Ladies and gentlemen, good day and welcome to the Motilal Oswal Financial Services Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star, then zero on a touch-tone phone. I now hand the conference over to Mr. Manish Kyal, Head of Investor Relations. Thank you, and over to you, sir. Thank you, Raamdeo. Good afternoon, everyone. I am Manish Kyal, Head of Investor Relations. I welcome all the participants on behalf of Motilal Oswal Financial Services Limited for you to take time out to attend our Q1 FY26 earnings conference call. We hope that you had an opportunity to go to our investor deck and press release, which was uploaded yesterday on stock exchanges and on our website. We also have uploaded the Excel data book, which has historical operating and financial numbers. Please note that today's discussion may include some forward-looking statements, and these forward-looking statements are based on our macro assessment, and the actual outcome may vary. With that, I'll introduce our management participating on this call. We have Mr. Raamdeo Agrawal, Chairman of the Group; Mr. Motilal Oswal, Managing Director and CEO; Mr. Navin Agarwal, Group Managing Director; Mr. Ajay Menon, CEO of Wealth Management Business; Mr. Prateek Agrawal, MD and CEO of Asset Management Business, Mr. Ashish Shankar, CEO of Private Wealth Management, Mr. Sukesh Bhowal, CEO of Housing Finance, Mr. Shalibhadra Shah, Chief Financial Officer, and Mr. Sanket Suneja, Group Chief Strategy Officer. We'll start this call with an opening remark by Navin Agarwal, and then we'll have a Q&A session. Over to you, Navin. Manish, good afternoon, everyone. It is my pleasure to welcome all of you to our earnings call for the first quarter ending June 2025. As usual, I'll start by providing a quick snapshot of the quarter at the group level, and then highlight segment-wise performance, and finally conclude with the broader outlook of the overall group. The first quarter performance continues the momentum that we were witnessing in the past few years. It is the highest-ever quarter in terms of our reported profit after tax at INR 1,430 crore, which is up by 40% year-on-year. Our operating profit after tax grew by 21% on a year-on-year basis to INR 522 crore, mainly driven by our asset and private wealth businesses besides the capital market business. We crossed several milestones across our various businesses during this quarter. AMC continued to gain market share both in mutual funds and alternate segments and reached a major milestone of INR 1.5 lakh crore of equity AUM. Capital markets saw bigger deal pipeline, more deal executions, higher research coverage, and the highest-ever revenues. Housing Finance business crossed the milestone of INR 5,000 crore of AUM, with more companies getting listed. The overall virtuous cycle created by listing of these businesses is what we highlighted in our latest annual report, where we explained that if all of these companies were to be listed at some point in time, that alone could add INR 150 trillion in market cap, which in turn is a very big opportunity for all our businesses. This, apart from financialization of savings, is a mega trend which we think will continue to serve as a tailwind for all our businesses. Our focus in the interim continues to increase share of our fee-based and trail-based revenues, and this will be driven by the asset management business, the private wealth business, the distribution book, and the lending book growth. Turning to the broader number, during the quarter, we've crossed a major milestone by servicing more than 13.6 million customers, comprising 8.6 million plus unique mutual fund folios and 5 million plus unique broking accounts. Our assets under advice crossed INR 6.5 lakh crore, growing by 28% year-on-year. Annual recurring revenues as a percentage of net revenues now stand at 52% during the first quarter. Our fee-based revenue contribution to total revenues increased to 44%. Net worth increased by 28% year-on-year to INR 12,537 crore. ROE stands at 48% for the first quarter. Our decadal net worth has compounded at 24% after paying out dividends consistently and after doing three buybacks, and our decadal average return on equity is over 22%. Turning now to the segmental performance, starting with the wealth management business, which comprises of our retail broking, distribution, and retail lending book NII. Our broking business continues to retain its leadership as a full-service broker. Our cash broking volumes, ADTO, at INR 3,179 crore in Q1 FY26, implies a cash volume market share of a robust 7.1%. Our F&O premium market share stood at 7.9%. Total ADTO market share stands at 7.5%. We believe we are the largest broker in the cash segment. Over a long-term trend, our broking revenue contribution to total segmental revenues declined almost half from over 60% back in FY21 to just about 34% in Q1 FY26. This happened due to greater focus on growing our distribution business, reflected in net flows, which increased many-fold from about INR 3,000 crore to about INR 3,000 crore in the first quarter of this financial year. Consequently, the distribution book grew by 34%, compounded from about INR 11,000 crore back in March 2021 to almost INR 38,000 crore in June 2025, and the contribution to total revenues from segment increased from 12% back in FY 2021 to 24% in the first quarter of this year. We intend to further increase the revenue share of the distribution business within our overall wealth management business and believe that the share of broking revenues will continue to diminish as a proportion of the overall wealth management business, like we've seen in our global counterparts over the last several years. The third part of the wealth management business is the NII, which grew by 12% year-on-year due to improvement in spreads. Turning to our asset and private wealth business, this comprises of three businesses: the asset management