Motilal Oswal Financial Services Ltd Q2 FY26 – The ₹61,570-Crore Financial Octopus Whose Arms Reach From Broking to NCDs (and Charity)
1. At a Glance
Motilal Oswal Financial Services Ltd (MOFSL) just dropped its Q2 FY26 results, and the numbers look like they came straight out of Dalal Street’s own thriller novel — full of profit dips, NCD launches, and surprise director appointments.
At ₹1,025 per share and a market cap of ₹61,570 crore, the stock now trades at a P/E of 30.4x, ROE of 25.2%, and ROCE of 18.7% — basically, the financial equivalent of that one student who scores 90 in every subject but still says “average hi tha.”
The firm operates across 550+ cities with 2,500+ locations, serving over 16 lakh customers. Q2FY26 revenue stood at ₹1,849 crore, down 35% QoQ, and PAT at ₹362 crore, down a dramatic 68% QoQ — because markets had more mood swings than a crypto trader this quarter.
Yet, the longer-term story remains intact: ₹4.1 lakh crore in AUM, ₹10,500 crore lending book, a diversified business bouquet, and promoters who literally donated 10% of their shares to charity.
2. Introduction
If Dalal Street ever had a family tree, Motilal Oswal and Raamdeo Agrawal would be the patriarchs — part philosophers, part financiers, part stock-market monks. Founded in 1987, MOFSL has grown from a two-man brokerage into a full-blown financial services ecosystem — broking, asset management, wealth management, private equity, housing finance, and lately, “doing NCDs faster than new IPOs.”
It’s one of the rare institutions that built trust in a business where “client code modification” is still whispered like Voldemort’s name. Over the years, the group expanded its tentacles — broking feeds wealth management, wealth feeds asset management, and asset management funds the home finance arm. In short, MOFSL doesn’t just sell stocks — it sells financial enlightenment.
But this quarter, the zen got disturbed. Broking volumes slowed, revenue fell, and PAT took a nosedive. For a company known for compounding, Q2 felt more like consolidation.
Still, if history is any guide, these guys don’t panic. They meditate.
3. Business Model – WTF Do They Even Do?
MOFSL is like the Swiss Army knife of Indian finance — every blade cuts a different sector.
🧩 Business Segments
Capital Markets (71%) – The core empire: retail & institutional broking, investment banking, and distribution. Basically, where the cash registers ring every time the Nifty sneezes.
Asset & Wealth Management (18%) – Home to Motilal Oswal AMC, Private Equity, Real Estate, and PWM units. Over ₹4.1 lakh crore of assets whispering “AUM hi dharam hai.”
Housing Finance (11%) – The lending arm that makes sure your demat-driven dreams also have a roof.
💡 Scale
550+ cities and towns
2,500+ business locations
16 lakh+ customers
🏆 Key Metrics (H1 FY26)
AUM: ₹4,10,000 crore
Lending book: ₹10,500 crore
Clients: ~6 crore (Demat accounts have tripled since FY20)
It’s less a company, more a diversified ecosystem that sells every financial product except “hope.”
Commentary: The quarter’s profit drop looks alarming, but let’s be honest — FY25 was record-breaking, and FY26’s first half was the hangover. When markets fall and retail trading volume dries, even legends get margin-called.
5. Valuation Discussion – Fair Value Range
Let’s fire up the valuation calculator (with a prayer to Raamdeo-ji’s compounding gods):
