According to reports from The Economic Times, Motilal Oswal delivered impressive financial results for Q2 FY27, with total PAT surging to ₹1,070 crore from ₹285 crore in the corresponding quarter last year, representing a nearly fourfold increase. The company's operating profit after tax rose 29% year-on-year to ₹718 crore from ₹554 crore, driven by strong growth in asset management and wealth management businesses. However, total PAT declined 29% sequentially from ₹1,513 crore in the June quarter, reflecting lower mark-to-market gains on treasury investments. The EBITDA margin expanded significantly to 60.37% from 45.42% year-on-year, with EBITDA growing to ₹1,840 crore from ₹840 crore. Operating PAT increased 18% quarter-on-quarter from ₹609 crore, demonstrating consistent quarterly growth momentum.
As reported by The Economic Times, net operating revenue increased 20% year-on-year to ₹1,757 crore from ₹1,460 crore, while growing 14% sequentially from ₹1,538 crore. Profit before tax from operating businesses increased 26% to ₹933 crore from ₹739 crore, with the operating PBT margin improving to 53% from 51%. The company's treasury investment book expanded 27% year-on-year to ₹11,346 crore, while annual recurring revenue assets reached ₹3.2 lakh crore, up 26% YoY. The share of Annual Recurring Revenue (ARR) in total revenue has risen to 66%, indicating improved earnings quality and predictability compared to transaction-based revenues. As reported by the company, two-thirds of revenue is now recurring, making earnings more resilient through market cycles.
According to The Economic Times, the asset management business emerged as the biggest contributor to earnings growth, with PAT increasing 69% year-on-year to ₹304 crore from ₹180 crore. The segment accounted for 43% of the company's operating profit during the quarter. Total assets under management in the asset management business increased 26% YoY to ₹2.23 lakh crore, with the mutual fund, portfolio management services and alternative investment funds managing assets of nearly ₹2 lakh crore, up 25%. The alternatives business reported a 92% increase in revenue, supported by fundraising and new investment strategies. AUM in the alternatives business increased 36% to ₹23,091 crore, demonstrating strong performance across all asset management segments.
As reported by The Economic Times, the combined asset and private wealth management segment reported a 43% increase in PAT to ₹416 crore from ₹290 crore, with revenue growing 32% to ₹854 crore. The private wealth management business saw AUM increase 58% YoY to nearly ₹3 lakh crore, while its lending book grew 90% to ₹7,333 crore. The broader wealth management business, including retail broking, distribution and lending, reported a 3% increase in PAT to ₹175 crore from ₹170 crore. Its distribution AUM increased 26% to ₹47,912 crore, while the lending book expanded 42% to ₹10,197 crore. The company's mutual fund net inflow market share stood at 4% for the quarter, increasing to 6% in September, with SIP inflows at ₹4,170 crore during the quarter.
According to The Economic Times, the company's mutual fund net inflow market share stood at 4% for the quarter, increasing to 6% in September, with SIP inflows at ₹4,170 crore during the quarter. ARR revenue increased 27% to ₹1,182 crore, with its contribution to total operating revenue rising to 66%. As reported by the company, two-thirds of revenue is now recurring, making earnings more resilient through market cycles. The housing finance business reported a 7% YoY increase in PAT to ₹36 crore with disbursements increasing 29% to ₹701 crore. The company's gross non-performing asset ratio stood at 1.5%, while net NPAs remained at 0.9%. The investment banking business ranked first in qualified institutional placements and third in IPOs during the first half of FY27, while capital markets PAT declined 5% YoY to ₹85 crore.
