Ladies and gentlemen, good day and welcome to Motilal Oswal Financial Services Q2 and H1 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 conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Kayal, Head Investor Relations. Thank you, and over to you, sir. Thank you, Rikesh, Good afternoon, everyone. I'm Manish Kayal. I look after investor relations. I welcome all the participants on behalf of Motilal Oswal Financial Services Limited to take time out to attend our Q2 and H1 FY26 earnings call. We hope that you had an opportunity to go through our investor deck and press release, which was uploaded on our stock exchanges and on our website yesterday. We have also uploaded our Excel data book, which has detailed operational and financial numbers on our website. Please note that today's discussion may include forward-looking statements, and these forward-looking statements are based on our macro assessment, and actual delivery outcome may vary. With that, I will introduce our management participating on this call. So we have Raamdeo Agrawal, who is the 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 Motilal Oswal Asset Management Business, Mr. Ashish Shankar, CEO of Private Wealth Management, Mr. Sukesh Bhowal, CEO of Housing Finance, Mr. Sanjeep Suneja, who's our Group Chief Strategy Officer, Mr. Shalibhadra Shah, our Group CFO. We'll start the call with an opening remark by Navin, and then we will have a Q&A session. Over to you, Navin. Thanks. Thank you, Manish, and good afternoon, everyone, and welcome to the 2Q FY26 earnings call. I'll start by sharing some key highlights. 2Q FY26 continues to witness trending of most of our businesses. It was a resilient quarter led by our annuity businesses. Our operating profit after tax grew by 2% to INR 554 crores. This was led by strong growth in our asset and private wealth businesses that grew by 36% year on year. This is the fourth consecutive quarter of strong growth in these businesses, and the asset and private wealth businesses collectively now contribute 52% of the overall profit after tax of the consolidated profits of the group. During the quarter, our customer count rose to 14.5 million plus, comprising of 9.4 million unique mutual fund folios and 5.1 million unique broking accounts, and our assets under advice grew to over 6.7 lakh crores during the quarter. This is a very strong growth in both the assets under advice as well as the client count. The client count is up by almost 55% on a year-on-year basis, led by the asset management business as well as additions in the. Sorry, sir, you're not audible. Am I audible now? Yes, sir. Please go ahead. Yeah, the customer base and the asset base is quite significant given that we believe India is only at a very early stage of accumulating over $100 trillion of savings by 2047, which compares to less than $14 trillion of savings in the preceding 25 years. And importantly, the pool is also getting increasingly financialized. Turning to our annual recurring revenue, they now stand at 61% of the total revenues, with fee-based revenues accounting for 45% of the total revenues. Our asset management business continued to gain market share, with the mutual fund market share increasing to 2.6%, and this still has huge headroom to grow given that our net flow market share still stands strong at 8.2%. Our SIP flow market share is at 4.8%, which is the highest ever. On the alternate side, we closed the first close of our IBEF, our Growth Equity Series V fund, at INR 6,900 crores of first close on a total size expected to be raised of INR 8,350 crores. This is nearly two times the size of the previous IBEF IV that we raised. Our private wealth business is on a strong growth path, with net sales growing 3x in 2Q to INR 7,358 crores, taking the total AUM to INR 1.87 lakh crores, and we service over 7,000 relevant families. The investment banking business continues to witness higher deal executions, propelling the Motilal Oswal Group to rank number one in IPO, QIP, and rights issues, led by 39 deals worth nearly INR 50,000 crores executed in the first half of this financial year. During the quarter, our long-term credit rating was upgraded to AA plus with a stable outlook. This is the highest rating ever granted to any non-bank domestic capital market player in India. The upgrade reflects the strength of our diversified business model, increasing share of predictable annuity recurring revenues, a strong balance sheet, a strong growth in net worth, and disciplined financial management. We believe that the upgrade is expected to improve access to institutional capital and, importantly, reduce our cost of funds. We also strengthened our board, increasing the count from 10 to 14 members. We are really happy to welcome Pratik Oswal and Vaibhav Agrawal, our directors. We are equally glad to have Mr. Joseph Conrad D'Souza, a senior HDFC Group veteran for four decades, and Mr. Ashok Kumar Kothari, a senior IRS officer for three decades of distinguished career, joining our board as independent directors, enhancing the board's diversity, oversight capability, and strategic depth. Turning now to the segmental performance, starting with the asset and private wealth business, the AMC business continued its momentum during the year with a strong market share gain driven by continued strong investment performance. Our net flows in the second quarter increased 56% year on year to over 20,000 crores, and our AUM stood at 1.6 lakh crores as of 30 September 2025, which is up by 46% year on year. As I speak to you, this AUM has first crossed 1.7 lakh crores as of yesterday. Even as we continue to invest heavily in talent, in distribution reach, marketing, the operating leverage from share gain led by AUM growth should be a strong driver to the growth in the profits of the AMC business. Sorry, sir, you're again not audible. Is this better now? Yes, sir. Yeah, 91% of the AUM of the asset management company outperformed the respective benchmarks in the