MOTILALOFS — earnings call

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Prepared remarks

Moderator · Conference Operator

Thank you very much.

The first question is from Mahek from Emkay Global.

Mahek - Participant

So, I have a couple of questions.

So first, with respect to the AMC business, right?

So, if we look at the SIP market share, it has dipped a bit during the quarter.

So 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.

So 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 yield 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.

So, if you can clarify on that?

And third question would be on the Private Wealth Management segment.

So, if we see the lending assets have seen strong inflows during the quarter.

So, what has driven this growth in AUM and secondly, the inflows also?

So, if you can just clarify on these things?

Moderator · Conference Operator

The next question is from the line of Nidhesh Jain from Investec.

Nidhesh Jain - Participant

First question is on Asset Management business.

Is there any update on the investment team leadership on the Asset Management side?

Secondly, what is the guidance for net flows in the AMC business for FY '27?

Moderator · Conference Operator

The next question is from the line of Dipanjan Ghosh from Citi

Dipanjan Ghosh - Participant

A few questions from my side.

First, on the Private Wealth business, if you were 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.

I 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 colour 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?

And 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 colour on the white spaces in this segment?

I mean, your pipeline is robust in terms of new sales, but in terms of the white spaces in the segment, the supply side constraints, some of those -- if you can give some colour qualitatively.

And lastly, one data keeping question.

Is there any guidance or expectation around carry income for FY27 or FY28?

Ashish Shanker, CEO Private Wealth Management Essentially, there are broadly 3 segments in the Private Wealth Management Business; HNI segment (₹50 Crs to ₹100 Crs), UHNI segment (₹100 Crs+) and Family Offices.

We operate in all 3 segments & we've put significant capabilities and resources to improve the value proposition in the UHNI 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.

The best lead indicator to see the headline quality of assets is the AUM per RM.

Our AUM per RM has been steadily increasing from ₹300 Crs, couple of years back to ₹450 Crs as on Mar’26.

This is on an increased base of RMs.

So essentially, our penetration across segments is growing.

At the back end, we have significantly enhanced the product and investment capabilities within Private Wealth Business to cater to all these segments.

We have recruited people in equities, alternates, multi-asset solutions as well as certain bespoke transaction strategies.

The pipeline of transactions is very robust.

In the near term, the markets could be cyclical and that could impact a particular asset class.

But we have capabilities across asset classes.

There are private debt transactions where we are seeing a lot of flows from family offices.

Similarly, early last year, we saw a lot of flows in unlisted equity transactions.

Whilst the sentiment may impact flows into a particular asset class temporarily, however, given the multi-asset capabilities that we have built, the transaction capabilities are becoming much smoother on a QoQ basis.

We draw a lot from the group capabilities.

We've invested significantly at the group level as well to enhance capabilities in private credit on the real estate front, and we have a very strong private equity capability.

Coupled with the capabilities on the Private Wealth side in the investment team and the group capabilities, the underwriting process is very stringent and rigorous.

Before deals would be taken to market or to clients, there is a lot of work that goes on before that.

Moderator · Conference Operator

The next question is from the line of Lalit Mohan Deo from Equirus Securities.

Lalit Mohan Deo - Participant

Sir, just two, three questions.

So firstly, on the mutual fund business side, so we have seen that our market share in MF flows have come down from 7.5% to around 3%.

So, any particular channel where we have seen a decline in the flows or is it broadly across channels over there?

And while you have indicated that currently it is moving above AUM market share.

So, is it around the current level?

Or any other improve materially to the earlier levels?

Second was on the Private Wealth Management.

So, this quarter, we have added a material number of families over there like more than 9,000.

But also, could you give us more colour on within this family count, like how much of these families will be there where we have a material relationship of more than INR10 crores and where we can potentially increase further relations over there?

And lastly, from a 2-year perspective, like given the current business construct, how should we look at -- from a revenue perspective and a profitable perspective across different segments?

Like what could be the desired mix between different segments?

Navin Agarwal, Group Managing Director: Over the last 3/5/10 years, our annuity stream of revenue has consistently gone up.

They are now at over 60% of the total revenues.

The Asset Management and Private Wealth Management Business share of profitability because of their annuity nature too have consistently gone up, and that trend will continue to rise in FY27.

Moderator · Conference Operator

Ladies and gentlemen, that was the last question for today.

I would now like to hand the conference over to Mr. Shalibhadra Shah for closing comments.

Thank you, and over to you, sir.

Shalibhadra Shah – CFO: On behalf of Motilal Oswal Financial Services, we thank every participant for attending the Q4FY26 con-call.

In case you have any further questions or clarifications, please do get in touch with our investor relations desk.

Thank you and have a great day.

Please contact [identifier removed] for any queries.

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