Earnings call transcript: Motilal Oswal beats revenue estimates in Q2 2026

Motilal Oswal Financial Services reported a revenue of $17.57 billion for Q2 2026, surpassing the forecasted $14.60 billion by 20.34%. Earnings per share (EPS) reached $17.68, although the stock initially dropped 2.69% to $941.95 after the results. The shares have since declined further by 4.48% to the same price, though they remain above the 52-week low of $614.90 and below the peak of $1,090.25.

Revenue growth of 20.34% exceeded expectations, with asset and private wealth businesses increasing 43% year on year, accounting for 58% of operating profit. This represents a significant shift from previous years, with asset management AUM at INR 2.23 lakh crore and private wealth AUM rising 58% to INR 2.96 lakh crore. The company highlighted that annuity-style revenue now makes up 66% of group revenue, up from 55% in FY 2024.

Management attributed the strong performance to broad-based growth across asset management, private wealth, broking, and alternates businesses. The asset and private wealth franchise emerged as the biggest driver, contributing 58% of operating profit. The company emphasized its long-term strategy of diversifying revenue streams, noting that asset and private wealth businesses have grown at a 33% compounded annual rate over 10 years, with EPS growing 26% annually and return on equity averaging 23%.

InvestingPro Tips note the company's strong performance over the past decade, including a high return on equity and consistent dividend increases. The stock is currently trading at a low P/E ratio, potentially presenting a value opportunity for investors. Management remains optimistic about future growth, particularly in asset management and private wealth, and the upcoming SIF launch.