Motilal Oswal's Q2 profit jumps 198.26% YoY as margin recovers
Revenue fell 11.21% sequentially, but faster expense reduction lifted operating margin by 2.88 percentage points; interest expense rose 14.88%.
Filed 29 Oct 2026, 17:20 IST · after market close · Motilal Oswal Financial Services Ltd (MOTILALOFS)
Key takeaways
- Consolidated net profit rose 198.26% YoY to Rs 1,081.36 cr as revenue grew 64.49% while expenses rose 19.46%.
- Sequentially, revenue declined 11.21%, but expenses fell 17.21%, lifting operating margin by 2.88 percentage points to 60.37%.
- The 9.42 percentage-point YoY decline in the tax rate supported profit growth, while other income contributed only 0.16% of pre-tax profit.
Price around the results
Expense control cushioned the sequential revenue decline
Consolidated revenue fell 11.21% QoQ, but expenses declined faster at 17.21%, which expanded operating margin by 2.88 percentage points. The benefit was partly offset below operating profit as interest expense rose 14.88% sequentially, contributing to a 15.10% decline in net profit. Other income was only 0.16% of pre-tax profit, so it did not materially drive the quarter.
YoY profit growth came with a lower tax rate
Revenue increased 64.49% YoY while expenses grew 19.46%, driving a 14.95 percentage-point expansion in operating margin. Net profit growth of 198.26% was also helped by the tax rate falling 9.42 percentage points to 18.86%. Interest expense rose 49.94% YoY, making the tax benefit an important part of the conversion from pre-tax profit to net profit.
Operating margin has recovered from the Q4FY26 trough
Operating margin rose from 7.66% in Q4FY26 to 57.49% in Q1FY27 and 60.37% in Q2FY27, marking a second straight quarterly improvement. It remains below the 62.82% recorded in Q1FY26. The latest margin was 0.84 percentage points above the 59.53% median for 58 Financial Services peers that had reported the quarter.
Results were filed after market close
The results were filed after market close, so there is no post-results market reaction to report yet. In the eight recent result reactions available, the stock rose four times and fell four times, with a median absolute move of 3.81%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,042 cr | ₹3,426 cr | -11.21% | +64.49% |
| Other income | ₹2 cr | ₹6 cr | -67.70% | -80.58% |
| Expenses | ₹1,206 cr | ₹1,456 cr | -17.21% | +19.46% |
| Operating profit | ₹1,836 cr | ₹1,970 cr | -6.77% | +118.61% |
| Operating margin (%) | 60.37% | 57.49% | — | — |
| Interest | ₹476 cr | ₹414 cr | +14.88% | +49.94% |
| Depreciation | ₹30 cr | ₹28 cr | +6.31% | +6.77% |
| Profit before tax | ₹1,333 cr | ₹1,534 cr | -13.12% | +163.63% |
| Tax | ₹251 cr | ₹260 cr | -3.39% | +75.80% |
| Net profit | ₹1,081 cr | ₹1,274 cr | -15.10% | +198.26% |
| EPS (₹) | ₹17.94 | ₹21.15 | -15.18% | +197.02% |
Operating margin of 60.37% compares with a Financial Services sector median of 59.53% across 58 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds at or above 60.37% after the 2.88 percentage-point QoQ recovery.
- Whether revenue recovers from the 11.21% QoQ decline while expenses remain below the 17.21% QoQ reduction seen this quarter.
- Whether interest expense growth moderates from 14.88% QoQ and the tax rate remains near 18.86%.