Motilal Oswal Home Finance (MOHFL), a wholly owned subsidiary of Motilal Oswal Financial Services (MOFSL), has continued its strong momentum into the second quarter of FY26. Motilal Oswal Home Finance Q2 FY26 results reported steady profitability, double-digit growth in its loan book, and robust disbursement performance, underscoring its disciplined expansion in India’s affordable housing finance segment.
Despite industry-wide competitive pressures and elevated funding costs, MOHFL has managed to sustain asset quality and expand its footprint, reaffirming its position as one of the most stable and well-capitalized non-bank housing finance players.
Motilal Oswal Home Finance Q2 FY26 Highlights
Loan Book and Disbursement Momentum
MOHF Q2 FY26 loan book climbed to INR 5,161 crore as of September 2025, marking a 15% year-on-year increase from INR 4,503 crore a year earlier. The company’s retail book, which continues to drive overall growth, expanded to INR 4,503 crore, up 24% YoY, while non-retail loans stood at INR 658 crore.
Disbursements in Q2FY26 remained strong, driven by:
- Expansion into underpenetrated Tier-2 and Tier-3 cities,
- A growing Sales Relationship Manager (RM) network, which increased to 190 (from 164 last year), and
- Continued investments in digital origination platforms enabling faster and more efficient processing.
“Our focus on deepening retail penetration, improving RM productivity, and leveraging digital channels is paying off. The franchise is now primed for scale,” said a senior company executive.
Motilal Oswal Home Finance Q2 FY26 – Financial Metrics
| Metric | Q2 FY25 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Loan Book | 4,503 | 5,161 | ↑ 15% |
| Net Worth | 1,353 | 1,499 | ↑ 11% |
| Net Interest Income | 82 | 96 | ↑ 17% |
| PAT | 56 | 58 | ↑ 4% |
| Yield (%) | 13.5 | 13.3 | ↓ 20 bps |
| Cost of Funds (COF, %) | 8.4 | 8.2 | ↓ 20 bps |
| Spread (%) | 5.1 | 5.2 | ↑ 10 bps |
| NIM (%) | 7.1 | 6.9 | ↓ 20 bps |
| ROA (%) | 2.3 | 2.5 | ↑ 20 bps |
| ROE (%) | 8.0 | 9.2 | ↑ 120 bps |
| CRAR (%) | 45.6 | 42.6 | ↓ marginally |
| GNPA (%) | 1.3 | 1.4 | Stable |
| NNPA (%) | 0.7 | 0.8 | Stable |
The figures highlight steady operational efficiency with marginal margin compression, largely offset by volume-led growth and tight cost control.
Motilal Oswal Home Finance H1 FY26 vs H1 FY25
Motilal Oswal Home Finance has sustained solid momentum through the first half of FY26, driven by strong loan book expansion and prudent cost management. The company’s AUM rose 24% YoY, while profitability remained stable despite mild yield compression due to competitive market conditions.
| Parameters | H1 FY26 | H1 FY25 | YoY Change / Commentary |
|---|---|---|---|
| AUM (INR Cr) | 5,236 | 4,233 | ↑ 24%—strong expansion led by retail growth |
| Yield (%) | 13.3 | 13.6 | ↓ 30 bps — competitive pricing effect |
| Cost of Funds (%) | 8.3 | 8.4 | ↓ 10 bps — funding mix improvement |
| Spread (%) | 5.0 | 5.2 | ↓ 20 bps — stable despite higher competition |
| NIM (%) | 6.9 | 7.2 | ↓ 30 bps — volume offset margin compression |
| Opex / Total Assets (%) | 4.4 | 4.4 | Stable — disciplined cost structure maintained |
| ROA (%) | 2.1 | 2.5 | ↓ 40 bps — due to planned expansion & tech investment |
| ROE (%) | 7.9 | 8.6 | ↓ 70 bps — higher capital base and strategic hiring impact |
| CRAR (%) | 42.6 | 45.6 | Strong capitalization, well above regulatory norms |
| Net Leverage (x) | 2.3 | 1.9 | Slight increase as growth phase accelerates |
| GNPA (%) | 1.4 | 1.3 | Stable — continues to remain among best in class |
| NNPA (%) | 0.8 | 0.7 | Stable — robust credit controls in place |
Key Highlights:
- Loan growth and AUM expansion remain the standout highlights — up 24% YoY, powered by sustained retail traction.
