Motilal Oswal Financial Services Ltd Management Discussions

Global Economy

The global economy has remained resilient despite ongoing geopolitical and economic disruptions, although the continuing conflict in the Middle East has introduced fresh uncertainty through higher commodity prices, supply chain disruptions, and increased volatility in financial markets. Economic growth across major economies remains uneven, with structural challenges persisting in both China and the United States. Nevertheless, supportive fiscal policies and the growing adoption of artificial intelligence (AI) are expected to provide long-term productivity and growth opportunities, supported by effective and balanced policy measures. Global GDP growth is estimated to grow by 3.1% in CY2026 and 3.2% in CY2027 (as per the IMF World Economic Outlook, Apr26), supported partly by high-tech sector momentum despite broader economic drag from tariffs and uncertainty.

In advanced economies, growth is projected at 1.8% in 2026 and 1.7% in 2027, with the Middle East conflict reducing growth due to elevated energy prices and weaker trade activity. However, the impact remains relatively contained because of positive terms-of-trade benefits for energy exporters and fiscal support measures in key economies. The US is expected to grow by 2.3% in 2026 and 2.1% in 2027, supported by fiscal stimulus, prior monetary easing, and stronger productivity growth. However, higher trade barriers and geopolitical uncertainty continue to weigh on economic activity.

Emerging market and developing economies are projected to grow by 3.9% in 2026 and 4.2% in 2027, with the Middle East conflict having a relatively larger impact due to greater exposure to energy imports, remittances, and financial flows. Chinas growth is projected at 4.4% in 2026 and 4.0% in 2027, supported by policy stimulus and lower tariff pressures. India continues to remain one of the fastest-growing major economies, with GDP growth of 7.6% in 2025 and projected to be 6.6% & 6.7% in CY2026 and CY2027, driven by strong domestic momentum, resilient demand, and lower US tariff pressures outweighing geopolitical disruptions.

Chart: Indias GDP growth highest amongst major peers

GDP growth rate	2025	2026P	2027P
World Output	3.4%	3.1%	3.2%
USA	2.1%	2.3%	2.1%
China	5.0%	4.4%	4.0%
Japan	1.2%	0.7%	0.6%
Germany	0.2%	0.8%	1.2%
India	7.6%	6.6%	6.7%
UK	1.3%	0.8%	1.3%
France	0.9%	0.9%	0.9%
Italy	0.5%	0.5%	0.5%
Canada	1.7%	1.5%	1.9%
Russia	1.0%	1.1%	1.1%

Source: IMF World economic outlook, Apr26

Global trade in 2026 stands at a pivotal moment, shaped by geopolitical dynamics, economic pressures, evolving supply chains, rapid digital innovation, and growing sustainability priorities. These shifts are transforming global commerce, particularly for developing economies.

It expanded by nearly US$2.3 trillion in 2025, reaching ~US$36 trillion which is a result of 6% growth in services trade and 7% growth in goods trade. It remained resilient, despite rising protectionism and geopolitical uncertainty, according to WTO and UNCTAD data. Growth was driven by digitalization, AI-linked technology demand, and increased trade flows between the emerging economies, while goods trade growth remained modest amid tariffs and weak industrial momentum. Looking ahead to 2026, the outlook remains moderately positive but policy-dependent, with services exports expected to sustain growth, while tariff risks, geopolitical fragmentation, and slower global GDP growth may cap overall trade expansion.

Indian Economy Overview

India retained its position as the 5th largest economy and have maintained its status as the fastest growing amongst large economies and is expected to be the third largest economy by 2029 (crossing GDP of $6 Tn) after USA and China. The Indian economy is expected to grow by 6.6% in CY26.

Table: India set to Become 3rd Largest Economy by 2029

Rank	2020	2021	2022	2023	2024	2025P	2026P	2027P	2028P	2029P	2030P
1	USA	USA	USA	USA	USA	USA	USA	USA	USA	USA	USA
2	China	China	China	China	China	China	China	China	China	China	China
3	Japan	Japan	Japan	Germany	Germany	Japan	Germany	Germany	Germany	India	India
4	Germany	Germany	Germany	Japan	Japan	Germany	India	India	India	Germany	Germany
5	UK	India	India	India	India	India	Japan	Japan	Japan	Japan	UK
6	India	UK	UK	UK	UK	UK	UK	UK	UK	UK	Japan
7	France	France	France	France	France	France	France	France	France	France	France
8	Italy	Italy	Russia	Italy	Italy	Italy	Italy	Italy	Italy	Italy	Italy
9	South Korea	Canada	Canada	Canada	Canada	Russia	Russia	Russia	Russia	Canada	Canada
10	Canada	South Korea	Italy	Russia	Russia	Canada	Canada	Canada	Canada	Russia	Russia

Source: (as per latest IMF database)

Chart: Indias GDP growth rate, highest amongst peers

Source: IMF World economic outlook, Apr26

Indias export performance has experienced remarkable growth, with Indias total exports estimated at $860Bn during FY26, an increase of 4.2% YoY for the same period of the previous year. Total imports during FY26 estimated at $979Bn, reflectinga growth of 6.4% over the corresponding period of the previous year. As per the WTOs World Trade Statistics, India has significantly strengthened its position in global trade between 2005 and 2024. The countrys share in worldwide merchandise exports increased from about 1% to 1.8%, nearly doubling over the period, while its contribution to global commercial services exports expanded more sharply, rising from 2% to 4.3%. Indias forex reserves have remained among the largest globally, supported by sustained capital inflows, services exports surplus, remittances and prudent reserve management. Over recent years, reserves have broadly stayed around $700 bn, enhancing Indias macroeconomic resilience.

