Motilal Oswal Financial Services Limited (MOFSL) announced that ICRA Limited has upgraded its long-term rating to “[ICRA]AA+ (Stable)” from “[ICRA]AA (Positive)” and reaffirmed the short-term rating at [ICRA]A1+. The upgrade reflects MOFSL’s Strong market position in various capital market-related businesses, Strong profitability with track record of healthy performance across cycles, Comfortable capitalisation with large net worth and modest financial leverage.

ICRA cited MOFSL’s strong market position, demonstrated ability to harness sector momentum, and continued strengthening of its franchise across capital market businesses while maintaining resilient financial performance through market cycles and evolving regulatory and competitive dynamics. The rating agency took a consolidated view of the Motilal Oswal Group, covering subsidiaries namely Motilal Oswal Home Finance, Motilal Oswal Finvest, Motilal Oswal Wealth and Motilal Oswal Broking and Distribution, given the operational synergies and shared management framework.

In FY2025, the Group reported a return on equity of 25% and net profit of ₹2,508 crore. Networth as on June’25 stands at ₹12,592 crore, with a low gearing of 1.2 times. Despite higher operating costs linked to expansion, MOFSL maintained strong profitability supported by scale efficiencies and a balanced revenue mix.

Motilal Oswal, Managing Director & CEO, Motilal Oswal Financial Services Limited, said, “This upgrade reflects the strength of our franchise and the resilience of our business model, which is modelled on the Berkshire Hathaway philosophy — combining entrepreneurship with disciplined investing. Over the years, we have built a twin-engine structure of operating and investment businesses, with nearly 80% of our cash flows reinvested to drive long-term compounding.”

Oswal added, “Our seven integrated businesses — spanning wealth management, institutional equities, investment banking, asset management, alternates, private wealth, and home finance — are designed to deliver sustainable growth across market cycles. This recognition by ICRA reaffirms our belief in scale with prudence, resilience with agility, and growth rooted in trust.”

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Shalibhadra Shah, Chief Financial Officer, Motilal Oswal Financial Services Limited, said, “The upgrade to [ICRA]AA+ reflects   the strength of our balance sheet and net worth, diversified business model, and disciplined financial management. The upgrade is expected to enhance MOFSL’s borrowing capacity, lower its cost of funds, and boost investors and lenders confidence, thereby improving access to institutional capital and supporting the company’s growth plans across business verticals.”

Shah added, “The rating upgrade signifies our company’s increased creditworthiness and reduced risk profile, making us a more attractive and reliable, well-diversified capital market player. We believe this upgrade will open new opportunities for growth across our businesses”.