Motilal Oswal Financial shares slump 13% in 2 days after Rs 63 crore loss, first in 5 years

Motilal Oswal Financial Services (MOFSL) reported a net loss of Rs 63.2 crore for the fourth quarter of FY25, compared with a profit of Rs 724 crore in the same period last year. This marked the company’s first quarterly loss since the January–March period of FY20.

The loss was primarily driven by a fall in fair value changes, with a net loss of Rs 430 crore in the quarter compared to a net gain of Rs 424 crore a year ago.

Total revenue from operations fell 44% year-on-year to Rs 1,190 crore during the quarter ended March 2025. However, operating profit stood at Rs 519 crore for the quarter, helping the full-year figure cross Rs 2,000 crore — a growth of 31% from the previous year.

The stock had closed 8% lower at Rs 694.90 on Friday, when the company announced its March-quarter earnings just before the market closed.

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Alongside its earnings, MOFSL’s board approved a Rs 3,000 crore fundraise through the issuance of non-convertible debentures (NCDs). The company also incorporated a new subsidiary earlier this month at the Dubai International Financial Centre, as part of efforts to expand its international footprint.Despite the headline loss, key business verticals posted healthy growth during the quarter.Motilal Oswal’s wealth management business grew 7% from a year earlier, with Assets Under Management (AUM) rising 31% YoY to Rs 2.64 lakh crore.
Asset management AUM also expanded to Rs 1.23 lakh crore at the end of FY25.

Meanwhile, the company’s consolidated Average Revenue Per User (ARPU) increased 9% YoY to Rs 41,516 per active client. Cash volume market share for FY25 stood at 7.6%, while the F&O premium market share was reported at 8.5%.

The company’s shares are still up 3.4% over the past year but have fallen 23% over the last six months. In the past week, the stock had risen 2.7%.

Technical indicators suggest caution. The stock is trading below four of its eight key simple moving averages, including the 5-day, 100-day, 150-day, and 200-day SMAs. The 14-day Relative Strength Index (RSI) stands at 57.4, indicating the stock is neither oversold nor overbought.

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