Motilal Oswal Financial Services Ltd delivered a strong second quarter, with assets under management (AUM) climbing about 55-56% year-on-year, far outpacing benchmark markets. The firm reported net inflows of around ₹14,000 crore and added 17 lakh new systematic investment plans (SIPs) during the quarter. Its market share in flows increased to 8.3% and its AUM market share reached 2.6%.
Within its business streams, the asset management- and private wealth segments were key growth drivers. In the private wealth business, net inflows rose to approximately ₹7,500 crore — nearly three times the year-ago level — with about 75% of the inflows coming from existing clients. Operating profit for the quarter reached a record ₹554 crore, up roughly 30% year-on-year, excluding treasury losses.
The housing finance arm also showed strong momentum, with disbursements rising about 50% YoY to ₹500 crore and AUM growing 24% YoY. Asset quality remains robust, with gross non-performing assets (NPAs) at 1.4% and net NPAs at 0.8%. Funding costs in the housing finance business declined by 20-25 basis points YoY while spreads improved to 5.3% and net interest margin (NIM) remained stable at around 7%.
Looking ahead, Motilal Oswal aims to scale its fee-based businesses (AMC, wealth) while maintaining strong underwriting and cost discipline in the housing finance segment. Management emphasised the focus on high-return business lines with sustainable profitability.