business, the private wealth management business, as well as the private equity real estate business. AMC business continued its momentum with market share gains driven by continued strong investment performance. As mentioned earlier, we crossed a milestone of INR 1.5 lakh crore of equity AUM. Coupled with increasing distribution presence, gross flows in the first quarter witnessed a growth of 60% year-on-year to INR 14,568 crore. Our current AUM stands at INR 1.51 lakh crore, which compares with an average AUM of INR 1.35 lakh crore in the first quarter and an average AUM of INR 1 lakh crore for the last fiscal. We stand at over 50% higher AUM as we speak compared to the average of last year. We believe that continued strong market shares both in the mutual fund and the alternative segment, closing in on the product gaps, should all serve as a strong driver to our profit growth in the coming quarters as well. We've also made inroads into the private credit segment with the appointment of leadership there. We should be launching our own private credit fund in the second half of this year. We believe that over the next decade, we will have many more products in the credit part of the alternative space as well. The net flows of the asset management business grew from INR 5,300 crore in the first quarter to INR 8,500 crore in the current quarter. 92% of the AUM outperformed the respective benchmarks. We added INR 14 lakh SIPs in the first quarter. Our SIP flows in the first quarter stand at INR 3,437 crore. Happy to report that our monthly run rate of SIPs for the month of June crossed INR 1,200 crore. Our SIP book stands at over INR 26,000 crore as of June 25. Alternative AUM also registered a strong growth at almost 30% to INR 33,810 crore. Contribution of AMC in total profits of MOFSL has risen meaningfully in the last two years. And based on the current trends, we believe that this year also should mark a substantial increase in that share. Our PE business is among the very few domestic PE businesses with strong IRR across all the four funds that we have launched ever since our inception back in 2007. We also launched our fifth private equity fund with a target size of INR 8,000 crore and completed our first close in a short spell of less than two months, crossing 80% of the target fundraise. This is the fastest mobilization of funds done by this business. We also announced the final close of our real estate series six. So happy to share with you that we are the only player in this segment, which is at series six of a real estate fund. Private equity business currently has a fee-earning AUM of INR 10,185 crore. A substantial amount of carry, as we have guided in the past and explained in our earnings PPT, will be realized at the fund close in the near future. With the launch of private credit vertical, we now address a higher TAM of customers for alternative funds. This will also accelerate the scale-up of the business in the next five years as existing products raise larger sums of capital in every subsequent series, and new product launches increase our bouquet of offerings. Private wealth business momentum also continued to be quite strong on top of a very strong FY25, as we had reported. In the first quarter, we had a top-line growth of 53% with continued investments in manpower. Our bottom-line growth was a robust 49%. Our UHNI and family office propositions position us well to emerge as a leading player in the private wealth management space over the next two to three years' time. This is supported by experienced leadership as well as strong group synergies. Our current relationship manager base is at ₹615, and we expect improvement in the RM productivity as only 33% of our RMs have a vintage of over three years. The share of private wealth business increased both in FY25 as well as in the first quarter. We expect this trend of faster growth led by higher RM base, more comprehensive propositions straddling UHNI as well as the HNI segments, and several new offerings to continue going forward, and I expect the share of private wealth in our total profits to also rise in the coming quarters and years. Turning to our capital market business, this comprises of the institutional equities and the investment banking business. During the first quarter, we reported the highest-ever revenues for this business on the back of strong deal flows in the previous quarters and strong execution during the current quarter. The IE business continues to increase research coverage as its fulcrum for the group. We have a strong team of 150-plus employees in this business. The coverage of the research team is at 320 companies across 25 sectors, spanning 73% of the market cap, and we service nearly 900 domestic and overseas institutional clients. FY25 was a very strong year for the investment banking business with doubling of revenues, and that momentum has continued into the first quarter. We completed 16 deals during the quarter, cumulative issue size of ₹30,000 crore, and our fees delivered a robust 89% growth year-on-year. Our IB business was ranked number three in number of IPOs executed, number five in terms of the amount of IPOs, value of IPOs. This is a sharp improvement from rank 12 and rank 21, respectively, in the last year. We continue to top the QIP league tables for the first quarter in terms of number of issues. As you know, we were number one in FY25 as well. We've strengthened our team over the past few quarters across both of these businesses and continue to increase our research coverage in IE, and our IB deal pipeline is the most robust that we've seen ever. Turning to our housing finance business, we crossed the milestone of INR 5,000 crore AUM, up by 22%, led by sales RM force increasing from 1,430 RMs to 1,430 RMs, which is up by 50%, which in turn led to disbursement growth of 57% to nearly INR 400 crore during the quarter. Our ROA and NNPA stand at 1.2 and 0.6%, respectively. We