The global economy remained resilient in the year 2024 (Calendar Year 2024), expanding at 3.2% (as per IMF World economic outlook, Apr25). The rapid rise in trade tensions and heightened policy uncertainty are likely to exert a substantial drag on global economic activity. It is estimated to grow by 2.8% in CY2025 and 3% in CY2026, much below the historical average of 3.7% (2000–19) due to global challenges on various fronts. While strong real income growth and lower interest rates boosted activity, weaker government spending, sluggish consumer confidence, and external demand fluctuations restrained growth in some regions.
In advanced economies, the U.S. growth forecast for CY2025 is expected to slow down to 1.8%, on account of greater policy uncertainty, trade tensions and softer demand momentum, whereas the euro area is expected to grow at 0.8%, before rising to 1.4% in 2026 as financial conditions improve. Other advanced economies see stable growth, with recovering incomes offset by trade uncertainties. In emerging markets and developing economies, growth is expected to slow down to 3.7% in 2025 due to various trade measures in recent times. On the back of the recently implemented tariffs and prolonged trade policy uncertainty, Chinas growth was revised downward to 4% in 2025. Indias growth to remain stable at 6.2% in 2025 and 6.3% in 2026 supported by private consumption, particularly in rural areas.
Chart: Indias GDP growth highest amongst major peers
GDP growth rate (%) |
2023 | 2024 | 2025P | 2026P |
| World Output | 3.5% | 3.3% | 2.8% | 3.0% |
| USA | 2.9% | 2.8% | 1.8% | 1.7% |
| China | 5.4% | 5.0% | 4.0% | 4.0% |
| Japan | 1.5% | 0.1% | 0.6% | 0.6% |
| Germany | -0.3% | -0.2% | 0.0% | 0.9% |
India |
7.5% | 6.5% | 6.2% | 6.3% |
| UK | 0.4% | 1.1% | 1.1% | 1.4% |
| France | 1.1% | 1.1% | 0.6% | 1.0% |
| Italy | 0.7% | 0.7% | 0.4% | 0.8% |
| Canada | 1.5% | 1.5% | 1.4% | 1.6% |
| Russia | 4.1% | 4.1% | 1.5% | 0.9% |
Source: IMF World economic outlook, Apr25
Global trade expanded by nearly US$1.2 trillion in 2024, reaching US$33 trillion which is a result of 9% growth in services trade and 2% growth in goods trade. In 2024, trade growth in developing countries outpaced that of developed countries. Developing nations, particularly China and India, saw better than average trade expansion, while many developed nations experienced trade contractions. However, the global economy is entering a new phase of heightened trade tensions as the Trump 2.0 administration rolls out fresh tariffs, potentially triggering reciprocal measures from key trading partners. Indias trade position remains resilient, supported by a strong services sector, proactive domestic policies, and strategic shifts toward higher-value exports such as electronics and pharmaceuticals. Global growth rate is expected to soften to 2.8% in CY2025 on account of the imposition of new bilateral tariff rates, the associated increase in policy and geopolitical uncertainties.
Indian Economy Overview
India retained its position as the 5th largest economy, maintained its status as the fastest growing amongst large economies and is expected to be the third largest economy by 2027 (crossing GDP of $5 Tn) after USA and China. The Indian economy is expected to grow by 6.2% in CY25.
Table: India set to Become 3rd Largest Economy by 2027
Rank |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024P | 2025P | 2026P | 2027P | 2028P |
| 1 | USA | USA | USA | USA | USA | USA | USA | USA | USA | USA | USA | USA | USA |
| 2 | China | China | China | China | China | China | China | China | China | China | China | China | China |
| 3 | Germany | Germany | Germany | Germany | Germany | Germany | Germany | Japan | Japan | Japan | Japan | India | India |
| 4 | Japan | Japan | Japan | Japan | Japan | Japan | Japan | Germany | Germany | Germany | India | Japan | Japan |
| 5 | UK | UK | UK | UK | UK | India | India | India | India | India | Germany | Germany | Germany |
| 6 | France | India | France | India | India | UK | UK | UK | UK | UK | UK | UK | UK |
| 7 | India | France | India | France | France | France | France | France | France | France | France | France | France |
| 8 | Italy | Italy | Italy | Italy | Italy | Italy | Italy | Italy | Italy | Italy | Canada | Canada | Canada |
| 9 | Canada | Canada | Canada | Canada | Canada | Canada | Canada | Canada | Canada | Canada | Italy | Italy | Italy |
| 10 | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia | Russia |
Indias export performance has experienced remarkable growth over the past decade.
