Motilal Oswal Financial Services Ltd

AUM milestone and metrics

• MOAMC's total AUM across MF, AIF, PMS crossed ₹2 lakh crore as of 7 Aug 2026.
• AUM: MF ₹1,62,126 crore; PMS/AIF ₹38,304 crore.
• FY2026 launches: 18 passive funds and 5 active funds.
• SIPs grew with ~56.08 lakh added; SIP inflow ₹16,479 crore.
• MOAMC remains focused on QGLP strategy and long-term value creation across platforms.
• Continued growth in retail participation and digital adoption in Indian mutual funds.
• The milestone reinforces MOAMC's position as a predominantly equity-focused asset manager.
• Data as on 7 Aug 2026; AUM as on 30 Jun 2026.
• MOAMC is a wholly-owned subsidiary of Motilal Oswal Financial Services Ltd.
• The note highlights product expansion across active and passive strategies.

Financial Performance

• Q1 FY27 operating PAT ₹609 crores, up 14% YoY; Asset and Private Wealth grew 44% YoY.
• Asset and Private Wealth share of operating PAT rose to 55% in Q1FY27.
• AUM of Asset Management including MO Alternates crossed ₹2 lakh crores; 34% CAGR since Mar 2020.
• Annuity businesses now contribute over 66% of group revenues.
• AMC AUM averaged ₹1.81 lakh crores in Q1FY27; up from ₹1.67 lakh crores in Q4FY26.
• SIP flows ₹4,064 crores in Q1FY27; SIP market share 4.3%.
• SIP AUM ₹38,643 crores.
• Private Wealth ARR revenue grew 42% YoY to ₹157 crores; TBR volatile QoQ.
• Wealth Management distribution revenue fell 50% YoY due to high base TBR.

Segment Update

• Asset and Private Wealth flows ₹10,325 crores; AUM ₹4.5 lakh crores as on June 2026.
• AMC AUM near ₹2 lakh crores; 3-year vintage funds rising; PAN clients above ₹1 crore.
• Alternates: private credit fund near ₹3,000 crores; final close ₹2,500 crores; CRE fund launch in H2.
• Private Wealth ARR book around ₹52,000 crores; AUM ₹2.4 lakh crores.
• Wealth Management ARR revenue 57% of segment revenue; MTF asset growth 54% YoY.
• Capital Markets: IB deals ₹10,000 crores; fee ₹68 crores; IPO/QIP ranking #2; coverage 384 stocks.
• Housing Finance: disbursements ₹646 crores; AUM ₹6,164 crores; high capitalization; low leverage.
• Treasury: book ₹10,482 crores; up 22% YoY; long-term CAGR 41%.

Outlook and Guidance

• Outlook emphasizes rise to over ₹100 trillion market size and financialization tailwinds.
• MOFSL decadal track record: 33% operating profit growth; ROE ~23%; annuity revenue 66%.
• Regulatory headwinds acknowledged; outlook remains constructive with resilience in Indian savings.

Q&A Highlights

• Wealth Management: 1QFY27 TBR volatility; distribution income declined YoY due to high base last year.
• HFC credit costs rose QoQ to 1%; expect normalization through the year.
• Borrowing costs to decline 15–20 bps over 12–18 months after CRISIL upgrade.
• Capital Markets pipeline strong; execution windows uncertain; FY27 growth depends on windows.
• AMC/PWM: no carry income booked in listed AMC; unlisted carry ₹66 crores this quarter; similar next 3 quarters.
• Alternates: carry income recognition=70% of fair value; quarterly ₹66 crores; final closure Q2 likely.

Rating action

• MOFSL: long-term rating upgraded to AA+/Stable; short-term rating reaffirmed at A1+.
• MOHFL: long-term rating upgraded to AA+/Stable; CP rating reaffirmed at A1+.
• MOFL: long-term rating upgraded to AA+/Stable; CP reaffirmed at A1+.

Instruments & ratings

• MOFSL: NCDs totaling Rs 2000 Cr assigned AA+/Stable.
• MOFSL: NCDs aggregating Rs 1927 Cr upgraded to AA+/Stable.
• MOFSL: CP programme Rs 1750 Cr reaffirmed at A1+.
• MOFSL: NCDs aggregating Rs 73 Cr withdrawn.
• MOHFL: NCDs Rs 500 Cr AA+/Stable; CP Rs 500 Cr A1+.
• MOFL: NCDs aggregating Rs 900 Cr, Rs 428.3 Cr, Rs 11.7 Cr upgraded to AA+/Stable; Rs 810 Cr withdrawn; CP Rs 4000 Cr A1+.

Financial profile

• MOFSL consolidated PAT Rs 1,865 Cr; operating profit Rs 2,356 Cr in FY2026.
• Group client assets Rs 3,86,792 Cr; asset management Rs 1,75,644 Cr; PWM Rs 1,96,716 Cr.
• Consolidated net worth Rs 12,952 Cr; gearing 1.6x as on Mar 31, 2026.
• MOHFL standalone PAT Rs 32 Cr; GNPA 1.1%; CAR 37.8%; gearing 2.9x as on Jun 30, 2026.
• MOFSL group total assets Rs 43,468 Cr; total income Rs 9,416 Cr; RoA/ RoE not disclosed here.

