Growth has been led, I repeat, by annuity businesses, mainly Asset Management and Private Wealth. Our operating profit after tax in the year FY26 grew by 16% YoY to INR2,360 crores, led by a 33% growth in the profits of Asset and Private Wealth businesses. These businesses now contribute around 50% of the total operating profit, and we expect their share to continue to rise as these businesses continue to grow at a faster pace.
Operating profit after tax for the fourth quarter grew by a strong 25%, and also the strongest in the four quarters of the last financial year. We exit the last quarter with an operating PAT run rate of INR661 crores.
Our long-term credit rating was upgraded to AA+, with stable outlook. This is the highest rating ever granted to any non-bank domestic capital market player in India.
Our total profit after taxes, including OCI for the fourth quarter and the full year is impacted due to mark-to-market on our investment book, which currently stands at around INR9,000 crores. These are unrealized losses and most of it has already been recouped in the month of April. The strong operating performance has been delivered in the backdrop of head-winded external environment, be it weak markets impacting mark-to-market in our AUM in multiple businesses including Asset Management, private wealth, et cetera, coupled with multiple regulatory changes, like the F&O changes, requirement of higher margins, et cetera, impacted market breadth.
Also, FY26 was a year of investments on all fronts in the group, be it people, be it brand or technology. We’ve not left any stone unturned to maintain our leadership position in our businesses.
Turning now to our segmental Performances. Asset Management and Private Wealth business comprises of the listed public equities AMC, the private equity business, the real estate credit business as well as the private wealth management business. Our asset management private wealth businesses continued momentum during the year with robust net flows of INR70,000 crores AUM — robust net flows of INR70,000 crores and an AUM of INR3.7 lakh crores, which is up by 34% year-on-year. The operating leverage from rising AUM has delivered a stronger profit growth, and that should continue into the future.
Starting with our Asset Management Business. Our AMC AUM crossed INR1.5Lakh Crores with diversified stream of active mutual funds, passive mutual funds, AIF and PMS. Unique PAN catered by our AMC crossed INR1 crores in Mar’26 vs INR77 lakhs in Mar’25 which shows strong confidence by retail investors in our franchise. This is around 16% client share of the Mutual Fund investor base. The revival in the April month itself has propelled our average AUM to grow from INR1.57 Lakh crores to INR1.8 Lakh crores now.
Our product bouquet is pretty young as significant flows comes only once product has crossed three years track record. We launched five new mutual fund active products in FY26 increasing our presence now to 82% of Industry AUM. But importantly, only six of our funds have a vintage of over three years vs 42/29/26 funds with similar vintage in our top three peers in asset management business. We expect eight funds to cross the three year vintage by March ’27 for us and 16 funds by March ’28. Some of these are best performing funds since inception in mainstream categories and this should help strong flows as well as diversification of our AUM over the next two years.
Our SIP flows in FY26 crossed INR16,000 crore mark, up 78% year on year with a market share of 4.7%, resulting in SIP AUM of INR30,000 crores as of March ’26. Our latest AUM at INR1.8 lakh crores is already 15% higher than our FY26 average of INR1.57 lakh crores. AUM growth will also be supported by the strong INR18,000 crore annualized SIP run rate, and as I mentioned earlier, more products crossing three year vintage and proposed collections from the NFOS in the pipeline should help the discretionary flows as well. We are growing via the Gift City route targeting inbound and outbound flows.
To summarize, the AMC business will be an important growth and ARR driver for MOFSL on the back of four factors, higher net flows market share than the AUM market share, improving market share in net flows led by greater number of products crossing three-year vintage and launch of new products, SIP run rate of INR1500 crores, and potential mark to market after muted market returns for the last two years.
Turning to the alternates of the private markets business, FY26 was eventful for our alternates business too. We raised our largest growth capital fund IBEF5 raising close to a $1 billion. This leads to a 40% growth in our fee accruing income from average AUM of INR15,000 crores to a closing AUM of INR21,000 crores. This AUM will be further supported by a strong launch pipeline with our maiden private credit fund of INR3,000 crore rupees, the first commercial real estate credit fund that we hope to launch in the second half of this year, besides the the launch of the Series 7 of the residential real estate credit fund.
