In an exclusive interview with ET Markets, Motilal Oswal, co-founder of Motilal Oswal Financial Services Ltd (MOFSL), outlined the company's succession plan and ambitious growth targets. Oswal's son, Pratik Oswal, and Raamdeo Agrawal's son, Vaibhav Agrawal, have joined the group's board, marking a significant step in the firm's succession strategy. The company also aims for a 10X profit growth over the next decade, driven by a strong structural bet on Indian financial markets.
The succession plan includes Pratik Oswal leading the passive and quant funds business, while Vaibhav Agrawal manages over ₹36,000 crore in assets across the alternate investment and PMS platform. Navin Agarwal, the Group Managing Director, has been elevated to a promoter-like status due to his significant contributions and equity stake in the company. Oswal emphasized that family involvement does not guarantee control, leaving future roles to the discretion of the next generation.
Oswal expressed his ambitious target of achieving a 25% annual profit growth, translating to a 10X increase over the next ten years. He highlighted the historical growth of financial markets outpacing the broader economy, with MOFSL's profits growing at approximately double the rate of the Nifty index. The firm reported a revenue of Rs 9,416 crore and a profit of Rs 1,869 crore in FY26, with a 24% CAGR in revenue and 28% in PAT over the last 20 years.
“We've inducted them onto the board because succession is very important — so they are now part of the main board, learning what's happening and how.”
Motilal Oswal, Co-founder, MOFSL
Inspired by Warren Buffett's Berkshire Hathaway, MOFSL has developed a ₹9,400-crore treasury engine, compounding at 40% annually since FY14. The firm has diversified into seven business lines, including retail and institutional broking, asset and wealth management, private equity, investment banking, and housing finance. It manages or advises close to ₹7 lakh crore in assets and has raised about ₹1,000 crore in private equity over the past decade.
The partnership between Oswal and Agrawal began in 1987, evolving from a chance meeting to a formalized 50-50 ownership after the introduction of corporate membership by NSE in 1994. The duo's complementary strengths have been pivotal in the firm's growth, with Oswal handling business operations and Agrawal focusing on research and client advisory.
“Our target going forward is 25% annual growth, which would still deliver roughly 10x profit growth over the next 10 years.”
Motilal Oswal, Co-founder, MOFSL
Background
Motilal Oswal Financial Services Ltd has been a significant player in the Indian financial market since its inception in 1987. The firm has consistently focused on sustainable growth and innovation, drawing inspiration from global leaders like Warren Buffett's Berkshire Hathaway. Its strategic diversification across various business lines has positioned it well to capitalize on the growing Indian economy.
Looking ahead, MOFSL plans to expand its owned office spaces across major cities and enhance its AI capabilities. Oswal remains optimistic about the growing market, emphasizing the importance of maintaining a competitive edge. The firm's strategic focus on sustainable growth and innovation positions it well for future success.