expect housing finance AUM to double in the next two to three years' time. Our business has a strong capital adequacy ratio and low leverage, giving us enough growth levers without any external equity capital dependency. Turning to treasury book, our total investments, including alternatives, grew to INR 8,853 crore, up by 26% year-on-year. This book has delivered a robust IRR, compounded return of over 20% since inception, and including reinvestment of cash flows, treasury investments have grown by 43% compounded over the last decade, implying it's up by more than 50 times over the course of the last decade. We expect similar multiplier impact on the current book over the next decade, given the strong ROE of the operating businesses, a clearly defined payout policy on our operating profits, and expected investment IRRs. To conclude, MOFSL's net worth has grown nearly 10X between March 2015 and June 2025 to INR 12,537 crore, led by average return on equity of over 22%, average payout on operating profits of nearly 20%. We expect similar multiples over the next decade on the starting net worth due to the unique twin business model, which is explained once again in our earnings PPT. We are strengthening all the five teams: technology, talent, training, trust, and thinking big. Runway for growth is immense, with strong double-digit growth expected in each of our businesses. Market leaders in many of our businesses are about 5 to 10 times our profits and AUM. We are focused on outgrowing the markets in each of these businesses, implying a strong and a big runway for growth for the group. I will now open the floor for Q&A. Thank you. Sure. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press Star and 1 on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press Star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press Star and 1. The first question is from Avinash Singh from Emkay Global. Please go ahead. Hi. Good afternoon. Thanks for the opportunity. Great set of performance, I mean, across most of the segments. Yet, I will try to focus somewhere. I mean, I have kind of a subject of concern. So one, of course, I mean, your wealth management performance is, I would say, good as well. But there, of course, there has been a shift. I mean, your distribution efforts are paying off, and distribution has made up for anything that was kind of lost towards the brokerage or transaction revenue. Now, here, given the kind of your pivot over the last few years more towards going more towards a holistic wealth management for the mass affluent than really looking for transaction, is this direction, I mean, a directional shift with this transactional or brokering revenue going down and distribution continue to go inch up? Will it continue, or was, I mean, kind of a slowdown in the transactional or brokerage revenue in this quarter gone by is more a market-driven phenomena? So that's question one. Second is on, again, housing finance. I mean, in the past, you have stated that your strategy going forward. But importantly, again, the business this quarter seems to be not on very, very strong footing, subject to increasing credit costs and also some asset quality issues emerging. So what sort of happening there, and what is the kind of, I would say, the strategic path ahead for that business? And thirdly, as we sort of speak based on whatever the kind of a pipeline, how is the year looking forward for the capital market segment, particularly from a deal perspective? Because that is one, I mean, segment where typically a lot of revenues are kind of a transactional in nature and there is volatility. So some bit of that directional guidance on that deal pipeline will help us in terms of kind of estimating the numbers. Thank you. Yeah. Hi, Avinash. Thank you for all your questions. Let me answer them in the reverse order, starting with the capital markets business. We've seen a record performance in the last year. First quarter of this year has started on a very, very strong note. The second quarter execution in the market with Motilal Oswal logos is quite publicly available. I think there are four IPOs closing in a space of two weeks' time that we are managing the deal pipeline on the QIP front. We continue to be the leaders. So given the pipeline, I have no reason to believe that the coming quarters will be any weaker than the first quarter that we've reported, which has itself been a very robust quarter. So that's on the capital markets business. I'll come to the first question, and then Ajay is online. He can probably add as well. The trend of rising distribution income is something that we called out almost over five years back, and we have been sharing this metric year after year and quarter after quarter with you. The cross-sell ratios continue to remain quite low, and there's an annuity nature of build-up of the distribution business, unlike the transaction business, so higher cross-sell, and we had explained, and I'll double-click on that just for one minute. We now have a separate head of third-party products. Below him, he has 600-plus, 600- to 700-member strong team with regional heads, so rather than the existing broking RMs cross-selling third-party products, we now have a dedicated team supplementing or supporting them, and with the advent of Account Aggregator, I would only like to believe that this cross-sell ratio can multiply from here. There's a lot for us to learn from the global counterparts, but suffice it to say that this is a long runway. The other part that you must also not ignore is the NII part of the business, which has also been rising, and we believe that we are quite under-indexed as far as the MTF book is concerned compared to our own market share in the futures and options as well as the cash market at the standard 7.5%. So we are focused on that part also, and that is set to grow. We've explained that the broking business is hinged on greater retail