Motilal Oswal Financial Services Ltd. (MOFSL) is a leading diversified financial services firm offering a comprehensive range of services including wealth management, institutional broking, investment banking, asset management, alternates, private wealth, and housing finance. The firm also manages equity-based treasury investments and has a strong presence across India with over 13,250 employees, 13.6 million+ clients, and distribution reach in 550+ cities. MOFSL manages Assets Under Advice (AUA) of approximately Rs. 6.5 lakh crore.
ICRA Limited has upgraded MOFSL’s long-term rating to [ICRA]AA+ (Stable) from [ICRA]AA (Positive) and reaffirmed the short-term rating at [ICRA]A1+. The upgrade reflects the company’s strong market position across capital market-related businesses, robust profitability with a consistent track record of performance, and comfortable capitalisation supported by a large net worth and modest leverage.
ICRA cited MOFSL’s ability to leverage sectoral momentum, strengthen its franchise across capital market businesses, and maintain resilient performance amid evolving regulatory and competitive conditions. The assessment was carried out on a consolidated basis, covering subsidiaries such as Motilal Oswal Home Finance, Motilal Oswal Finvest, Motilal Oswal Wealth, and Motilal Oswal Broking and Distribution, highlighting operational synergies and a unified management framework.
In FY2025, the Group reported a return on equity of 25% and a net profit of Rs. 2,508 crore. As of June 2025, MOFSL’s net worth stood at Rs. 12,592 crore with a low gearing of 1.2x. Despite elevated operating costs linked to expansion, profitability remained strong, aided by scale efficiencies and a well-diversified revenue mix.
Commenting on the development, Mr. Motilal Oswal, Managing Director & CEO, stated that the upgrade reflects the strength of the franchise and resilience of the business model, inspired by the Berkshire Hathaway philosophy—combining entrepreneurship with disciplined investing. He highlighted that MOFSL’s twin-engine structure of operating and investment businesses continues to drive long-term compounding, with nearly 80% of cash flows reinvested to fuel sustained growth.
He further added that MOFSL’s seven integrated businesses are built to deliver sustainable performance across market cycles, and the ICRA recognition reinforces the company’s commitment to “scale with prudence, resilience with agility, and growth rooted in trust.”
Mr. Shalibhadra Shah, Chief Financial Officer, noted that the upgrade demonstrates MOFSL’s strong balance sheet, diversified business model, and disciplined financial management. He mentioned that the higher rating is expected to enhance borrowing capacity, reduce cost of funds, and strengthen investor and lender confidence, enabling further expansion across business verticals.
He also emphasised that the upgrade signifies the company’s enhanced creditworthiness and lower risk profile, positioning it as a reliable, well-diversified player in India’s capital market ecosystem.