Rationale & strengths/weaknesses

• Diversified earnings across non-broking and allied businesses.
• Healthy capitalization with comfortable internal accruals.
• Earnings resilient through cycles; strong liquidity profile.
• Weakness: inherent capital-market uncertainties; limited lending seasoning.

Outlook & sensitivities

• Outlook: Stable for MOFSL, MOHFL, MOFL.
• Upward factors: stronger non-broking franchise and diversified profits.
• Downward factors: MOFSL support eroding or asset quality deteriorating.

Material changes since last rating

• Ratings upgraded across MOFSL, MOHFL, MOFL from AA/Positive.
• NCD withdrawals: MOFSL Rs 73 Cr; MOFL Rs 810 Cr.
• CP ratings reaffirmed; overall AA+/Stable stance maintained.

Meeting Details

• Date: July 24, 2026; Time: 12:00 noon.
• Type: earnings conference call; Mode: virtual group call.

Participants

• Key management participants not disclosed in filing.

Purpose

• Discuss Q1 FY 2026-27 financial performance.

Additional Notes

• Presentation, audio recording and transcript will be uploaded on company website and exchanges.

Promoter Group Reclassification

• AGM July 14, 2026 approved reclassification of selected promoter group members to Public.
• Outgoing members total 24,45,412 shares (0.42%); reclassified to Public with immediate effect.
• No Objection Letters received from BSE and NSE (June 12, 2026).
• Board approved reclassification subject to regulatory approvals; Ordinary Resolution no. 6.
• Shareholding pattern post-reclassification to exclude outgoing members from Promoter Group.
• Continuing promoters hold 67.12% as of 31 Mar 2026; governance impact minimal.
• Board noted outgoing members are relatives of Raamdeo Agarwal and Motilal Oswal.
• Outgoing members confirmed compliance with Regulation 31A post-reclassification.

AGM details

• Date: July 14, 2026; Mode: Video Conference; Record date: July 7, 2026.

Resolution 1: Standalone financials

• Approved adoption of standalone financial statements for year ended March 31, 2026.

Resolution 2: Consolidated financials

• Approved adoption of consolidated financial statements for year ended March 31, 2026.

Resolution 3: Final dividend confirmation

• Confirmed interim dividend of Rs 6 per equity share as final dividend.

Resolution 4: Re-appointment Raamdeo Agarwal

• Re-appointed Raamdeo Agarwal; promoter votes excluded due to interest.

Resolution 5: Re-appointment Navin Agarwal

• Re-appointed Navin Agarwal as director; promoter votes excluded.

Resolution 6: Promoter to Public reclassification

• Reclassified certain promoter group members from Promoter to Public category.

Resolution 7: Independent Director Sunil Goyal

• Appointed Sunil Goyal as Independent Director.

Resolution 8: Independent Director Smita Bhagat

• Appointed Smita Bhagat as Independent Director.

Resolution 9: Borrowing limit enhancement

• Enhanced borrowing limit under Section 180(1)(c) of the Companies Act, 2013.

Voting outcome

• All resolutions passed with requisite majority per Scrutinizer’s report.

AGM Details

• Twenty-First AGM held July 14, 2026 at 4:00 PM IST via Video Conferencing.

Key Resolutions

• Ordinary: Adoption of standalone financial statements for FY2025-26.
• Ordinary: Adoption of consolidated financial statements for FY2025-26.
• Ordinary: Final dividend of ₹6 per equity share approved.
• Ordinary: Re-appointment of Raamdeo Agarawal (retiring by rotation).
• Ordinary: Re-appointment of Navin Agarwal (retiring by rotation).
• Special: Reclassification of promoter group to public category.
• Special: Appointment of Sunil Goyal as Independent Director.
• Special: Appointment of Smita Bhagat as Independent Director.
• Special: Enhancement of borrowing limit under Section 180(1)(c).

Voting Results

• Voting outcomes not disclosed in filing; to be announced after Scrutinizer's Report.

Dividend

• Final dividend of ₹6 per equity share approved.

Director Changes

• Raamdeo Agarawal re-appointed as director (retiring by rotation).
• Navin Agarwal re-appointed as director (retiring by rotation).
• Sunil Goyal appointed as Independent Director.
• Smita Bhagat appointed as Independent Director.

Borrowing Limits

• Enhancement of borrowing limit under Section 180(1)(c) of the Companies Act, 2013.

Dematerialisation status for quarter ended 30 June 2026

• Securities received for dematerialisation during quarter ended 30 June 2026 were confirmed to the depositories.
• Securities comprised in the certificates have been listed on exchanges where earlier issued securities are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after due verification.
• The depository's name was substituted in the register of members as registered owner within prescribed timelines.