Indias total exports touched 69.1 Tn (US$ 825 Bn) in FY25, an increase of 6% from 65.2 Tn
(US$ 778 Bn) in FY24. During this period, Indias share of world merchandise exports also improved, rising from 1.66% to 1.81%, advancing the country from 20th to 17th position globally.
Indias forex reserves experienced significant fluctuations in FY 2024-25, reaching a record high of $704 billion in September 2024 before declining by 6.5% to $659 billion by March 2025. The decline was likely driven by RBIs intervention to prevent sharp depreciation of the Indian Rupee.
The Indian economy has been digitalising at a remarkable pace over the last decade. By
2030, Indias digital economy is projected to contribute nearly one-fifth of the countrys overall economy, outpacing the growth of traditional sectors. According to the State of Indias Digital Economy Report 2024, India is the 3rd largest digitalised country in the world in terms of economy-wide digitalization, and 12th among the G20 countries in the level of digitalisation of individual users.
The Union Budget 2025-26 strikes a balance between sustaining economic growth and maintaining fiscal streamlining discipline. By regulations, supporting MSMEs, and boosting investments and exports, the budget outlines a clear roadmap toward Viksit Bharat 2047. The budgets emphasis on sectors including tourism, healthcare, and manufacturing will catalyse job creation. The commitment to fiscal consolidation,withatargetedfiscal of deficit
4.4% for FY26, strengthens Indias path to debt sustainability. These measures are expected to stabilize the macroeconomic environment, encouraging private sector participation and investment. Overall, the budget lays a strong foundation for long-term economic resilience and growth.
Indian Economy Outlook
India to remain relatively insulated against the global shocks in the near future and continue to grow strongly. The structural long-term growth story for India remains intact driven by favourable demographics and stable governance. According to the IMFs World
Economic Outlook Report, India is expected to maintain its position as the fastest-growing major economy, Growth will be driven by continued expansion in the services sector and a boost in manufacturing, supported by government efforts to enhance infrastructure and streamline tax policies.
Capital Markets - Industry Overview
India is 4th Largest Market by Market Cap
Indias domestic equity markets continues to rank fourth-largest globally with over $4.0 Tn on market cap.
Table: India is the 4th largest market by Market Capitalisation.
Country |
US$ Tn Market Cap |
| USA | 59.3 |
| China | 7.8 |
| Japan | 5.6 |
| India | 4.4 |
| United Kingdom | 3.9 |
Source: https://companiesmarketcap.com/all-countries/ (as on 26th May 2025)
Robust Stock Market Performance in FY25
The Indian stock market ended FY 2025 with modest gains, despite substantial FPI outflows in the second half. The Nifty delivered positive returns for its investors in FY 2024-25, outperforming certain Asian indices such as the Nikkei 225 and the Korea Composite Stock
Price Index. Hang Seng remained at the top of the leader-board, delivering a staggering 39.8% return.
The NSE and BSE midcap and Smallcap indices closed the FY 2024-25 on a strong note, driven by market rebound, increased retail investor participation, and attractive valuations. The
Nifty Midcap150 and Nifty500 rose by 7.6% and 5.4% respectively. The BSE Smallcap index increased by 8%, while the midcap index increased by 5.6%. In comparison, the Sensex increased by 5.1% over the same period. Despite earlier concerns over valuations and volatility, renewed optimism in the broader market supported gains in these segments.
Chart: Performance of Major Indices moderated after a very strong FY24
Source: NSE and BSE
Strong Addition in Investor Base continues
Indias economic transformation over the past few decades is a narrative of rapid growth and evolving financial landscapes. Central to this story is the rise of capital markets, catalysing capital formation for the real economy, enhancing the financialisation of savings, and enabling wealth creation. Investor participation has been a contributor, with number of investors growing from 2.3 crore in FY15 to 19.2 crore in FY25, increasing at a CAGR of 23% for the decade.
Post-COVID, one of the most striking developments has been the surge in retail investor participation, reflected in the sharp increase in new demat accounts opened over the years. In FY 2021, the total number of demat accounts stood at 5.5 crore, which increased to 19.2 crore by FY 2025, growing at a CAGR of 37%.
In the last fiscal year, approximately 4.1 crore demat accounts were added, with CDSL, Indias largest depository, contributing 3.74 crore new accounts in FY 2025.
