Motilal Oswal, Raamdeo Agrawal map succession, set sights on 10X profit growth over next decade: Report

Billionaire founders Motilal Oswal and Raamdeo Agrawal are targeting a tenfold increase in profits at Motilal Oswal Financial Services (MOFSL) over the next decade while laying out a succession roadmap that brings the next generation into leadership and expands the role of professional executives at the Rs 60,000-crore financial services group, The Economic Times reported.

According to the report, the group has inducted Motilal Oswal's son Pratik Oswal, 38, and co-founder Raamdeo Agrawal's son Vaibhav Agrawal, 37, onto the company's board as part of its succession planning.

"We've inducted them onto the board because succession is very important," Oswal told ET, adding that the younger generation is being exposed to the group's functioning while reporting to their respective CEOs. He also said their future role in the business would depend on their own choices.

The report noted that Pratik heads the passive and quant funds business at Motilal Oswal Asset Management, while Vaibhav oversees more than Rs 36,000 crore in assets across the firm's alternate investment fund (AIF) and portfolio management services (PMS) platform.

Oswal also highlighted the growing role of Group Managing Director Navin Agarwal, describing him as a promoter-equivalent despite being a professional manager. According to ET, Navin owns around 5-6% of the company through ESOPs and is the third-largest shareholder.

Looking ahead, Oswal said the company aims to sustain around 25 per cent annual profit growth over the next 10 years, which he expects will translate into roughly 10-fold growth in profits. He noted that MOFSL had delivered around 33 per cent annual profit growth over the previous decade, resulting in nearly 15-fold growth.

Oswal attributed the long-term optimism to India's expanding financial markets, which he believes can continue to grow faster than the broader economy.

MOFSL posted revenue of Rs 9,416 crore and a profit of Rs 1,869 crore in FY26. Over the past two decades, the company's revenue has grown at a compound annual growth rate (CAGR) of 24 per cent, while profit after tax (PAT) has expanded at a 28 per cent CAGR.

The report also said MOFSL has built a treasury portfolio worth about Rs 9,400 crore, drawing inspiration from Warren Buffett-led Berkshire Hathaway's capital allocation model by reinvesting operating profits into long-term investments.

Today, the group operates across seven business verticals, including retail and institutional broking, asset management, wealth management, investment banking, private equity and housing finance, and manages or advises nearly Rs 7 lakh crore of assets, according to Oswal.

Reflecting on the firm's origins, Oswal and co-founder Raamdeo Agrawal told ET that their partnership began in the mid-1980s after a chance friendship developed during rides home from BSE. They formally started the business in 1987 and have remained partners for nearly four decades, with Oswal focusing on business operations and Agrawal leading research and client advisory.