participation, which we believe still can grow three, four X from here over the next couple of decades. And so the runway there, again, is strong. So all three parts have a strong runway, but we would like to believe that both distribution and NII can outgrow the broking business in the coming years. Ajay, you talked about the first quarter strong distribution income. I highlighted during our fourth quarter phone call, and I repeat that the distribution income will have seasonality. As you know, the fourth quarter is the lumpiest on the insurance side. As far as some of the other line items in the distribution business is concerned, they too could be lumpy on a quarter-on-quarter basis. The most steady part is obviously the trail income, which only moves along with the mark-to-market, and the net new money that we add to the distribution book is stands at nearly INR 40,000 crores right now. So those are the various elements. If Ajay has any points, I'd request him to add as well. I think you covered it in detail. As we know, the distribution AUM is still very small in the overall scheme of things. When we look at our holding in our DP, we have got more than INR 3 lakh crore of assets. AUM is just around INR 40,000 crores. So huge room to grow from here. At the same time, you look at our broking business, the overall presence, we have a huge scope, and we are invested onto the broking. But that doesn't stop us from building on the distribution AUM. And in the last few years, we have consistently seen consistent growth in the AUM business in a big way. And as Navin said, we are investing in a big way in terms of people, in terms of technology, and in terms of building an overall trail-based book, which will be all about the broking business growth, which we are building onto. So that will be a continuous growth on both sides. That is how we are looking at it. Yeah. Hi, Avinash, on the housing finance question. So over the last few years, we have built very, very robust asset quality in this business. So if you look at the new book that we have built over the last few years, which is almost about 70% of our AUM, the GNPA number on that book is only 0.6%, while overall GNPA number on a sequential basis is a bit increased. But that's also because of the very seasonal nature of collections in quarter one of every year, where you will see marginal slippage being higher. But our net NPA provision coverage issue stands pretty strong, and we expect meaningful recovery of this GNPA number in the coming years. Overall, I think 1 plus, 30 plus, all metrics, if you compare on a YOY basis, all are lower. So that's how we are looking at the overall asset quality. Does this answer your question, Avinash? Yeah, yeah. Very clear. Thank you. Thank you, Avinash. Thank you. The next question is from Ashish Kumar from Ampersand Capital Investment Advisors. Please go ahead. Yeah. Yeah. Thanks for taking my question. I have two questions. First is, there has been a sharp increase in our employee expenses this quarter, 34% YOY and 23% QOQ. So what is the reason for this and how we should look at it in the coming quarters? And second question is, in the asset and private wealth management, we have seen strong growth on YOY basis, but on QOQ, it is kind of muted. So if you can give some more color on this, it would be helpful. Thanks. Coming to the people cost number, overall, if you look at last 18 months, we have been continuously adding more senior talent across each of our business because the senior hires over the last 18 months has been almost 450 plus senior talent has been added. Secondly, it also includes the impact of the increment which has happened on a YOY basis because quarter one generally reflects the full impact of the increment that we have effected from April 1 of this year, and overall, given the strong performance of this quarter, the variable amount has been provided for to fully capture the growth for this quarter. That is why you would see that there is marginal increase in the people cost to revenue ratio, but our margins have been very strong and stable at 50% profit margin if you look at the overall last financial year and even the quarter one of this year. Coming to the wealth management, Yeah, if you see there has been a very substantial ramp-up in the second half and the fourth quarter of last year. And usually also, as I mentioned, the fourth quarter is seasonally the strongest quarter for certain products. And so all of this has led to a very strong growth last year as well. And this year, again, we have a robust 50% top line and bottom line growth in this business. We are seeing very strong tailwinds for this business and expect this business to continue to perform strongly in the coming quarters of the year as well. And as I guided, this business is very under-indexed in terms of the headroom to grow. If you benchmark us to the market leaders, you will see that there is almost an 8-10X multiplication that is possible in this business. And that's why we have been investing. I have guided in the past that almost 10% EBITDA margin sacrifices on the back of strong RM hiring, where only 33% of the relationship manager base is of a vintage greater than three years. So we see all of this continuing to serve as strong tailwinds, the headroom as well as the investments that we are making in the RM base, and the growth will continue to be strong in the coming quarters as well. Also, on the question of the revenue to the AUM on our asset and private wealth business, quarter four included the carry income also, and that is one of the reasons where you will see that quarter one will not have that impact. So the revenue increase in comparison to the AUM will be lesser in quarter one because of the impact of the carry income included in quarter four in our asset and private wealth business both put together. Thanks. Just on the employee expense, if you can give some guidance for full year in