Thank you, Michelle. Good afternoon, everyone.

I welcome all the participants on behalf of Motilal Oswal Financial Services Limited to take time out to attend our Q4 and full year FY26 earnings conference call. We hope that you had an opportunity to go through our investor deck and press release uploaded on the stock exchange and on our website yesterday.

We have also uploaded the Excel databook, which has all the operational and financial numbers. Please note that today's discussion may include some forward-looking statements.

These forward-looking statements are based on our macro assessment, and actual outcome may vary. We have the entire senior leadership management on the call.

We will start this call with an opening remark by Navin, and will then have a Q&A session. Over to you, Navin.

Thank you.

Thank you, Manish, and good afternoon, everyone. A warm welcome to all of you to our earnings call for the quarter and the year ended March 2026.

Starting with a broad backdrop, Motilal Oswal Financial Services is the largest integrated capital markets player with strong and rising rankings across businesses, a rising share of annuity revenues, and with each business still offering a strong growth runway. Since our listing back in 2007, we've never diluted our equity while consistently paying out dividends and executing three buybacks.

This has only been possible due to our unique twin-engine business model wherein our large investment book serves as a strong backbone to all the operating businesses, which have seen rising needs of capital over the years due to changing regulations or strong growth in terms of the scale of the businesses. Our operating businesses have delivered a 10-year compounded operating profit after tax growth of 33% per annum, EPS growth of 28% per annum, return on equity of 23%.

Now, this strong growth is supported by our investment book, which grew by 40% compounded since inception, led by a combination of strong IRRs as well as reinvestment of the operating profits post-distributions. Our annuity businesses now contribute over 60% of the revenues, have risen in the last 5 and 10 years, and our view will continue to rise going forward, resulting in improved quality as well as predictability of our cash flows.

This growth is powered by a future-ready tech infrastructure. We have embedded AI in every facet of business processes, improving internal productivity, strengthening execution, and creating a long-term strategic differentiation.

We are now ranked among the top 150 companies based on the 2025 calendar year PAT and among top 200 companies by market cap. We see the next decade offering equally exciting prospects, which should drive further improvement in these rankings.

Context, the capital markets index is a rising part of NSE 500 Index, and its share, the capital markets index share in the NSE 500 has grown from near 0.13% 10 years ago to 0.84% 5 years ago, and now stands at over 2.5%. The number of companies in the capital market segment increased from just 3 10 years ago to 10 companies 5 years ago, and now at 18 companies.

Motilal Oswal Financial Services has generated alpha for all its shareholders by delivering a 10-year return of 26% versus 17% for NSE 50 and 12% for NSE 500. Strong growth in India's total wealth from just over $10 trillion now to over $100 trillion in the centennial year of India, financialization of these large wealth pool or savings, and continued industry consolidation augur well for MOFSL in the decade that is ahead.

Turning to FY26 performance, our FY26 continues to witness strength in most of the businesses. Growth has been, I repeat, led by annuity businesses, mainly asset management and private wealth.

Our operating profit after tax in the year FY26 grew by 16% YoY to ₹2,360 crore, led by a 33% growth in the profits of asset and private wealth businesses. These businesses now contribute around 50% of the total operating profit, and we expect their share to continue to rise as these businesses continue to grow at a faster pace.

Operating profit after tax for the fourth quarter grew by a strong 25%, and also the strongest in the four quarters of the last financial year. We exit the last quarter with an operating PAT run rate of ₹661 crore.

Our long-term credit rating was upgraded to AA+ with stable outlook. This is the highest rating ever granted to any non-bank domestic capital market player in India.

Our total profit after taxes including OCI for the fourth quarter and the full year is impacted due to mark-to-market on our investment book, which currently stands at around ₹9,000 crore. These are unrealized losses, and most of it has already been recouped in the month of April.

The strong operating performance has been delivered in the backdrop of headwinded external environment, be it weak markets impacting mark-to-market in our AUM in multiple businesses, including asset management, private wealth, etc. This coupled with multiple regulatory changes like the F&O changes, requirement of higher margins, etc., impacted market breadth.

Also, FY26 was a year of investments on all fronts in the group, be it people, be it brand or technology. We've not left any stone unturned to maintain our leadership position in our businesses.

