The company reported a net profit of ₹1,274 crore in Q1FY27, compared with a loss of ₹219 crore in the previous quarter. The turnaround was primarily aided by a fair value gain of ₹1,105 crore, reversing a mark-to-market loss of ₹733 crore reported in Q4FY26. Fair value gains accounted for 32% of total revenue during the quarter.
Core operating businesses, however, delivered a mixed performance. While the Capital Markets business remained resilient, the Wealth Management and Home Finance segments reported weaker profitability.
The company’s client assets and assets under management (AUM) climbed to record levels, supported by buoyant equity markets, although net inflows moderated across both the Asset Management Company (AMC) and Private Wealth businesses.
Commodity trading activity weakened significantly during the quarter, with commodity sales declining 77% sequentially and purchases falling 76%, resulting in lower revenue as well as expenses.
Operating costs also increased, with employee expenses rising 20% quarter-on-quarter, while impairment provisions surged more than four-fold, weighing on profitability.
Management commentary
Speaking to CNBC-TV18, MOFSL Chairman Raamdeo Agrawal said the company expects retail broking activity to improve in FY27 after regulatory headwinds impacted the business in the previous fiscal.
He said the recent hike in the Securities Transaction Tax (STT) has not materially affected futures and options trading volumes and added that 70%-80% of the mark-to-market losses incurred in FY26 had already been recovered by April 2026.
Agrawal described the treasury business as an important contributor to MOFSL’s earnings and said capital market companies continue to benefit from strong domestic retail participation, with nearly 3 million new retail investors entering the markets every month.
On the broader market, Agrawal said he remains cautious in the near term but constructive over the long term, warning that he would not rule out a 10% correction from current levels. He also flagged a sustained rise in crude oil prices above $100 per barrel as a key risk for Indian markets, while noting that the country’s foreign exchange reserves remain resilient despite geopolitical tensions in West Asia.