Chart: Strong Demat Account Trend
Source: CDSL & NSDL
FY25 witnessed a strong year of IPOs – unmatched historically and relatively to peers
FY25 saw a total of 318 companies, comprising
79 mainline and 239 SME, raise 1.72 Tn in IPOs, surpassing the combined total raised in the last two years (FY24 & FY23). A total of 1.6 Tn was raised via main board and rest from SMEs. Also, the average issue size more than doubled, reaching 2,082 crore in FY25 (up from 815 Crs on YoY). As highlighted earlier that FIIs were active in primary markets, they contributed by subscribing to a substantial 1.21 Tn.
Chart: FY25 was a very strong year for IPOs
Financial Year |
Total No. of IPOs | No. of mainline IPOs | Amount raised by mainlines ( Crs) | No. of SME IPOs | Amount raised by SMEs | Total amount raised ( Crs) |
| FY25 | 318 | 79 | 1,62,517 | 239 | 9,967 | 1,72,484 |
| FY24 | 273 | 78 | 67,558 | 195 | 6,070 | 73,628 |
| FY23 | 164 | 39 | 52,549 | 125 | 2,307 | 54,857 |
Source: Business Standard
The active client base on National Stock Exchange (NSE) increased steadily, registering a CAGR of 25% from 0.5 crore in Mar15 to 4.9 crores in Mar25. This trend underscores the growing influence and participation of retail investors in the Indian equities market, indicative of a democratization of investment opportunities.
Chart: NSE active clients
The financial year 2025 was marked by significant shifts and milestones. The new income tax bill was proposed, foreign institutional investor outflows reached new highs, and India witnessed its largest-ever initial public offering in the form of the Hyundai
Motor India IPO. Alongside this, Narendra Modi secured a third term, while Donald Trumps return to power introduced fresh tariff policies that stirred global uncertainty.
During the year FY25, Indian capital market has witnessed strong outflows by FIIs in the secondary market (across the year). However,
FIIs primary inflows(mainlyIPOs)compensated the outflows to a major extent in initial 9 till Dec24. However, the sharp outflows in 4th
Quarter of FY25 in secondary market with lower number of IPOs led the yearly number fall to negative. DIIs flows market have supportedthe and didnt let the market witness the fall which otherwise would have been seen.
Minimal Impact from SEBIs Regulation
FY25 witnessed slew of circulars from SEBI to streamline the market structure and few steps to prevent retail investors from speculation eventually leading to losses (as per SEBI study,
93% of F&O retail investors witnessed losses during the period from FY22 to FY24). The measures were as below:
• True-to-Label charges by market intermediaries.
• Upfront collection of option premiums.
• Intraday monitoring of position limits.
Removal of calendar spread benefit on the expiry day
• Increase in the Minimum contract size
• Rationalization of weekly index products - Weekly options contracts are to be provided on a single benchmark index of an exchange.
• Increase in margin near contract expiry.
Your company was least impacted due to higher proportion of cash broking vis-?-vis
F&O broking revenues compared to discount broking peers.
MOFSLs Business streams
and OutlookMotilal Oswal Financial Services Limited (MOFSL) is a diversified financial services company with focus on managing clients wealth. MOFSL operates in business segments like;
• Wealth Management (Broking, Distribution and Lending for retail clients).
• Assets Management business.
Private Wealth Management business for HNI / UHNIs clients.
• Capital Markets business includes
Institutional Equities and Investment Banking business.
• Affordable Housing Finance.
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. MOFSL carries its lending business by running a loan-against-shares book under
"Motilal Oswal Finvest Limited" and retail mortgage-backed lending in the affordable housing segment under "Motilal Oswal Home Finance Limited". We also possess a large treasury book which has a material impact on our reported profits.
Wealth Management
Includes Broking, Distribution & Lending Book for retail customers
Retail Broking
In FY 2025, the companys client base expanded significantly, surpassing 48 lakhs with a DP AUM of 2.3 lakh crore and growing by 32% YoY. This growth was bolstered by the addition of 6.8 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 ( Crs)
As of March 2025, the companys distribution Assets Under Management (AUM) reached
31,551 crore, reflecting a robust 33% 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 lending book has witnessed decline of 7% after doubling in FY24.