Turning to segmental performance, asset and private wealth business comprises of the listed public equities AMC, the private equity business, the real estate credit business, as well as the private wealth management business. Our asset and asset management and private wealth businesses continued momentum during the year with robust net flows of ₹70,000 crore AUM—robust net flows of ₹70,000 crore and an AUM of ₹3.7 lakh crore, which is up by 34% year-on-year.

The operating leverage from rising AUM has delivered stronger profit growth, and that should continue into the future. Starting with our asset management business, our AMC AUM crossed ₹1.5 lakh crore with diversify—with diversified stream of active mutual funds, passive mutual funds, AIF, and PMSs.

Unique PAN catered by our AMC crossed 1 crore in March '26 versus 77 lakhs in March '25, which shows strong confidence by retail investors in our franchise. This is around 16% client share of all mutual fund investor base.

The revival in the April month itself has propelled our average AUM to grow from ₹1.57 lakh crore of last year to ₹1.8 lakh crore now. Our product bouquet is pretty young, as significant flows comes only once product has crossed the three-year track record.

We launched five new mutual fund active products in FY26, increasing our presence now to 82% of the industry AUM. Importantly, only six of our funds have a vintage of over three years versus 42, 29, and 26 funds with similar vintage in our top three peers in asset management business.

We expect eight funds to cross the three-year vintage by March '27 for us and 16 funds by March '28. Some of these are best performing funds since inception in mainstream categories, and this should help strong flows as well as diversification of our AUM over the next two years.

Our SIP flows in FY26 crossed ₹16,000 crore mark, up 78% year-on-year with a market share of 4.7%, resulting in a SIP AUM of ₹30,000 crore as of March '26. Our latest AUM at ₹1.8 lakh crore is already 15% higher than our FY26 average of ₹1.57 lakh crore.

AUM growth will also be supported by the strong ₹18,000 crore annualized SIP run rate, and as I mentioned earlier, more products crossing three-year vintage and proposed collections from the NFOs in the pipeline should help the discretionary flows as well. We are growing via the GIFT City route, targeting inbound and outbound flows.

To summarize, the AMC business will be an important growth and ARR driver for MOFSL on the back of four factors: higher net flows market share than the AUM market share, improving market share in net flows led by greater number of products crossing three-year vintage and launch of new products, SIP run rate of ₹1,500 crore, and potential mark-to-market after muted market returns for the last two years. Turning to the alternates or the private markets business, FY26 was eventful for our alternates business, too.

We raised our largest growth capital fund, IBEF V, raising close to a billion dollars. This leads to a 40% growth in our fee-accruing income from average AUM of ₹15,000 crore to a closing AUM of ₹21,000 crore.

This AUM will be further supported by a strong launch pipeline with our maiden private credit fund of ₹3,000 crore, the first commercial real estate credit fund that we hope to launch in the second half of this year, besides the launch of the Series 7 of the residential real estate credit fund. Alternates is a high-focus segment for us given the trillion-dollar AUM in the developed markets for just a, market leader.

We have a strong franchise in growth capital and real estate and are confident to deliver industry-leading IRRs to our clients in all the products that we offer. With the recent launch of our private credit fund and the forthcoming launch of our commercial credit fund, we'll be offering a more comprehensive range of products in the alternates business, which is only seeing higher allocations both from the family offices as well as institutions.

Here again, to summarize, the alternates asset management business will also be a key growth driver and an ARR driver for the group on the back of three factors: larger fundraises in every subsequent series—I would like to highlight that each of our growth capital funds have doubled in their size from the Series 1 to 2 to 3 to 4 to 5; entry into adjacencies and newer categories; and finally, more funds entering carry income recognition threshold, which will boost our carry income run rate from the current ₹250 crore per annum. The asset management business now contributes 33% of the group's operating profit after tax versus 26% in the last year.

Turning to our private wealth management business, we've made large investments in senior leadership as well as RMs and will continue to do so in a calibrated manner for FY27 as well. Our focus is on growing the ARR AUM, which is currently at ₹46,000 crore through various initiatives, including advisory solutions, strengthening leverage solutions as a value add for UHNI clients, exclusive co-investments leveraging group synergy, etc.

Our 440+ RMs will also witness productivity improvement as 32% of them have a vintage of 3+ years. All this will help in revenue growth along with cost-to-income improvement, driving profitability via operating leverage.

