Motilal Oswal shares crash 7% even after Q1 net profit rises 10%, AUM increases by 31%
The shares of the company dropped to Rs 872 apiece on Friday, after the release of Q1 results post market hours on Thursday. Its revenue from operations, meanwhile, jumped more than 25% YoY to Rs 3,426 crore during the quarter under review, compared to Rs 2,738 crore reported in the year-ago period. Total expenses surged around 42% YoY to Rs 1,898 crore in the first quarter of FY27.
Motilal Oswal said it recorded its highest ever operating profit after tax (PAT) of Rs 1,513 crore in Q1, marking a 14% YoY rise, driven by a strong 73% surge in its asset management business’ profit to Rs 245 crore. The segment is now the largest contributor to the firm’s overall PAT at 40%. Total assets under management (AUM) increased 31% YoY to Rs 2.12 lakh crore.
Private wealth management segment saw a 42% YoY rise in Annual Recurring Revenue (ARR) to Rs 157 crore, while AUM grew 37%. “MOFSL’s 10-year track record of 33% Operating PAT CAGR, Earnings Per Share (EPS) CAGR of 28% and average Return on Equity (ROE) of 23% has been delivered entirely through internal accruals with no dilution. During the same period, Net Worth CAGR is 25% after 3 buybacks and consistent dividend payouts, entirely through internal accruals,” the company said.
Also Read | Motilal Oswal Q1 Results: Net profit rises 10% YoY to Rs 1,273 crore; revenue climbs 25%
Motilal Oswal highlighted that it has delivered 28% net worth CAGR over the past six years. The company’s wealth management segment saw a strong ascent on growing annuity streams – ARR revenue grew by 26% on YoY basis to Rs 304 crore, while loan book grew by 33% YoY to Rs 7,388 crore.
“Crisil upgraded our long-term credit rating to AA+ Stable. This reflects the strength of our franchise and the resilience of our business model which are designed to deliver sustainable growth across market cycles. Focus on annuity revenues have led to a contribution of 66%, improving quality and predictability of business,” the company further said.
Motilal Oswal share price
The company’s shares have fallen over 2% in one week but gained over 1% in one month to close at Rs 940 apiece on Thursday. The stock is overall up more than 12% in 2026 so far.In the longer term, Motilal Oswal shares delivered 4% returns over one year, 409% over three years and 258% over five years. The company has a market capitalisation of more than Rs 56,878 crore.
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