The Union Budget 2026 27 emphasizes growth with fiscal discipline, targeting a fiscal deficit of around 4.3% of GDP and reinforcing macroeconomic stability. The government continues to prioritise investment-led growth through sustained infrastructure spending to boost productivity and crowding-in private capex. Focus areas include domestic manufacturing, supply-chain resilience, and integration into global value chains. Financial sector reforms and digital initiatives aim to deepen capital markets and accelerate financialisation of savings.

Continued support for MSMEs, technology, and clean energy highlights a structural, long-term growth strategy while maintaining fiscal prudence.

India is evolving rapidly towards an AI-enabled economy, with government initiatives focused on innovation, digital infrastructure, and workforce skilling to support widespread adoption across sectors. AI is expected to enhance productivity, improve service delivery, and foster innovation-led entrepreneurship. Over the medium term, AI integration is likely to act as a structural growth catalyst, strengthening competitiveness and supporting sustained economic expansion.

Indian Economy Outlook

Amid volatile global markets, the Indian economy is expected to remain resilient through 2026 27, supported by strong domestic demand, sustained government-led capital expenditure, and steady services sector momentum. The IMF continues to view India as the fastest-growing major economy in 2026, driven by domestic demand and investment activity. Structural drivers, including manufacturing expansion, digitalisation, and increasing financialisation, are likely to support GDP growth in the 6 8% range over the medium term.

Capital Markets - Industry Overview

India is 7th Largest Market by Market Cap

Global equity market capitalization has expanded steadily over time, supported by economic development, improved corporate profitability, and broader investor participation. Although markets remain influenced by macroeconomic cycles and liquidity conditions, the post-pandemic rebound and technology-driven investments have sustained valuations. Recent movements suggest stabilization in a higher interest rate environment, underpinned by resilient earnings and long-term structural growth drivers. Indias domestic equity markets is ranked seventh largest globally with $4.9 Tn on market cap.

Table: India is the 7th largest market by Market Capitalisation.

Country	US$ Tn Market Cap
USA	79.1
China	16.3
Japan	8.9
Hong Kong	7.6
Taiwan	5.0
South Korea	5.0
India	4.9

Global Markets

During FY26, global equity markets reflected divergent performance amid ongoing geopolitical tensions and heightened uncertainty, with FY25 trends providing context to these movements. In Europe, the DAX recorded a modest gain of 2.3% following strong growth in FY25, while the FTSE 100 accelerated to 18.6% compared to relatively moderate gains in the previous year. In Asia, the Nikkei 225 rebounded sharply by 43.4% after a decline in FY25, and the KOSPI surged by 103.6% following a contraction in the prior year. The Hang Seng Index rose by 7.2%, moderating from strong gains in FY25, while the

Shanghai Composite maintained steady momentum with a 16.7% increase, building on consistent growth in the previous year. In the United States, the S&P 500 advanced by 16.3%, improving over FY25 performance. In contrast, Indian markets declined, with the BSE Sensex falling by 7.1% and the Nifty 50 declining by 5.1%, after moderate gains in FY25. Overall, FY26 performance highlights sharp recoveries in select Asian markets, continued strength in developed markets, and relative weakness in India, reflectingthe uneven impact of global uncertainties and geopolitical developments.

Chart: Indias vs peers market performance

FY26 witnessed a broad-based correction across key Indian equity indices following the positive returns delivered in FY25. The BSE Smallcap declined by -3.3% in FY26 compared to a strong 8.0% gain in FY25, indicating heightened volatility in the broader market segment. Similarly, the BSE Sensex and Nifty 50 fell by -7.1% and -5.1%, respectively, against gains of 5.1% and 5.3% in the previous year.

Within the broader weakness observed across benchmark indices, mid-cap performance remained relatively resilient. The BSE Midcap Index remained largely flat, while the Nifty Midcap 150 recorded gains during the period, in contrast to the negative returns seen across most other indices. Overall, market performance in FY26 was characterized by a broad-based decline across most indices, with selective pockets of relative resilience.

Structural Increase in Demat Accounts

Indias demat account base continues to expand structurally, reflectingdeepening financializationof household savings and rising retail participation in capital markets. Total accounts have crossed ~22 crore, supported by digital onboarding, low-cost brokerage platforms, and strong IPO activity. While account additions have moderated amid market volatility, penetration remains low relative to population, indicating a long growth runway. Increasing participation from younger and Tier-2/3 investors is expected to sustain long-term equity market depth and trading activity.

Chart: Strong Demat Account Trend

Source: CDSL & NSDL

FY26 witnessed another strong year for IPOs amid the market volatility

In FY26, a total of 366 companies accessed the IPO market, comprising 112 mainboard listings and a record 254 SME listings, collectively raising R1.9 trillion. Of this, R1.8 trillion was raised through mainboard IPOs, with the remaining amount contributed by SME issuances. Notably, nearly 90% of these issues were concentrated in 9MFY26; despite this skew, overall fund mobilisation remained comparable to FY25. The average issue size for mainboard IPOs stood at R1,598 crore in FY26, indicating a healthy capital-raising environment for the Indian market during the year.

