Speaking to ET Now, Shalibhadra Shah, Group CFO, MOFSL, said the company’s AUM grew 55–56% YoY, far outpacing market benchmarks like the Nifty, which remained largely unchanged over the same period.
“Our AMC and private wealth divisions have been the key growth drivers. We saw ₹14,000 crore of net inflows and added 17 lakh new SIPs this quarter. Our flow market share rose to 8.3%, while AUM market share climbed to 2.6%,” Shah said.
Asset management and wealth businesses shine
The asset management and private wealth businesses contributed significantly to the expansion, driven by strong inflows and new client additions.
In private wealth, MOFSL recorded ₹7,500 crore of net inflows, nearly tripling YoY, with 75% coming from existing clients.
“We’ve been able to attract large family offices and capture market flows effectively. This has propelled overall AUM growth,” Shah explained.
Record operating profit despite market volatility
MOFSL reported an all-time high operating profit of ₹554 crore for Q2, marking a 30% YoY increase in core business profitability, excluding treasury movements.While the treasury segment reported a notional mark-to-market loss of ₹270 crore, the company’s operational performance remained robust across segments such as asset management, alternates, investment banking, and wealth management.
“Barring brokerage, which declined 24% YoY due to regulatory changes, all other businesses grew strongly. Our operating mix is diversifying, with brokerage now contributing only 30% of total revenue,” Shah noted.
Housing finance sees 50% jump in disbursements
The company’s housing finance arm continued to gain momentum, posting a 24% YoY AUM growth and a 50% rise in quarterly disbursements to ₹500 crore.
“We’re seeing healthy growth in the affordable housing segment, supported by strong underwriting and technology adoption,” Shah said.
The asset quality remains among the best in the industry, with gross NPAs at 1.4% and net NPAs at just 0.8%. Shah emphasized that early delinquency buckets (1+ and 30+) have improved, reflecting better collections and borrower quality.
Margins, funding costs, and outlook
MOFSL’s housing finance division saw its cost of funds fall by 20–25 bps YoY, aided by rating upgrades and operational efficiency. The company’s AA+ credit rating from ICRA—a first among capital market-linked NBFCs—has further strengthened its borrowing capacity.
“Our spreads have improved to 5.3%, and net interest margins (NIMs) are stable at 7%. With expected rate cuts and funding cost reductions, spreads could expand further in H2,” Shah said.
Looking ahead: Balanced growth and profitability
With strong traction in AMC inflows, a growing wealth business, and stable housing finance margins, MOFSL is positioning itself for sustainable double-digit growth.
“Our focus remains on scaling up high-ROE, fee-based businesses while maintaining asset quality and cost discipline,” Shah concluded.