past three years. Our mutual fund market share at 2.6% is the highest ever. Our net sales market share, which was 7.7% in the previous quarter, has risen to 8.2%. Our SIP market share too hit an all-time high of 4.8%. We added 17 lakh SIPs in the second quarter. Our SIP flow during the second quarter alone stood at INR 4,172 crores, resulting in an SIP AUM book of INR 28,432 crores. Our alternative AUM in the asset management company stood at INR 33,872 crores, and the net flows of the asset management business grew to INR 14,000 crores plus in the second quarter. During this quarter, we executed the first close of our IBEF, as I spoke about, which is targeted to raise nearly two times its previous series. In fact, right from the Series1 that we raised about 18 years back to today, every single series has witnessed a doubling of AUM from IBEF I to II to III to IV, and now a raise of $950 million for IBEF V. Our private equity business currently has fee-earning AUM of nearly INR 17,000 crores across growth capital funds and real estate funds. We expect a substantial amount of carry, which will be realized at the close of these funds. We are planning to launch a private credit vertical soon, which will be a new segment within the alternative segment. All of these initiatives in the asset management business are expected to increase the share of this business within the overall consolidated operating profits of the group. Turning to the private wealth management business, the AUM in this business stands at INR 1.87 trillion. We serve more than 7,000 relevant families, which have more than a crore of AUM with us. Q2 witnessed a revenue growth of 64% and a PAT growth of 97% on a year-on-year basis. Our current RM strength is 386. We expect improvement in RM productivity as 48% of the RMs have a vintage of less than three years. The share of private wealth business in the group P&L has increased as a result of operating leverage and a comprehensive proposition that now straddles not just the HNI segment, but also the UHNI segment, and we expect the share of this business in the overall profits to also rise in the coming years. Turning to our wealth management business, comprising of retail broking, distribution, and our retail lending book, our broking business continues to retain its leadership position as a full-service broker. The cash retail cash broking volumes stood at 2,776 crores in Q2 FY26. Our cash volume market share was robust at 7.1%, and F&O premium market share stands at 8.7%. The blended ADTO market share stands at 8%. We believe we are the largest broker in India in the cash segment in terms of revenue market share. Share of broking revenues in wealth management segment revenues has declined from 60% in FY21 to 33% in 2Q FY26, led by sharp focus on growing our distribution business, reflected in net flows rising to over INR 3,000 crores in 2Q. Consequently, the distribution book grew at a compounded 36% from INR 11,000 crores in March 2021 to over INR 40,000 crores in September 2025, and contribution of this segment in our revenues for the wealth management business increased from 12% in FY21 to 17% in 2Q FY26. We intend to increase the revenue share of distribution within wealth management, and we are well positioned to achieve this. Our NII grew by 13% year-on-year due to book growth and improvement of spreads. The total loan book stands at INR 6,300 crores in this business. Turning to the capital market business, 2Q is another strong quarter for our institutional equities and investment banking business. We completed 39 deals in our investment banking business in the first half with cumulative capital raise of INR 50,000 crores, and our fee income delivered a robust 65% growth year-on-year to INR 120 crores. I repeat, we were ranked number one on QIPs and IPO league table in India in the first half of FY26 in terms of number of issuances. The IE business continues to increase its research coverage, now covering 332 companies or 73% of the market cap, and we continue to strengthen both the institutional equities and the investment banking teams. Turning to the home finance business, the business continues its growth momentum with disbursements of 48% growth of 48% on a YOY basis, led by a 50% increase in the relationship manager or the sales force of the housing finance business. The gross and net NPAs stand at 1.4% and 0.8%. We expect strong growth in the AUM of this business, and the profits of this business in the second half should be substantially higher than the first half of the year. Turning to the treasury book, our total equity investments grew to nearly INR 9,000 crores as of September, up by 14% year-on-year. The book delivered a healthy XIRR of nearly 19% since inception, which includes and including the reinvestment of the cash flows. The treasury book has been growing at a compounded rate of 42% since inception, implying it is doubling every two years and has grown by 55x since inception. We expect similar growth rates on the current book over the next decade, given strong ROE, a consistent payout policy, and the expected investment IRR. This book serves as a strong backbone to all the operating businesses, which have managed to deliver a decadal operating profit growth compounded of 31% without the need to raise a penny of external capital since our IPO back in 2007, while consistently paying out 20% of our operating profits as dividends and doing three buybacks during this time period, making us quite unique in the Indian financial services space. In conclusion, we believe that our franchise is among the strongest in our business, also validated by the highest ever rating assigned to us among all non-bank domestic capital market plays in India. Our net worth has grown by nearly 10x between March 2015 and September 2025 to nearly INR 13,000 crores, led by operating profit compounded growth of 31%, an average return on equity during this decade of 22%, and an average payout of 20%. I repeat that we