Chart: FY26 continued to remain strong for IPOs

	Mainboard IPO		SME IPOs		Total IPOs		QIPs
Year	No. of	Amount raised	No. of	Amount raised	No. of	Amount raised	No. of	Amount raised
	Issues	(in R Cr)	Issues	(in R Cr)	Issues	(in R Cr)	Issues	(in R Cr)
FY20	13	20,350	40	415	53	20,765	13	51,216
FY21	31	46,268	24	234	55	46,501	31	81,738
FY22	54	1,15,847	65	939	119	1,16,786	29	28,532
FY23	37	52,116	125	2,235	162	54,350	11	9,019
FY24	76	61,922	204	5,971	280	67,894	64	71,306
FY25	79	1,80,387	233	9,113	312	1,89,500	85	1,33,251
FY26	112	1,78,969	254	10,948	366	1,89,917	29	62,954

Source: Bloomberg

NSE Active Clients

The active client base on National Stock Exchange (NSE) increased steadily, registering a CAGR of 24% from 5.17 million in Mar16 to ~46 million in Mar26. The rise in Tier-2 and Tier-3 cities, increasing participation from young investors, and the ongoing financialization of savings are expected to drive future expansion. However, market volatility and fluctuations in FII flows remain key risks. A fundamentally earnings-led market outlook should help sustain resilient investor participation in the medium term.

In FY26, the Indian equity markets displayed a resilient but uneven trajectory, absorbing global uncertainties including commodity volatility, geopolitical developments, and fluctuating foreign investor flows. Benchmark indices such as the Nifty 50 and BSE Sensex were largely supported by robust domestic participation, steady liquidity, and active primary market issuance.

Over the course of the year, market behavior evolved into a more range-bound and rotation-driven phase, with heightened sensitivity to global cues. Looking ahead, the outlook remains stable with moderated expectations, anchored in earnings visibility and domestic flows, while foreign institutional activity is expected to remain opportunistic. Overall, compared to the previous broad-based upcycle, FY26 reflects a more selective and fundamentally driven market environment.

Regulatory Developments Affecting Indian Capital Markets

During FY26, Indias capital market regulatory framework continued to evolve, with policymakers placing greater emphasis on market stability, stronger risk controls in derivatives, and enhanced safeguards for retail investors. Regulatory initiatives undertaken by SEBI, RBI, and the Government focused on improving transparency, managing leverage, and supporting sustainable participation in equity and F&O segments. Together, these measures contribute to a more robust and well-regulated market environment.

The measures were as below:

SEBI strengthened derivatives risk norms to curb excessive retail speculation.

Intraday monitoring introduced for index derivative position limits.

Expiry-day calendar spread margin benefit removed in single-stock derivatives.

• Retail algorithmic trading brought under formal regulatory oversight.

Standardised derivatives expiry days to improve liquidity and risk control.

RBI tightened bank funding norms for brokers and market participants.

Securities Markets Code proposed to unify securities laws and enhance investor protection.

MOFSLs business streams and outlook

Motilal Oswal Financial Services Limited (MOFSL) is a diversified financial services company with focus on managing clients wealth. MOFSL operates in business segments like;

Assets Management business.

Private Wealth Management business (HNI / UHNIs clients).

Wealth Management business (Broking, Distribution and Lending for retail clients).

Capital Markets business (Institutional Equities and Investment Banking business).

Affordable Housing Finance business.

In each of the businesses, MOFSL offers a unique value proposition to its customers creates its niche in each of the business segments and commands a premium position over peers. We also possess a large treasury book.

Asset Management Businesses

Mutual Fund Industry Overview – Financial Year 2026

The Indian mutual fund industry exhibited steady progress in FY2026, supported by continued retail participation, rising financialisation of savings, and resilience in systematic flows, even as overall market conditions were relatively more volatile compared to FY2025. While FY2025 was characterized by stronger market performance and accelerated growth across key metrics, FY2026 reflected a phase of consolidation, with flows remaining stable and investor participation continuing to broaden.

A key feature of the year was the contrasting behaviour of institutional flows FIIs remained relatively volatile, influencedby global macroeconomic factors and risk-off sentiments at intervals, whereas DIIs, led by mutual funds and insurance players, provided consistent support to the markets through steady domestic role of domestic capital has enhanced market stability and reduced dependence on foreign flows. Looking ahead, the medium-term outlook for the industry remains structurally positive over the next five years. Continued expansion in SIP penetration, growing participation from beyond the top cities, increasing digital adoption, and rising investor awareness are expected to sustain inflows. Additionally, the strengthening presence of DIIs alongside a gradual normalization of FII flows is likely to create a more balanced and resilient market environment. Collectively, these factors position the Indian mutual fund industry for sustained, long-term growth despite intermittent market cycles..

Strong Growth in Mutual Fund AUM and Investor Participation

The Indian mutual fund industry sustained its growth momentum in FY2026, driven by rising retail participation, continued financialisationof savings, and steady inflows through systematic investment plans (SIPs). Assets under management (AUM) expanded on the back of consistent net inflows, particularly into equity-oriented schemes, supported by improving investor awareness and wider distribution reach. The increasing contribution of SIPs highlights a growing preference for disciplined, long-term investing, reinforcing the industrys role as a key avenue for household savings.

Industry AUM Expansion: The mutual fund industrys assets under management (AUM) stood at R73.7 lakh crore as of March 2026, registering a strong increase of ~R8 lakh crore over March 2025 levels. The sustained rise in AUM highlights the growing acceptance of mutual funds among investors as an effective vehicle for long-term capital formation and structured investing.