Turning to our wealth management business, which comprises of retail broking, distribution, and our retail lending book which generates NII, led by a sharp focus on growing our distribution income and NII, our broking revenues in the wealth management business segment now stand at 35% of the full year revenues compared to 60% 5 years ago. Distribution book grew by 41% to nearly ₹41,000 crore as of March '26.

We are confident that our distribution book will continue to grow meaningfully as we harness the cross-sell potential of our huge client base. Our loan book in this segment rose by over 30%, reaching ₹6,000 crore.

Our MTF market share is close to 7% and has headroom to grow further. Our broking business continues to retain its leadership position as a full-service broker.

We are the largest broker in the cash segment on revenue market share. Our overall retail broking equity market share, including commodities, stood at 8.6% as of FY26.

To summarize for this business, we expect our ADTO market share to improve as the global uncertainty subsides, as we've also historically witnessed rising market shares in rising markets. The distribution and lending book will continue to drive growth and increase its share in MOFSL's ARR revenue pie.

Turning now to our capital markets business, which includes both the institutional equities as well as investment banking business, with a $5 trillion market cap and growing, there is a base level of IB activity that the markets will see every year. While there may be huge volatility quarter-on-quarter because of market conditions, we believe that despite all of this, our IB business has successfully completed 52 deals in FY26 with a cumulative raise of nearly ₹83,000 crore, and our fee income delivered a strong 39% growth to ₹309 crore.

We are ranked number two in capital markets league table and number one in the QIP league table for FY26. In the institutional equities business, we aspire to take our coverage up from the current 360 to nearly 500 companies.

We believe we've built a strong franchise and a diversified product portfolio. We have headroom to grow in some of the areas like advisory as well as M&A in the coming years.

Our size per deal is materially higher than in the past, and with a strong deal pipeline, we believe this business is also poised for a growth in the coming year. Turning to the housing finance business, we concluded another year of solid performance with disbursements rising by 28% to ₹2,300 crore, AUM rising by 25% to ₹6,100 crore.

The housing finance business raised $100 million from ADB, validating the strong franchise. We expect the housing finance business, having formed a strong base and a very strong leadership team, to witness strong growth over the next two, three years.

Business has a strong capital adequacy ratio, low leverage, giving us enough growth levers without external equity capital dependency. To conclude, the rise in wealth of the nation to over a $100 trillion combined with financialization of savings, powerful tailwinds in terms of the rising weight of capital markets within the Indian market cap, all these augur well, for the group.

In this space, Motilal Oswal's decadal track record of 33% compounded operating profit growth and an average ROE of 23%, entirely through internal accruals with no dilution, with rising market share in each businesses, entry into promising adjacencies in nearly each of our businesses, rising share of annuity revenues to over 60%, and finally, improving quality and predictability of the cash flows driven by rising share of annuity revenues, all augur well. FY25 and FY26, these two financial years were marked by regulatory tightening combined with weak markets.

Despite this, MOFSL delivered an operating PAT growth of 16% in the last year and 25% in the fourth quarter of last year. With regulatory headwinds in the base, continued resilience shown by Indian investors, the future outlook continues to look promising to us.

With this, I conclude my opening remarks and open the floor for Q&A. Thank you.

Hi. Thank you for the opportunity.

I have a couple of questions. First with respect to the AMC business, right?

If we look at the SIP market share, it has dipped a bit during the quarter. Just wanted to know your thoughts on the same and what initiatives are basically being taken to regain that market share.

Second would be on the revenue yields. How should we look at the revenue yields going forward with respect to one, the regulatory change in terms of TER, and second, how are you looking at the alternate yields as well?

Because if I look during the quarter, we have seen some bit of expansion in the yields. I think that would be largely on account of new funds which are being launched.

If you can clarify on that. Third question would be on the private wealth management segment.

If we see the lending assets have seen strong inflows during the quarter. What has driven this growth in AUM and secondly the inflows also?

If you can just clarify on these things. Yeah.

Thanks for your questions. The first one was on SIP.

We are having a SIP run rate of ₹1,400+ crore a month. There is a slight decline in that on two counts.

One, our international funds are no longer able to take in new moneys. Second, the micro-cap fund is also locked.

That's the primary reason. Then, yes, on the active side, we have seen a small drop in SIP.