expect a savings pool of nearly $126 trillion in the 25 years ending 2047, which compares with a mere $14 trillion in the preceding 25 years. Importantly, financialization and equitization of the large savings pool is a mega trend that will continue to provide tailwinds in future to ensure that we continue delivering strong earnings growth. We were ranked in the top 100 companies by profit after tax in FY25 and ranked 171 by market cap. We see the strong tailwinds to the business, the mega trends of financialization of savings and equitization of the financial savings to drive continued strong growth in our profits, allowing us to further improve our rank in profits in the overall corporate sector. There's also a large headroom available to gain market share vis-à-vis market leaders in our key businesses, as the leaders are nearly five to 10 times our profits or AUM in some of these businesses. Our Twin Engine business model should enable us to drive continued growth, which is above the markets without the need to raise any capital, even as we continue to make meaningful investments in our businesses. We'll now open the floor for Q&A. Thank you. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take a first question from the line of Sucrit Patil from Eyesight FinTrade Private Limited. Please go ahead. Sucrit. Good afternoon to the team. I have one specific question for Mr. Raamdeo Agrawal, sir. As the financial services space gets more competitive, how is Motilal Oswal planning to build a long-term differentiation not just through product variety, but through deeper client engagement or platform strength? Yes, sir. Yeah. So we are looking at businesses. I mean, of course, we have tried to build a complete capital market powerhouse in that when the individual savings enter the market, they enter through two routes. One is the broking route for direct stock, and one comes through the mutual funds. So we have tried to enter both the businesses, and the HNIs come through private equity also. So all the three places we have positioned ourselves, and we are trying to build to the best of our capability. And since 2020, we know the DMAT revolution has started, and you are getting about 30-40 million customers every year. There's a vertical expansion of the market, and in that, every business has different dynamics in the sense that wealth management, asset management, private equity. So, everywhere we are doing well, though we are not except for IBanking, where we are the largest number of deals we have done in the last 12 months. Other places, we are still in the reckoning in the sense that we are in top five or six or seven. In broking, we are number three or four. In asset management, we might be in top 15. So there is a we are trying to build excellence in all the businesses which are related to the capital market, which is helping the individuals save and deploy the money into the right kind of stocks. So the thought has been very simple, but we have remained focused around think equity, think Motilal Oswal, so bringing all the prowess into understanding what it takes to make money in the equities and build a corporate around that. That's what has been the thought process. I don't know whether it answers your question. It's fair enough. My second question and final question is to Mr CFO Looking ahead, what internal steps or cost management planning do you think are most important to protect the margin, especially if market volumes or fee structures keep on changing? Yeah. Yeah. See, I believe when you're correlating with market volumes, so especially this is about our retail broking business. At an overall level, our cost structure is majority variable. Only about one-third of our costs are fixed, and two-thirds of the costs are variable in this business. The business has two channels, especially one is our branch channel, and another is our external wealth management channel. So our fixed costs are very lean, and in times when volume growth is lesser in the market, I think that's where you will see our operating margins are pretty stable. And that's why our cost-to-income ratios and margins are always very, very stable in such times where volumes are low. So cost structure-wise, overall, I think that's our strength. I think as a group, overall, our PPT margin is 50% and above, which is best in class in the industry. Yeah. Okay. Thank you. And I wish the team best of luck for Q3. Thank you. Thank you. Next question is from the line of Mahek from Emkay. Please go ahead. Yeah. Thank you so much for the opportunity. My first question would be basically on the SEBI consultation paper. So just wanted to hear the management's thoughts on the same. And how would it be impacting the asset management and the capital market segments if the final regulations were to mirror the draft ones? Secondly, on the distribution income for the wealth management segment, that has declined on a sequential and YOY basis. So what would be the reason for that? Thirdly, if I look at the sequential movement in the brokerage income across wealth management and the private wealth management businesses, the wealth management segment has witnessed a decline, while the PWM segment has seen strong sequential growth. So what would explain the improvement in the private wealth management business? And third would be just to understand your deal pipeline in the capital market segment. I mean, just from an understanding perspective, how would the revenue look for Q3 and Q4? So these are my four questions. Giving you a clip. Go ahead, Shalibhadra. Coming to the overall Consultation Paper, that was the first question. So again, it is early days, and preliminary if we look at the overall thing, which is basically the five businesses on the Asset Management business, which has come, and secondly, which is on the Capital Markets side as well, so broadly we are at this juncture. It's though preliminary, but I think between 1%-2% sort of profit impact we are envisaging if