terms of either the percentage of sales or growth, it would be helpful. As far as the percentage of the sales is concerned, you should assume that it will be at a similar level as the last year for FY26. Okay. Thanks. Thanks. That's helpful. That's all from my side. Thank you. The next question is from Hitesh Arora from Abakkus Asset Managers. Please go ahead. Thank you. I just want to get a better understanding on the PWM business. So we've talked about the relationship, vintage, employee expenses, etc. But just on the client side, if you could just elaborate what is happening, how many relationships have we expanded, matured, things like that, or some interesting transactions that we may be working on like we executed last year. If you could just elaborate a bit on that so that just to improve our understanding of the business on the PWM side. Yeah. Hi, this is Ashish here. So from a PWM side, last year, same time, if you see, we had about 14,000 families on board, 30,400 to be precise. And today, we have about 16,600 families. So we've seen strong growth in terms of addition of families, and this is across the board, whether it is HNI families as well as ultra HNI family offices. And like Navin mentioned earlier, we are still quite under-penetrated across the board. So in the HNI business, it's more about coverage, adding talent across the country. Similarly, in the ultra HNI family office business, we are very, very under-penetrated in terms of our share of wallet. So there is a lot of headroom for growth in both businesses within private wealth. As far as the products are concerned, we are seeing increasing interest and offtake of alternate products in the ultra HNI and family office segment. Similarly, in the HNI segment, we are seeing a lot of interest in solutions. I mean, we currently have our Alpha set of products, which is essentially a fund of funds and fee-based solutions for HNIs. So in both areas, we are continuing to see interest. And in the alternatives, we are also seeing a lot of interest in unlisted transactions, and there is a steady flow now. Okay. Understood. Thank you. Thanks. Thank you. Next question is from Lalit Deo from Equirus Securities. Please go ahead. Yeah. Hi. Congratulations on the success of the conversation. I'll say two, three questions. One, taking the distribution income both on the wealth management as well as on the private wealth management side, so there seems to be a sequential uptake in the transactional distribution revenues. So I just wanted to understand what would have driven those revenues in this way, and could you also give us a rough breakdown, like how much would be coming from which are the key drivers for the same? Second was on the AMC business. So in this particular quarter, there was a close on the PE and RE segments at around 300 crores, but in the presentation, it's mentioned that in July, we have closed the fund. So how should one look at the overall net sales in the alternative side of the AMC business for the full year? And lastly, on the broking side, so in the F&O side, it seems like that the gross brokerage levels were muted in this particular quarter on a sequential basis. So what would have led to those reasons, and how are you seeing the recent trends in the months of June and July? Those are the three questions. Yeah. Coming to the first question on the distribution revenues, so distribution revenues across our wealth management business as well as private wealth business in quarter one includes also revenues on account of secondary market transactions on the private securities as well as alternatives. So it's a function of those revenues, which in fact we've even guided over the last few quarters that there is a lot of focus and alternative space, including co-investment as well as secondary transactions is upticking, and that is one of the reasons where you would see the imp act of those steps that we took to increase the revenues in quarter one as well. Coming to the second question on the alternative flows, so while quarter one includes INR 300 crores of net flows, but you would have seen the announcement that we already made that our fifth growth fund on our private equity side, which is India Business Excellence Fund number five, with a target size of INR 8,000 crores, we have done the first closing at 80% of the target size, so you would see the impact of the flows coming in the quarter two of this financial year, and also, we have closed our series sixth of our real estate fund, the flows of which would also get reflected in the quarter two of this year, so you would see two new closings, as well as Navin guided that on the private credit side, we will have in H2 of this financial year, we'll do the first closing of our private credit fund. That is how we would read the flows of current financial year. Lalit, just to summarize, versus the 11,000 crore opening AUM for this business, you will see nearly all of the 8,000 crore series five private equity funds getting added. You will see a part of the 2,000 crore series six real estate fund getting added, and you will also see a part of the private credit fund getting added. This should be one of the strongest years of growth both in AUM as well as recurring fee income for this business. You should see nearly a doubling of AUM in the current financial year. On the third question on the margin for the quarter, our profit margin for the quarter is at 49%, which if you look at sequentially, it will look like a dip of 200 basis points. However, as earlier explained in the call, we look at largely margins of almost the last financial year to be maintained in the current financial year as well. The dip is mainly because of the people cost, which I explained earlier in the call in terms of the increase in the revenues and the corresponding increase in the cost thereof. Perfect. On the F&O side, Ashley, the last question was on the F&O. On the F&O side of the