Now SIP book growth is very, very linked to strong performance. As that comes back to us, especially in the main categories, you should again expect SIP books to climb.

As we speak, they are at last year levels itself. Now second, on fees.

Our fees as a consequence of the TER changes has continued to be un-impacted. In fact, slightly improved for our cohort of AUM per category.

That hasn't impacted us. On the alternate side also, our retention rates have been maintained.

If at all you see a compression in margins for us, it is on account of mix effect. Our fastest-growing part of business for last quarter, for example, was passives, where our retention is lower than actives, which is the second-fastest growing part of our business versus the alternates, where the growth was the slowest, but the yields are the highest.

The mix effect does result in some downward pressure.

On the lending side in private wealth, as Navin had mentioned, it's a stated strategy to provide solutions to ultra-HNIs, family offices, and HNIs to enhance yield. Basically it's a combination of lending against securities, lending against investment assets.

This basically contributes to growth in assets as well as ARR revenues. Got it,

got it. I had one more last question with respect to the other expenses, which is the admin and the other expenses.

We have seen a sequential growth of around 20%. I just wanted to understand whether it is some sort of marketing or investment engagement program related expense or how and particularly how should we look at it going forward in FY27?

Quarter 4 includes predominant impact of higher marketing, brand, promotion, and also the CSR expenses, bulk of which have actually been incurred in the Quarter 4. You will see that data slightly higher on a sequential basis.

However, for the full year, the overall other expenses are up by about 10% for the full financial year. Bulk of the other expenses includes our marketing and tech, where we spend almost about 5.5% of our net revenues for this financial year FY26.

That's the larger impact of the other expenses.

Got it, sir. Thank you so much.

Thank you.

Hello. Thank you for the opportunity, sir.

Am I audible?

Yes, yes.

Sir, a couple of questions. Any guidance on the MTF book?

I understand that we had around ₹6,500 crore of MTF book as on nine months FY26, which has been slowed down to ₹5,700 crore as on March '26. Any strategic thing that we are thinking around this?

This is the major lending vehicle wherein majorly debt is needed in this book itself. Any guidance on the MTF book and how are we looking at it in '27?

See,

overall if we look at our MTF book, that has actually grown for the full year at 40%, which is a strong surge, and our cash market share is also about 7%, and MTF market share is also a replica of that. We definitely have a very strong balance sheet to grow this book.

Over last few years if you look at, there has been a very strong growth of our MTF assets. We expect similar strong growth to recur in the coming periods because we are the largest broker in terms of the cash brokerage revenue pie, and that is where we will carry an edge in terms of the higher growth for our MTF book.

Okay. Sir, any quarter-on-quarter impact, sir?

Or it is a strategic move that you have taken in this quarter to reduce maybe on a quarterly basis and then again increase once market stabilizes?

Look, it's more of market impact. Sequentially, more or less across the industry, the book is marginally lower, it's a very marginal reduction.

However, we are very confident of growing this book ahead.

Okay. Sir, any guidance on the broking income piece?

Because I understand there was some degrowth in '26, but for '27, in '27, I understand once market conditions stabilizes, volumes will return to normalcy. Any kind of number that you can put to broking revenues over '27?

You're talking of the brokerage line item, right?

Yes, sir, yeah. Broking income mainly.

Broking revenues, see if you look at, last entire financial year was, especially starting from Jan '25 to December, I would say that the revenues were lower, mainly because of the lower volumes and the impact of the regulatory change which had come on the F&O segment especially, and also the lower overall cash volumes in the industry. However, if you look at now Quarter 4, again the volumes have fully catched up, right?

Our market share overall, ADTO market share is also up for the year by almost about 100 basis plus. Quarter 4 if you look at, the revenue growth is almost 33% YoY.

Again, the base is higher now because even moving to the current financial year over last financial year, April over April is also at a very higher base. We expect the brokerage line item to decently catch up for the entire financial year given that the regulatory impact is behind and the volumes have again catched up to the pre-regulatory change levels.

Sure, sir. One last thing, sir.

On the MTM loss that we have had on the treasury book, around ₹1,000-odd crore at consol level. Sir, my understanding is that post March 30th, equities have rallied, and as you have mentioned in your PPT as well, majority of that loss has already been recouped.

Sir, that ₹1,000 crore loss is unrealized, right? We have not booked any realized.