- Profitability ratios dipped marginally as MOHFL invested in digital infrastructure and manpower for future scalability.
- Asset quality remains pristine, underscoring consistent underwriting standards and effective collection mechanisms.
- Capital adequacy at 42.6% provides a strong base for future growth.
Asset Quality: Stable and Well-Contained
MOHFL maintained stable asset quality with Gross NPA at 1.4% and Net NPA at 0.8%, reflecting continued prudence in underwriting and collections. This performance builds on the company’s Q1 FY26 GNPA/NNPA of 1.2%/0.6%, and the FY25 GNPA/NNPA of 0.8%/0.4%, indicating the company’s consistency in credit risk management through cycles.
The portfolio remains largely retail and granular, with a focus on salaried and self-employed borrowers in the affordable housing segment, backed by AI-driven risk models and strong field-level collection infrastructure.
Motilal Oswal Home Finance Q2 FY26: Operational Efficiency & Expansion
The company continues to enhance productivity across its expanding footprint:
- Sales RM strength: up 16% YoY to 190.
- Retail focus: accounts for nearly 90% of incremental disbursements.
- Digitisation drive: improving turnaround time and reducing cost-to-income ratio over time.
- Opex-to-AUM ratio remains stable at 4.4%, reflecting operational discipline even amid expansion.
These efforts complement the company’s strategic push to enhance brand presence in semi-urban markets and build long-term customer relationships.
Capital Position and Liquidity Strength
MOHFL continues to maintain a strong capital base, with:
- Net Worth rising to INR 1,499 crore,
- CRAR at a robust 42.6%, well above regulatory requirements, and
- Net leverage at 2.3x, offering sufficient headroom for growth.
The company’s AA+ (Stable) rating by ICRA—the highest among non-bank domestic capital market players—underlines its financial stability and sound governance framework.
Treasury & Strategic Alignment with MOFSL
As part of the Motilal Oswal Group, MOHFL benefits from access to treasury investments totalling INR 8,957 crore and an overall net worth of INR 12,871 crore at the group level.
The group’s twin-engine model—comprising operating businesses and treasury investments—provides liquidity, stability, and funding flexibility for MOHFL’s growth strategy.
The company continues to reinvest a portion of profits into strategic initiatives while maintaining a prudent payout policy.
Outlook
Building on the strong first half (H1 FY26) performance, management remains confident about sustaining momentum through FY26.
Strategic priorities include:
- Deepening presence in the affordable housing segment,
- Scaling digital origination and analytics for underwriting,
- Maintaining pristine asset quality despite faster growth, and
- Leveraging RM productivity to improve per-branch disbursement yields.
“Our focus remains on balancing growth with governance. The home finance business is well-poised to capitalise on India’s structural housing demand and evolving credit landscape,” the management added.
Motilal Oswal Home Finance Q2 & H1 FY26 Results: Key Takeaways
| Parameter | Trend / Commentary |
|---|---|
| AUM Growth | 24% YoY to INR 5,236 Cr – driven by strong retail traction |
| Disbursement | Healthy momentum aided by digital expansion |
| Profitability | PAT steady at INR 58 Cr; operating efficiency cushions margin pressures |
| Asset Quality | Stable GNPA/NNPA levels; credit discipline intact |
| Capital Adequacy | CRAR at 42.6%; ample growth headroom |
| Rating | Upgraded to AA+ (Stable) by ICRA |
| Strategic Focus | Deepening affordable housing, leveraging technology |
Conclusion
Motilal Oswal Home Finance Q2 FY26 results underscore a phase of sustainable growth and disciplined execution. While profitability growth was modest, the company’s solid balance sheet, asset quality, and strong capital buffers reinforce its credibility in the competitive housing finance landscape.
With India’s housing demand on a structural upswing and policy incentives supporting affordable home ownership, MOHFL’s measured yet consistent growth trajectory positions it as a key beneficiary of the next decade’s housing finance boom.
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