this becomes exactly the norm of the day. While, of course, there is a lot of recommendation and discussion in the industry around that. Moving to secondly, on our distribution business, on the Wealth Management segment, the distribution revenues includes one is your annual recurring revenues and one is your transaction revenues, so if you look at our annual recurring revenues in the distribution business, they have been growing. So, YOY, they are up by almost 37%, 38%. Yeah. But But the transaction revenues, that could be volatile. As guided earlier also, it could include secondary transactions, unlisted transactions, co-investments, which could be lumpier. And that is the reason you would see that the quarterly or the YOY impact of those transactions are there. But if you look at first half to first half of last year versus this year, we are up 50% on our distribution income in the retail broking business. Coming to the third question on the brokerage revenues on the wealth segment versus the private wealth segment. So on the wealth segment, yes, what we see is more impact of the F&O-driven regulations coming in, which has resulted in the fall on sequential as well as the YOY business. The YOY fall is pretty substantial, but I think on a sequential basis, it has now flattened out. Whereas on the private wealth side, it's more from the HNI family office segment where, of course, the relative nature of F&O revenues are lesser. Yeah. So that is the reason you will see some bit of difference between the both. Of course, it is not controllable, but it's natural flow of the market. Coming to the overall fourth question on the capital market segment deal pipeline. So first half, as I think what Navin mentioned, I think we were ranked number one, and we've done 39 transactions. And we carry a very healthy deal pipeline out of flow coming to the quarter three or quarter four of this financial year. If market conditions remain pretty sound, I think we believe we will be able to have similar quarters of growth and profitability. Okay. Got it. Thank you so much. It answers my questions. Thank you. Thank you. Next question is from the line of Mohit Surana from HDFC AMC. Please go ahead. Yeah. Hi. Just two questions from my side. Not sure if it's been already addressed, but I wanted to understand the trend in the brokerage revenue for the capital market business. It showed sort of a bump up last quarter, post which it has normalized. So just wanted to understand the trend there. And also on the asset management business, if you could just ballpark indicate what is the contribution of the income received from the treasury segment. I understand that there is an inter-segment revenue that is being derived. So if for the quarter or even generally, if you could quantify what part of the top line it would be. That's it. Yeah, Mohit. So on the trend in the brokerage revenue on our capital market segments, while QoQ will show a drop, but see, this is a multi-product business. Again, capital market, we have multiple things. One is your blocks, one is the domestic revenues, you have IBanking fees and all. So I think it's basically driven by season. So whatever is the flavor of the season, we go and execute. So I think quarter one had impact of block revenue, which blocks were very large, while quarter two you'll see the fee-based revenue higher. But I think all in all, we need to look at the overall business. That is what explains our story. And coming to the contribution of income from treasury in the asset management segment. See, this is more of our alternative segment in our asset management. It's alternative business, especially the fixed income fund management, the real estate fund management, and now moving forward, even the private credit segment. So whatever investment or co-lending transactions that we are doing in that business. So that's, again, a very high-quality credit which we are originating because our fund management has a very strong track record and the kind of investor appetite which is there where we even in fact downsell to our clients as well as at the same time co-lend from our balance sheets. So the nature of income included in the net interest income is depleting our own investment or the co-lending which we have done on our real estate fund transactions, especially. And that is what is reflected as the NII income. Sure. So I just wanted to understand what will be the contribution from the treasury, from the treasury segment to the asset management. Yeah. If you could generally give a directional sense? See, I think contribution to the treasury is this function of the so the way we have capital allocated to each business. So basically, that asset management segment has a net worth allocation of about INR 1,800 crores. And that net worth allocation includes this portion of the co-lended book which I discussed, which is about INR 800 crores. And the rest INR 1,000 crores is basically the other income representing the interest income which we create out of the allocation of the capital across businesses. So that's the contribution. And going forward, as I said, the operating cash flows will continue to deploy out of the asset management segment into such kind of opportunities which will gradually keep growing. And otherwise, the free cash will be allocated to the treasury capital as we invest all our free cash flows after paying dividends into our treasury segment, which is the equity segment. So to that extent, Asset Management segment will continue to get the carrying income on that. Got it. Okay. Thanks a lot. Okay. Thank you. Next question is from the line of Neil John from B&K Securities. Please go ahead. Hello sir. Thank you for the opportunity. I have a couple of questions, one on the wealth management business and one on the private wealth management business. So firstly, on the wealth side, we've seen that the distribution assets earning trail fees has decreased sequentially, which is also reflected in the distribution