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TL;DR
Motilal Oswal Home Finance’s Q2 FY27 revenue rose about 21% YoY to Rs.230.6 cr, while profit grew only 7% to Rs.36.5 cr.
In H1 FY27, revenue rose about 23% to Rs.452 cr, and profit rose 19% to Rs.68.9 cr.
The loan book grew 13.4% in six months to Rs.6,328 cr.
Gross NPA stands at 1.52% and net NPA at 0.91%.
Rising costs, higher borrowing, and lower capital adequacy are the key risks to watch
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Motilal Oswal Home Finance Limited has released its financial results for Q2 of FY27. The company announced its results on October 28, 2026. Revenue grew much faster than profit during the quarter. A closer look at the company's expenses, lending business, and asset quality helps explain its overall performance.
Motilal Oswal Home Finance Q2 FY27 Financial Performance
The company earned Rs.230.6 cr from operations in Q2 FY27, up from Rs.191.0 cr in Q2 FY26. Interest income remained the biggest contributor, increasing 16.8% to Rs.205.5 cr.
Fees and commission income also saw a sharp rise to Rs.16.0 cr as compared to Rs.6.2 cr in the corresponding quarter of last year. Here is a comparison of its quarterly financial performance:
Particulars (Rs. Cr) | Q2 FY27 | Q2 FY26 |
Interest income | 205.5 | 176.0 |
Revenue from operations | 230.6 | 191.0 |
Total income | 230.6 | 191.1 |
Total expenses | 184.0 | 148.3 |
Profit before tax | 46.7 | 42.8 |
Net profit | 36.5 | 34.0 |
Source: Motilal Oswal Home Finance - Q2 & H1 FY27 Results
While the company earned more revenue, its expenses also increased. Total expenses rose 24.0% to Rs.184.0 cr during the quarter. Finance costs increased to Rs.97.1 cr from Rs.80.7 cr, while impairment expenses rose to Rs.13.8 cr from Rs.6.1 cr.
The company earned more, but higher expenses ate into how much of that income stayed as profit. That’s why net profit grew only 7.3%, well behind the 20.7% growth in revenue.
Revenue and Profit Continue to Grow in H1 FY27 Results
The company grew faster over the first six months of FY27 than it did in the September quarter alone. Revenue from operations rose 22.8% to Rs.452.0 cr in H1 FY27, from Rs.368.1 cr in H1 FY26. Net profit rose 19.1% to Rs.68.9 cr, from Rs.57.9 cr.
Particulars (Rs. Cr) | H1 FY27 | H1 FY26 |
Revenue from operations | 452.0 | 368.1 |
Total expenses | 363.3 | 295.2 |
Profit before tax | 88.9 | 73.4 |
Net profit | 68.9 | 57.9 |
So far in FY27, the company has kept both revenue and profit growing strongly. But its rising expenses and impairment costs (money set aside for loans that may go bad) are worth watching in the coming quarters.
Loan Book Crosses Rs. 6,300 Cr
Motilal Oswal Home Finance’s loan book stood at Rs.6,328.3 cr on September 30, 2026, up 13.4% from Rs.5,579.8 cr on March 31, 2026.
The company primarily lends to people purchasing or building a home and also offers top-up loans and loans secured against property. A bigger loan book is a sign of more lending, but it’s just one measure. The timely repayment by customers, the level of borrowing, and the costs are also important.
Have Bad Loans Improved?
Motilal Oswal Home Finance reported a slight improvement in both.
Particulars | H1 FY27 | H1 FY26 |
|---|---|---|
Gross NPA | 1.52% | 1.56% |
Net NPA | 0.91% | 0.92% |
Gross NPA eased from 1.56% to 1.52%, and Net NPA slipped from 0.92% to 0.91%. The change is small, but it’s a step in the right direction. As the company keeps growing its lending business, keeping a tight grip on overdue loans will matter more and more.
Is the Company Over-Borrowed?
Housing finance companies borrow money so they can lend it out to customers. That makes two things worth a close look: how much they owe, and how much capital they keep as a cushion. Motilal Oswal Home Finance’s debt-to-equity ratio has risen to 2.92 times, up from 2.57 times a year earlier. In simple terms, its borrowings have grown faster than its equity.
The company’s CRAR stood at 34.91%, down from 42.49% the year before. It could still be at a healthy level, but the fall can be worth keeping an eye on.
What the Q2 Results Mean for You as an Investor?
Motilal Oswal Home Finance reported healthy growth in revenue, profit, and loan book during H1 FY27. Asset quality also improved slightly, with both gross and net NPA coming down. However, profit growth in Q2 FY27 lagged behind revenue growth. Rising expenses, higher impairment costs, a higher debt-to-equity ratio, and lower capital adequacy are areas investors should watch.
For unlisted share investors, financial performance is only one part of the picture. The company’s valuation, earnings growth, book value, and how easily the MOHFL Unlisted shares can be bought or sold also matter when judging its investment potential. Overall, the company has delivered good business growth in H1 FY27, but how well it manages costs, borrowings, and asset quality will be important going forward.