Source: AMFI

Strong Growth in Equity-Oriented Mutual Fund AUM

(Ex-Arbitrage & ETF): Equity-oriented mutual fund AUM witnessed a notable expansion during the period, increasing by R 3 lakh crore to reach R35 lakh crore as of March 2026. This growth was primarily supported by sustained investor interest in equity markets, along with consistent inflows into diversified and systematic investment avenues. The continued traction in equity schemes reflects a gradual shift in investor preference towards market-linked instruments for long-term wealth creation, underpinned by improving awareness and participation across a broader investor base.

Steady Growth in SIP Inflows:SIP inflows continued to scale new highs in FY26, rising by 21% to R3,49,589 crore. While the pace of growth moderated compared to the strong 45% investment platform across Mutual Funds expansion recorded in the previous year, the milestone underscores the sustained strength and maturity of retail participation. The steady rise in SIP contributions highlights an increasing preference among investors for disciplined, long-term investing, reinforcing SIPs as a core driver of incremental flows into mutual funds.

Continued Expansion of Investor Base: The mutual fund industry continued to witness an expansion in its investor base, with total folios rising to 27.4 crore as of March 2026 from 23.5 crore in March 2025, reflecting a growth of 17% during the period. Although the increase was lower than the elevated growth seen in the previous year, the addition of new folios remains robust, indicating sustained investor interest. SIP accounts also increased by 0.4 crore to reach 10.4 crore, pointing to continued engagement from existing as well as new investors.

Challenges and Opportunities for Future Growth

The Asset Management industry in India continues to navigate margin pressures from regulatory oversight by

Securities and Exchange Board of India, rising competition, and market-linked volatility. Despite these headwinds, structural drivers such as increasing financialisationof savings, steady SIP inflows, expanding retail participation, and growing digital penetration remain supportive of long-term growth. Additionally, the rising adoption of passive products and ongoing product innovation provide further avenues for scalable AUM expansion.

Motilal Oswal AMC

Motilal Oswal Asset Management (MOAMC) offers a (MF), diversified Portfolio Management Services (PMS), and Alternative Investment Funds (AIF), with a strong focus on public equities. The firm continues to maintain a predominantly equity-oriented AUM mix, reflecting its differentiated positioning in the market. As of March 31, 2026, total AUM stood at R1,55,449 crore, registering a robust YoY growth of 26%. Our mutual fund AUM stood at R1,24,786 crore, PMS AUM stood at R12,354 crore and AIF AUM stood at R18,309 crore as of February 2026.

The company has a diverse passive product basket with a variety of categories to choose from- Indian equities, International Equities, Factors, Sectors, Commodities, Multi Asset and Debt. During FY26, we launched 18 passive mutual funds and 5 active mutual funds. Our presence in a passive category will help us to on board clients from the bottom of the pyramid, who are typically new to the equity asset class or have a lower risk appetite. The company added around 56.08 lakh SIPs in FY2026. It achieved an all-time high inflow from SIP during the year of R16,479 crore.

We saw exceptional performance of the companys active MF schemes, which in turn led to an improvement in gross sales and decline in redemptions. The company remains committed to its Quality, Growth, Longevity and Price (QGLP) philosophy and will continue to improvise. Further, the change in the investment process from focusing on the highest returns to focusing on consistency started yielding results.

On a blended basis, the companys net yield stood at 60 bps in FY2026. Alternates contributed about ~20% of total AMC AUM, one of the highest in the industry. The company invested in branding and advertising and is expected to reap benefits of brand recall.

MO Alternates

The alternatives segment in India is set to witness strong structural growth, with its share in total assets expected to increase from single digits to double digits, thereby emerging as a meaningful contributor to overall AUM expansion. At a global level, alternates represent a sizeable revenue pool of $193 billion, with India still in the early stages of adoption and well positioned to drive incremental growth over the coming years. The investor base is also expected to evolve, with the share of HNIs in alternates AUM projected to rise from 15% currently to 25% over the next decade, indicating increasing acceptance among affluent investors.

Reflectingthis favorable outlook, Indias alternatives AUM, currently at $400 billion, is anticipated to grow fivefold to $2 trillion by 2034. Against this backdrop, the Group is strongly positioned to benefit from the emerging opportunities in the alternates space, underpinned by its strategic focus and stated mission to build a dominant presence across all major alternates AMC segments.

MO Alternates has established itself among the few domestic players with a strong outperformance track record, further strengthening its positioning in this high-growth segment. The platform continues to scale with earning AUM at R24,099 crore as of March 2026, and has also expanded its product suite with the launch of its maiden "Private Credit" fund in January 2026, targeting a fundraise of R3,000 crore.

Private Wealth Management business

Sector Overview

The Indian wealth management industry continues to evolve, supported by increasing financialisation of household savings and rising investor sophistication.

Financial assets accounted for 11.8% of household savings in FY25, highlighting substantial growth potential as households increasingly allocate savings towards formal financial instruments. This structural shift is being supported by rising incomes, ongoing formalisation of the economy, and deeper participation in capital markets, driving the continued financialisationof household wealth. Indias addressable wealth pool continues to expand:

HNI/UHNI population has grown at ~12% CAGR over CY19 to CY24

Total investable wealth estimated has grown by 15% CAGR to ~US$ 240 trillion by 2029.