income coming lower. So I would want some commentary on that. And secondly, on the private wealth side, there seems to be some change in the reporting of our RMs and the number of families. And this has kind of had an impact on the cost base also for the quarter, which has come down sequentially around 12%. So some commentary on that also. Yeah. So on the first question in terms of the distribution business in the wealth segment, so I think I already explained that. Again, I think I'll reiterate it. Our ARR revenues have grown, whereas the impact is because of our transaction revenue. So if you look at YOY basis, I think our ARR revenue growth is pretty strong, about 30% and above, in line with the growth in the ARR assets. So we continue to expand our ARR base of assets. We are very fast growing, as Navin highlighted at the start of the call. Also, our distribution revenue mix has been outgrowing. Our distribution asset base has been again outgrowing in the overall mix of our distribution and DP assets. So I think the ARR revenues continue to grow. So there is no impact on that at all. The transaction revenue is the line item which has led to the volatility in the overall distribution revenues, and coming to the second question in terms of, I think at the start of the call, we highlighted that our RM base and the family base. I think on the family side, we have considered the relevant families. Earlier, we used to report all the families, but looking at the industry best practices, we have realigned our families to make it look logical, and we reported families having above INR one crores of AUM with us. So that is why you will see to that extent, we have restated the family count. So on the RM side, so again, on the RM side, we actually were even considering the brokerage-related advisors. So again, to align with the industry best practices, we are considering only the RM base, where cost includes both RMs as well as advisors. But in line with the industry comparison and practices, we are now considering only the relationship managers in the count base. To that extent, again, we have recasted our numbers, including comparison for all our earlier periods as well. Okay. So what would explain the cost-based declines sequentially in the private wealth business? Sorry? Which decline are you highlighting in the private wealth business? Yeah. The OpEx cost has declined 12% sequentially. Yeah. So it's basically, so I think, on, so if you look at the overall distribution revenues, so I think Q1, we had a very large chunk of distribution revenue. So quarter two, because of the higher transaction revenues, so quarter two was slightly moderating in terms of the transaction revenues on distribution. So that is one of the reasons you will see that the variable cost also gets reduced in line with our revenues. So that is why you would see that the cost-to-income has marginally come down. And also, I think as Navin highlighted, that our RMs have productivity of more than three years. RMs are just 48% in the mix. And gradually, if you look at every year on year, our productivity is improving as the vintage is growing. So as the RMs break even at the end of, say, one and a half years and then above, the productivity will keep on rising. So we'll see better margins in this business going forward because over the last three years, we have invested heavily on the RM side. And almost about 900 basis points, we have given out the margins for those investments. So gradually, you'll see the improvement. So YOY basis, we are flattish in cost-to-income, but I think this will keep on improving overall as the RM productivity goes up. All right. Thank you so much. Thank you. Thank you. Next question is from the line of Nitesh from Investec. Please go ahead. Thanks for the opportunity. So first question is in terms of broking revenue and distribution revenue, how do we distribute the revenue between wealth management business and private wealth management business? Are there different entities who are working in these segments, and how do we allocate the revenue to these two businesses? Yeah. So I think overall, our wealth management segment includes the channels which are our retail branch channel. Yeah. And it also includes the channel on account of our external wealth managers. So the revenue generated by both of these channels are included in our wealth management segment, which is mainly the retail-to-affluent customers. Whereas on our private wealth business, this represents the HNI, Ultra HNI family office channels. So basically, all the clients that are mapped under that channel are included in our private wealth segment. So that's the way we share it. Good. Is there a possibility that wealth management client can transition to private wealth management client over a period of time, or that is not possible at all? Yeah. So if the size of his asset increases, then certainly private wealth would be more polished RMs. They would typically service those families. Sure. And the second question is, what is the reason to move certain real estate assets from treasury to the asset management business? What is the rationale behind that? Yeah. So I think the rationale is that, while I explain that, but I think the whole purpose is because see, this is originated by our real estate fund team, right, which is part of our alternative business. So while they were doing those transactions, but as we are increasing the base of this entire business, the transactions on our real estate fund team, now even private credit transactions will get originated, we use our balance sheet to leverage and, in fact, co-invest in those transactions because to even keep a leverage of one-to-one moving forward with the kind of net worth growth that we have, we will have more of such high-quality credit paper going forward. So this is part of our operating engine, which at the start, it was put under our treasury segment, but rightfully now we have reclassified this under the