ICRA Limited has upgraded Motilal Oswal Financial Services Limited’s long-term credit rating to [ICRA]AA+ (Stable) from [ICRA]AA (Positive) and reaffirmed its short-term rating at [ICRA]A1+. The upgrade reflects Motilal Oswal’s strong market position, healthy performance across cycles, and comfortable capitalization with large net worth.
Rating Upgrade Details
Motilal Oswal Financial Services Limited (MOFSL) announced that ICRA Limited has upgraded its long-term rating to [ICRA]AA+ (Stable). The rating agency cited MOFSL’s demonstrated ability to harness sector momentum and continued strengthening of its franchise across capital market businesses. ICRA also took a consolidated view of the Motilal Oswal Group, covering subsidiaries.
Key Rating Drivers
The rating upgrade reflects MOFSL’s strong market position, a track record of healthy performance across cycles, and comfortable capitalization. The group reported a return on equity of 25% and a net profit of ₹2,508 crore in FY2025. Net worth as of June 2025 stands at ₹12,592 crore, with a low gearing of 1.2 times.
Management Commentary
Mr. Motilal Oswal, Managing Director & CEO, stated that the upgrade reflects the strength of the company’s franchise and the resilience of its business model. He also added that their seven integrated businesses are designed to deliver sustainable growth across market cycles.
Impact of the Upgrade
According to Mr. Shalibhadra Shah, Chief Financial Officer, the upgrade is expected to enhance MOFSL’s borrowing capacity, lower its cost of funds, and boost investors and lenders confidence. This will improve access to institutional capital and support the company’s growth plans across business verticals.
Source: BSE
