Motilal Oswal Financial Services Allots 1,84,582 Equity Shares Under Employee Stock Option Schemes

Motilal Oswal Financial Services held its Q4 & FY26 Earnings Conference Call on April 30, 2026, with the Senior Leadership team addressing investors and analysts on the company's financial performance and business outlook. Group Managing Director Navin Agarwal led the opening remarks, highlighting the company's position as the largest integrated capital markets player in India and its consistent track record of growth without equity dilution since its listing in 2007. The company is now ranked among the top 150 companies based on the 2025 calendar year PAT and among the top 200 companies by market capitalisation.

FY26 Financial Performance Overview

FY26 marked another year of operational strength, with growth driven primarily by annuity businesses. The following table summarises key operating metrics for the period:

Metric: FY26 FY25 Change Operating PAT (Full Year): ₹2,360 crores — +16% YoY Operating PAT (Q4FY26 Run Rate): ₹661 crores — +25% QoQ Asset & Private Wealth AUM: ₹3.7 lakh crores — +34% YoY Net Flows (Asset & Private Wealth): ₹70,000 crores — — Asset Management Share of Group Operating PAT: 33% 26% — Annuity Revenue Share: Over 60% — — Long-Term Credit Rating: AA+ (Stable) — Upgraded

The company's 10-year compounded operating profit after tax growth stood at 33% per annum, with EPS growth of 28% per annum and an average return on equity of 23%. The investment book has grown at 40% compounded since inception. Mark-to-market losses on the investment book, which stands at approximately ₹9,000 crores, impacted total reported profit after tax for Q4FY26 and FY26; however, management confirmed these are unrealized losses, with most already recouped in April 2026. Management noted that the investment book has generated a long-term IRR of 18% over 10 years, with returns ranging between 15.50% and 19% across periods.

The Capital Markets index's share in the NSE 500 has grown from near 0.13% ten years ago to 0.84% five years ago and now stands at over 2.50%, with the number of companies in the capital market segment rising from 3 to 18 over the same period. Motilal Oswal Financial Services has delivered a 10-year return of 26% versus 17% for NSE Nifty 50 and 12% for NSE 500.

Asset Management Business

The AMC business crossed ₹1.5 lakh crores in AUM, diversified across active, passive, AIF, and PMS categories. Unique PANs catered by the AMC crossed 1 crore in March 2026 versus 77 lakh in March 2025, representing approximately 16% client share of the mutual fund industry. The Average AUM improved from ₹1.57 lakh crores to ₹1.8 lakh crores in April, reflecting continued momentum.

Key highlights of the AMC business include:

SIP flows crossed ₹16,000 crores in FY26, up 78% year-on-year, with a market share of 4.7%, resulting in a SIP AUM book of approximately ₹30,000 crores as of March 2026

SIP run rate stands at approximately ₹1,500 crores per month (₹1,400+ crores currently), with annualised SIP run rate of ₹18,000 crores

5 new MF Active Products launched in FY26, expanding presence to 82% of industry AUM

Only 6 funds have a vintage of over 3 years; 8 funds are expected to cross 3-year vintage by March 2027 and 16 funds by March 2028

Net flow market share in Q4FY26 was higher than AUM market share

Management noted that fees remained unimpacted by TER regulatory changes, with a slight improvement for their cohort of AUM. On SIP trends, management clarified that a slight decline in passive mutual fund SIPs was attributable to international funds no longer accepting new money and the microcap fund being locked, while the active MF SIP book is expected to recover as fund performance improves. Net flow market share was also confirmed to be higher than AUM market share for April. Regarding the product pipeline, the small cap fund is set to complete 3 years in December, the large cap fund in January 2027, and thereafter a meaningful product is expected to complete 3 years every two months.

Alternates and Private Markets

The Alternates business raised its largest growth capital fund, IBEF V, at close to a billion dollars in FY26, driving 40% growth in fee-accruing AUM from an average AUM of ₹15,000 crores to a closing AUM of ₹21,000 crores. The business pipeline includes:

A maiden Private Credit fund of ₹3,000 crores

First Commercial Real Estate Fund

Launch of Series VII of the Residential Real Estate Fund

Management highlighted that each successive fund series has doubled in size from Series I to Series V, and multiple funds are approaching the variable additional returns recognition threshold, which is expected to boost revenue run rates in coming financial periods. Management also noted a differentiated product basket that includes strategies mixing listed with unlisted securities, as well as quant-based investing strategies with significant assets under management.