operating segment of our alternative business. So that's the thought process going forward. The third question is on the cash ADTO market share. We have been losing market share for some time. What are the reasons behind that, and what is the strategy to gain market share or maintain market share from here onward? Yeah. From the overall cash market perspective, as you said, we have lost market share in this kind of market because typically, our base is on the research and advisory perspective. And we also advise the customers based on the market situation. So in this kind of market, we have also been a little cautious on the overall market, which reflects in our overall client relationships and the overall external wealth managers when they advise. We are very cautious about the market situations. So typically, in the past years, we have seen that in a flat to downward market, our market share is comparatively impacted on the lower side. At the same time, when the markets are booming, the overall positioning on the advisory and research comes in where the market share goes. So it's more to do with the market situations that the market share is a little falling in this kind of markets. Also, to add, Nitesh, we also need to look at the revenue market share, right? And we are leaders in the cash revenue market share because only volume market share will not correlate to our model of business. Sure. And lastly, there is a request that please don't make any changes to data sheet because our models are linked to our data sheet, and it creates a lot of confusion for us and becomes very difficult to model if there's a change in the data sheet. So just a request, don't make any changes in the data sheet, sir. Yeah. Definitely, we take this feedback. But to highlight that, the data sheet, we don't insert any rows so that the models don't change. We, in fact, only add more rows or if there is any reclassification, if at all, or regroup, whether it's the auditors or our business modalities, we highlight them as well clearly and restate even the earlier period so that things remain intact. While we take this feedback, and we'll definitely ensure it. Sure. Thank you. So that's it from my side. Thank you. Next question is from the line of Dipanjan Ghosh from Citi. Please go ahead. Hi. Good Good morning, sir. So just a few questions from my side. First, in terms of the deal pipeline on the transactional side of the business, both on private wealth and your overall wealth, how is the deal pipeline stacking up? And outside of the normal course of business, is there any lumpy transaction that you kind of envisage over the next, let's say, two quarters? My second question is on the overall alternatives business, and maybe not pertaining to exactly us, but more from the industry perspective. I mean, we are seeing multiple asset managers, or rather incumbent asset managers, also increasing their focus on the alternatives business. Do you see a case where the market might get a little bit more crowded over the next few years? My last question is on the client additions that you're seeing on your private wealth business and your PCG business, inclusive of that. In terms of the incremental flows, what proportion is coming from your existing ones versus new ones? And in terms of the quality of clients that you're getting incrementally, I mean, this would be taking from competition or first-generation entrepreneurs, or if you can give some color on that. Yeah. So the first question, given the kind of deals that we've executed over the last 12 months, our pipeline for deals is quite healthy. And the pipeline for deals does not include only the unlisted equity side, but also now on the fixed income side, we have invested a lot in capabilities. So that will make our deal pipeline far more resilient and smooth and not dependent too much on markets. Yeah. So typically, to answer the third question in terms of flows from new clients versus existing clients, typically what tends to happen is that clients who sign up, they normally sign up with a smaller allocation initially, and then they tend to scale up over time. So broadly, you will see that about 75% of the flows come in from existing clients which are acquired the previous year or the years before that, and about 25% of the flows come in from newer clients. And then the clients who get acquired in this financial year, they get scaled up over time. On the new competition coming into alternatives, so this is having a positive rub-off because alternatives as a category is not very well understood in the intellect. To give you an example, a few years back, on a monthly basis, the max a house would be doing would be between 500 and 700, the max. And now, while competition has come in, and one of the largest mutual funds in the country has been focusing on this business, multiple houses are doing numbers close to INR 1,000 crores a month on a drop. So when a large house comes in, the awareness across the country increases. The number of clients who were earlier only mutual fund clients also open up to alternatives. It results in widening up of the marketplace. And I would dare say, with us present across the country, market share of an entity like ours should not fall. It could actually go up because in these spaces, the new entrants will find a market. We would also be present. Sure. Thank you for those answers. Just one request following of the previous participants' kind of point. I just could not find one of the sheets in your database this time on the reconciliation part. If you can kind of update that, that would be really great. Thanks and all the best. Yeah, sure. We'll be sharing it separately. Thank you. Thank you. We'll take a next question from the line of Lalit Deo from Equirus Securities. Please go ahead. Yeah. Hi, I have just two questions. So for a few. I'm sorry to interrupt, Lalit. Can you use your handset mode, please? Your voice is not very clear. Yeah. Is this better? Yes. Please go ahead. Yeah. So, I