As investors reacted to Motilal Oswal Financial Services Limited's (MOFSL) poor September quarter earnings, the company's shares fell by almost 6% in early trading on Friday. The financial services company's consolidated net profit for the second quarter of FY26 fell by 68% year-over-year (YoY) to ₹362 crore from ₹1,120 crore in the same period the previous year, which damaged the company's mood.
Key Highlights
- Motilal Oswal Financial Services Ltd reported a 68% year-on-year plunge in Q2 net profit to ₹362 crore.
- The company achieved a record quarterly operating profit of ₹554 crore, even as revenue fell 35%.
Due to Q2 earnings, MOFSL's market capitalization fell below ₹58,300 crore, and its shares fell as much as 5.76% to ₹966.25 on the BSE. The stock opened earlier today at ₹985.05, 3.93% less than the previous closing price of ₹1,025.35.
Following the publication of a consultation paper by Sebi suggesting a reduction in brokerage fees—from 12 basis points to 2 basis points on cash market transactions and from 5 basis points to 1 basis point on derivatives trades—the share price of MOFSL has dropped by more than 11% since October 28.
The MOFSL share price has nearly doubled from its 52-week low of ₹487.85 on April 7, 2025, but it is currently down 13.5% from its 52-week high of ₹1,097 on October 28, 2025.
The financial services stock has increased 2.25% over the past year, 46% over the last six months, and 7% over the last month. In the year 2025, the counter has lost more than 1%.
Motilal Oswal reported operating revenue of ₹1,849 crore for the second quarter ending September 30, 2025, a 35% decrease from ₹2,841 crore in Q2 FY25.
Due to robust mutual fund AUM growth of 57%, total assets under management (AUM) increased 46% YoY to ₹1.77 lakh crore during the reviewed quarter. Due to increased productivity and the addition of new clients, the private wealth management company's AUM increased by 19% year over year to ₹1.87 lakh crore.
PAT fell 24% to ₹170 crore in the wealth management industry. The F&O premium market share was 8.7%, while the cash volume market share was strong at 7.1%. The market share of blended ADTO as a whole was 8%. The distribution book increased at a 34% CAGR since FY21 to ₹40,544 crore in September 2025, while distribution net flows increased by 29% to ₹3,079 crore in the second quarter.
According to Motilal Oswal, the capital markets' PAT increased by 24% annually to ₹90 crore. According to Motilal Oswal, during the first half of the fiscal year, it was ranked first in terms of IPOs, QIPs, and rights issues.
PAT increased by 27% to ₹34 crore in the housing finance sector. AUM increased by 24% to ₹5,236 crore, while disbursements increased by 48% to ₹544 crore. Its treasury book increased 14% annually to ₹8,957 crore, and since its founding, it has produced a strong XIRR of 18.7% thanks to a 42% CAGR fueled by operating profit reinvestment.
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Additionally, the company declared that new members had been appointed to its Board of Directors. Promoter group members Vaibhav Agrawal and Pratik Oswal have joined the board, and senior Indian Revenue Service (IRS) officer Ashok Kumar P. Kothari and HDFC Group veteran Joseph Conrad Agnelo D'Souza have been appointed as independent directors.