Research and advisory represent the foundation of the companys services, catering to diverse client segments including mass affluent and high net worth individuals. The company prioritized enhancing customer experience through digital initiatives and dedicated advisory desks tailored for mass affluent and HNI clients. The launch of the ‘RISE Super App enabled centralized financial services& seamless investment management across various products such as mutual funds, insurance, and US stocks.
Asset Management Businesses
Mutual Fund Industry Overview – Financial Year 2025
The financial year 2025 was marked by significant volatility in the capital markets. Equity markets scaled record highs during the first half of the year, driven primarily by strong domestic liquidity and investor enthusiasm. However, in the latter half of the year, these gains were partially reversed as foreign institutional investors (FIIs) turned cautious, citing high valuations and moderate earnings growth as key concerns. This shift in sentiment led to a period of correction, impacting market stability.
Despite these fluctuations, Domestic
Investors (DIIs) remained net buyers, demonstrating their unwavering confidence in the Indian capital markets. This continued domestic support acted as a stabilizing force, mitigating the effects of FII outflows and reinforcing the growing resilience of Indias capital markets.
Rise of Mutual Funds Amidst Market Challenges
While increased participation in capital markets is a positive trend, the rise in
Futures & Options (F&O) trading among retail investors has raised concerns. As per
SEBI, 91.1% of individual F&O traders which is approximately 73 lakh traders incurred losses in FY24. This alarming statistic has prompted both the government and regulators to take steps to protect retail investors savings, introducing measures such as taxation on
F&O transactions, an increase in lot sizes, and stricter risk management regulations.
Amid these challenges, mutual funds have emerged as a preferred investment vehicle that provides diversification and professional fund management. Increased investor awareness programs like the ‘Mutual Funds
Sahi Hai!, led by AMFI and other industry stakeholders, have played a pivotal role in educating the public about the advantages of long-term mutual fund investments.
Strong Growth in Mutual Fund AUM and Investor Participation
The financial year 2025 was a milestone year for the Indian mutual fund industry, marked by record AUM growth, increased retail participation, and a deeper shift toward financial savings. The resilience of domestic investors, coupled with proactive regulatory measures and strategic industry initiatives, has positioned mutual funds as a key pillar of Indias investment landscape.
Industry AUM Expansion: The total mutual fund industry AUM reached 65.7 lakh crore as of March 2025, representing an increase of 12.3 lakh crore from March 2024. This growth underscores the rising confidence in mutual funds as a vehicle for long-term wealth creation.
Surge in Equity AUM: Equity-oriented AUM increased by 6.6 lakh crore, reaching 32.3 lakh crore in March 2025. Notably, the Sectoral/
Thematic category saw the highest AUM growth within the equity segment, rising by 1.58 lakh crore, fuelled by multiple New Fund Offerings (NFOs) launched within the category. Over the past 15 months, the Sectoral/Thematic category has consistently attracted the highest net inflows within equity mutual funds.
SIP Growth Breaks Records: Gross SIP grew by 45%, reaching 2,89,352 crores in FY25 surpassing the monthly 25,000 crore mark for the first time. The increasing adoption of Systematic Investment Plans (SIPs) reflects a growing preference for disciplined, long-term investing among retail investors.
Expanding Investor Base: The total mutual fund folio count expanded to 23.45 crore in March 2025, up from 17.79 crore in March 2024, representing a 32% increase. Even SIP Accounts have shown an increase of 1.7 crores to reach 10.1 crores. This sharp growth signals deeper retail participation and enhanced financial inclusion.
Source: AMFI
Challenges and Opportunities for Future Growth
Despite these significant strides, the mutual fund industrys AUM remains less than one-third of total bank deposits, underscoring a vast untapped opportunity to mobilize household savings into market-linked investments.
Motilal Oswal AMC flows Motilal Oswal Asset Management Company (MOAMC) operates MF, PMS and AIF in the public equities space. MOAMC has crafted its niche with the majority of AUM in equities. Total AUM stood at 1,23,396 crore as of March 31,2025, an increase of more than 70%.Our mutual fund AUM stood at 93,606 crore, PMS AUM stood at 12,921 crore and AIF AUM stood at 14,423 crore.
We saw a turnaround in the 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. We have seen an unprecedented growth in our netflows by leveraging our fund performance, brand value and reach.
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 FY 2025, we launched 10 passive mutual funds ( 2,138 crore) and 8 active mutual funds ( 3,411 crores). Out of the 18 NFOs,
9 were strategically launched in the thematic category which has consistently attracted the highest net inflows within equity category. 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 50.9 lakh SIPs in FY 2025 which is more than 5 times the SIPs added last year. It achieved an all-time high inflow from SIP during the year of 9,256 crore.
