WatchTalking point
Sharp margin drop
EBITDA margin dropped 13.2 percentage points in a single year, from 54.9% to 41.7% — worth investigating.
Importance 75 / 95 · anomaly
Motilal Oswal Financial Services Limited · Research view
Motilal Oswal Financial Services Limited
NSE: MOTILALOFSBSE: 532892ISIN INE338I01027Face value ₹1consolidated
₹990
−0.34% · 2026-10-01 · 52-wk ₹628–₹1,091
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Profit lagging revenue
Revenue grew 11.4% but profit declined 25.3%, so the company kept less of each rupee of revenue as profit.
Importance 74 / 95 · growth
WatchTalking point
Growing, but light on cash
Revenue grew 11.4% but only -3.24× of reported profit came through as operating cash.
Importance 62 / 95 · cash quality
WatchTalking point
Stock has run ahead of the business
Over 5 years the stock returned 35.3% a year while profit compounded at 8.3% a year.
Importance 61 / 95 · business vs stock
Section 03 · The company
Who is this company?
Classified by the exchange under Financial Services › Financial Services › Capital Markets › Stockbroking & Allied.
- Market cap
- ₹59,584 cr
- FY2026 revenue
- ₹9,374 cr
- FY2026 net profit
- ₹1,872 cr
- Net worth
- ₹12,952 cr
- Total debt
- —net cash
- EPS (basic)
- ₹31.12
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 3 stockbroking & allied.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 11.4% but profit declined 25.3%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +21.0%over 7 years
- Revenue growth
- +11.4%vs last year
- Net profit growth
- −25.3%vs last year
- Change in net profit since FY19
- +528%
Revenue grew 11.4% but EBITDA margin fell 13.2 percentage points to 41.7%, so the company kept less of each rupee of revenue as operating profit.
Profit has swung sharply over 7 years (from ₹190 to ₹2,508) — one year is a weak guide to the earnings power.
Over 7 years profit compounded at 30.0% a year while revenue compounded at 21.0% a year — though FY2021 saw a one-off step-change of 564% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Revenue compounded at 21.0% a year over 7 years (₹2,463 → ₹9,374) — though FY2024 saw a one-off step-change of 69% (a merger, restructuring or a recovery off a low base), so the compounding is uneven.
Net profit fell 25.3% year on year (FY2025 → FY2026).
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Strength
Q1 FY27 revenue was ₹3,426 cr, up 25.2% from ₹2,737 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
Concern
Q1 FY27 EBITDA margin was 57.7%, down 5.40 percentage points from 63.1% a year earlier.
Rule QTR_MARGIN_CHANGED_YOY
Watch
Q1 FY27 interest (finance cost) was ₹414 cr, up 40.5% from ₹295 cr a year earlier.
Rule QTR_INTEREST_EXPENSE_CHANGE_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 2,838 | — | 1,122 | — | 39.5% |
| Q3 FY25 | 1,999 | +12.0% | 566 | −14.4% | 28.3% |
| Q4 FY25 | 1,209 | −43.6% | −63 | −108.7% | −5.2% |
| Q1 FY26 | 2,737 | +18.4% | 1,163 | +31.6% | 42.5% |
| Q2 FY26 | 1,849 | −34.8% | 363 | −67.7% | 19.6% |
| Q3 FY26 | 2,112 | +5.7% | 566 | +0.0% | 26.8% |
| Q4 FY26 | 2,676 | +121.4% | −219 | +246.8% | −8.2% |
| Q1 FY27 | 3,426 | +25.2% | 1,274 | +9.5% | 37.2% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹10,063 crTTM
- EBITDA
- ₹4,161 crTTM
- EBIT
- ₹4,049 crTTM
- PBT
- ₹2,593 crTTM
- Net profit
- ₹1,983 crTTM