The industry continues to benefit from both incremental wealth creation and the gradual formalisation of existing wealth.

Investor preferences are evolving in line with increasing financial awareness and portfolio sophistication. There is a continued shift:

From transaction-oriented engagement to advisory-led relationships

From traditional products to multi-asset portfolios and alternative investments

From relationship-centric models to digitally supported engagement frameworks

Allocations towards alternative investment products, including AIFs, PMS, and private market opportunities, have increased, particularly within the UHNI segment. Industry estimates indicate that alternatives constitute 15% of HNI/ UHNI portfolios.

This shift is contributing to a gradual change in revenue composition across the industry, with an increasing share of advisory-led and higher-yield products. Alternatives and advisory mandates typically generate higher fee yields, while the revenue mix is gradually evolving from transactional income towards more recurring streams. The wealth management industry in India comprises a mix of bank-led platforms, independent wealth managers, and emerging digital models.

Bank-led models continue to benefit from strong client franchises but are typically characterised by product-led approaches. Independent platforms and specialised wealth managers are increasingly focused on advisory-led engagement and customised portfolio construction, including alternative investment capabilities.

Regulatory initiatives by the Securities and Exchange Board of India (SEBI), particularly in relation to transparency, product suitability, and fee structures, are contributing to the formalisation of the industry and strengthening governance standards.

Motilal Oswal Private Wealth Management

Motilal Oswal Financial Services operates its Private Wealth Management (PWM) business through an integrated platform that combines advisory, distribution, product manufacturing, and transaction capabilities. This platform enables the Company to participate across the investment value chain, including product structuring, client allocation, and execution, supporting the delivery of customised investment solutions.

The business is focused on serving HNI and UHNI clients, with an emphasis on portfolio construction, access to differentiated investment opportunities, and long-term client relationships. This approach facilitates tailored portfolios and access to differentiated investment opportunities, including unlisted and private market investments. The Company has also expanded its capabilities across key segments such as unlisted equities, private market investments, co-investments and structured products.

The Assets Under Management (AUM) of the PWM business increased from R1,44,245 crore as of March 31, 2025 to

R1,96,716 crore as of FY26, representing a growth of 36%. The growth in AUM was supported by net inflows from both existing and new clients, along with increased wallet share across client segments. The company further focused on improving the composition of AUM, with a gradual increase in the share of advisory-led mandates and differentiated investment products.

During the year, the business strengthened its capabilities across select investment segments, including unlisted equities, private market investments, and structured products. These offerings are aligned with evolving client requirements, particularly within the UHNI segment, and support the objective of delivering diversified customised investment solutions.

Our capabilities in private markets and structured solutions are supported by our broader capital market and institutional relationships, enabling access to differentiated investment opportunities. In parallel, we continued to invest in its research and advisory capabilities to support portfolio construction and client engagement.

The PWM business operates on a relationship manager-led model, supported by centralised research, product, and execution functions. Revenue is derived from a combination of distribution income, advisory fees, and fees from alternative and structured investment products.

The business is supported by a team of 440 relationship managers.

We continue to focus on enhancing yield on AUM through an improved product mix, increasing the share of recurring revenues, and driving operating efficiency and through scale. Operating leverage is expected to improve over time, supported by ongoing investments in talent and platform capabilities.

Conclusion

The wealth management industry continues to be supported by structural factors, including financialisation of savings, expansion of the HNI and UHNI segments, and . increasingadoptionoffinancial products In this context, we expects AUM growth to be driven by net inflows and market performance, along with a gradual shift in product mix towards advisory-led and differentiated offerings, and increased adoption of technology-enabled client engagement models.

We remain focused on disciplined growth, strengthening client relationships, and enhancing product and advisory capabilities, with the objective of building a scalable wealth management platform over time.

The combination of integrated capabilities, product depth, and client relationships supports our ability to deliver differentiated investment solutions.

Wealth Management Business

Includes Broking, Distribution & Lending Book for retail customers

Within the broader wealth management industry, we continue to differentiate ourselves through our phygital operating model, which is well aligned with the inherently relationship-driven nature of the business. While the industry remains divided between digitally-led platforms and traditional relationship-managed approaches, we have adopted an integrated model that combines our extensive network of 7,610 wealth managers, covering over 95% of PIN codes.

Further, in contrast to the relatively high client acquisition costs typically observed in the wealth management industry, the Company leverages its franchisee-led broking ecosystem as the primary acquisition engine, resulting in negligible to near-zero direct acquisition costs. Clients are onboarded through the franchisee network via broking services and are subsequently cross-sold a comprehensive bouquet of wealth management products through strong servicing intensity. This approach enhances client stickiness and supports the generation of annuity-style trail revenues, thereby positioning the Company favourably through a combination of scalable, low-cost acquisition and sustainable long-term monetisation.

Our RIISE app, is a one-stop digital platform offering a comprehensive suite of investment solutions within a single application. It enables seamless portfolio management through an integrated and user-friendly interface. The platform features an AI-led research assistant, intelligent insights, and portfolio intelligence and automation tools, empowering clients to make informed decisions and efficiently manage their wealth.

Retail Broking

Within the client base of the company, clients aged 30+ constitute ~72% of the base and contribute ~91% of gross brokerage income, underscoring a growing preference for a trusted brand as clients age and wealth increase. This trend reflects the importance of relationship-driven engagement and credibility in financial decision-making. The Companys positioning enables it to build long-term relationships, resulting in strong client stickiness.