business, so if you look at our focus has been on the cash side of the business, our cash, the F&O pie of the business is less than 40% in our overall mix. Our cash volumes growth has happened in the market as well as our market share has gone up. So bulk of the brokerage growth has come actually from the cash brokerage for us because of the increased focus on the cash side of the business over the last many years. On the F&O side, the increase has happened in the market share as well as in terms of the revenue, but that is marginally lower than the overall cash mix because of our advisory-driven business on the cash side. And just to add to that, on the F&O side, we had the full quarter impact of the expiries being reduced. So on the overall market, also the volumes have come down because of the overall number of expiries coming down. So that impact is seen across. That's right. Gotcha. Yep. Thanks. Okay. Thank you. Thanks, Lalit. Thank you. Next question is from Dipanjan Ghosh from Citigroup. Please go ahead. Hi. Good morning, sir. So a few questions from my side. First, going back to this employee expense number, and if I were to just take out two of those businesses, which is private wealth and capital markets, it seems that the growth in employee expense on a sequential basis has been highest in these two segments. And obviously, when we look at the market competitiveness in terms of new talent acquisition or talent poaching that is going on in the industry, it probably seems that it is also highest in these two segments, coincidentally. So just trying to get a more medium to long-term picture in terms of how do you see the competitive pressure shaping up in this segment? Obviously, a lot of newer players are coming up, capital-backed players are coming up. Is talent acquisition or talent retention going to put a significant pressure on the employee expense for, let's say, a foreseeable future out there? The second question is going to be on the transactional revenue part. Now, obviously, you mentioned that there are a lot of unlisted market deals that are happening. Obviously, your numbers have also stacked up well over the last few quarters, especially this quarter also. I just want to get an idea of two things. One is, what would be your product sort of rejection rate, or how do you really source the product and kind of vet the product before really pitching it to the customer? And second is, in terms of the pipeline of the product side or lumpy deals out there, can you give some colors specific to your company? And last question is on the capital markets business side. Any color on the quantum of the deal pipeline that you have? I mean, let's say if 100% of that were to fructify over the next, let's say, one to two years, what sort of uptake in revenues can we expect on the fee-income side of the capital markets business? So basically, as far as the employee cost pressures and the talent war in the private wealth and the capital markets business, Dipanjan, you're absolutely right. At Motilal Oswal, we have been very sensible about benchmarking them to how we pay to the current workforce also. And so, yeah. But yes, the offers that we have made in the last 12 months have been at a much higher level compared to what we have done in the past. And I don't see this abating because the size of the opportunity itself is expanding very rapidly in both of these businesses. As you see, our overall margins are at, I would say, the industry best in terms of the composition of the businesses that we have. If you compare us with the industry, this is at 49% margins. You'd rarely find anybody at that kind of a, so basically, margins are very robust, and we try to sensibly participate in terms of growing the team sizes across both of these businesses. That is the first point. As far as the pipeline is concerned, I articulated that the deal pipeline visibility of the capital markets business is very robust, that the second quarter at least should be at least as good as the first quarter. Making any long-term projections for this business is very difficult because it all depends. Execution is entirely a function of the markets. And if markets were to remain reasonable or robust, then the pipeline at least is in place to continue to have robust execution in 3Q as well as 4Q. I mean, our book-to-bill ratio for this business is in excess of two to three times based on the revenues that we reported last year. And that's why you are seeing near doubling of revenues in the first quarter and continued strong growth in the second quarter as well. As far as the underwriting is concerned, see, the group has a very strong history of underwriting both in public markets as well as private markets. The vintage of our asset management company is over two decades, and the vintage of the private market practice is just a tad under two decades. Both the businesses have delivered a stellar track record of mid-20s or early 20s kind of a return over this long period of nearly two decades. So that is innate to the group, and rejection ratios are obviously, as a consequence, quite high. Pipeline, again, for this is quite strong. So the coming quarters should continue to be reasonably strong. We don't call out any numbers of pipeline for this, but I think the visibility of continued strong growth in the rest of the year is also reasonable. Sorry. I'm going to kind of squeeze in one small question on the private wealth or maybe a little bit on the flows from the PMS and AIF on the real estate on the asset management side also. I just want to get some color on this customer, especially in the PWM ex of, let's say, your private client group, which you used to have more focus on the HNI, Alpha HNI. Would this be more of generational wealth sort of personnel, or would this be more tilted towards, let's say, professionals or business people? I mean, I just wanted to get some sense of how is the sensitivity of primary