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Informist, Friday, Oct. 31, 2025

By Aaryan Khanna and Srijita Bose

MUMBAI/NEW DELHI – A shaky period in equity markets kept Motilal Oswal Financial Services Ltd.'s share in the cash segment of the equity broking business lower in Jul-Sept and also led to losses in its treasury investments, its management told investors Friday. This led the company to report its sharpest fall in consolidated net profit in three years in the September quarter, barring a net loss in Jan-Mar.

"We are very cautious of the market equations," the management said in a post-earnings analyst call. "So it's more to do with the market situations that market share is... falling (a little) in this kind of market." The holding firm's wealth management arm reported a 7.1% market share in the cash broking segment in both the June and September quarters, against 7.6% for 2024-25 (Apr-Mar).

Motilal Oswal's consolidated net profit fell nearly 68% on year and 69% on quarter to INR 3.62 billion in the September quarter. Treasury investments posted losses of INR 2.68 billion in the reporting quarter, against gains of INR 7.01 billion a year ago. The structure of the firm's treasury investment is that it has a skin in the game model where it invests heavily in its own subsidiaries such as the mutual fund business and its equity market funds, the management said. The benchmark Nifty 50 index fell 3.6% in the September quarter.

On the investment banking front, the wealth management arm completed 39 deals worth nearly INR 500 billion in Apr-Sept. Its deal pipeline for the second half of the ongoing financial year was also healthy, the management said.

On the home finance front, the management said there would be a substantial increase in the profits of the business in the second half of this fiscal than in the first half. Relationship managers have been increasing productivity across segments, and Motilal Oswal expects margins in the business to increase going ahead.

Its alternate investment unit in the wealth management vertical is likely to grow in market share despite new entrants. Motilal Oswal's experience in the business and foothold will help it grow, especially as the new entrants and large mutual funds entering the space increase the awareness of alternate assets. The firm plans to add a private credit arm soon to this vertical, the management said.

"A number of clients who were earlier only mutual fund clients also opened up to alternates. It results in widening of the marketplace," the management said. "And I would dare say, now with us present across the country, market share of (a firm) like ours should not fall, it could actually go up."

The firm declared its earnings Thursday and held its conference call Friday. Shares of Motilal Oswal Financial Services ended 4.6% lower at INR 978.00 on the National Stock Exchange Friday.  End

Edited by Tanima Banerjee

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