The housing finance arm of the Motilal Oswal Group, Motilal Oswal Home Finance, released its Q4 and FY26 results today. The company’s loan book expands to INR 6,100 crore during the FY2026. The company’s credit ratings and return ratios have also improved, and it is now focusing on the affordable housing theme to deepen penetration into Tier II and Tier III cities.

Motilal Oswal Home Finance Q4 FY26 Results: Loan Book Growth & Disbursement Momentum

MOHFL reported a sharp rise in its operational scale during FY26. The company’s adjusted AUM reached INR 6,100 crore, a 25% increase YoY when compared to INR 4,878 crore in FY25. Retail segment contributes significantly in this growth

FY26 disbursements stood at INR 2,291 crore, a jump of 28% YoY. On a like-for-like basis, retail disbursements grows by 33% YoY to INR 1,639 crore, showing a strong momentum.

Key Drivers for Growth:

• Geographical Expansion: Increased branch network and Sales Relationship Manager (RM) strength in underpenetrated markets.
• Focus on Retail: Building a granular, retail-heavy book with pristine asset quality.
• Digitization: Leveraging a holistic technology model for faster loan processing and underwriting.

Motilal Oswal Home Finance FY26 Results (Full Year) – Financial Metrics

MOHFL Q4 FY26 results has demonstrated a healthy return matrix, with a notable improvement in profitability and cost management.

The company’s Return on Equity (ROE) expanded by 97 bps to 10.6%, supported by higher leverage and better operational efficiencies. The cost of borrowing has reduced to 7.9% from 8.4%, reflecting a more efficient funding mix.

Read Also: Motilal Oswal Home Finance Unlisted Share Price

Motilal Oswal Home Finance FY26 Results: Asset Quality & Operational Efficiency

Motilal Oswal Home Finance maintains a good asset quality despite the aggressive growth. The company focuses on low-risk borrowers and AI credit assessment.

• Gross NPA (GNPA): Remained stable and healthy at 0.9%.
• Net NPA (NNPA): Increased to 0.5% (from 0.4% in the previous cycle, remaining well within industry-leading benchmarks).

FY26 was a good year for MOHFL in terms of capital and credibility:

• The company raised USD 100 million from the Asian Development Bank (ADB) via NCDs. This capital will be used to expand affordable housing for women and promote green-certified housing initiatives.
• ICRA upgraded MOHFL’s credit rating to AA+ (Stable). Currently, all three major credit rating agencies maintain a positive or stable outlook on the company.

The company’s “ROE Tree” highlights its margins and costs:

The Opex-to-Assets ratio improved slightly to 4.5%, showing that the scalable operating model is now starting to yield “scale efficiencies” as the AUM grows.

Final Words

MOHFL’s management is optimistic about the growing demand in the housing sector in India. The strategic roadmap for FY27 includes:

• Further deepening the presence in Tier II and Tier III locations.
• Scaling the women-centric and green housing portfolios using the ADB funds.
• Sustaining the 30%+ growth in retail disbursements while maintaining a GNPA below 1%.

Motilal Oswal Home Finance Q4 FY26 results reflect that the company has transitioned from an investment phase to a scalability and growth phase. With a fresh AA+ rating and a focus on the affordable housing ecosystem, MOHFL is may gain traction in the affordable housing boom.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.