Profit Is Up 19%. So Why Are Analysts Watching Closely?
On paper, Motilal Oswal Home Finance (MOHFL) had a good half-year. Profit grew, income grew, and bad loans stayed steady. But the finer details, from slimmer margins to a sharp rise in provisions, show a business that is growing fast and paying for it.
MOHFL, the housing finance arm of the Motilal Oswal group, reported its H1 FY27 (April to September 2026) results on 28 October 2026. Here is what the numbers say, in plain language. For more company updates, visit Dhan Kirti.
The Headline Numbers
Net profit rose 19% to ₹68.9 crore, up from ₹57.9 crore a year earlier, while total income grew 23% to ₹452.2 crore.
Three Things That Went Right
1. The loan book is expanding quickly. It grew from ₹5,580 crore in March 2026 to ₹6,328 crore in September 2026, a 13% rise in just six months. For a lender, a bigger loan book means more interest income ahead.
2. Fee income more than doubled. Fee and commission income climbed from ₹11.5 crore to ₹29.2 crore, and the company earned another ₹14.9 crore by selling loans through direct assignment.
3. Asset quality held steady. Gross NPA was 1.52% versus 1.56% a year ago, and net NPA was 0.91% versus 0.92%. In other words, rapid growth has not yet translated into more bad loans.
Four Things to Watch
1. Margins are shrinking. Net interest margin fell to 7.32% from 8.30%, a decline of 98 basis points. This figure is the source’s own calculation from the company’s filing.
2. Provisions are climbing. Provisions for bad loans rose 70% to ₹29.1 crore, and Q2 profit grew just 7% year-on-year. Part of the jump reflects a low base last year and a larger loan book, but it is the number to track next quarter.
3. Profit leans more on fees and loan sales. These made up 9.8% of revenue, up from 5.5%, and such income can be uneven from one period to the next.
4. Leverage is rising. Debt-to-equity increased from 2.57x to 2.92x, and the liquidity coverage ratio eased from 200% to 158%. Both remain above regulatory requirements, but the safety cushion is getting thinner.
H1 FY27 at a Glance
Metric | H1 FY27 | H1 FY26 |
|---|---|---|
Net profit | ₹68.9 cr | ₹57.9 cr |
Total income | ₹452.2 cr | ₹368.6 cr |
NIM | 7.32% | 8.30% |
Provisions | ₹29.1 cr | ₹17.1 cr |
Gross NPA | 1.52% | 1.56% |
Net NPA | 0.91% | 0.92% |
The Bottom Line
MOHFL is clearly in growth mode, and loan quality is holding up so far. The key question is whether higher provisions are simply the cost of a larger book or an early sign of stress. The next two quarters should show which it is. If provisions settle while the book keeps growing, the story strengthens. If they keep rising, the 19% profit growth may look less impressive.
If you track unlisted companies, you can explore unlisted and pre-IPO shares on Dhan Kirti or visit the Motilal Oswal Home Finance unlisted shares page for more details.
Disclaimer: This article is for informational purposes only and is not investment advice or an offer to buy or sell any security. Unlisted share prices are indicative and carry risks such as illiquidity. Please do your own research or consult a SEBI-registered advisor before investing.
Frequently Asked Questions (FAQs)
1. What was Motilal Oswal Home Finance’s net profit in H1 FY27?
Net profit rose 19% to ₹68.9 crore, compared with ₹57.9 crore in H1 FY26.
2. Why are margins described as shrinking?
Net interest margin fell to 7.32% from 8.30%, because interest paid on borrowings grew faster than interest earned.
3. How is MOHFL’s asset quality?
Gross NPA was 1.52% and net NPA 0.91%, both steady or slightly lower than a year earlier.
4. Why did provisions rise 70%?
The rise partly reflects a larger loan book and a low base last year. It remains a key metric to watch in coming quarters.
5. What does Motilal Oswal Home Finance do?
It is a housing finance company that mainly lends to lower- and middle-income families in smaller towns, a segment known as affordable housing finance.
6. Where can I learn more about MOHFL on Dhan Kirti?
Visit the Motilal Oswal Home Finance unlisted shares page or browse the shares section.
