Motilal Oswal slips into a Rs 219 cr loss as costs surge
Expenses grew faster than revenue, while operating margin fell 44.69 percentage points QoQ; the stock later gained 12.36% in five sessions.
Filed 29 Apr 2026, 17:52 IST · after market close · Motilal Oswal Financial Services Ltd (MOTILALOFS)
Key takeaways
- Consolidated net loss widened to Rs 219.11 cr as expenses grew 171.42% YoY, faster than revenue growth of 121.44%.
- Operating margin fell 44.69 percentage points QoQ to 7.66%, leaving Motilal Oswal fifth from the bottom among 52 reported Financial Services peers.
- The stock gained 12.36% five sessions after the results, well above its 3.81% median absolute move after the previous eight results.
Price around the results
Revenue growth did not prevent a larger loss
Consolidated revenue rose 121.44% YoY and 26.74% QoQ, but expenses increased 171.42% YoY and 145.60% QoQ. That mismatch pushed operating profit down 31.26% YoY and 81.47% QoQ, resulting in a net loss of Rs 219.11 cr versus a loss of Rs 63.19 cr a year earlier and profit of Rs 566.16 cr in Q3FY26. Interest expense also rose 29.89% YoY and 15.26% QoQ.
Operating margin fell to the fifth-lowest level among peers
Operating margin narrowed 17.00 percentage points YoY and 44.69 percentage points QoQ because costs grew faster than revenue. At 7.66%, it was 51.75 percentage points below the 59.41% median for the 52 Financial Services peers that had reported the quarter, ranking fifth from the bottom. The quarterly trend remains volatile: margin moved from 62.82% in Q1FY26 to 45.42% in Q2FY26, recovered to 52.35% in Q3FY26, and then fell to 7.66%.
The loss was not cushioned by other income or tax
Other income represented negative 8.25% of pre-tax profit, so it did not provide meaningful support to the reported loss. The tax rate fell 37.03 percentage points QoQ to negative 12.68%, but the company still reported a tax expense of Rs 24.66 cr against a pre-tax loss of Rs 194.45 cr. This makes the net loss larger than the pre-tax loss rather than indicating a tax benefit.
Management highlighted fund-raising and operating leverage
Management said the maiden Private Credit Fund had completed a first close of Rs 1,700 cr and was targeting a total raise of Rs 3,000 cr; it also said IBEF Fund V closed with Rs 8,350 cr. The presentation said MOHFL raised $100 million from the Asian Development Bank during the quarter. Management said it was targeting at least 20% ROE in operating businesses with a 20% payout, and that operating leverage would drive profit growth in its high-growth businesses.
The later market response was unusual for this stock
The stock rose 1.95% on the first day, despite opening with a negative 1.90% gap, and was up 6.58% after one session and 12.36% after five sessions; five-day volume was 3.45 times the reference level. Its five-day relative return was 12.37%. Across the previous eight results, reactions were split evenly between four rises and four falls, with a median absolute move of 3.81%, making the five-session gain larger than its usual post-results move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,676 cr | ₹2,112 cr | +26.74% | +121.44% |
| Other income | ₹16 cr | ₹9 cr | +88.82% | — |
| Expenses | ₹2,471 cr | ₹1,006 cr | +145.60% | +171.42% |
| Operating profit | ₹205 cr | ₹1,105 cr | -81.47% | -31.26% |
| Operating margin (%) | 7.66% | 52.35% | — | — |
| Interest | ₹388 cr | ₹336 cr | +15.26% | +29.89% |
| Depreciation | ₹28 cr | ₹29 cr | -5.02% | +5.45% |
| Profit before tax | ₹-194 cr | ₹748 cr | — | -629.37% |
| Tax | ₹25 cr | ₹182 cr | -86.47% | -32.49% |
| Net profit | ₹-219 cr | ₹566 cr | — | -246.75% |
| EPS (₹) | ₹-3.69 | ₹9.42 | — | -241.67% |
Operating margin of 7.66% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.95% | +2.69% |
| Next session | +6.58% | — |
| 5 sessions | +12.36% | +12.37% |
| 15 sessions | +8.22% | — |
| 30 sessions | +19.68% | — |
Volume on the results session was 3.45× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- MOHFL raised $100 million from the Asian Development Bank during the quarter.
Guidance & outlook
- The company aims to deliver at least 20% ROE in operating businesses with a 20% payout.
- The company plans to grow its Treasury Book from $1 billion to multi-billion dollars in the next decade.
- The company expects operating leverage to drive profit growth in its high-growth businesses.
- The company is focused on improving market share across all businesses.
Expansion
- The company executed the first close of its maiden Private Credit Fund at ₹1,700 crore and is targeting a ₹3,000 crore total raise.
- The company closed IBEF Fund V with a raise of ₹8,350 crore.
New products
- The asset management business launched two new active and passive NFOs.
Competition
- MOFSL ranked first in the QIP league table and second in the IPO league table for FY26.
Problems & risks
- Treasury book mark-to-market accounting made FY26 total PAT lower than operating PAT.
What to watch
- Whether operating margin recovers from 7.66% after the 44.69-percentage-point QoQ decline.
- Whether expense growth moderates from 145.60% QoQ relative to revenue growth of 26.74%.
- Progress on the Private Credit Fund's targeted Rs 3,000 cr total raise against the Rs 1,700 cr first close.