Private Wealth Management

The Private Wealth Management business serves approximately 9,000 families, with nearly 50% having UHNI potential. The business operates across three segments — HNI (₹50 crores to ₹100 crores), UHNI (₹100 crores+), and Family Offices. AUM per RM has risen steadily from ₹300 crores a couple of years ago to ₹450 crores as of March 2026, on an increased RM base. The ARR AUM currently stands at ₹46,000 crores, with 440+ RMs, of whom 32% have a vintage of 3 or more years.

Management noted that the lending strategy in Private Wealth is a deliberate initiative to provide solutions to ultra HNIs, family offices, and HNIs to enhance yields, comprising a combination of lending against securities and lending against investment assets. The transaction pipeline was described as robust across asset classes including private debt, unlisted equity, and real estate, supported by rigorous underwriting processes leveraging group-level capabilities in private credit, private equity, and institutional equities.

Wealth Management and Capital Markets

In the Wealth Management segment, the distribution book grew 41% to ₹40,662 crores as of March 2026, while the loan book rose 32% year-on-year to ₹6,094 crores. The company's MTF market share stood at close to 7% in FY26, with the MTF book growing approximately 40% during the year. Management noted a marginal sequential decline in the MTF book as of March 2026 was a market-wide phenomenon rather than a strategic reduction, and expressed confidence in continued growth of the book. The overall retail broking equity market share including commodity stood at 8.6% in FY26, with brokerage revenue growth of approximately 33% year-on-year in Q4FY26 and overall ADTO market share up approximately 100 basis points for the year. Management attributed the pickup in transaction distribution income in Q4FY26 primarily to distribution revenues from insurance.

The following table summarises key Wealth Management and Capital Markets metrics:

Metric: FY26 Change Distribution Book: ₹40,662 crores +41% YoY Loan Book: ₹6,094 crores +32% YoY MTF Market Share: ~7% — Retail Broking Equity Market Share (incl. commodity): 8.60% — Brokerage Revenue Growth (Q4FY26): ~33% YoY — ADTO Market Share Change: +~100 bps — IB Deals Completed: 52 deals — IB Cumulative Raise: ₹83,600 crores — IB Revenue: ₹309 crores +39% YoY Capital Markets League Table Rank: #2 — QIP League Table Rank: #1 —

The Investment Banking business completed 52 deals in FY26 with a cumulative raise of ₹83,600 crores, delivering 39% revenue growth year-on-year to ₹309 crores. The company is ranked #2 in the Capital Markets league table and #1 in the QIP league table for FY26. Management also noted aspirations to expand institutional equities coverage from the current 360 companies to nearly 500 companies.

Housing Finance Business

The Housing Finance business concluded a solid year, with key metrics as follows:

Metric: FY26 Change Disbursement (Adjusted): ₹2,291 crores +28% YoY AUM (Adjusted): ₹6,100 crores +25% YoY External Funding Raised: $100 million from Asian Development Bank —

Management noted the business has a strong capital adequacy ratio and low leverage, providing growth levers without external equity capital dependency.

Management Outlook

Management concluded the call by reiterating that FY25 and FY26 were marked by regulatory tightening and weak markets, yet the company delivered 16% operating PAT growth in FY26 and 25% growth in Q4FY26. CFO Shalibhadra Shah noted that Q4FY26 other expenses included a higher-than-usual impact of marketing, brand promotion, and CSR expenses concentrated in the quarter, though overall other expenses for FY26 were up approximately 10% year-on-year, with marketing and technology spend at approximately 5.50% of net revenues. With regulatory headwinds now in the base and continued resilience from Indian investors, the company's annuity revenue share — at over 60% — and rising contributions from Asset and Private Wealth Management businesses are expected to improve the quality and predictability of cash flows going forward.

Source: None/Company/INE338I01027/978f331d289b43aa.pdf

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