In FY2026, the companys client base expanded significantly, surpassing 55 lakhs with a DP AUM of R2.4 lakh crore. The growth was bolstered by the addition of

6.0 lakh new clients, facilitated by strategic acquisitions of small regional brokers transformed into external wealth managers which expanded the companys footprint into new geographies.

Distribution AUM (R Crs)

As of FY2026, the companys distribution Assets Under Management (AUM) reached R40,662 crore, reflecting a robust 41% YoY growth. With a substantial client base, the company continues to leverage opportunities for cross-selling financial products and scaling its business operation. During the year, the distribution income contribution maintained at 17% in FY26.

Lending book

FY2026 witnessed strong momentum across the lending business, with the lending book growing 32% YoY to 6,094 crore. Our MTF continued to strengthen, achieving a market share of nearly 7%, while NII grew 16% YoY and increased its contribution to WM segment revenue to 42% in FY2026 from 36% in FY2025.

Research and advisory represent the foundation of the companys services, catering to diverse client segments including mass affluent and high net worth individuals with net worth up to R 5 crore. The company prioritized enhancing customer experience through digital initiatives and dedicated advisory desks tailored for mass affluent and HNI clients. The launch of the RIISE Super App centralized financial services, enabling seamless investment management across various products such as mutual funds, insurance, and US stocks.

Capital Markets (IE & IB)

Capital Market business comprises of Institutional Equities & Investment Banking Business.

The Institutional Equities (IE) business remains a well-established franchise and continues to receive strong recognition in the Asiamoney rankings. The firm believes that the depth and quality of research generated by this segment not only supports clients but also strengthens the broader group philosophy of "Knowledge First." As part of its growth strategy, the company continues to expand research coverage across corporates, with the number of companies under coverage currently standing at

360+. Supported by robust research capabilities, leading industry rankings, and the long-term growth potential of Indian capital markets, the IE business is well positioned to benefit from sustained domestic and foreign institutional investor (DII and FII) flows.

The companys Institutional Broking division offers a comprehensive suite of services across cash and derivatives to both domestic and global institutional investors. The Institutional Equities (IE) business continues to broaden its institutional footprint by securing additional empanelments and strengthening relationships with over 900 institutions.

The firms commitment to service quality and client engagement has been reflected in its industry recognition, underscoring the strength of its institutional platform. During the year, the company continued to enhance its research capabilities, corporate access initiatives, and sales and trading strengths, further reinforcing its competitive positioning. The research platform now covers more than 360 companies across over 27 sectors, delivering in-depth insights to institutional clients. On the corporate access front, the company successfully hosted flagshipevents such as the Annual Global Investor Conference, Ideation Conference, and several curated engagements that enabled meaningful interactions between investors and corporate leadership teams.

The Investment Banking (IB) business delivered strong momentum during the year, registering a 50% revenue growth, one of the highest among the companys business segments. This performance reflects the strategic initiatives undertaken following the induction of a new leadership team in FY23, which helped strengthen deal origination capabilities and build a robust mandate pipeline. The strong pipeline translated into successful deal execution in FY26, contributing to improved performance and enhanced positioning in industry league tables. and a During the year, Motilal Oswal Investment Banking continued to reinforce its leadership in the capital markets space by retaining the #1 position in the Qualified Institutional Placement (QIP) league table and #2 in Capital Markets in FY26. This achievement underscores the firms strong execution capabilities, deep corporate relationships, and credibility among institutional investors.

Looking ahead, the investment banking franchise remains well placed for sustained growth, supported by a healthy pipeline of mandates across multiple products. With increasing capital market activity and strong client engagement, the company expects the IB business to maintain strong growth momentum in the coming years. Some of the marquee deals that we completed in FY26 are highlighted below;

Motilal Oswal Home Finance Limited (MOHFL)

Motilal Oswal Home Finance Limited (MOHFL) delivered steady and disciplined progress in FY2025 26, anchored inportfolio quality, operating efficiency, platform for sustainable growth. The Company continues to pursue a balanced model, combining calibrated expansion with prudent risk management in the affordable housing finance segment.

The operating environment remained supportive, with stable economic growth, moderating inflation, and improved liquidity. Structural drivers for housing finance remain compelling, with Indias mortgage penetration at ~11 12% of GDP, significantly below global levels, indicating substantial long-term headroom. Government initiatives such as PMAY 2.0, alongside urbanisation and increasing income formalisation, continue to support demand, particularly in Tier-2 and Tier-3 markets.

MOHFL remains focused on low and middle-income households, with a differentiated approach to self-employed and cash-salaried customers. Its underwriting framework anchored in cash flow-based assessment, proprietary credit models, and strong field-level due diligence supports prudent credit selection in segments with limited formal documentation.

The Company maintained a calibrated growth trajectory, with AUM crossing R5,000 crore mark at R5,829 crore and disbursements of R2,021 crore. Growth was supported by steady demand across core geographies and improved branch productivity. MOHFL continues to deepen its presence in Tier-2 and Tier-3 markets, which remain key growth drivers.

Financial performance remained stable, with NIM at 7.0% and spread at 5.4%, reflecting disciplined pricing and a stable cost of funds. ROA stood at 2.80% and ROE at 10.60%.

The Company remains focused on improving return ratios through operating leverage, portfolio seasoning, and funding cost optimisation.

