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Informist, Tuesday, Sept. 15, 2026

--India Ratings upgrades rtg on Motilal Oswal's loans, NCDs to AA+ from AA

NEW DELHI – India Ratings upgraded the long-term rating on various instruments of Motilal Oswal Financial Services Ltd. to "AA+" with a "stable" outlook from "AA" and a "positive" outlook. "The upgrade reflects the strengthening of MOFSL group's business profile, supported by the continued scale-up of its asset and wealth management businesses, increasing contribution from recurring fee-based revenue streams and sustained profitability across key operating segments," the rating agency said Tuesday. 

The rating upgrade extends to Motilal Oswal Financial Services' non-convertible debentures, bank loans, and commercial papers. According to the rating agency, Motilal Oswal group has continued to expand its customer franchise and assets under management while maintaining its position across capital market-related businesses. "The improvement in earnings diversification has reduced the relative dependence on transaction-based income and enhanced the stability of the group's overall revenue profile," it said. 

The upgrade also factors in the continued expansion of the group's lending franchise across capital market-linked lending and housing finance, while maintaining a diversified product offering across broking, wealth management, private wealth, asset management, alternative assets and housing finance. "The group's ability to leverage its integrated platform to deepen customer engagement and cross-sell multiple financial products has supported growth across business verticals," India Ratings said. Besides, the group maintains comfortable capitalisation and liquidity buffers, supported by internal accruals, a sizeable investment portfolio and access to diversified funding sources, it added.

All said, the rating agency also said the ratings remain constrained by the group's exposure to capital market-linked activities, which could result in earnings volatility during periods of adverse market conditions. "Ind-Ra believes a sustained moderation in capital market activity or changes in the regulatory framework could affect the group's earnings trajectory," the rating agency said in a release.

The rating also remains constrained by the muted performance of the housing finance portfolio. "Ind-Ra will continue to monitor portfolio seasoning and the group's ability to maintain asset quality while scaling the housing finance business with granularisation," it said. 

The brokerage and asset manager posted a consolidated net profit of INR 12.73 billion in the June quarter, up 10% on year. This marked a turnaround for the company, which had reported a net loss of INR 2.19 billion in the trailing quarter. The company's revenue for the June quarter was INR 34.26 billion, up 25% on year. Tuesday, shares of the company closed at INR 990.80 on the National Stock Exchange, down 3.5%.  End

Reported by Priyasmita Dutta

Edited by Deepshikha Bhardwaj

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