There is no realized impact. It's unrealized loss.

Yes, this is a notional mark-to-market loss, which is, we have to revalue all our investments at mark-to-market based on the Ind AS requirements. That's why, these are notional losses which we separately disclose across in terms of our operating performance and treasury performance.

As explained, most of these have been recouped back in the April month.

Just to add here, the long-term, 10-year+ track record is that this investment book has generated an IRR of 18%. Now, this changes year to year because like you had the 31st March where there is a market drawdown, sometimes these compounded returns also look different, but longer term we've seen returns at highs were as high as 19, at lows were as low as 15.5, but longer term we've seen the compounding at 18%.

To that when you add the post-buyback in some years or post-dividend free cash flows that are added to this book, this book is actually compounded for the last 10 years at the rate of 40% per annum, and that is what I explained upfront in the concall remarks that the rising capital needs of the businesses both due to scale and regulations have been internally funded on the back of this book. You will see a lot of quarterly, depending on the markets volatility in this book.

Sometimes you may have unrealized gains, sometimes you may have unrealized losses, and that's why we separately call out the operating profit after tax number for each business so that there is no confusion about this line item with the operating businesses.

Sure, sir. Thank you.

All the best.

Just to add, all of these investments are actually collateralized with the lenders and serve as very large lines available for the operating businesses of the firm, and effectively the collateral is also expanding at the rate of 40% per annum.

Right, sir. Got it.

Thank you.

Thank you.

Thanks for the opportunity. First question is on asset management business.

Is there any update on the investment team, leadership in the investment and on the asset management side? Secondly, what is the guidance for net flows in the AMC business for FY27?

Yeah. Yes, over the last period, you would be happy to know we have increased the team size on both the alternates and mutual fund in terms of managers and research.

Overall, the investment team inclusive of passives is now over 50 members strong. As far as the leadership on the mutual fund side goes, we are evaluating both internal team members and external.

We have a shortlist. We will take a decision soon.

Now, in terms of net flows, last quarter's numbers, our net flows declined. Jan was the worst month for our active net flows.

In that month, passives did very well, and overall we collected over ₹2,500 crore. Feb was when overall our numbers were weaker as the gold and silver ETF kind of a product flows normalized.

For the last quarter, our net flow market share was lower than our AUM market share. As we speak, the trends in April suggest that our net flow market share would be higher than our AUM market share.

Just to clarify, mutual fund net flow market share may be higher than AUM market share for the month of April?

Yes. Yes, exactly.

Okay. That's a good news.

Secondly, sir, if you look at the capital market segment, we are seeing advent of digital brokers, and they are now impacting a lot of segments. We are seeing our market share declining in cash and F&O.

They are also equally becoming very strong distributors on the mutual fund side. In that light, how are we planning our businesses from a longer-term perspective and how are we trying to build this businesses?

Because what we see as a trend that customers is definitely moving towards those platforms, and some of the numbers are quite glaring that 60%, 70% of the new SIPs are getting opened by this fintech platforms. That has repercussion for all our businesses from a longer-term perspective.

How are we thinking to build business in that light?

When it comes to the overall wealth management business which we are building on to, we have always been focusing on the research and advisory models. If you look at our model, whether it's a franchisee segment, which is our biggest segment within the broking, and then the direct side, the PCG model and the branch model, we are very well aligned with our research and advisory-led model along with the tech in the overall business.

What we have seen is that where we are focusing on the quality of the customer, where we can add value to the customer, and that is where we have been, as Navin discussed, the overall cash market share on the revenue pie, we are very much higher. We see that we can align our strategy towards that in a big way for the overall broking-cum-distribution model.

As you see, our overall wealth AUM has also been growing consistently and has gone 40% the last year itself. As we talk, we are at around ₹44,000 crore.

That twin model is getting well aligned. At the same time, when you look at the discount model, we feel that the bigger traders are the proposition where the overall revenue pie gets aligned.

We are trying to see how we will try to align to the traders which take the bigger pie in the discount market. How do we position ourselves for the bigger traders is something which we are also working up parallely to take care of the overall market share from a market perspective.

Sure,

sure. That's it from my side.

Thank you.

Thank you.

Hi. Good morning, everyone.