Asset quality metrics were stable, with GNPA at 0.9% and NNPA at 0.5%, reflecting prudent underwriting, strengthened collections, and a collateral-backed portfolio. The book remains conservatively positioned, with an average LTV of 58% and FOIR of 44%. Operationally, MOHFL has built a scalable distribution platform with 126 branches across 12 states. While Maharashtra remains the largest contributor, newer geographies are gaining traction and are expected to contribute meaningfully to incremental growth. To date, the Company has enabled home ownership for over 54,600 families, reflecting its continued commitment to financial inclusion.

On the liability side, MOHFL maintains a diversified funding profile with strong relationships across banks, financial institutions, and capital markets. The average cost of funds remained stable at 8.10%, with continued focus on optimising the funding mix and strengthening ALM.

The Company further strengthened its funding franchise during the year through a USD 100 million (INR equivalent) financing commitment from the Asian Development Bank (ADB), reinforcing confidence in its governance standards, financial strength, and also secured an NHB refinance sanction ofR375 crore and executed Direct Assignment transactions aggregating R226 crore, enhancing funding diversification and capital efficiency. Further reflecting its strengthened financial profile and prudent risk management practices, the

Companys credit rating was upgraded by ICRA to AA+ with a Stable outlook.

Looking ahead, MOHFL is well positioned to benefit from impact.MOHFL structural tailwinds in affordable housing finance. With a strengthened operating platform, disciplined risk management, and ongoing investments in technology and distribution, the Company aims to deliver sustainable growth, improve return metrics, and expand access to formal housing finance across emerging India.

Treasury Investments

In line with the long-term strategy to grow RoE sustainably, MOFSL Group made a strategic allocation of capital to long-term RoE-enhancing opportunities, and sponsored commitments to our mutual fund and alternate funds. As of March 31, 2026, the total investments (including alternate investments) stood at R 8,797 Crs, increase from R7,499 Crs from FY25 due to further deployment of surplus cashflows busi earnedfrom ness operations during the year.

SWOT Analysis - Group

Strengths

Strong brand name ‘Motilal Oswal.

Experienced top management

Integrated financial services provider.

Independent and insightful research.

One of the largest distribution networks.

• Strong risk management

State-of-the-art infrastructure

Financial prudence

Large investment book to support operating business growth

Investment book delivering strong XIRRs

Weakness

Presence in extremely competitive segment with evolving regulatory environment

Exposure to uncertainties inherent in the capital market related business

Opportunities

Low penetration of financial services vis-a-vis peer countries.

Increasing wealth of population.

Regulatory reforms would aid greater participation by all classes of investors.

Leveraging technology to enable best practices and processes.

Corporates looking at consolidation/acquisitions/ restructuring opens out opportunities for the corporate advisory business.

Huge headroom to gain market share vis-a-vis market leaders

Threats

Execution risk

Short-term economic slowdown impacting investor sentiments and business activities

Slowdown in global liquidity flows

Increased intensity of competition from local and global players

Market trends making other assets relatively attractive as investment avenues

Standalone Financial Ratios

	Year ended
Particulars	31 March 2026	31 March 2025	Variance
Debt Equity Ratio1	1.73	1.22	42%
Interest Service Coverage Ratio	2.82	3.01	-6%
Current Ratio	1.13	1.11	2%
Current Liability Ratio	0.89	0.89	0%
Total Debt to Total Assets	0.46	0.39	18%
Debtor Turnover Ratio2	1.00	1.79	-44%
Inventory Turnover Ratio	N/A	N/A
Operating Margin3 (%)	23.86%	32.24%	-26%
Net Profit Margin 3 (%)	19.38%	25.96%	-25%
ROE3 (%)	14.90%	19.47%	-40%

1. The growth in the lending book lead to increase in debt coupled with negative MTM movements in net-worth resulted in a higher Debt-Equity ratio.

2. The increase in market activity has led to a rise in the receivables balance.

3. ROE moderated during the period, primarily due to adverse MTM movements.

Chart: Financial performance for FY 2025-26

Particulars (in R Cr)	FY26	FY25
Total income	9,416.42	8,417.22
Profit before tax	2,465.04	3,226.27
Tax expenses	599.61	718.11
Net profit	1,865.43	2,508.16
Net profits after OCI	2,043.42	2,493.92

Credit Rating

ICRA upgraded its rating from ‘ICRA AA/Positive to ‘ICRA AA+/Stable to Non-Convertible Debentures & Long-term Fund-based/ Non-fund Based Bank Lines and reaffirmed ‘ICRA A1+ to the Commercial Paper Programme of the Company. ICRA Limited upgraded its rating outlook from ‘ICRA PP-MLD AA/ Positive to ‘ICRA PP-MLD AA+/Stable to the Market Linked Debentures and also from ‘ICRA AA/Positive to ‘ICRA AA+/Stable to Non-Convertible Debentures of MOFL and reaffirmed ‘ICRA A1+ rating to Commercial Paper of MOWL. ICRA has upgraded the rating for Non-Convertible Debentures of MOHFL from ‘ICRA AA/ Positive to "ICRA AA+/Stable and reaffirmed‘ICRA A1+ to the Commercial Paper Programme.