Alternates is a high focus segment for us given the $1 trillion AUM in the developed market for just a market leader. We have a strong franchise in both capital and real estate and are confident to deliver industry leading IRRs to our clients in all the products that we offer. With the recent launch of our private credit fund and the forthcoming launch of a commercial credit fund, we’ll be offering a more comprehensive range of products in the alternates business which is only seeing higher allocations both from the family offices as well as institutions.
Here again to summarize, the alternates asset management business will also be a key growth driver and an ARR driver for the group on the back of three factors: larger fundraisers in every subsequent series. I would like to highlight that each of our growth capital funds have doubled in their size from the series 1 to 2 to 3 to 4 to 5, entering to adjacencies and newer categories, and finally, more funds entering carry income recognition threshold which will boost our carry income run rate from the current INR250 crores per annum. The asset management business now contributes 33% of the group’s operating profit after tax versus 26% in the last year.
Turning to our private wealth management business. We’ve made large investments in senior leadership as well as RMs, and will continue to do so in a calibrated manner for FY27 as well. Our focus is on growing the ARR AUM which is currently at INR46,000 crores through various initiatives including advisory solutions, sending leverage solutions as a value add for UHNI clients, exclusive co investments, leveraging group synergy, et cetera. Our 440-plus RMs will also witness productivity improvement as 32% of them have a vintage of three-plus years. All this will help in revenue growth along with cost to income improvement, driving profitability by operating leverage.
Turning to our wealth management business, it comprises of retail, broking, distribution, and our retail lending book which generates NII. Led by a sharp focus on growing our distribution income and NII, our broking revenues in the wealth management business segment now stand at 35% of the full year revenues compared to 60% five years ago.
Distribution book grew by 41% to nearly INR41,000 crores as of March ’26. We are confident that our distribution book will continue to grow meaningfully as we harness the cross-sell potential of our huge client base. Our loan book in the segment rose by over 30%, reaching INR6,000 crores. Our MTF market share is close to 7% and has headroom to grow further.
Our broking business continues to retain its leadership position as a full service broker. We are the largest broker in the cash segment on revenue market share. Our overall retail broking equity market share including commodities stood at 8.6% as of FY26.
To summarize for this business, we expect our ADTO market share to improve as the global uncertainty subsides as we’ve also historically witnessed rising market shares with rising markets. The distribution and lending book will continue to drive growth and increase its share in MOFSL’s ARR revenue pie.
Turning now to our capital markets business which includes both the institutional equities as well as the investment banking business. With a $5 trillion market cap and growing, there is a base level of IB activity that the markets will see every year. While there may be huge volatility quarter on quarter because of market conditions, we believe that despite all of this, our IB business has 52 deals in FY26 with a cumulative raise of nearly INR83,000 crores, and our fee income delivered a strong 39% growth to INR309 crores. We are ranked number two in capital markets league table and number one in the QIP league table for FY26.
In the institutional equities business, we aspire to take our coverage up from the current 360 to nearly 500 companies. We believe we built a strong franchise and a diversified product portfolio. We have headroom to grow in some of the areas like advisory as well as MND in the coming years. Our size per deal is materially higher than in the past and with a strong deal pipeline, we believe this business is also poised for growth in the coming year.
Turning to the housing finance business. We concluded another year of solid performance with disbursements rising by 28% to INR2,300 crores. AUM rising by 25% to INR6,100 crores. The housing finance business raised $100 million from ADB validating the strong franchise. We expect the housing finance business, having formed a strong base and a very strong leadership team to witness strong growth over the next two, three years.
Our business has a strong capital adequacy ratio, a low leverage, giving us enough growth levers without external equity capital dependency.
To conclude, the rise in wealth of the nation to over $100 trillion combined with financialization of savings, powerful tailwinds in terms of the rising weight of capital markets within the Indian market cap, all these augur well for the group. In this space, Motilal Oswal decadal track record of 33% compounded operating profit growth and an average ROE of 23% entirely through internal accruals with no dilution, with rising market share in each businesses, entry into promising adjacencies in nearly each of our businesses, rising share of annuity revenues to over 60%, and finally, improving quality and predictability of the cash flows driven by rising share of annuity revenues, all augur well.
