Motilal Oswal Q2 results: Profit declines 68% YoY to ₹362 crore; AUM grows 46%

Motilal Oswal Financial Services Ltd (MOFSL) reported a 68% year-on-year (YoY) drop in profit to ₹362 crore for the second quarter of FY26, compared to ₹1,120 crore in the same quarter last year.

Revenue

from operations stood at ₹1,849 crore, down 35% YoY from ₹2,841 crore in Q2FY25.

Despite the earnings decline, total assets under management (AUM) rose 46% YoY to ₹1.77 lakh crore, supported by strong Mutual Fund AUM growth of 57%.

The company’s Private Wealth Management business also continued its positive momentum, with AUM up 19% YoY to ₹1.87 lakh crore, driven by new client additions and improved productivity.

On the governance front, the company announced changes to its Board of Directors. Pratik Oswal and Vaibhav Agrawal from the promoter group have joined the Board, while Joseph Conrad Agnelo D’Souza, a long-time HDFC Group executive, and Ashok Kumar P. Kothari, a senior IRS officer, have been appointed as independent directors.

Shares of Motilal Oswal Financial Services Ltd. fell nearly 8% on October 29, after the Securities and Exchange Board of India (SEBI) proposed new limits on brokerage fees paid by mutual funds, a move seen as potentially squeezing industry margins.

The market regulator’s draft regulations, released on Tuesday evening, October 28, suggest reducing brokerage fees on cash market transactions to 2 basis points from 12 basis points earlier, and on derivatives trades to 1 basis point from 5 basis points.

Analysts believe the move could impact profitability for smaller and mid-sized brokers. Pratik Gupta of Kotak Institutional Equities told CNBC-TV18 that SEBI should allow “free market forces to prevail” instead of imposing strict caps.

Shares of Motilal Oswal Financial Services Ltd ended higher on Thursday, October 30, by 1.21% at ₹1,020 on the NSE.