On a blended basis, the companys net yield stood at 66 bps in FY 2025. Alternates contributed about ~23% 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.
Private Equity / Real Estate Funds
2024 was a year of exits for Private Equity. The strong performance of the Indian stock market for most of last year created an ideal environment for many firms to capitalize on. In 2024, private equity firms exited investments worth $26.7 billion—a 7% year-on-year increase—marking the second-highest number of PE-backed IPOs in a single year for India
(Source: EY-IVCA Report). However, the second half of 2024 witnessed a shift post the slump since October 2024, wherein it became a buyers market much more than a sellers market and hence, next couple of years is expected to be period for deploying funds. PE sector is expecting a higher number of deals this year, especially in financial services, IT and healthcare sectors.
Private Wealth Management business
People around the world are getting progressively wealthier and that doesnt just apply to those who already own great wealth. The Indian Private Wealth Management (PWM) sector is experiencing significant growth, driven by favourable macroeconomic conditions and evolving investor preferences.
As per Knight Franks "The Wealth Report 2025", India ranks 4th in the population of UHNIs with more than $10mn wealth at ~0.9 Lakh (contributing 3.7% share) vs ~9 Lakhs in USA and ~5 Lakhs in Mainland China. Indias HNWI population is on a steady rise. The report projects that by 2028, the number of HNWIs in India will increase by 9.4%, reaching 93,753 individuals from 85,698 individuals in 2024. The number of HNWIs increased by 4.4% globally, reaching 2,341,378 in 2024, up from 2,243,300 in 2023.
Interestingly, the population of Ultra-High-
Net-Worth Individuals (UHNWIs), those with assets exceeding $100 Mn has surpassed
100,000 globally for the first time. These highlight the importance of Private Wealth Management segment for India in the context that India is expected to deliver highest GDP growth in many years to come.
Chart: India stands 4th in its population of $10mn plus Net worth Population Country-wise
| MARKET ANALYSIS US$10M + population | Share of global US$10m + population | |
| US | 905,413 | 38.7% |
| Chinese mainland | 471,634 | 20.1% |
| Japan | 122,119 | 5.2% |
India |
85,698 | 3.7% |
| Germany | 69,798 | 3.0% |
| MARKET ANALYSIS US$10M + population | Share of global US$10m + population | |
| Canada | 64,988 | 2.8% |
| UK | 55,667 | 2.4% |
| France | 51,254 | 2.2% |
| Australia | 42,789 | 1.8% |
| Hong Kong SAR | 42,715 | 1.8% |
| Italy | 41,080 | 1.8% |
| South Korea | 39,210 | 1.7% |
| Taiwan | 28,391 | 1.2% |
| Brazil | 21,974 | 0.9% |
| Spain | 21,275 | 0.9% |
Source: Knight Franks The Wealth Report 2025. The report defines HNWIs as individuals possessing at least USD 1 million in investable assets.
In the past few years, the penetration of Private Wealth Management services has increased with the rising wealth. The start-up culture thats been a big part of Indias PWM growth story and with India being friendly to tech-oriented start-ups, we believe this business will get a further boost going forward.
Indias billionaire population grew 12% from 2023 to 2024, hosting 191 billionaires (26 of them created within the past year) and up from just seven in 2019. This shows the potential of Indian PWM market. The wealth of Indian billionaires ranks 3rd at US $0.95 Tn vs US $5.7 Tn for USA and Mainland China which is close at US $1.34 Tn.
Chart: India stands 3rd in its Billionaires wealth ranking
As individuals move up the wealth spectrum, their demand for tailored solutions over generic offerings increases—this is where Indian wealth managers play a crucial role. At this stage, the model transitions from a platform-centric approach to one that prioritizes deep, relationship-driven engagement. The key to success lies in offering comprehensive solutions—an area where we believe the Motilal Oswal Group is strongly positioned.
Concentration of wealth as witnessed in developed countries; Wealth distribution in USA has become increasingly concentrated since 1990, with top 1% of household share of wealth rising from 23% in 1990 to 30% in 2023 (Source: Federal Economic Reserve Data). While this has been global trend, in India this concentration of wealth is more pronounced.
• Share of top 1% household in total India Wealth has risen by ~3.3x in the last 6 decades from ~12% to ~40% (Source: World Inequality Lab).
