Wholly owned subsidiary of Motilal Oswal Financial Services (MOFSL), Motilal Oswal Home Finance (MOHFL) Q3 FY26 results have delivered steady performance, highlighting its consistent execution in the affordable housing finance segment. The company continues to demonstrate balanced growth across assets, profitability, and credit quality, supported by digital transformation and deeper retail penetration across Tier II and Tier III markets.
Motilal Oswal Home Finance Q3 FY26 Results
Despite a competitive funding environment, MOHFL maintained profitability and asset quality while expanding its retail loan book. The company’s AUM reached INR 5,379 crore as of December 2025—up 24% YoY from INR 4,343 crore—with the retail portfolio continuing to be the key growth driver.
| Metric | Q3 FY25 | Q3 FY26 | YoY Change |
|---|---|---|---|
| AUM | 4,343 | 5,379 | ↑ 24% YoY (Adjusted AUM INR 5,593 Cr; 29% YoY growth ex one-time adjustment) |
| Net Worth | 1,393 | 1,543 | ↑ 11% |
| Disbursement | 394 | 364 | ↓ 8% YoY (onetime recognition change; adjusted growth ≈ 59% YoY to INR 578 Cr) |
| Net Interest Income | 88 | 96 | ↑ 9% |
| PAT | 37 | 42 | ↑ 14% |
| Sales RM Count | 164 | 190 | ↑ 16% |
| Retail Book Share (%) | 89 | ~90 | Stable |
Operationally, the company remains primed for scale, supported by widening distribution reach, digital origination, and technology-led underwriting efficiencies.
Read Also:
- Motilal Oswal Home Finance Q2 FY26 Results
- Motilal Oswal Home Finance Q1 FY26 Results
- Motilal Oswal Home Finance Q4 FY25 Results
- Motilal Oswal Home Finance Q3 FY25 Results
- Motilal Oswal Home Finance Q2 FY25 Results
Motilal Oswal Home Finance 9M FY26 Results
Through the first nine months of FY26, MOHFL sustained broad-based growth, maintaining strong capital ratios and steady margins despite yield compression.
| Parameter | 9M FY25 | 9M FY26 | Commentary |
|---|---|---|---|
| AUM | 4,343 | 5,379 | ↑ 24% YoY — retail-led momentum continues |
| Yield (%) | 13.6 | 13.4 | ↓ 20 bps — competitive pricing impact |
| Cost of Funds (%) | 8.4 | 8.2 | ↓ 20 bps — improved funding mix |
| Spread (%) | 5.2 | 5.2 | Stable |
| NIM (%) | 7.4 | 7.0 | ↓ 40 bps — volume-led growth offsets margin softness |
| Opex / Total Assets (%) | 4.5 | 4.4 | Stable — scale efficiencies visible |
| ROA (%) | 2.7 | 2.4 | Slight compression due to strategic investments |
| ROE (%) | 9.3 | 9.0 | Stable — supported by higher equity base |
| CRAR (%) | 44.3 | 40.7 | Well above regulatory requirement |
| Net Leverage (x) | 1.9 | 2.4 | ↑ reflecting accelerated growth phase |
| GNPA (%) | 1.4 | 1.4 | Stable |
| NNPA (%) | 0.8 | 0.9 | Stable |
Operational Highlights
- Retail Granularity: Retail assets now form ~90% of incremental disbursements, underscoring the company’s focus on the affordable housing segment.
- Expanding Network: Branch and RM presence continues to grow in Tier II & III markets, improving reach and disbursement velocity.
- Technology Enablement: Digital origination, AI-based risk models, and end-to-end loan processing continue to enhance turnaround time and operating efficiency.
- Opex Discipline: Opex-to-assets ratio remained stable at 4.4%, demonstrating scalability without cost escalation.
Asset Quality & Capital Adequacy
Asset quality remains best-in-class within the segment with GNPA at 1.4% and NNPA at 0.9%, reflecting continued prudence in underwriting and collections. The company’s CRAR at 40.7% and Net Leverage of 2.4x highlight a strong capital position and ample growth headroom.
Additionally, MOHFL’s credit rating has been upgraded to AA+ (Stable) by ICRA, with all three major agencies maintaining a Positive Outlook, reaffirming its financial resilience.
Strategic Alignment & Group Support
As part of the Motilal Oswal Group, MOHFL benefits from access to group-level treasury liquidity and a robust governance framework. The Group’s diversified funding base and AA+ rating further enhance MOHFL’s borrowing efficiency and growth capability.
Outlook
Management remains optimistic about maintaining momentum through FY26 and beyond. Key strategic priorities include:
- Deepening presence in the affordable housing ecosystem,
- Expanding distribution reach via RMs and digital partnerships,
- Leveraging technology for productivity and risk analytics, and
- Preserving strong asset quality amid faster growth.
Motilal Oswal Home Finance Q3 & 9M FY26 Highlights
| Theme | Commentary |
|---|---|
| AUM Growth | 24% YoY (29% adjusted) driven by retail traction |
| Profitability | Steady PAT growth to INR 42 Cr in Q3 FY26 |
| Margins | Spread stable at 5.2–5.4% despite yield pressure |
| Asset Quality | GNPA/NNPA stable at 1.4%/0.9% |
| Capital Strength | CRAR 40.7% provides ample growth headroom |
| Rating | AA+ (Stable) — Upgraded by ICRA |
| Strategic Focus | Retail penetration, digital origination, and operational efficiency |
Conclusion
Motilal Oswal Home Finance Q3 & 9M FY26 continues to demonstrate disciplined growth and operational resilience. While margins moderated slightly, volume-led expansion, stable asset quality, and a fortified capital structure affirm the company’s readiness to scale in India’s rapidly expanding affordable housing market.
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