market for monetization events to incremental flows versus, let's say, how much off with this more organic client tapping or new client acquisition? Yeah. So within the private wealth segment, your question was ex of PCG. I mean, essentially, the color of clients is either in the HNI segment, professionals, or in the UHNI to family office, it's basically business promoters. So right from SMEs, MSMEs, all the way going up to large listed company promoters, that would be the primary target segment. In terms of what drives growth, I mean, there is obviously a lot of organic growth because these clients keep adding to their wealth every year, and the current portfolio also keeps growing. But as far as the larger growth in the UHNI family office segment is concerned, yes, monetization plays a very large role. And the intensity there has only been increasing, as you can see from all these IPOs plus private equity transactions sell-out. And I'm just alluding to what Navin said. If the market remains stable or robust, I think we continue to see very, very high growth in that segment. So there is an organic growth of maybe 20%-25%, but the extra growth and our ambition to get to the leadership position will get determined by the kind of share that we can get in the incremental monetization events. I hope that answers your question. Gotcha. That's fair. Thank you, everyone, and all the best. Thank you. Thank you. The next question is from Swarnabha Mukherjee from B&K Securities. Please go ahead. Yeah. I just thank you for the opportunity and congrats on a good set of numbers. A couple of questions from my side. Actually, I wanted to understand a little bit more on the product strategy in wealth and private wealth. So on the résumé, say, for example, in the wealth business, I see that the broking income has come back very strongly, while vis-à-vis that in private wealth, I think that pace of recovery is slower. So I just wanted to understand what would be a differentiated strategy between the two segments in a period when the market was recovering. How do you address that? That is the first question. And second is, in terms of the distribution income for the quarter, of course, I believe that there is an impact because of seasonalities from insurance business. But if you could give some breakup in the revenue growth from what comes from MF or other non-seasonal channels and what comes from other segments would help us to understand this better. Yes, sir. That's from my side. We don't break down this. There's already so many layers of breakdown across all our businesses that we are publishing, and as I mentioned to you, this could be volatile on a quarter-on-quarter basis, but on an annual basis, we see these trends to be improving, but as far as the difference in the trend of broking business across our Wealth Management and Private Wealth Management, as you know, broking is the primary product or the largest product for the Wealth Management business. There's also a lot more MTF that is supported there, which has probably less salience to market volatility, or basically, the continuity of that income is greater. Use of that is far less in our Private Wealth business, and it's also not a primary product. But we believe that these could be lead lags that may last for a quarter or two, but eventually, both the businesses largely move in a similar direction like we've seen in the past few years. Right, sir. Understood. I appreciate the fact that you don't want to give further cuts into the distribution income, but just wanted to understand, I think, between, say, last year to this year, the growth, say, between, say, 1Q25 and 1Q26, the growth has been phenomenal over this period, so I just wanted to understand that as such the non-seasonal market also, I mean, has the growth been equally stronger or better. Some color would be helpful to get for us to forecast maybe some ballpark, so actually, I'd explained this in great detail last quarter also, but I'll repeat. The only new kid on the block really is secondaries in bonds as well as equities. That is something that we were under-indexed on fixed income and under-indexed on secondaries. I think both of those have seen an improvement over the course of the last three quarters. And so if you see second half of last year and one first quarter of this year, you've seen improvement. My guess is we are still under-indexed on both. And so the trend could continue to be strong in that part of the distribution income. Okay, sir. Understood. Very helpful. Thank you so much and all the best, sir. Thank you. Thank you. The next question is from Pooja Jain from Trinetra Asset Managers. Please go ahead. Hello. Yes, please. Hi. Thank you for the opportunity. I just wanted to know a little on the technological side. What progress have you made on digital strength in both broking as well as wealth? Are you looking for any AI-based advice or any hyper-personalization? And I also wanted to know the percentage of account openings and transactions are now happening through your mobile apps versus assisted channels. What is the percentage? Yeah. Hi. Motilal here. So a huge amount of focus on technological initiatives is happening, and that's why our online transactions must be about 75%-80% overall, although we must be the only unique player who have both the models which is in the physical models. We have got advisory-assisted models where advisor can advise, but transaction still can happen online or offline based on the client's convenience. So we have, I think, the next version of the MO Investor app, which is also live. Account Aggregator is live. We have a lot of tools being done through AI. I think next couple of quarters, you will see a lot of new tools where the advisory, actually, the voice and text combination will happen, and the client will have the choice. Any data points? Sorry, do you have any data? Other than that, what you're saying? Yeah. So our