• In India, number of Family Offices has increased from 45 in 2018 to 300 in 2024 while AUM has grown from US $5 Bn to US $30 Bn. AUM is expected to grow to US $45 Bn in the next 3 years (Source: Hubbis.com).
• The number of Indian billionaires has more than doubled to 191 in the last 10 years. Their total wealth has almost tripled to around USD 900 billion.
• India has 1,132 centi-millionaires, which ranks it third in the world after the US (9,730) and China (2,021) (Source: Henley and Partners
Report titled "The Centi-Millionare Report").
Investment bank players have dominated the PWM sector in developed countries
Investment Banks like Goldman Sachs, Morgan Stanley, UBS, etc have dominated the Private Wealth Management space in developed markets banks and lastly by boutique players. Indias PWM market has been dominated by banks but we believe that with high regulatory oversight on banks by RBI, non-banks PWM business will benefit over the long term.
Motilal Oswals PWM Business is well positioned to be a leader in the space
With the growing Addressable Market as discussed above, Motilal Oswals PWM business has placed itself strongly to be a leader in this space. During the year, we have strengthened leadership led by Ashish Shankar who is current
MD & CEO, by addition of Mr. Anupam Guha who comes from a large PWM outfit and Mr. Akash Hariani who was heading the Family
Office business at a large private banks PWM business. Also, products innovation is a key element for any PWM business, for which
Mr. Sandipan Roy joins us a CIO. MOPWM business model stands apart as it is a distributor, manufacturer, advisor and also provides transaction business. The higher risk appetite of PWM clients led us to offer products like unlisted equities, private market equity & structured deals, etc. With unique products we made a mark for PWM in UHNI space and many large family offices. During the year the AUM of PWM business grew from 1,23,969 Crs in Mar24 to 1,44,325 Crs to Mar25, growth of 16%.
Chart: MO PWM AUM growth ( Crs)
Conclusion
Indias Private Wealth Management sector is on a strong growth trajectory, fueled by economic expansion, rising financialization of assets, and evolving investor needs. By embracing innovation, tax efficiency, and regulatory adaptability, Indias PWM sector is poised for sustained long-term expansion. With increasing Ultra-HNI and HNI wealth, the demand of unique products & services has led to strong competition to offer differentiated services.
MOPWM with its experienced team is strongly poised to be a leader in the space.
Capital Markets (IE & IB)
Capital Market business comprises of Institutional Equities & Investment Banking Business.
Our Institutional Equities business is already a well-established business with leading rankings in Asia Money. We continue to believe that the research that this business generates helps the overall group and is the fulcrum of our tagline "Knowledge First". We are investing in this business to provide research on more corporates and continue to lead the space with higher number of companies under coverage, currently standing at 302 companies. With solid research, leading rankings, and the huge potential in Indian markets, the DII & FII flows will continue to drive this business.
In our institutional broking division, the company offers a comprehensive suite of services in cash and derivatives to both domestic and foreign institutions. IE business continues to expand its institutional client base by securing more empanelments and establishing relationships with more than 880 institutions. The companys commitment to excellence and client satisfaction was recognized through rankings. The company continued to focus on research offerings, corporate access outreach, and sales; trading capabilities strengthened the competitive positioning. The research product portfolio encompassed an analysis of over 300 companies across 25 sectors, providing valuable insights to clients. In the corporate access domain, the company excelled in executing successful events such as the Annual Global Investor Conference, Ideation Conference and unique events, facilitating interactions between investors and corporate leaders.
Investment Banking
IB business has delivered the highest revenue growth for the company. The new leadership team that we put in place in FY23 led to strong mandate pipeline which we delivered in FY25 and it also led to improvement in our IB league table rankings. We are happy to share that
Motilal Oswal IB was ranked No.1 on QIP league table in FY25. With the strong current deal pipeline that we have signed across products, we expect industry leading growth in the near future.
Some of the marquee deals that we completed in FY25 are highlighted below;
Housing Finance
Motilal Oswal Home Finance Ltd. (MOHFL) operates in Indias structurally under penetrated housing finance market, where the mortgage-to-GDP ratio stands at only 12%—a fraction of levels seen in developed economies. This presents a significant runway for expansion, particularly in the affordable housing segment where rising incomes, rapid urbanization, and government initiatives such as PMAY 2.0 continue to drive demand. As millions of first-time homebuyers seek financing solutions, MOHFL is strategically positioned to address their needs, especially those of underserved and unbanked populations. The company focuses on self-employed and cash-salaried individuals, many of whom lack formal income documentation or credit histories. Through innovative underwriting methods based on cash flow assessment and internal credit scoring models, MOHFL ensures responsible lending while fulfilling its mission of enabling home ownership across income segments.
