Motilal Oswal Experiences Rs 63.2 Crore Loss in Q4, A First in 5 Years

Synopsis

Motilal Oswal Financial Services Limited reported a net loss of Rs 63.2 crore for Q4 ending March 2025, marking its first quarterly loss in five years. The company faced significant impacts from fair value changes, contributing to a drastic revenue drop.

Key Takeaways

Reported a net loss of Rs 63.2 crore for Q4 2025.
First quarterly loss in five years.
Revenue fell 44 percent YoY to Rs 1,190 crore.
Plans to raise Rs 3,000 crore via NCDs.
Wealth management AUM grew 31 percent YoY.

Mumbai, Apr 25 (NationPress) Motilal Oswal Financial Services Limited (MOFSL) announced a net loss of Rs 63.2 crore for the quarter ending March 2025, marking its first quarterly loss in five years.

In contrast, the company had reported a robust profit of Rs 724 crore during the same quarter last year.

The primary factor contributing to this decline was a substantial impact from fair value adjustments, as indicated in the company's stock exchange disclosures.

According to these filings, MOFSL experienced a net loss of Rs 430 crore due to fair value changes in the quarter, compared to a net gain of Rs 424 crore in the March 2024 quarter.

The total revenue from operations also witnessed a significant decrease, plummeting 44 percent year-on-year (YoY) to Rs 1,190 crore.

This marks the first instance since the January-March quarter of the financial year 2020 that Motilal Oswal has reported a loss.

Despite these disappointing results, MOFSL's board has sanctioned a plan to raise Rs 3,000 crore through the issuance of non-convertible debentures (NCDs) to bolster its financial standing.

The company also expanded its international presence by establishing a new subsidiary in the Dubai International Financial Centre earlier this month.

In terms of business performance, MOFSL’s wealth management sector showed a modest growth of 7 percent during the quarter, with Assets Under Management (AUM) increasing 31 percent YoY to Rs 2.64 lakh crore.

The consolidated Average Revenue Per User (ARPU) also saw a growth of 9 percent, reaching Rs 41,516.

For the entire financial year, MOFSL captured a cash volume market share of 7.6 percent and a futures and options premium market share of 8.5 percent.

Its Asset Management division concluded the year with an AUM of Rs 1.23 lakh crore, according to its exchange filings.

Shares of MOFSL reacted significantly to the poor results, declining 8.5 percent to close at Rs 692 on Friday, making it the largest loser on the Nifty 500 index.