Motilal Oswal Financial Services Limited (NSE: MOFSL) reported a record quarterly operating profit after tax (PAT) of ₹611 crore for the period ended December 31, 2025, representing a 16% increase year-over-year. Total PAT, which includes treasury performance and other comprehensive income, reached ₹721 crore, a 58% year-on-year increase. The results reflect continued expansion across the firm’s core segments, particularly in asset and private wealth management.
As of January 23, 2026, the company’s market capitalization stood at ₹45,145 crore. Consolidated earnings rise 16% year-on-year driven by 65% profit growth in the asset management segment. The company declared an interim dividend of ₹6 per share as total assets under advice surpassed the ₹7 lakh crore milestone.
Performance Drivers
The quarter’s performance was underpinned by the continued execution of the group’s “Twin-Engine” business model, which combines earnings from core operating businesses with returns generated from a sizeable treasury investment portfolio. The treasury book contributed positively during the quarter, complementing growth across brokerage, wealth management and asset management, and helping moderate earnings volatility across market cycles.
Alongside the results, the board declared an interim dividend of ₹6 per equity share with a face value of ₹1 for the 2025–26 financial year, reflecting sustained profitability and capital adequacy. During the quarter, ICRA Limited upgraded the company’s credit rating on non-convertible debentures and long-term bank facilities to AA+ with a stable outlook, citing the firm’s strengthened market position, diversified earnings profile, and improved capital buffers.
Earnings Breakdown
Total consolidated net revenue for the third quarter increased 11% year-on-year to ₹1,497 crore. The asset management business reported a 65% rise in profit after tax to ₹227 crore, supported by a 33% expansion in assets under management to ₹1.89 lakh crore. Private wealth management AUM grew 31% year-on-year to ₹1.96 lakh crore.
The capital markets segment, comprising institutional equities and investment banking, recorded a 15% increase in profit after tax to ₹70 crore, reflecting steady deal activity and trading volumes. The housing finance subsidiary reported a profit after tax of ₹42 crore, with assets under management of ₹5,379 crore at the end of the quarter.
At the group level, the profit before tax margin stood at 54% for the quarter, while annualized operating return on equity improved to 26%.
Strategic Priorities
Management’s strategy remains focused on increasing the share of sustainable, fee-based revenue, which rose to approximately 74% of total operating net revenue in the first nine months of the fiscal year compared to 58% in 2021. Growth priorities include the expansion of the “Alternates” segment, highlighted by the January 2026 launch of a private credit fund targeting ₹3,000 crore.
The firm also intends to leverage its treasury book, which grew 16% year-on-year to ₹9,562 crore, to seed new initiatives and provide balance sheet stability. Capital allocation remains centered on maintaining a 20% annual dividend payout ratio while utilizing internal accruals to fund business growth without external equity dilution.
Market Environment
The company’s performance is set against the broader financialization of Indian household savings, with equity assets accounting for an estimated 17.6% of total household assets as of FY25. MOFSL’s growth in demat accounts and systematic investment plan (SIP) inflows reflects this industry-wide shift toward capital market participation, with the firm reporting an approximate 5% market share in overall SIP flows during the period.
While these structural tailwinds remain supportive, the company highlighted potential regulatory implications from the implementation of new labor codes. During the quarter, this resulted in a one-time provision of approximately ₹14.4 crore toward employee benefit expenses.
MOFSL reported an annualized operating return on equity of 26%, which continues to serve as a key reference metric for investors evaluating the profitability and capital efficiency of its diversified financial services platform.