In FY25, MOHFL delivered a strong financial performance. Profit after tax stood at 130 crore, supported by disbursements of 1,794 crore and a 20% year-on-year growth in Assets Under Management (AUM), which reached 4,878 crore. The total outstanding loan book grew 20% YoY to 4,857 crore. The company achieved a return on assets (ROA) of 2.8%, net interest margin (NIM) of 7.3%, and a spread of 5.3%. These outcomes were enabled by tight control over delinquencies, efficient cost structures, and optimal utilization of branch infrastructure. Cost of funds was maintained at 8.4%, reflecting the companys disciplined treasury strategy.
Asset quality remained strong, with Gross and Net NPAs of 0.8% and 0.4% respectively as of March 31, 2025. Collection efficiency stood at 124.3% (including prepayments). MOHFL adheres to a "collateral-first" disbursement policy and follows a four-level credit approval process based on loan size. A dedicated Risk Containment Unit (RCU) monitors fraud risks related to income documents, customer profiles, and collateral, while an automated credit rule engine enables faster and more consistent decisions.
Operationally, MOHFL has built a strong and scalable platform, with 112 branches across 12 states, including Maharashtra, Gujarat, Tamil Nadu, Rajasthan, and others. While Maharashtra remains the largest contributor to the loan book, newer geographies are seeing rising disbursement traction. Incremental growth from these regions is expected to strengthen further with localized hiring, productivity enhancements, and expansion of the field force. The company has disbursed loans to over 50,500 families as on date, with an average loan-to-value (LTV) of 58% and a comfortable Fixed Obligation to Income Ratio (FOIR) of ~43%.
A key differentiator for MOHFL is its robust backend and recovery infrastructure. With over 480 collection professionals and a legal team of in-house lawyers, the company is well-prepared to handle delinquencies through mechanisms such as SARFAESI, arbitration, and Section 138 proceedings. Legal and technical evaluations form an integral part of the credit process, helping ensure portfolio integrity and compliance. This strong focus on governance and execution has led to a consistently high-performing loan book, with improved quality of originations since April 2018.
Looking ahead, MOHFL is committed to delivering sustainable growth through continued geographic expansion, operational efficiencies, and customer-centric innovation.
By maintaining strong risk controls while scaling disbursements in newer markets, the company aims to deepen its presence in the affordable housing finance space further and its vision of enabling homeownership for aspirational 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 like MOHFL, and sponsored commitments to our mutual fund and private equity funds. As of March 31, 2025, the total total investments (including alternate investments) stood at 7,730 Crs, an increase from 6,113 Crs from FY24 due to MTM gains and further deployment of surpluscashflows earned from business 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
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-?-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.
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
Key financial ratios
The consolidated ROE during 2024-25 stood at 25%. Net Profit margin stood at 39% in 2024-25.
Debt to Equity ratio stood at 1.3x.
Chart: Financial performance for FY 2024-25
Particulars (in Cr) |
FY25 | FY24 |
| Total income | 8,417.22 | 7,177.61 |
| Profit before tax | 3,226.27 | 3,031.88 |
| Tax expenses | 718.11 | 586.26 |
| Net profit | 2,508.16 | 2,445.62 |
| Net profits after OCI | 2,493.92 | 2,626.02 |
Chart : Standalone Financial Ratios for FY 2024-25
Particulars |
Year ended 31 March 2025 | Year ended 31 March 2024 | Variance |
| Debt Equity Ratio | 1.22 | 1.14 | 7% |
| Interest Services | 3.01 | 3.75 | -20% |
| Coverage Ratio | |||
| Current Ratio | 1.11 | 1.01 | 10% |
| Current Liability | 0.89 | 0.98 | -9% |
| Ratio | |||
Total Debts to Total Assets |
0.39 | 0.32 | 22% |
| Debtors Turnover | 1.79 | 2.42 | -26% |
| Ratio1 | |||
| Inventory Turnover | N/A | N/A | |
| Ratio | |||
| Operating Margin | 32.24% | 39.47% | -18% |
| (%) | |||
| Net Profit Margin | 25.96% | 32.82% | -21% |
| (%) | |||
| ROE (%)2 | 19.47% | 27.37% | -29% |
1 The increase in market activity has led to a rise in the receivables balance.
2
ROE moderated during the period, primarily due to adverse MTM movementsCredit Rating
• During the year, CRISIL reaffirmed the Credit Rating of ‘CRISIL A1+ to the Commercial
Paper Programme and revised its outlook from ‘CRISIL AA/Stable to ‘Crisil AA/Positive for the Non-Convertible Debentures of the Company. CRISIL reaffirmed the 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.
