Motilal Oswal Financial Services reported robust performance for the first quarter of FY27. The Asset and Private Wealth Management business showed significant growth, contributing 55% to the group’s operating profit. Annuity revenues now form 66% of total revenues, highlighting a shift towards a more sustainable business model. The company also noted strong AUM growth and a positive outlook across its various segments.
Motilal Oswal Financial Services Q1 FY27 Performance Highlights
Motilal Oswal Financial Services Limited has announced its financial results for the first quarter of FY27, showcasing strong operational and financial performance across key business verticals. The company emphasized a strategic shift towards annuity-led revenue streams, which are enhancing the quality and predictability of its earnings.
Key Financial and Operational Achievements
- Operating profit after tax grew by 14% YoY to ₹609 crores, driven significantly by the Asset and Private Wealth business, which saw a 44% YoY increase.
- The Asset and Private Wealth businesses now constitute 55% of the group’s total operating profit, up from 50% in FY26 and 42% in FY25. This growth is attributed to increasing annuity business contributions and significant market share gains.
- Assets Under Management (AUM) for the Asset Management business, including MO alternates, crossed the ₹2 lakh crore milestone, growing at a CAGR of 34% since March 2020.
- Annuity businesses contribute over 66% of the Group’s revenues, reflecting a successful transition from a transaction-led to a more sustainable annuity-led business model.
Segmental Performance Deep Dive
Asset and Private Wealth Management
This segment, encompassing Asset Management, MO alternates, and Private Wealth Management, demonstrated robust momentum with net flows of ₹10,325 crores. The AUM reached ₹4.5 lakh crores as of June ’26, marking a 34% YoY increase. The company continues to invest in talent and marketing to drive profit growth through operating leverage.
Asset Management Business
The Asset Management business, which includes mutual funds, PMS, and AIF, saw its AUM grow at a 34% CAGR since March 2020. The business serves over 1 crore unique PANs, representing approximately 16% share of clients in the Indian mutual fund industry. Average AUM grew to ₹1.81 lakh crores in Q1FY27. SIP flows were strong at ₹4,064 crores, up 16% YoY, with a market share of 4.3%.
Alternates/Private Markets
The company highlighted its strong franchise in growth capital and residential real estate. Progress is being made on the maiden private credit fund of ₹3,000 crores, with nearly ₹2,500 crores raised in the second close. A commercial real estate fund launch is planned for the second half of the financial year. This segment is expected to be a key growth driver, with increasing allocation from family offices and institutions.
Private Wealth Management
ARR revenue for the private wealth business grew 42% YoY to ₹157 crores. Net flows increased by 37% to nearly ₹4,000 crores, leading to AUM growth of 37% YoY to ₹2.4 lakh crores. The focus remains on growing ARR AUM through various initiatives, including advisory and co-investment solutions.
Outlook and Strategic Focus
Motilal Oswal Financial Services expressed confidence in its growth trajectory, driven by the financialization of Indian savings and tailwinds in the capital markets. The company’s consistent operating profit growth, strong ROE, and expanding market share across businesses position it well for the future. While acknowledging potential regulatory headwinds, the company believes its diversified business model and strong investor confidence will support continued resilience and promising future outlook.
Source: BSE