Few questions from my side. First, on the private wealth business, if you are to look at your clientele base over the past 2, 3 years versus let's say what it was let's say 5, 6 years back, just wanted to understand some sense of the clientele quality both in terms of ticket size and in terms of occupation, business, domain of expertise, etc.

If you can give some color on that or maybe quantify some of those cohorts. The second question is on the transactional revenues, ex of broking, in the private wealth and maybe to some extent on the wealth business also.

How do you see the pipeline going into FY 2027 given the backdrop of whatever has been going on globally? Also how do you really kind of manage your risk prudence in this when you kind of sign a deal for the transactional section versus let's say focus on fees?

How do you really manage that? The third question is on the alternate segment.

We are seeing some of the large asset management companies entering this segment in an aggressive manner, or at least from their commentary it seems that they will be aggressive. Can you give some color on the white spaces in this segment?

Your pipeline is robust in terms of new players, but in terms of the white spaces in this segment, the supply-side constraints, if you can give some color qualitatively. Lastly, one data keeping question.

Is there any guidance or expectation around carry income for FY27 or '28?

Right. I'm taking the private wealth question first.

Essentially the way to look at it is there are broadly three segments in private wealth. There is the HNI segment, which is broadly ₹5 to ₹100 crore, then there is an ultra-HNI segment, which is ₹100+ crore, and then there are the family offices.

We operate in all three segments, and we've put significant capabilities and resources to improve the value proposition in the ultra-HNI and family office segment, whereas in the HNI segment, we are increasing footprint by having presence in many more locations where we see high growth of HNIs. I think the best lead indicator to see the at least the headline quality of assets is the AUM per RM.

If you see the AUM per RM has been steadily increasing. A couple of years back it was ₹300 crore, and right now it's about ₹450 crore, and this is on an increased base of RMs.

Essentially our penetration across segments is growing. At the back end, and I'm just answering your second question, what we've done is we've significantly enhanced the product and investment capabilities within private wealth to cater to all these segments.

We have recruited people in equities, in alternates, in multi-asset solutions, as well as certain bespoke transaction strategies. The pipeline of transactions is very, very robust.

What happens there is whilst in the near term the markets could be cyclical and that could impact a particular asset class, but essentially right now we have capabilities across asset classes. There are there are private debt transactions where we are seeing a lot of flows from family offices.

Similarly, last year we I mean early last year, we saw a lot of flows in unlisted equity transactions. Whilst the sentiment and the mood may impact flows into a particular asset class temporarily, however, given the multi-asset capabilities that we've built, the the transaction capabilities are becoming much smoother on a on a quarter-on-quarter basis.

Again, to answer your last question on due diligence, I think we draw a lot from the group capabilities. If you see, we've invested significantly at a group level as well to enhance capabilities in private credit, on the real estate front, and we anyway have a very strong private equity capabilities.

Coupled with the capabilities on the private wealth side in the investment team and the group capabilities, the underwriting process is very, very stringent and rigorous. Before a deal would be taken to market or to clients, there is a lot of work that goes on before doing that.

Yeah. In terms of AMC, you asked about corporate carry income possibilities.

Competition as far as we are concerned, on the alternate side, we have gained market shares. We are amongst the top few in the industry with very distinct products with strong story lines.

I think a lot of our products are turning into brands, are being asked by the investors for investing. We have a very, very differentiated product basket.

On top of it, there are unique products where we mix listed with unlisted. Not too many houses have the capability of running that kind of a product.

Now, over and above the long-only investing in the alternate side, we also have quant-based investing. There is a strategy where we have some significant amount of moneys, which is now looking very, very strong.

Overall, the alternate basket for us, we think is very, very relevant for investors. On the mutual fund side, we have expanded our product basket tremendously.

When a competition comes in, there is something which happens on year one, there is something which happens after year three. We see as an industry higher traction after a fund crosses three years of existence.

Now, for us, from a six-product basket, we are now over 17. As we speak, we have a fund launch going on, a contra fund is on.

Now, one by one, these products will start to complete three years. The first one would be a small-cap fund, which completes three years in December.

A large-cap fund will do that next year in Jan. Every two months, there will be a meaningful product which will complete three years.

We think in the next leg of growth versus the last one, our inflows will be way more diversified versus what we had.

As far as the variable additional returns is concerned, we don't give out guidances. However, as explained in our last concall, we have multiple number of funds which has reached in the last cohort of their life, which is last three years, where our IRRs are well above the hurdles.