FY25 and FY26, these two financial years are marked by regulatory tightening combined with weak markets. Despite this, MOFSL delivered an operating PAT growth of 16% in the last year, and 25% in the fourth quarter of last year. With regulatory headwinds in the base, continued resilience shown by Indian investors, the future outlook continues to look promising to us.
With this I conclude my opening remarks and open the floor for Q &A. Thank you.
Questions and Answers:
Operator
Thank you very much. Ladies and gentlemen, we will now begin with the question and answer session. [Operator Instructions] The first question is from the line of Mahek from Emkay Global. Please go ahead.
Mahek Shah
Yeah, hi. Thank you for the opportunity. So, I have a couple of questions. So first, with respect to the AMC business, right? So, if we look at the SIP market share, it has dipped a bit during the quarter. So just wanted to know your thoughts on the same and what initiatives are basically being taken to regain that market share?
Second would be on the revenue yields, sir. So how should we look at the revenue yields going forward with respect to, one, the regulatory change in terms of TER? And second, how are you looking at the alternate yield as well? Because if I look during the quarter, we have seen some bit of expansion in the yields. I think that would be largely on account of new funds which are being launched. So, if you can clarify on that?
And third question would be on the Private Wealth Management segment. So, if we see the lending assets have seen strong inflows during the quarter. So, what has driven this growth in AUM, and secondly, the inflows also? So, if you can just clarify on these things? Yeah,
Prateek Agrawal
Yeah. Thanks for your questions. The first one was on SIP. So we are having a SIP run rate of INR1400 plus crores a month. There is a slight decline in that on two counts. One, our international funds are no longer able to take in new monies. And second, the micro cap fund is also locked. So that’s the primary reason.
And then yes, on the active side we have seen a small drop in SIP. Now SIP book growth is very, very linked to strong performance. As that comes back to us, especially in the main categories, you should again expect SIP books to climb. But as we speak they are at last year levels itself.
Now second on fees. Our fees as a consequence of the TER changes has continued to be unimpacted. In fact, slightly improved for our cohort of AUM per category. So that hasn’t impacted us. On the alternate side also, our retention rates have been maintained. If at all, you see a compression in margins for us. It is on account of mix effect.
Our fastest growing part of business for last quarter, for example, was passives where our retention is lower than actives which is the second fastest growing part of our business versus the alternates where the growth was the slowest but the yields are the highest. So the mix effect does result in some downward pressure.
Ashish Shanker
Yeah. On the lending side in private wealth, as Navin had mentioned, it’s a stated strategy to provide solutions to ultra HNIs family offices and HNIs to enhance yields. So basically it’s a combination of lending against securities, lending against investment assets, and this basically contributes to growth in assets as well as ARR revenues.
Mahek Shah
Got it. Got it. I had one more last question with respect to the other expenses which is the admin and the other expenses. So we have seen a sequential growth of around 20%. So I just wanted to understand whether it is some sort of marketing or investment engagement program related expense or how — and particularly how should we look at it going forward in FY27.
Shalibhadra Shah
So quarter four includes predominant impact of higher marketing, brand promotion, and also the CSR expenses. So bulk of which have actually been incurred in the quarter four. So you will see the data slightly higher on a sequential basis. However for the full year, the overall other expenses are up by about 10% for the full financial year. Bulk of the other expenses includes marketing and tech where we spend almost about 5.5% of our net revenues for this financial year in FY26. So that’s the larger impact of the expense.
Mahek Shah
Got it sir. Thank you so much.
Operator
Thank you. The next question is from the line of Deep Vakil from Bandhan AMC. Please go ahead.
Deep Vakil
Hello. Thank you for the opportunity, sir. Am I audible?
Navin Agarwal
Yes.
Operator
Yes, sir.
Deep Vakil
Sir, a couple of questions. I mean any guidance on the MTF book? I understand that we had around INR6,500 crores of MTF book as of nine months FY26, which has been slowed down to INR5,700 crores as on March ’26. So any strategic thing that we are thinking around this? I mean I understand that our major lending — I mean this is the major e-lending vehicle wherein majorly debt is needed in this book itself. So any guidance around the MTF book, and how are we looking at it in ’27?