During the year, CRISIL reaffirmedthe Credit Rating of ‘CRISIL A1+ to the Commercial Paper Programme and ‘CRISIL AA/Positive to the Non-Convertible Debentures of the Company. CRISIL reaffirmedthe Credit Rating of ‘CRISIL A1+ to the Commercial Paper Programme and ‘CRISIL AA/Positive to Non-Convertible Debentures of Motilal Oswal Finvest Limited (MOFL), a subsidiary of the Company. CRISIL reaffirmed the Credit Rating of ‘CRISIL A1+ to the Commercial Paper Programme and ‘CRISIL AA/Positive to Non-Convertible Debentures and Bank Loans of Motilal Oswal Housing Finance Limited (MOHFL), a subsidiary of the company.

India Rating Affirmed ‘IND AA/Positive rating to Bank Loans and ‘IND AA/Positive to Non- Convertible Debentures (interchangeable with principal protected market-linked debentures) and ‘IND A1+ to the Commercial Paper Programme of the Company. India Rating Affirmed ‘IND AA/Positive to Non-Convertible Debentures, ‘IND PP-MLD AA/ Positive to Market Linked Debentures & ‘IND A1+ to the Commercial Paper Programme of MOFL and ‘IND A1+ to the Commercial Paper Programme of MOWL. India Rating reaffirmed "IND AA/Positive" to Non-Convertible Debentures and Bank Loans, ‘IND PP-MLD AA/Positive to Market Linked Debentures of MOHFL.

Summary of Credit Ratings

As a measure of credibility, the borrowings of Motilal Oswal Financial Services Limited enjoyed the following ratings:

	Rating/Outlook
Borrowing	CRISIL	ICRA	INDIA RATINGS
Short Term
Commercial Paper	A1+	A1+	A1+
Long Term
Market Linked Debentures			PP-MLD AA (Positive)
Non-Convertible Debentures	AA (Positive)	AA+ (Stable)	AA (Positive)
Long-term Fund-based/ Non-fund Based		AA+ (Stable)	AA (Positive)

The borrowings of Motilal Oswal Finvest Limited enjoyed the following ratings:

	Rating/Outlook
Borrowing	CRISIL	ICRA	INDIA RATINGS
Short Term
Commercial Paper	A1+		A1+
Long Term
Market Linked Debentures		PP-MLD AA+ (Stable)	PP-MLD AA (Positive)
Non-Convertible Debentures	AA (Positive)	AA+ (Stable)	AA (Positive)

Borrowings of Motilal Oswal Home Finance Limited enjoy the following credit ratings:

	Rating/Outlook
Borrowing	CRISIL	ICRA	INDIA RATINGS
Short Term
Commercial Paper	A1+	A1+
Long Term
Market Linked Debentures			PP-MLD AA (Positive)
Non-Convertible Debentures	AA (Positive)	AA+ (Stable)	AA (Positive)
Long-term Fund-based/ Non-fund Based	AA (Positive)		AA (Positive)

Borrowings of Motilal Oswal Wealth Limited enjoy the following credit ratings:

	Rating/Outlook
Borrowing	CRISIL	ICRA	INDIA RATINGS
Short Term
Commercial Paper		A1+	A1+

Risks and concerns

The Board Level Committees viz. the Audit Committee and Risk Management Committee oversee risk management policies and procedures. It reviews credit and operational risks while the Asset Liability Management Committee reviews policies in relation to investment strategy and other risks like interest rate risk and liquidity risk.

Internal control systems and their adequacy

The companys internal control systems are adequate and provide, among other things, reasonable assurance of recording transactions of operations in all material respects and of providing protection against significant misuse or loss of company assets

Internal audit is conducted by BDO India LLP, to assess the adequacy of the internal controls procedures and processes, and their reports are reviewed by the Audit Committee of the Board. Policy and process corrections are undertaken based on inputs from the internal auditors.

Human resources

• The company emphasises continuous training to enhance employees skills and competencies, ensuring effective job performance. Employee incentivization, professional growth and recognition are core elements of human resource management, improving job satisfaction and overall quality of life. As of March 31, 2026, the groups total employee strength stood at 12,459.

Motilal Oswal Is Best Placed to Benefit from Finan Multi-Decadal cialisation Theme

Strong growth in Indias total wealth from just over $10 trillion now to over $100 trillion in the centennial year of India will lead to increasing financialization of these large wealth pool or savings, and continued industry consolidation augur well for MOFSL in the decade that is ahead.

MOFSLs decadal track record of 33% compounded Operating PAT growth and average ROE of 23% has been delivered entirely through internal accruals, no dilution, rising market share in each business, entering promising adjacencies in each of our businesses

Our rising share of annuity revenues to 60% and improves quality and predictability of our rising cash flows.

FY25 & FY26 marked regulatory tightening combined with weak markets. Despite this, MOFSL delivered an Operating PAT growth of 16% in FY26 and 25% for Q4F26. With regulatory headwinds in the base, continued resilience shown by Indian investors, future outlook continues to look promising

Capital Markets index is a rising part of NSE 500 Index and its share in the NSE 500 has grown from near 0.13% from 10 years ago to 0.84% 5 years ago and now stands at over 2.5%. The number of companies in the capital market segment increased from just 3, 10 years ago to 10 companies 5 years ago and now at 18 companies in NES 500. We are now ranked among the top 150 companies based on the 2025 calendar year PAT, and among top 200 companies by market capitalisation. We see the next decade offering equally exciting prospects, which should drive further improvement in these rankings. MOFSL generated alpha for all its shareholders by delivering a 10-year return of 26% versus 17% for NSE Nifty 50 and 12% for NSE 500.

Looking ahead, we remain committed to our strategic objectives, aiming for sustained growth and excellence across all our operations for our stakeholders.