C. Corporate actions
30 Jan 2026DividendInterim Dividend - Rs. - 6.0000 — ₹6.00/share
31 Jan 2025DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
10 Jun 2024Bonus issueBonus issue 3:1 — 1:4
6 Feb 2024DividendInterim Dividend - Rs. - 14.0000 — ₹14.00/share
4 Jul 2023DividendFinal Dividend - Rs. - 3.0000 — ₹3.00/share
3 Feb 2023DividendInterim Dividend - Rs. - 7.0000 — ₹7.00/share
1 Jul 2022DividendDividend - Rs. - 3.0000 — ₹3.00/share
26 May 2022BuybackBuy Back of Shares
3 Feb 2022DividendInterim Dividend - Rs. - 7.0000 — ₹7.00/share
2 Aug 2021DividendFinal Dividend - Rs. - 5.0000 — ₹5.00/share
8 Feb 2021DividendInterim Dividend - Rs. - 5.0000 — ₹5.00/share
31 Jan 2020DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
24 Jul 2019DividendFinal Dividend - Rs. - 4.5000 — ₹4.50/share
25 Jan 2019DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
19 Sept 2018DividendFinal Dividend - Rs. - 4.5000 — ₹4.50/share
5 Feb 2018DividendInterim Dividend - Rs. - 4.0000 — ₹4.00/share
20 Jul 2017DividendFinal Dividend - Rs. - 3.0000 — ₹3.00/share
8 Feb 2017DividendInterim Dividend - Rs. - 2.5000 — ₹2.50/share
22 Mar 2016DividendInterim Dividend - Rs. - 1.5000 — ₹1.50/share
11 Feb 2016DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share
30 Jul 2015DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
5 Feb 2015DividendInterim Dividend - Rs. - 2.0000 — ₹2.00/share
13 Aug 2014DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
31 Oct 2013DividendInterim Dividend - Rs. - 1.0000 — ₹1.00/share
18 Jul 2013DividendFinal Dividend - Rs. - 1.0000 — ₹1.00/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE declined from 25.2% to 15.6% year on year.
Rule ROE_DETERIORATED_YOY
- EBITDA margin now
- 41.7%
- 8-year range
- 34.8–58.4%
- ROE FY2026
- 15.6%
- ROCE FY2026
- 19.0%
EBITDA margin of 41.7% is below the stockbroking and allied median of 62.8%.
EBITDA margin has ranged from 34.8% to 58.4% over 7 years and sits at 41.7% now.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Watch
Revenue grew 11.4% but only -3.24× of reported profit came through as operating cash.
Rule GROWTH_WITH_WEAK_CASH
Operating cash flowNet profit
- Total debt
- —
- Operating cash flow ÷ net profit
- -3.24×FY2026
- Free cash flow
- ₹−6,142 cr
- Current ratio
- 65.49×
Net worth compounded at 22.7% a year over 7 years (₹3,094 → ₹12,952).
Section 08 · Relative position
How does it compare with peers?
Ranked against 3 stockbroking & allied (FY2026, consolidated). No peer-relative rule fired for this company.
EBITDA margin
MOTILALOFS · 3rd of 3 · set median 62.8%
Return on equity
MOTILALOFS · 2nd of 3 · set median 15.6%
P/E ratio
MOTILALOFS · 1st of 3 · set median 33.6×
- P / E
- 30.0×TTM to Jun 26
- P / B
- 4.6×latest book
- P / S
- 5.9×TTM sales
- Earnings yield
- 3.3%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 31.8× · P/S 6.3× · ROE 15.6%.
Section 09 · The stock
How has the stock performed?
Watch
Over 5 years the stock returned 35.3% a year while profit compounded at 8.3% a year.
Rule STOCK_RAN_AHEAD
- 1-year return
- +10.0%
- 3-year return
- +350.6%
- 5-year return
- +354.0%
- From 52-wk high
- −9.3%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Above₹963
- vs 200-day avg
- Above₹858
- RSI (14)
- 47.4neutral
- MACD histogram
- -5.7
- From 52-wk high
- −9.3%
- From 52-wk low
- +57.6%
- 30-day volatility
- 28.1%ann.
