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Motilal Oswal Financial Services Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤27th Jan 26

Summary : Motilal Oswal Financial Services reported strong Q3 FY26 consolidated results with increased profit after tax, alongside credit rating upgrades and an interim dividend, despite a year-on-year decline in nine-month performance and new labor code provisions.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses (consolidated) for Q3 FY26: Rs. 1,37,173 Lakhs.
  2. Finance cost (consolidated) for Q3 FY26: Rs. 33,638 Lakhs.
  3. Employee benefits expenses (consolidated) for Q3 FY26: Rs. 48,545 Lakhs.
  4. Total revenue from operations (consolidated) for Q3 FY26: Rs. 2,11,166 Lakhs.
  5. Total income (consolidated) for Q3 FY26: Rs. 2,12,016 Lakhs.
  6. Wealth Management external revenue (consolidated) for Q3 FY26: Rs. 57,941 Lakhs.
  7. Capital Markets external revenue (consolidated) for Q3 FY26: Rs. 16,802 Lakhs.
  8. Asset and Private Wealth Management external revenue (consolidated) for Q3 FY26: Rs. 68,746 Lakhs.
  9. Home finance external revenue (consolidated) for Q3 FY26: Rs. 2,109 Lakhs.
  10. Total segment assets (consolidated) as of Dec 31, 2025: Rs. 40,72,822 Lakhs.
  11. Total segment liabilities (consolidated) as of Dec 31, 2025: Rs. 27,03,541 Lakhs.
  12. Net Worth (standalone) as of Dec 31, 2025: Rs. 8,10,634 Lakhs.
  13. Debt Equity Ratio (standalone) as of Dec 31, 2025: 1.31.
  14. Current Ratio (standalone) as of Dec 31, 2025: 1.14.
  15. Both consolidated and standalone financial results are presented and reviewed.
  16. Segment information is disclosed in consolidated financial results only.

Corporate Overview

  1. International presence through subsidiaries in Singapore, Hong Kong, Mauritius, and IFSC.
  2. Estimated increase in provision of Rs. 1,440 lakhs for employee benefits due to new Labour Codes.
  3. Financial services across wealth management, capital markets, asset management, home finance, and treasury investments.
  4. Formal and factual, reporting financial results and regulatory compliance.
  5. Wealth Management
  6. Capital Markets
  7. Asset and Private Wealth Management
  8. Home finance
  9. Treasury Investments
  10. Raised Rs. 300 Crore through private placement of Non-Convertible Debentures (NCDs) for stated objects.

Risk Factors

  1. New Labour Codes impact employee benefit provisions.
  2. Reliance on other auditors for subsidiary financials.
  3. Unreviewed subsidiary results may contain misstatements.
  4. Nine-month profit and EPS declined year-on-year.

Key Drivers

  1. Credit ratings upgraded for NCDs and bank lines.
  2. Successfully raised Rs. 300 Crore via NCDs.
  3. Strong Q3 financial results, profit after tax up.
  4. Interim dividend of Rs. 6 per share declared.

Auditor’s Report

  1. Limited Review Report, not an audit opinion.
  2. No material misstatement found based on review procedures.
  3. Reliance on review reports of other auditors for ten subsidiaries.
  4. Reliance on management certified unreviewed interim financial results for nine subsidiaries.

Board Commentary

  1. Declared an interim dividend of Rs. 6 per equity share for FY 2025-26.
  2. Estimated increase in provision for employee benefits due to new Labour Codes.
  3. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  4. Impact of new Labour Codes (Code on Wages, Industrial Relations, Social Security, Occupational Safety, Health and Working Conditions) on employee benefits.
  5. Allotted 30,000 fully-paid, secured, rated, redeemable, listed, senior NCDs aggregating to Rs. 300 Crore via private placement.

Corporate Governance

  1. Audit Committee reviewed the financial results.

Management Discussion & Analysis

Future Strategy

  1. Monitoring finalization of Central/State Rules for New Labour Codes for appropriate accounting treatment.

Operational Focus Areas

  1. Ensuring compliance with SEBI Listing Regulations and other regulatory requirements.
  2. Maintaining adequate security cover for Non-Convertible Debentures.

Performance Drivers

  1. Strong Q3 FY26 performance in Wealth Management, Capital Markets, Asset & Private Wealth Management, Home Finance, and Treasury Investments.
  2. Consolidated profit after tax for Q3 FY26 increased to Rs. 56,617 Lakhs from Rs. 36,256 Lakhs in Q2 FY26.

Risk Control Measures

  1. Maintaining security cover of 1.2x or higher for all secured NCDs as per offer documents.

Critical Risks

  1. Financial impact from new Labour Codes on employee benefits.
  2. Reliance on other auditors' review reports for a significant number of subsidiaries.
  3. Reliance on management certified unreviewed interim financial results for certain subsidiaries.
Motilal Oswal Financial Services Ltd (MOTILALOFS) Quarterly Report Analysis & Insights | Dhanarthi