Shalibhadra Shah
See overall if we look at our MTF book that has actually grown for the full year at 40% which is a strong surge, and our cash market share is also about 7% and MTF market share is also a replica of that. So we definitely have a very strong balance sheet grow this book over last few years.
If you look at there has been a very strong growth of our MTF assets, and we expect similar strong growth to recur in the coming periods because we are the largest broker in terms of the cash brokerage revenue bank, and that is where we will carry an edge in terms of the higher growth for our MTF book.
Deep Vakil
Okay. And sir, I mean, any quarter on quarter impact, sir, I mean — or it is a strategic move that you have taken in this quarter to reduce maybe on a quarterly basis then again increase once market stabilizes.
Shalibhadra Shah
It’s more of market impact, sequentially or less across the industry the book is marginally lower. So it’s a very marginal production. However, we’re very confident of growing this book in the future.
Deep Vakil
Okay. And sir, any guidance on the broking income piece? Because I understand there was some degrowth in ’26 but for 2027 and I mean ’27, I understand once market condition stabilizes, volumes will return to normalcy. So any kind of number that you can put to broking revenues, I mean, over ’27.
Shalibhadra Shah
You are talking of the brokerage line. Right.
Deep Vakil
Yes, sir. Yes, sir.
Shalibhadra Shah
Yeah, broking revenues, see, if you look at last entire financial year was — especially starting from January 25 to December, I would say that the revenues were lower, mainly because of the lower volumes and the impact of the regulatory change which had come on the F&O segment especially, and also the lower overall cash volumes in the industry.
However, if you look at now quarter four, again the volumes have fully catched up. Right. Our market share overall, ADTO market share is also up for the year by almost about 100 basis plus. So quarter four if you look at the revenue growth is almost 33% YoY, and again the base is higher now because even moving to the current financial year over last financial year, April over April is also at a very higher base.
So we expect the brokerage line item to recently catch up for the entire financial year given that the regulatory impact is behind, and the volumes have again cashed up to the pre-regulatory change levels.
Deep Vakil
Sure sir. One last thing sir, I mean of the MTM loss that we have had on the treasury book around INR1,000 odd crores at consol level. So sir, I mean my understanding is that I mean post March 30, I mean equities have rallied and as you mentioned in your PPT as well, majority of that loss has already been recouped. So, sir, that INR1,000 crore loss is unrealized, right? We have not booked any realized. There’s no realized impact. It’s unrealized gain. Correct? Unrealized loss.
Shalibhadra Shah
Yes. This is a national mark to market loss which is — we have to revalue all our investments at mark to market based on the India’s requirements and that’s why these are notional losses which we separately disclose across — in terms of our operating performance and treasury performance, and as I say most of these have been recouped back in the April.
Navin Agarwal
And just to add here, the long term 10-year-plus track record is that this investment book has generated an IRR of 18%. Now this changes year to year because like you had 31st March where there is a market drawdown, sometimes these compounded returns also look different. But longer term, we’ve seen returns at highs or as high as 19%, at lows were as low as 15.5%. But longer term, we’ve seen the compounding at 18%.
To that when you add the post-buyback in some years or post-dividend free cash flows that are added to this book, this book is actually compounded for the last 10 years at the rate of 40% per annum. And that is what I explained up front in the concall remarks that the rising capital needs of the business is both due to scale and regulations have been internally funded on the back of this book, and you will see a lot of quarterly depending on the market’s volatility in this book, sometimes you may have unrealized gains, sometimes you may have unrealized losses.
And that’s why we separately call out the operating profit after tax number for each business so that there is no confusion about this line item with the operating business.
Deep Vakil
Sure, sir. Thank you. All the best.
Navin Agarwal
Just to add, all of these investments are actually collateralized with the lenders and serve as very large lines available for the operating businesses of the firm. And effectively the collateral is also expanding at the rate of 40% per annum.
Deep Vakil
Right, sir. Got it. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Nidhesh Jain from Investec. Please go ahead.
Nidhesh Jain
Thanks for the opportunity. So first question is on asset management business. Is there any update on the investment team leadership and on the asset management side.
Secondly, what is the guidance for net flows in the AMC business for FY27?
