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Informist, Wednesday, Jan. 28, 2026

 

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--Motilal Oswal: Saw slowdown in net inflows in past quarters across industry
--Motilal Oswal: Net flows to improve in FY27
--CONTEXT: Motilal Oswal mgmt's comments in post-earnings call with analysts
--Motilal Oswal: See strong growth continuing in the future
--Motilal Oswal: Cash market share seen rising in medium, long term
--Motilal Oswal: To launch more credit products in coming years

 

By Nandini Sinha and J. Navya Sruthi

 

MUMBAI – Motilal Oswal Financial Services Ltd. sees its market capitalisation rising to INR 10 trillion from INR 5 trillion in the coming years. Speaking to analysts in a conference call Wednesday, the management said it expects capital market demat accounts to rise from 200 million to half a billion demat accounts in the next seven to eight years and the company's market capitalization to rise from INR 5 trillion to INR 10 trillion.

 

The management also said that the company would be launching more credit products in the next one to two years. The company announced its earnings for the December quarter Tuesday, which showed the company's operating net profit rose 16% on year to INR 6.11 billion. Consolidated revenue for the quarter was up 6% on year at INR 21.12 billion. Net flows during the quarter were INR 116 billion. They are expected to improve in the financial year 2026-27 (Apr-Mar), the management said. 

 

Motilal Oswal's annual recurring revenue constitutes 65% of its total net revenue. "We have been guiding that the share of ARR revenues will continue to rise in the year ahead," the management said.

 

The company aims to boost its recurring revenue with its entry into the emerging private credit segment. The company launched a private credit fund this month. "We are quite under represented on the credit side. So we will be launching a few more credit products over the course of the next one and two years," the management said.

 

Motilal Oswal plans to launch products in at least 10 more categories. "...over the next few years, there'll be many more categories that we will be entering as this business is in the highest latency compared to all other businesses today," the management said.

 

The cost to income ratio of the company improved to 53% in the nine months ended December. "The share of private wealth in the group profit after tax has increased over the years as a result of operating leverage and a comprehensive proposition straddling HNI (high net worth individuals) and UHNI (ultra-high net worth individuals) segment. We expect the share to continue to rise going forward," the management said.

 

Motilal Oswal's institutional equity business continues to increase research coverage, with the company planning to increase the coverage to 400 stocks by the end of FY26, the management said.

 

Talking about manpower, the management said the headcount more than doubled to 620 in December 2025 from 300 in March 2024. "We continue to see good talent coming in," the management said. The company expects a strong fourth quarter led by the wealth management and private wealth management segments. The new private credit fund "should be a very strong new addition", the management said.

 

On the National Stock Exchange, shares of the company closed nearly 8% higher at INR 790.15. End

 

Edited by Ashish Shirke

 

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