By Bl Mumbai Bureau

Copyright thehindubusinessline

Motilal Oswal group is modelling itself along the lines of Warren Buffet’s Berkshire Hathaway, the focus being on equities, investments and asset management.

“We believe in the twin engine model of operating businesses, the seven businesses, that we have, and the investment business, which rechannelises 80 per cent of the cash flows back,” Navin Agarwal, group MD, Motilal Oswal Financial Services, in a chat with businessline.

The seven business segments of the group consist of wealth management, institutional equities, investment banking, asset management, alternates, private wealth and home finance.

The group is also planning to get into the nascent private credit space in India with a ₹3,000-crore fund, with a base size of ₹1,500 crore, Agarwal said.

He pointed out that savings through systematic investment plans were building a savings pool that would reach $130 trillion in the next 25 years. “Motilal Oswal is a play both on the financialisation of that $100-plus trillion savings and equitisation of the savings.”

The group’s business has grown at over 30 per cent annually over the last decade without external capital, he said, with a strong balance sheet. “Ever since we listed in 2007, we have never raised capital in either the parent holding company or any of our subsidiaries,” said Agarwal, while during that time the flagship had three buybacks and paid out an average 20 per cent of its profits as dividend.

The financial services sector was consolidating, and the group would be a beneficiary of that consolidation, with an increase in its market share.

Certain businesses, such as asset management, private wealth, alternates, which are annuity income generating, are likely to see faster growth in the next few years and will also be key focus areas for the company.

“So, the annuity businesses will become a larger part of the overall profit pool, and the transaction businesses will become a smaller part of the overall profit pool.”

“I want to remind you that Berkshire is bigger than any bank in America… and our role model is Berkshire Hathaway,” Agarwal said.

Apart from private credit, which will be launched in the second half of the current fiscal year, Agarwal said there were other adjacencies that the group would be looking at, related to its existing verticals.

The group, which has office towers in Mumbai, Bengaluru, Ahmedabad and one coming up in Delhi, is planning to set up a significant office presence in places such as Pune, Kolkata, Chennai and Hyderabad, Agarwal said.

In FY25, Motilal Oswal Financial Services reported a net profit of ₹2,494 crore on revenue of ₹8,417 crore.

Published on September 26, 2025