Prateek Agrawal
Yeah. Yes. So over the last period, you would be happy to know we have increased the team size on both the alternates and mutual fund in terms of managers and research. Overall, the investment team inclusive of passive is now over 50 members strong. As far as the leadership on the mutual fund side goes, we are evaluating both internal team members and external. We have a short list. We will take a decision soon.
Now in terms of net flows, last quarter’s numbers, our net flows declined. Jan was the worst month for our active net flows but in that month, passives did very well and overall we collected over INR2,500 crores. Feb was when overall our numbers were weaker as the gold and silver ETF kind of a product flows normalized.
As we speak into the — so for the last quarter, our net flow market share was lower than our AUM market shares. But as we speak, the trends in April suggest that our net flow market share would be higher than our AUM market share.
Nidhesh Jain
So just to clarify, net flow AMC — so mutual fund net flow market share may be higher than AUM market share for the month of April?
Prateek Agrawal
Yes.
Nidhesh Jain
Okay, that’s good news. And secondly, sir, if you look at the capital market segment, we are seeing advent of digital brokers and they are now impacting a lot of segments. We are seeing our market share declining in cash and F&O, but they’re also equally becoming very strong distributors on the mutual fund side. So in that light, how are we planning our businesses from a longer-term perspective and how are we trying to build these businesses so that — because what we see as a trend that customer is definitely moving towards those platforms, and some of the numbers are quite glaring that 60%, 70% of the new SIPs are getting opened by these fintech platforms. So that has repercussion for all our businesses from a longer-term perspective and how are we thinking to build business in that light?
Ajay Menon
So when it comes to the overall Wealth Management business which we are building onto, we have already been focusing on the research and advisory models, and if you look at our model, whether it is the franchisee segment which is our biggest segment within the broking and then the direct side, the PCG model and the branch model, we are very well aligned with our research and advisory-led model along with the tech in the overall business.
So what we have seen is that where we have focusing on the quality of the customer where we can add value to the customer, and that is where we have been — as Navon discussed the overall cash market share on the revenue pie, we are very much higher, and we see that we can align our strategy towards that in a big way for the overall broking cum distribution model.
So as you see our overall wealth premium has also been growing consistently and has gone 40% the last year itself. As we talked we are at around INR44,000 crores. So that twin model is getting well aligned.
At the same time when you look at the discount model, we feel that the bigger traders are the proposition where the overall revenue pie gets aligned. So we are trying to see how we will try to align to the traders which take the bigger pie in the discount market. So how do we position ourselves for the bigger traders is something which we are also working up parallelly to take care of the overall market share from a market perspective.
Nidhesh Jain
Sure. Sure, that’s it from my side. Thank you.
Navin Agarwal
Thank you.
Operator
Thank you. The next question is from the line of Dipanjan Ghosh from Citi. Please go ahead.
Dipanjan Ghosh
Hi, good morning, everyone. A few questions from my side. First, on the private wealth business, if you were to look at your clientele base over the past two, three years versus let’s say what it was, let’s say five, six years back, I just wanted to understand some sense of the clientele quality both in terms of ticket size, and in terms of occupation, business domain of expertise, et cetera, if you can give some color on that or maybe quantify some of those cohorts.
The second question is on the transactional revenues, ex of broking in the private wealth and maybe to some extent on the wealth business also. How do you see the pipeline going into FY 2027, given the backdrop of whatever has been going on globally? And also how do you really kind of manage your risk prudence in this — kind of — when you can assign a deal for the transactional section versus let’s say focus on fees, how do you really manage that?
The third question is on the alternate segment. We are seeing some of the large asset management companies entering this segment in an aggressive manner, or at least from their commentary it seems that they will be aggressive. Can you give some color on the white spaces in this segment? I mean your pipeline is robust in terms of new sales, but in terms of the white spaces in the segment, the supply side constraints, some of those, if you can give some color quantitatively.
And lastly one data keeping question. Is there any guidance or expectation around carry income for FY27 or ’28?
