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    Angel One

    ANGELONE
    Financial Services·16 Oct 2025
    Management Summary

    Angel One delivered a strong Q2 FY26 performance with robust revenue and profit growth, driven by significant client acquisition and market share gains. The company continued to expand its new business verticals, particularly in credit and wealth management, and announced a strategic joint venture to enter the life insurance segment, reinforcing its long-term vision for a comprehensive digital financial ecosystem.

    Highlights

    8
    • Gross revenues increased by 5.3% QoQ to ₹1,200 crores.

    • Net revenues grew by 5.6% QoQ to ₹940 crores.

    • Reported EBDAT margin stood at 34.5%, up 1,270 bps over Q1 FY26, with normalized EBDAT at ₹320 crores (up 6.1% QoQ).

    • Profit after tax grew by 85% QoQ to ₹210 crores, with normalized PAT up 10.1% QoQ.

    • Client base crossed 34 million, adding 1.7 million new clients, a 12.2% sequential growth.

    • Retail equity turnover market share increased by 71 bps to 20.5%, and Demat market share rose to 16.5%.

    • Credit disbursals accelerated by 97% QoQ to ₹460 crores, reaching an annual run rate of ₹1,800 crores.

    • Announced a 26% stake in a ₹400 crore joint venture with LivWell Holding Company PTE Limited for a digital-led pure protection life insurance offering.

    Concerns

    1
    • Potential SEBI changes to expiry contracts

    Key financials

    Single quarter

    19 metrics
    1. 01Gross Revenues₹1,200 Cr+5.3%QoQ
    2. 02Net Revenues₹940 Cr+5.6%QoQ
    3. 03Reported EBDAT Margin34.5%
    4. 04Normalized EBDAT₹320 Cr+6.1%QoQ
    5. 05Reported PAT₹210 Cr+85%QoQ

    Segment breakdown

    Gross Revenue Contribution
    46% F&O Broking Commissions8% Cash Broking Commissions6% Commodity Derivatives Broking Commissions32% Interest Income (Client Funding & FDs)8% Other (Depository, Distribution, Wealth, AMC)
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    M&A

    LivWell Holding Company PTE Limited

    joint venture · pending regulatory · Consideration ₹NaN (undisclosed)

    Liquidity

    Liquidity disclosed

    Cash and cash equivalents remained healthy, driven by higher client balances, partly offset by deployment into the funding book.

    Guidance & targets

    6
    CategoryTargetPriority
    Profitability
    EBDAT Margin
    40-45%
    High
    Profitability
    Wealth Business Breakeven
    2.5-3 years
    Medium
    Profitability
    AMC Business Breakeven
    7-8 years
    Medium
    Profitability
    Long-Term Operating Margins
    45-50%
    Medium
    Revenue
    Net Revenue Upside from Pricing Action
    ₹50-60 crores
    High
    Client Funding Book
    Client Funding Book Scale
    ₹10,000-₹12,000 crores
    Medium

    EBDAT Margin Trajectory

    Q4 FY26 exit
    Current34.5% (Reported EBDAT margin)
    TargetOn track for 40-45% by Q4 FY26 exit

    Why it matters

    Achievement of this key profitability target is crucial for the company's financial outlook.

    we want to be at 40% to 45% OPM, and we are well on our way to that path from everything that we can see.

    How to verify

    key_financials.metrics[label='Reported EBDAT Margin']

    Risks & concerns

    3
    RiskSeverity

    Fluid global geopolitical situations and softer market conditions

    These factors present headwinds for the business.Management acknowledged

    medium

    Constructive regulatory evolution

    The company is prepared for current and future regulatory requirements.Management acknowledged

    medium

    Potential SEBI changes to expiry contracts

    Analyst inquired about the impact of potential changes to the number of expiry contracts, which management declined to speculate on.Analyst deflected

    high

    Q&A highlights

    8

    “Sanketh, I think there's a lot of speculation in this area. So it's best for us to not add to that and talk about it because we don't know what is going to happen or if there is anything that is going to happen. So best to stay away from that. Let's just look at if there's something coming and then we can talk about it.”

    Management declined to comment on potential regulatory changes that could significantly impact the F&O segment, a major revenue contributor.

    asked by Sanketh Godha

    3 min read7 chapters

    Detailed Narrative

    01

    Strong Financial Performance in Q2 FY26

    Angel One reported robust financial results for Q2 FY26, with gross revenues increasing by 5.3% quarter-on-quarter to ₹1,200 crores and net revenues growing by 5.6% QoQ to ₹940 crores. The reported EBDAT margin stood at 34.5%, a significant 1,270 basis points improvement over Q1 FY26, with normalized EBDAT reaching ₹320 crores, up 6.1% QoQ. Profit after tax saw an impressive 85% QoQ growth to ₹210 crores, and normalized PAT increased by 10.1% QoQ, demonstrating strong operational efficiency despite macro headwinds🌐.

    02

    Robust Client Acquisition and Market Share Gains

    The company's client base expanded to over 34 million, adding 1.7 million new clients during the quarter, representing a 12.2% sequential growth. Angel One further solidified its market position, with Demat market share rising to 16.5% and retail equity turnover market share increasing by 71 basis points to 20.5%. These figures reaffirm the quality of its franchise and its deep reach into Bharat, with nearly 90% of clients from beyond metros and Tier 1 cities.

    03

    Accelerated Growth in New Business Verticals

    Angel One witnessed significant traction across its emerging growth engines. Credit disbursals surged by 97% QoQ to ₹460 crores, translating into an annual run rate of ₹1,800 crores, with cumulative disbursals reaching ₹1,400 crores. The company registered 2.4 million new SIPs, a 24% sequential growth, and Ionic Wealth expanded its AUM to over ₹6,100 crores from 1,250+ clients. The asset management business also launched its first commodity fund, scaling folios to 1.4 lakh with ₹400 crores in assets.

    04

    Strategic Entry into Life Insurance through Joint Venture

    Angel One announced a strategic joint venture with LivWell Holding Company PTE Limited to launch a digital-led pure protection life insurance offering. Angel One will hold a 26% stake in this ₹400 crore JV, subject to regulatory approvals. This partnership aims to reimagine protection delivery with smarter underwriting and seamless claims, leveraging Angel One's technology, data, and consumer insights to create personalized solutions for the Indian market.

    05

    AI-Powered Innovation and Enhanced Client Experience

    The company launched its AI-powered chatbot, 'Ask Angel,' developed in-house using open-source LLM models. This chatbot has become a key digital touchpoint, resolving over 80% of user queries without escalation and reducing resolution time by 67% for 95% of cases. Angel One continues to use data-driven intelligence to design better journeys, improve efficiency, and personalize the platform experience, with plans to extend AI capabilities across its full product suite.

    06

    Pricing Strategy and Revenue Outlook

    Angel One clarified its pricing action, simplifying charges for both delivery and intraday to 0.1% with a maximum of ₹20 and a minimum of ₹5. This simplification is expected to generate an annual net upside of ₹50-60 crores. Management expressed confidence in achieving a 40-45% EBDAT margin by Q4 FY26, driven by continued revenue growth and ongoing cost efficiencies.

    07

    Long-Term Vision and Regulatory Environment

    Management reiterated its long-term vision to build a comprehensive digital financial ecosystem, emphasizing trust, intelligence, and reliability. They noted the supportive regulatory environment, which fosters innovation while ensuring market stability. The company is also setting up a branch in GIFT City, a strategic move to explore new growth avenues, subject to regulatory approvals, aligning with its goal to lead India's fintech transformation.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.