Motilal Oswal's mantra: Learn a lot‚ earn a lot‚ return a lot

Not all business leaders believe in sacrificing work-life balance to build successful companies. For Motilal Oswal, Managing Director and CEO of Motilal Oswal Financial Services (MOFSL), success isn’t measured by hours spent at the office. "A 70–90-hour workweek is not sustainable in the long run," he says.

Oswal-this year’s winner of the Wealth Makers award for the BT-PwC India’s Best CEOs-champions a more holistic approach to professional growth. Under his leadership, MOFSL became the first in the industry to introduce a switch-off policy, encouraging employees to disconnect after work hours and recharge. "Long-term success is about maintaining balance and preventing burnout," he says.

His belief in balance is rooted in his journey of building a company from the ground up. The 62-year-old co-founder moved from Rajasthan to Mumbai in 1981 to pursue chartered accountancy, driven by a deep faith in knowledge, discipline, and long-term vision as catalysts for business and personal growth.

Since co-founding MOFSL with Raamdeo Agrawal in 1987, Oswal has transformed it from a traditional brokerage firm into a diversified financial powerhouse, achieving consolidated gross sales of Rs 7,067 crore in FY24. The foundation of this remarkable success? A steadfast commitment to what he calls the 4Ts: talent, technology, training, and towers.

LEADING BY EXAMPLE

Oswal firmly believes in investing in both people and processes. "Talent is the backbone of any great organisation," he says, emphasising that "Knowledge First" is more than just a principle-it’s a way of doing business. To that end, MOFSL places a strong focus on employee training, equipping its workforce with the expertise and insights needed for sustainable growth.

“We train our people extensively. But knowledge alone isn’t enough. We foster an enabling culture and set aspirational targets that push our teams to think big, execute with precision, and continuously raise the bar,” Oswal explains. Alongside talent development, the company is also expanding its physical presence. “We are investing in building our own Motilal Oswal Towers across the country. Right now, we have four, and we aim to reach ten in the next three years.”

 

By prioritising skill development and strategic expansion, Oswal has built a diversified and scalable business spanning retail broking, asset management, private wealth, housing finance, private equity, institutional equities, and investment banking. This multi-pronged approach ensures resilience across market cycles. “Disciplined cash flow management and reinvesting in capital markets have been key to our sustained growth,” he says, adding that a strong focus on technology and digital transformation has accelerated client acquisition and engagement, driving both scale and efficiency.

INSIDE VIEW

Oswal has built a financial empire not just by honing the skills of his employees but also by being available for what he enjoys beyond work. His day begins early-around 4 AM-with the first two hours dedicated to reading, followed by a morning walk or yoga. Breakfast with family offers a chance for meaningful conversations before the workday begins.

To manage stress, Oswal prioritises time with family and engages in philanthropic initiatives through his foundation. “Maintaining a healthy work-life balance is essential for long-term productivity and clarity in decision-making. Nowadays, I devote a significant amount of time to my foundation’s activities, which I find deeply fulfilling,” he shares.

His guiding philosophy in life is simple yet profound: Learn, Earn, and Return. “Learn a lot, earn a lot, and return a lot,” he says. This principle not only shapes his journey but also defines his leadership at MOFSL.

JOURNEY SO FAR

Oswal’s guiding philosophy has propelled MOFSL to become the eighth-largest stockbroker in India, with nearly 880,000 active clients, according to NSE data. In FY24, the company reported a consolidated return on net worth (RONW) of 33.07% and a return on capital employed (ROCE) of 20.75%. Meanwhile, its consolidated debt-to-equity ratio stood at 1.59x, a level Oswal considers well within the company’s comfort zone.

“Our approach is built on quality growth and capital efficiency,” he explains. “To maintain high RoE (return on equity) and RoCE, we focus on disciplined capital allocation to scalable, high-margin businesses. We prioritise a customer-first mindset, uphold strong corporate governance, and encourage continuous innovation. Our long-term investment philosophy for our clients and ourselves ensures we consistently deliver strong return ratios year after year.” For the nine months ending December 2024, MOFSL posted consolidated gross sales of Rs 7,110.76 crore, marking a 44.87% year-on-year increase. Net profit surged 49.39% YoY to Rs 2,566.49 crore.

ROAD AHEAD

Oswal is optimistic about MOFSL’s long-term growth trajectory. Over the past five years, the company has achieved a 30% compound annual growth rate (CAGR), and he is confident of sustaining a 20-25% growth rate going ahead. With India’s financial markets in a structural upcycle, he sees massive opportunities ahead.

"We are well-positioned to seize the opportunity. Our strategy is centred on expanding into underpenetrated markets, broadening our offerings, and enhancing our technological capabilities,” says Oswal. In broking, the company aims to leverage its research and advisory strengths through digitisation to enhance the customer experience. Meanwhile, its private equity, private wealth, and asset management businesses are seeing strong inflows driven by differentiated investment strategies. “At the same time, we are scaling up our investment banking capabilities to capitalise on rising capital market activities," says Oswal.

DOUBLING PROFITS

MOFSL’s long-term growth strategy hinges on maintaining stable revenue streams and profitability. Since FY21, the company has more than doubled its profit after tax (PAT) through a combination of revenue expansion and disciplined cost management. "The compounding effect of reinvesting profits into high-growth areas has played a crucial role in our bottom-line expansion," explains Oswal. Looking ahead, MOFSL aims to more than double its bottom line by 2030 through organic growth and strategic expansions, fuelled by India’s expanding economy and increasing market participation.

HAVING THE EDGE

What sets MOFSL apart from its rivals? Oswal attributes its distinctiveness to the "3Rs": Research, Relationships, and Reach. “Our strong research-driven approach is embedded across all our businesses, whether it’s broking, asset management, or private wealth. This gives us a unique edge in delivering informed, high-quality solutions,” he says.

According to Emkay Global Financial Services, MOFSL’s management remains focused on investing across business segments to drive growth and establish leadership, capitalising on the broader expansion of India’s capital markets. Kranthi Bathini, Equity Strategist at WealthMills Securities, echoes this sentiment: "Over the past 25 years, MOFSL has grown into a formidable financial powerhouse in India’s equity space. The management has a deep understanding of the business, stock markets, and investor expectations, which has been instrumental in its success."

@iamrahuloberoi