Hyderabad, Apr 30: Motilal Oswal Financial Services Ltd. reported its highest-ever quarterly and annual operating profit after tax (PAT), marking a strong close to FY26. The company posted an operating PAT growth of 25% year-on-year in Q4FY26, while full-year FY26 operating PAT grew by 16%, driven by robust performance in Asset and Private Wealth Management businesses.
The company’s Q4 annual recurring revenue (ARR) contribution stood at 64%, reflecting the increasing share of stable, annuity-based income streams led by Asset Management and Private Wealth Management.
Business Highlights
Asset Management (Including Alternates):
The segment delivered strong growth with PAT rising 63% YoY in Q4 and 55% YoY in FY26. Total assets under management (AUM) expanded significantly, supported by strong mutual fund inflows and a sharp rise in private alternates. SIP inflows saw substantial growth, while the company also achieved key milestones in fund raises, including the successful closure of IBEF Fund V and the first close of its maiden private credit fund.
Private Wealth Management:
The segment recorded healthy growth in both profitability and net flows. Q4 PAT increased by 18% YoY, while FY26 PAT grew by 15%. AUM growth remained strong, driven by client acquisitions and improved relationship manager productivity. Annual recurring revenue in this segment also registered robust growth.
Wealth Management:
The segment delivered steady performance in Q4 with PAT growth of 7% YoY, supported by strong brokerage revenue growth. The distribution and loan books expanded significantly, while maintaining a strong overall market share.
Capital Markets:
This segment continued its upward trajectory, with PAT growing 12% YoY in Q4 and 30% YoY in FY26. The company maintained strong leadership positions in equity capital markets, ranking among the top players in QIP and IPO league tables, supported by a wide institutional research coverage base.
Housing Finance:
The housing finance business posted strong growth, with Q4 PAT rising 61% YoY and FY26 PAT growing 22%. AUM growth remained steady, and the segment received a significant boost through funding support from the Asian Development Bank (ADB), reinforcing its commitment to inclusive housing finance.
Treasury Performance:
The treasury book recorded consistent growth, delivering steady returns for FY26. The company noted that total PAT including OCI was impacted by mark-to-market accounting adjustments related to the treasury portfolio.
MOFSL continues to strengthen its position as a leading integrated capital market player, supported by a diversified business model and strong execution capabilities. The company highlighted that the increasing financialisation of savings and rising wealth levels present significant long-term growth opportunities. Its growing share of annuity revenue further enhances earnings visibility and business stability, positioning it for sustained growth in the coming years.