That is the reason that we expect meaningful variable returns to accrue in the coming financial periods.

Got it. There is just one small follow-up on my first question.

You are a boutique wealth manager which has gained scale over the years. Now, in terms of this increasing clients or kind of increasing presence in ultra-HNI and family offices and your ability to kind of source large deals and execute large deals, what has changed in terms of how you're differentiating compared to let's say a small-scale wealth manager or some of the bank-based wealth outfits?

What capabilities do you really have to kind of maintain or gain market share over medium to long term?

Whilst our size has increased over time, our ambitions have never been boutique, and now the size is reflecting our ambition, but the runway for growth is much, much larger from here. There are a lot of capabilities that help us bring these boutique transactions to customers.

First is if you look at the group-level capabilities, we have businesses across capital market segments, whether it's alternatives, whether it's institutional equities, and we have significant skin in the game in all our products. This allows us to source very proprietary transactions.

Similarly, if you look at some of the group products, whether it is capabilities that we've created in private credit, whether the capabilities that we've built in private equity, and the investment that we have in research across these businesses, that again allows us to do due diligence on many, many transactions. We see many transactions, and that also helps us source transactions across asset classes, whether it is real estate, whether it is private credit, whether it is private equity.

I guess this should answer both your questions.

On a lighter note, our leadership will be quite offended by the use of the word boutique for any of our businesses, but that's just on a lighter note. We have scale ambitions and leadership ambitions in every single business of ours.

No, I agree. The boutique word more for the fact that some of the wealth outfits have a banking license.

Hi, sir. Good afternoon.

Just two, three questions. Firstly on the mutual fund business side, we have seen that our market share in MF flows have come down from around 10.5% to 2.

around 3%. Any particular channel where we are seeing a decline in the flows or is it broadly across the channels over there?

While you have indicated that currently it is going above our AUM market share, but so is it around the current levels or it has improved materially to back to earlier levels? Second was on the private wealth management.

This quarter we have added a material number of families over there more than 9,000. Also could you give us more color on within this family count how much of these families will be there where we have a material relationship of more than ₹10 crore and where we can potentially increase further relationships over there?

Lastly, from a two-year perspective, given the current business construct, how should we look at from a revenue perspective and for a profitability perspective across different segments what could be the desired mix between different segments?

I'll answer the third question first. As I explained to you, year after year over the last 10 years, over the last 5 years, 3 years, and over the last year, FY25 also, our annuity stream of revenues have consistently gone up.

They're now at over 60% of the total revenues. The asset management, alternates asset, private businesses, as well as the private wealth businesses' share of profitability because of their annuity nature too have consistently gone up, and we see that trend as I called out continuing to rise, including in FY27 over FY26.

About your first question about the net flows in asset management market shares decline channel-wise, we don't split that out channel-wise, but Pratik will still give some color on the contraction in the net flow market share.

To give you some colors, we retained more or less so the drop was there in gross flows as well, we saw some bit, but that was small. We saw heightened redemption pressure in the month of Jan and Feb.

It reduced in March, and it is actually below normal in April. Which is why our net share, we think, has again come back over AUM market share in April.

Now, of the channels, we thought the wealth channel was where the pressure was the highest. Retail and digital channels held out much better.

I think on your quality of clients, just to give you some color, we work with 9,000 families of which almost 50% are ultra-HNI potential. The quality of clients is steadily improving, and again like I said, one of the headline numbers that you should look at that is in spite of the denominator going up, which is the number of RMs, the AUM per RM has been steadily rising.

Sure, sir. Sir, just lastly

Did we answer your questions?

Yes, sir. Sir, just one last data keeping question in the wealth business Hello?

Sir, thanks for the answers. Just one last data keeping question.

In the wealth business we have seen, sir, some pick-up in the transaction and distribution income. What would attribute to the same?

March quarter typically the transaction income in the wealth business is higher because of the insurance distribution revenue. Quarter 4 is generally a seasonal very large insurance distribution business.

That is the delta coming out of the distribution revenues in Quarter 4.

On behalf of Motilal Oswal Financial Services, I thank every participant for attending the Q4 FY26 concall. In case of any further queries, please do get in touch with our investor relations desk.

Thank you, and have a good day.