Ashish Shanker
Right. So I’m taking the private wealth question first. Essentially the way to look at it is there are broadly three segments in private wealth. There is a HNI segment which is broadly INR5 crores to INR100 crores. Then there is an ultra HNI segment which is INR100 crore-plus. And then there are the family offices. So we operate in all three segments, and we put significant capabilities and resources to improve the value proposition in the ultra HNI and family office segment. Whereas in the HNI segment we are increasing footprint by having presence in many more locations where we see high growth of HNIs.
I think the best lead indicator to see the — at least the headline quality of assets is the AUM per RM. If you see, the AUM per RM has been steadily increasing. A couple of years back it was INR300 crores, and right now, it’s about INR450 crores. And this is on an increased base of RMs. So essentially our penetration across segments is growing.
And at the back end, and I’m just answering your second question, what we’ve done is we’ve significantly enhanced the product and investment capabilities within private wealth to cater to all these segments. So we have recruited people in equities, in alternates, in multi asset solutions, as well as certain bespoke transaction strategies.
The pipeline of transactions is very, very robust. What happens there is whilst in the near term the markets could be cyclical and that could impact a particular asset class, but essentially right now we have capabilities across asset classes. So there are private debt transactions, where we are seeing a lot of flows from family offices.
Similarly last year, we — I mean, early last year we saw a lot of flows in unlisted equity transactions. So whilst the sentiment and the mood may impact flows into a particular asset class temporarily, however given the multi asset capabilities that we built, the transaction capabilities are becoming much smoother on a quarter on quarter basis.
Again, to answer your last question on due diligence, I think we draw a lot from the group capabilities. If you see, we’ve invested significantly at the group level as well to enhance capabilities in private credit, on the real estate front, and we anyway have a very strong private equity capability. So coupled with the capabilities on the private wealth side in the investment team and the group capabilities, the underwriting process is very, very stringent and rigorous. So before deal would be taken to market or to clients, there is a lot of work that goes on before doing that.
Prateek Agrawal
Yeah, in terms of AMC, you asked about corporate carry income possibilities. The competition as far as we are concerned, on the alternate side, we have gained market share. We are amongst the top few in the industry with very distinct products with strong storylines, and I think lot of our products are turning into brands, are being asked by the investors who are investing. So we have a very, very differentiated product basket.
On top of it, there are unique products where we mix listed with unlisted. Not too many houses have the capability of running that kind of a product. Now over and above, the long-only investing in the alternate side, we also have quant based investing. So there is a strategy which — where we have some significant amount of money which is now looking very, very strong. So overall the alternate basket for us, we think, is very, very relevant for investors.
In the mutual fund side, we have expanded our product basket tremendously. So when a competition comes in, there is something which happens on year one, there is something which happens after year three. So we see, as an industry, higher traction after fund crosses three years of existence.
Now for us, from a six product basket, we are now over 17. As we speak we have a fund launch going on. So the contra fund is on. Now, one by one, these products will start to complete three years. The first one would be a small cap fund which completes three years in December. A large cap fund will do that next year in Jan. And every two months, there will be a meaningful product which will complete three years.
So we think in the next leg of growth versus the last one, our inflows will be way more diversified versus what we had.
Shalibhadra Shah
As far as the variable additional return is concerned, so we don’t give out guidances. However, as explained in our last concall, we have multiple number of funds, which has reached in the last cohort of their life, which is last three years, where our IRRs are well above the hurdles. And that is the reason that we expect meaningful variable returns to accrue in the coming financial periods.
Dipanjan Ghosh
Got it. Maybe just one small follow-up on my first question. You are a boutique wealth manager which has gained scale over the years. In terms of this increasing clients or kind of increasing presence in ultra HNI and family offices, and your ability to kind of source large deals and execute large deals. I mean what has changed in terms of how you’re differentiating compared to let’s say a small scale wealth manager or some of the bank-based wealth outfits? I mean, what capabilities do you really have to kind of maintain or gain market share over medium to long term?
Ashish Shanker
Yeah, So I mean, whilst our size has increased over time, I mean our ambitions have never been boutique, and now the size is reflecting our ambition. But the Runway for growth is much, much larger from here. But there are a lot of capabilities that help us bring these boutique transactions to customers.
So first is if you look at the group level capabilities, I mean we have businesses across capital market segments, whether it’s alternatives, whether it’s institutional equities, and we have significant skin in the game in all our products. So this allows us to source very proprietary transactions.