tech spend are also rising year on year. And overall, if you look at tech spend, they are almost about 4.5%-5% of our revenues. And even this financial year, we have a very healthy budget of almost about INR 250 crores to be spent on the entire tech. So that's how we continue to expand our digital initiatives, and especially on data science, as Mr. Oswal said, especially on the AI side, we are investing in a lot of tools across our advisory business as well as our trading. Okay. Thank you. Just one more question. What's the current status and strategy for international fund products? We've already run out of capacity a few years back. We were the market leader. We were the first pioneers to launch Nasdaq, S&P 500, bring them to India. But given the FX reserves, which have been falling, I think, nearly two years back, two and a half years back, this product stopped seeing any fresh inflows because we capped out our limit that has been set by the regulator. Having said that, some of our products are now available on GIFT City, and it's only been a quarter, and we've seen very strong traction there. We think that is one area that can, so basically, global funds flowing into India through GIFT City is something that may happen. On the private wealth side also, we're trying to use a similar route for deployment of funds globally. But this is not a major mover for us currently. All of this put together is incrementally, from a delta perspective, tending to zero for us. Okay. Okay. That's all from my side. Thank you. Thank you, Pooja. Thank you. The next question is from Rohan Advant from Prad Capital. Please go ahead. Yeah. Thanks for the opportunity. Most of my questions have been answered. Just on the NII front, if I look at quarter-on-quarter, our NII has been lower, and even on a YoY basis, the growth seems to be lower. And I thought you would benefit also from the drop in interest rates on your NIIs. So was our average book maybe lower than the closing book? And what is the reason for this, and how would you guide for the rest of the year on this front? Yeah. So I believe we are talking about the MTF book on the wealth management business overall. So I think YoY, yes, the book has been lower by almost about 9-10%, and that is one of the reasons you would see that the NIIs are lower. However, the spreads have marginally bettered YoY because our cost of funds have also come down. So cost of funds have actually fallen by 40 basis points on a QoQ front and 80 basis points on a YoY front. So you will see the impact of the spread benefit also coming over next few quarters. However, sequentially, the book has grown. Sequentially, if you look at the book, it's up almost 20% in line with the growth in the cash volumes and our market share growth as well. You will see the sequential uptake of the NIIs coming in the coming quarters for the full impact of the growth which has happened in the quarter one of this year. Understood. Sir, so what you are saying is that the closing book has grown, but the average book has not grown because the NII this quarter versus last quarter, it is a lower number even under wealth management. Yeah, that's right because bulk of the book growth has started from the month of June. That is why you'll see that the average impact of that is yet to fully come in the NII. That clarifies it. Thank you. Than k you. Thank you. Before we take the next question, a reminder to participants that you may press star and one to join the question queue. Next question is from Shashi Kapoor from Dolat Capital. Please go ahead. Yeah. The question is, as you mentioned, that we are on an uptrend or the liquidity is doing fine in markets and markets are also doing fine. How we are set for the next two, three years, what we are doing to ensure that profits or we don't get much impacted as we have got impacted historically due to market corrections. So Shashi, as you may have noticed, the annuity and the trail-bearing part of the revenues systematically has been rising to now a majority of the overall revenues. On the other hand, you've also seen that within the broking business, the volatility of which you are alluding to, that part of the business is also now down within the retail broking business to a third of the overall revenues. Correct? The share of third-party distribution and NII, the share of asset management, private wealth, and alternatives private equity real estate business have all risen materially. So all of this, we believe, and our market shares in all our businesses in the last three years and last five years have gone up. I explained to you that across in my opening remarks that across all the businesses that we are in, the runway to just catch up with the leader is five to seven times. And each of those businesses are growing at very strong double-digit rates. So we believe that this whole mega trend of financialization of savings, the huge gap between us and the market leader and our focused execution to close in that gap, increase the trail revenues, increase the annuity share of revenues, increase the salience of asset management, private wealth, and businesses. I think all of this gives us the confidence that the 10-year compounded profit growth of 30% that we've reported, all the savings for the future are no different from the last decade. Does that answer your question? Yeah. Yeah. Yeah. Yeah. Thanks a lot. Thanks, Shashi. Thank you very much. Due to time constraints, we'll take that as the last question. I would now like to hand the conference over to Mr. Shalibhadra Shah for closing comments. On behalf of Motilal Oswal Financial Services, I would like to thank every participant for attending the Q1FY26 con call. In case you have any further queries, please do get in touch with our investor relations desk. Thank you and have a good day. Thank you very much. On behalf of Motilal Oswal Financial Services, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.