was asking, you mentioned in your remarks that the overall impact because of the Consultation Paper could be in the range of around 1%-2%. So, if you could just break it up between what could be the impact on the mutual fund business as well as on what could be the impact on the institutional equities business, that would be my first question. Second, we see during this particular quarter, we have seen that MF yields have increased from around 42 basis points to 45 basis points. So, going ahead, how should one see this? And lastly, we have seen a decent growth in the lending book, both in the wealth management as well as in the private wealth management business. So, over the next couple of years, what could be the overall lending book in both of these segments? Yeah. That's my question. So I think on the first point about, as I said, that it's preliminary space to put that out. But I think at a broader level, if you look at on the asset management business, in terms of the five basis points, it's something which has come out. Of course, there will be impact which will be passed on also to the distributors overall. So only you can take that match. Typically, the payout ratios are already given. So basically, that's the broader sense of impact on this business. The risk impact is coming out of our capital market business on the cash MF side of the business. Coming to the question of what is the cash impact on the booking side, what is the impact? Yeah. So basically, our capital market business revenues is about annualized about INR 700-800 crores of revenues, right? Within that, one would broadly take the annualized number, then this impact could be almost about 5%-6% of the revenues of the capital market business. That's about the capital market side of the implication. Coming to the MF yield, our yields have gone up basically on a YOY basis. It is moderation of OpEx as well as more yield coming to our favor as well. Broadly, we expect to maintain the current trend rate of yields bearing the impact if at all it comes of the Consultation Paper. Otherwise, we expect the yields to be pretty stable. Of course, yields are also driven by the mix of the assets of active to passive as well. If the passive outgrows in line with what is happening globally, of course, yields will moderate. But otherwise, on the active side, we expect to maintain stable yields. Sorry, can I just ask? On the lending book, sorry. Yeah. So lending book, I think we have our book has been growing pretty strong because we have a pretty strong balance sheet to leverage. And we are looking to grow this book by almost about 25% CAGR both on our wealth segment as well as even our housing finance segment. So that's the kind of growth number which we are aiming to build over the next few years. Sure, sir. Thank you. Thank you. Thank you. We'll take a next question from the line of Vikram Raghavan from Moon Capital. Please go ahead. Congratulations on a strong operating performance and thank you for the opportunity. Pardon me for the question. It may seem very petty. I just wanted to understand why we have such volatile treasury losses. We are down 6% today in the market because of this. Regarding the treasury loss, we had a treasury loss in 4Q. We had a gain in 1Q. Now, again, a loss in 2Q. All our peers actually have reported very strong PATs for this quarter. Thank you. Yeah. So basically. Yeah. Yeah. So basically, this is a part of our design of the firm. If you look at our presentation, we have a twin engine model where our operating businesses have very high return on equity, require very little capital, right? And then the rest of the free cash flow that we generate serves as our skin in the game in all the products that we offer to our clients, whether it is mutual fund, PMS, AIF, PE, RE, now private credit, basically the whole bunch of products that we offer. Now, that's why we report the operating profit. Markets may choose to look at the reported profit after tax. Media may choose to report only the change in the reported profit after tax. There could be maybe short-term volatility due to this. But I think the important number that any analyst or investor needs to focus on is that ever since this book, we started doing this for a decade, this book has grown at 42% per annum. 19% is the IRR, which is the return ex-IRR on this book since inception. And the balance is the 80% post 20% operating profit of the post 20% dividend payout of the operating profit. The balance 80% getting re-channelized. And when you have a return on equity of over 20%, then you have substantial free cash flows being available to be added to that treasury book apart from the 18.9% ex-IRR that you've seen. So by design, I explained to you that this treasury book has grown 55X. You may have also seen that this quarter, we became the first of our kind in India to be rated AA plus with a stable outlook. There is no other firm in India. What is left now is a positive outlook on AA plus and a AAA rating, which is unprecedented. So there's a strong balance sheet, which, and by the way, also when you are talking about comparison with our peers, nearly every single peer of ours routinely raises capital every second or third year. We IPO'd in 2007. 