ICRA upgraded its rating outlook to ‘ICRA
AA/Positive to the Long-term Fund-based/
Non-fund Based Bank Lines and affirmed and assigned ‘ICRA A1+ to the Commercial
Paper Programme and ‘ICRA AA/Positive to Non-Convertible Debentures of the
Company. ICRA Limited assigned a rating of ‘ICRA PP-MLD AA/Poitive to the Market Linked Debentures and reaffirmed the ‘ICRA AA/Positive rating to Non-Convertible Debentures of MOFL and reaffirmed ‘ICRA A1+ rating to Commercial Paper of MOWL. ICRA has assigned the rating for Non-Convertible Debentures of MOHFL as ‘ICRA AA/Positive and reaffirmed ‘ICRA A1+ to the Commercial Paper Programme.
India Rating affirmed ‘IND AA/Positive rating to Bank Loans and ‘IND AA/Positive to Non-Convertible Debentures and assigned ‘IND A1+ to the Commercial Paper Programme of the Company. India Rating upgraded its rating outlook to ‘IND AA/Positive to Non-Convertible Debentures, ‘IND PP-MLD
AA/Positive to Market Linked Debentures and ‘IND A1+ to the Commercial Paper Programme of MOFL and ‘IND A1+ to the Commercial Paper Programme of MOWL. India Rating reaffirmed "IND AA/Stable" 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 | A1+ | A1+ | A1+ |
| Paper | |||
Long Term |
|||
| Market | - | - | PP- |
| Linked | MLD AA | ||
| Debentures | (Positive) | ||
Non- Convertible |
AA (Positive) | AA (Positive) | AA (Positive) |
| Debentures | |||
| Long-term | - | AA | AA |
| Fund-based/ | (Positive) | (Positive) | |
| Non-fund | |||
| Based | |||
The borrowings of Motilal Oswal Finvest Limited enjoyed the following ratings:
Rating/Outlook |
|||
Borrowing |
INDIA | ||
| CRISIL | ICRA | ||
| RATINGS | |||
Short Term |
|||
| Commercial | A1+ | - | A1+ |
| Paper | |||
Long Term |
|||
| Market | - | PP- | PP- |
| Linked | MLD AA | MLD AA | |
| Debentures | (Positive) | (Positive) | |
| Non- | AA | AA | AA |
| Convertible | (Positive) | (Positive) | (Positive) |
| Debentures | |||
Borrowings of Motilal Oswal Home Finance
Limited enjoy the following credit ratings:
Rating/Outlook |
|||
Borrowing |
CRISIL | ICRA | INDIA RATINGS |
Short Term |
|||
| Commercial | A1+ | A1+ | - |
| Paper | |||
Long Term |
|||
| Non- | AA | AA | AA |
| Convertible | (Positive) | (Positive) | (Positive) |
| Debentures | |||
| Long-term | AA | - | AA |
| Fund-based/ | (Positive) | (Positive) | |
| Non-fund | |||
| Based | |||
Borrowings of Motilal Oswal Wealth Limited enjoy the following credit ratings:
Borrowing |
Rating/Outlook CRISIL ICRA | INDIA |
RATINGS |
||
Short Term |
||
| Commercial | A1+ | A1+ |
| Paper | ||
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, 2025, the groups total employee strength stood at 13,540.
OUTLOOK
MOFSL is best placed to ride the megatrend of financialisation of savings & growing investible wealth in India.
• Leadership market position across capital market businesses will continue with focused efforts & strong leaderships.
• Strong franchise, strong brand equity and strong balance sheet will drive industry leading growth over multiple decades going forward.
• Annual Recurring Revenue (ARR) share of total net revenue to further increase from 56% in FY25 providing strength to the business model.
Expect strong profitability to continue with dividend distribution for shareholders.
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1860-267-3000 / 7039-050-000
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+91 9892691696
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