Motilal Oswal Annual Reports, Balance Sheet and Financials

Motilal Oswal Home Finance Limited Standalone Balance Sheet (Rs. in Crores)

Motilal Oswal Home Finance Limited Standalone Profit & Loss Statement (Rs in Crores)

Motilal Oswal Home Finance Limited Standalone Cash Flow Statement (Rs in Crores) 

Summary of the Cash Flow Statement for the years 2026 and 2025:

Cash Flow from Operating Activities

The operating cash flow of Motilal Oswal Home Finance Limited remained significantly negative during FY26, with net cash used in operating activities increasing to Rs. 947.52 crores from Rs. 555.54 crores in FY25. Although profit before tax improved to Rs. 208.60 crores compared to Rs. 166.42 crores in the previous year, the company witnessed substantial cash outflows mainly due to expansion in its loan book. Loans disbursed increased sharply, reflected in a negative movement of Rs. 750.14 crores, indicating aggressive lending activity. Other financial liabilities also declined substantially by Rs. 315.78 crores, contributing further to cash outflows.

The company continued to generate strong interest income of Rs. 719.46 crores, which remains a core strength of its lending business model, while interest expenses also increased to Rs. 326.13 crores due to higher borrowings. Impairment on financial instruments rose sharply to Rs. 15.95 crores from Rs. 1.65 crores, suggesting a relatively cautious provisioning approach or some stress in the loan portfolio. Despite healthy profitability, the negative operating cash flow reflects the nature of a growing housing finance business where higher loan disbursements consume cash in the short term. After accounting for taxes paid of Rs. 45.41 crores, the company reported a substantial net operating cash outflow.

Cash Flow from Investing Activities

Investing activities resulted in a net cash outflow of Rs. 71.77 crores during FY26 compared to a marginal inflow of Rs. 1.93 crores in FY25. The movement was primarily driven by net investments in mutual funds and commercial papers, where purchases slightly exceeded sales during the year. The company generated Rs. 3,199.85 crores from the sale of mutual funds and commercial papers but reinvested a higher amount of Rs. 3,274.34 crores, indicating active treasury management and liquidity deployment.

Capital expenditure remained moderate, with purchase of property, plant, and equipment amounting to Rs. 5.57 crores. Additionally, the company earned Rs. 8.29 crores as interest income from fixed deposits, certificates of deposit, and TREPs, supporting treasury income. Overall, investing cash flows indicate prudent liquidity management with controlled capital expenditure.

Cash Flow from Financing Activities

Financing activities remained the primary source of liquidity support for the company during FY26. Net cash generated from financing activities increased significantly to Rs. 1,206.36 crores compared to Rs. 415.96 crores in FY25. The company raised substantial funds through borrowings, including Rs. 596.81 crores from debt securities and Rs. 1,473.07 crores from borrowings other than debt securities. Although repayments of borrowings amounted to Rs. 867.57 crores, net borrowings remained strongly positive, indicating continued balance sheet expansion and funding support for loan growth.

The company also raised a small amount of equity capital and share premium during the year, reflecting limited equity dilution. Lease liability payments remained stable and relatively insignificant. Overall, the financing cash flow demonstrates the company’s strong access to external funding sources, which enabled it to finance aggressive loan growth despite negative operating cash generation.

Net Increase/decrease in Cash & Cash Equivalents

Despite negative operating and investing cash flows, the strong inflow from financing activities helped the company report a net increase in cash and cash equivalents of Rs. 187.07 crores during FY26, compared to a decline of Rs. 137.64 crores in FY25. Consequently, cash and cash equivalents increased to Rs. 492.77 crores as of 31 March 2026 from Rs. 305.70 crores in the previous year. This improvement in liquidity strengthens the company’s short-term financial position and provides additional flexibility to support future lending operations and business expansion.