- 6-month return
- +56.5%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchSharp margin dropEBITDA margin dropped 13.2 percentage points in a single year, from 54.9% to 41.7% — worth investigating.MARGIN_SHARP_DROP · conviction 75
- WatchProfit lagging revenueRevenue grew 11.4% but profit declined 25.3%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 74
- WatchGrowing, but less profitablyRevenue grew 11.4% but EBITDA margin fell 13.2 percentage points to 41.7%, so the company kept less of each rupee of revenue as operating profit.REVENUE_UP_MARGIN_DOWN · conviction 71
- WatchGrowing, but light on cashRevenue grew 11.4% but only -3.24× of reported profit came through as operating cash.GROWTH_WITH_WEAK_CASH · conviction 62
- WatchStock has run ahead of the businessOver 5 years the stock returned 35.3% a year while profit compounded at 8.3% a year.STOCK_RAN_AHEAD · conviction 61
- WatchVolatile earningsProfit has swung sharply over 7 years (from ₹190 to ₹2,508) — one year is a weak guide to the earnings power.EARNINGS_VOLATILE · conviction 59
- ConcernReturns decliningROE declined from 25.2% to 15.6% year on year.ROE_DETERIORATED_YOY · conviction 52
- ConcernThinner margins than peersEBITDA margin of 41.7% is below the stockbroking and allied median of 62.8%.MARGIN_BELOW_PEER_MEDIAN · conviction 47
- ConcernProfit fellNet profit fell 25.3% year on year (FY2025 → FY2026).PROFIT_DECLINED_YOY · conviction 46
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,463 | 2,358 | 3,626 | 4,297 | 4,177 | 7,068 | 8,417 | 9,374 |
| Total income | 2,468 | 2,365 | 3,631 | 4,320 | 4,197 | 7,131 | 8,417 | 9,416 |
| EBITDA | 925 | 819 | 2,022 | 2,142 | 1,896 | 4,129 | 4,623 | 3,912 |
| Profit before tax | 384 | 285 | 1,457 | 1,616 | 1,242 | 3,032 | 3,226 | 2,465 |
| Net profit | 298 | 190 | 1,259 | 1,312 | 935 | 2,446 | 2,508 | 1,872 |
| EPS (₹) | 20.0 | 12.5 | 84.7 | 89.1 | 62.9 | 164.6 | 41.8 | 31.1 |
| Net worth | 3,094 | 3,123 | 4,488 | 5,701 | 6,283 | 8,769 | 11,131 | 12,952 |
| Total debt | 5,115 | 4,627 | 5,693 | 6,152 | — | — | — | — |
| Operating cash flow | — | — | 929 | 1,011 | −3,058 | −349 | 1,215 | −6,071 |
| Free cash flow | — | — | 865 | 956 | −3,225 | −500 | 934 | −6,142 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | -4.3 | 53.8 | 18.5 | -2.8 | 69.2 | 19.1 | 11.4 |
| Profit growth YoY | — | -36.4 | 564.3 | 4.2 | -28.8 | 161.6 | 2.6 | -25.3 |
| Profitability | ||||||||
| EBITDA margin % | 37.6 | 34.8 | 55.8 | 49.9 | 45.4 | 58.4 | 54.9 | 41.7 |
| Net margin % | 12.1 | 8.0 | 34.7 | 30.4 | 22.3 | 34.3 | 29.8 | 19.9 |
| Return on equity % | 9.6 | 6.1 | 33.1 | 25.8 | 15.6 | 32.5 | 25.2 | 15.6 |
| Return on capital % | 11.0 | 9.8 | 22.0 | 19.0 | — | — | — | — |
| Leverage & cash | ||||||||
| Debt to equity | 1.65 | 1.48 | 1.27 | 1.08 | — | — | — | — |
| Cash flow ÷ profit | — | — | 0.74 | 0.77 | -3.27 | -0.14 | 0.48 | -3.24 |
| Current ratio | 1.39 | 1.37 | 140.67 | 65.49 | — | — | — | — |