Similarly, if you look at some of the group products, whether it is capabilities that we have created in private credit, whether the capabilities that we have built in private equity, and the investment that we have in research across these businesses, that again allows us to do due diligence on many, many transactions. We see many transactions, and that also helps us source transactions across asset classes, whether it is real estate, whether it is private credit, whether it is private equity.
So I guess this should answer both your questions.
Dipanjan Ghosh
No, understood. Great, thanks for the explanation, and all the best.
Navin Agarwal
On a lighter note, our leadership will be quite offended by the use of the word boutique for any of our businesses. But that’s just on a lighter note. We have scale ambitions and leadership ambitions in every single business of ours.
Dipanjan Ghosh
No, I agree. I mean, I mean the boutique word is more from the fact that some of the wealth outfits have a banking license.
Operator
Thank you. The next question is from the line of Lalit Mohan Deo from Equirus Securities. Please go ahead.
Lalit Mohan Deo
Yeah, hi, sir, good afternoon. So just two, three questions. So firstly, on the mutual fund business side, so we are seeing that our market share in that in MF flows have come down from 10.5% to 2 point — around 3%. So any particular channel where we have seen a decline in the flows or is it like broadly across the channels over there, and how — and while we have indicated that currently it is moving above a market share, but — so is it around the current levels, or we have improved materially to max — to the earlier levels.
Second was on the private wealth management. So this quarter we have added a material number of families over there like more than 9,000. But also could you give us more color like on — within this family count, like how much of these families will be there where we have a material relationship of more than INR10 crores, and where we can potentially increase further relationship over there.
And lastly from a two-year perspective, like given the current business construct, how should we look at the from a revenue perspective — for a profitable perspective across different segments? Like, what could be the desired mix between different segments?
Navin Agarwal
Okay, so I’ll answer the third question first. As I explained to you year after year over the last 10 years, over the last five years, three years, and over the last year, FY25 also, our annuity stream of revenues have consistently gone up. They are now at over 60% of the total revenues. The asset management alternates assets, private businesses, as well as the private wealth businesses share of profitability because of their annuity nature too have consistently gone up. And we see that trend as I called out continuing to rise including in FY27 over FY26.
About your first question about the net flows in asset management market share decline channel wise. We don’t split that out channel wise but Prateek will still give you some color on the contraction in the net flow market share.
Prateek Agrawal
Yeah, to give you some color, we retained more or less. So the drop was there in gross flows as well. So we saw some bit, but that was small. We saw heightened redemption pressure in the month of Jan and Feb. It reduced in March and it is actually below normal in April. And which is why our next share we think has again come back over AUM market share in April.
Now of the channels, we thought the wealth channel was where the pressure was the highest. Retail and digital channels held out much better.
Ashish Shanker
I think on your quality of clients, just to give you some color. I mean we work with 9,000 families. Of which, almost 50% are ultra HNI potential. And the scale of clients, quality of clients is steadily improving. And again like I said, one of the headline numbers that you should look at that is in spite of the denominator going up, which is the number of RMs, the AUM per RM has been steadily rising.
Lalit Mohan Deo
Sure, sir. And — sir, just lastly, [Speech Overlap]
Prateek Agrawal
Did we answer your questions?
Lalit Mohan Deo
Yes, sir. So just last one last data meeting question. [Speech Overlap] Hello?
Operator
Yes, please proceed, sir.
Lalit Mohan Deo
Yes, thanks for the answer. Just one last data keeping question. So in the wealth business, we have seen, sir, some pickup in the TVR transactional income over there, transaction distribution income. So what would attribute to the same?
Shalibhadra Shah
March quarter, typically, the transaction income in the wealth business is higher because of the insurance distribution revenue. So, quarter four is generally a seasonal, very large insurance distribution business. So that is the delta coming out of the distribution business in quarter four.
Operator
Thank you so much, sir. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments. Thank you, and over to you, sir.
Shalibhadra Shah
On behalf of Motilal Oswal Financial Services, I thank every participant for attending the Q4 FY26 concall. In case of any further questions, please do get in touch with our Investor Relations desk. Thank you, and have a good day.
Operator
[Operator Closing Remarks]