18 years into our journey, after three buybacks, after paying out 20% of our profits as dividends, we haven't raised one INR of capital in the HoldCo or any of our subsidiaries, right? So if you see the growth rate of our earnings available to our investors, it is our EPS growth, in fact, been higher than our profit after tax growth. And this strong balance sheet is the reason for the rating upgrade, the reason why cost of funds are among the lowest compared to our peers. And I think in times to come, I've already guided in my opening remarks that we see nothing changing in terms of the next 10-year compounding of this book. And I would only urge you to wait and watch what magic this treasury book then creates as it becomes far more colossal in its size. However, given that we have all our products that we do for our clients being equity, we are basically an equity house. A large part of this treasury book is invested in equities. On a quarter-on-quarter basis, equity markets could be volatile. I think the important thing is to see what it has done over a 10, 15-year period, which is a growth of 42% in the treasury book and an Ex-IRR of 19% per annum. Thank you for the detail now. Thank you. We'll take our next question from the line of Sanjaya Satapathy from Ampersand Capital. Please go ahead. Yeah. Hi. So my first question is that in your opening remark, you mentioned about margin recovery, margin to be better in second half compared to first half in some of your core business. Can you please touch upon that? I'm not sure if he said margins will be better in the second half in the opening remark compared to the first half. What we did say is that as far as the home finance business is concerned, where we reported our profits for the first half, the second half, given the huge RM addition of more than 50%, which are getting deployed, and as they become more than two months or three months into the system, that business should see substantially higher profits in the second half compared to the first half. This is the home finance business? Yes. Okay, so my second question is that you mentioned that you have very high ROE, but at the same time, from the kind of interaction that I am listening to, some grievances around your market share in some of your businesses are there. Can you just tell us what are your plans to expand market share in many of your businesses, both in terms of talent and technology? I'll just highlight to you that our asset management business market share has gone up meaningfully in this quarter, the first half as well as the trailing 12 months. The private wealth business has outgrown most of the peers, as you may have seen. Our private equity fundraise is 2x of the last fundraise that we have done. Our home finance business disbursement growth is one of the highest in the industry. You're absolutely right. There has been softening of market share in our wealth management business. So I'll let Ajay talk about the strategies that he is deploying to recoup that market share and even raise that market share. Just one little context I want to leave you with. While you are analyzing quarter on quarter over the last five years, ever since the onset of COVID, our overall market share for this business has gone up at the rate of about 75 to 85 basis points per annum, notwithstanding the rise of discount broking in India. Over to you, Ajay. Yeah. On the cash, so basically, what we're talking about is the wealth management business where the market share we're talking about. So in conditions when there is volume regrowth and Nifty has been flat over the last 12 months, I think there is a margin blip in the market share. Typically, when I think we see market environment bettering, our market share also grows. That is what I think Navin also explained that looking at the last three years of our journey, our market share is up on cash as well as the F&O side of the business. So we believe that our market share will continue to improve. And this is, again, only the volume market share. And even in tough times, advisors typically are more conservative, and they don't tend to invest their client money at times. So that's the reason also you'll see some bit of impact of that. But all in all, I think over medium to longer term, our market shares are all on the rise. And our revenue market share is also an important factor because we are one of the highest ARPUs in the industry on the broking side as well as the total revenue side. So that is what is also relevant to examine in terms of the revenue growth and our market positioning and the profitability of the business, where we are leaders on the cash revenue market share. Okay. Thanks, sir. If I can just ask last question, that you have announced that you will be getting into some credit fund and a lot of other things. But in that context, when somebody pointed out your treasury profit being so much volatile, what are the risk management practices? Because we heard that, let's say, you have taken huge exposure to Zepto through credit. And so how much exposure of your book? So overall, if you can just explain some of the risk mitigation strategy when you're doing, we know that your track record in terms of growing the business without raising capital from the market is commendable, and nobody else is there. But still, it will be great to hear your risk management practices. A large part of our treasury book is invested in our mutual funds. And then there is a small part that is invested in the alternative products, including the private equity, real estate, credit funds, and now also the private credit funds. Having invested nearly $1 billion in the asset management company and being the largest investor in every single fund that we have offered to our client base, we've now also made some small direct investments, which are extremely small in the context of the size of the book. So as far as the risk management is concerned, there'll be no single security which will be sizable exposure. Your point about taking credit exposure to some unlisted, that is a wrong media report. So you can ignore that. Thank you so much. Thank you. Ladies and gentlemen, due to time constraints, we'll take that as a last question for today. I now hand the conference back to Mr. Shalibhadra Shah, Group Chief Financial Officer for closing comments. Over to you, sir. On behalf of Motilal Oswal Financial Services, we thank every participant for attending the Q2 FY26 conference call. In case you have any further questions or clarifications, please do get in touch with our investor relations desk. Thank you and have a great day. Thank you. On behalf of Motilal Oswal Financial Services, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.