Angel One — Q1 FY26 earnings call

Call held 17 Jul 2025

Management summary

Angel One delivered a healthy operational performance in Q1 FY26, marked by robust revenue growth and strong client engagement despite regulatory recalibrations. The company continues to expand its market share in broking, driven by digital-first strategies, and is making significant strides in new verticals like credit, mutual funds, wealth, and asset management, all underpinned by advanced AI/ML capabilities. While IPL-related marketing costs impacted reported margins, normalized profitability remains strong, and management is confident in achieving its OPM targets by Q4 FY26.

Highlights

  • Gross revenues increased by 8.1% QoQ to ₹11.4 billion.

  • Net revenues grew by 7.3% QoQ to ₹8.9 billion.

  • Reported operating margin was 21.8%, with a normalized operating margin of 34.3%.

  • Reported PAT stood at ₹1.1 billion, while normalized PAT was ₹1.9 billion, up 26% QoQ.

  • Total demat account market share reached 16.3%, with incremental acquisitions market share at 21.7%.

  • Added over 1.5 million clients in Q1 FY26, with 88% from Tier 2, 3 and beyond.

  • Period ending client funding book reached an all-time high of ₹48 billion.

  • AMC AUM stood at over ₹3.4 billion as of June 30, 2025.

Key financials

  1. Gross Revenues ₹1,140 Cr +8.1%QoQ
  2. Net Revenues ₹890 Cr +7.3%QoQ
  3. Gross Broking Income ₹690 Cr +9.1%QoQ
  4. Net Broking Income ₹530 Cr +7.3%QoQ
  5. Total Interest Income ₹360 Cr +5.5%QoQ
  6. Reported Operating Margin 21.8%
  7. Normalized Operating Margin 34.3%
  8. Reported PAT ₹110 Cr -34%QoQ
  9. Normalized PAT ₹190 Cr +26%QoQ

What they filed

Q1 FY27: revenue up 25.3%, net profit up 102.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,515 1,262 1,056 1,141 1,202 −21%1,335 +6%1,459 +38%1,430 +25%
EBITDA672 496 343 275 415 −38%529 +7%599 +75%485 +76%
Net profit423 281 175 114 212 −50%269 −4%320 +83%231 +103%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • F&O Segment
    45% Share of Total Revenue
  • Cash Segment
    10% Share of Total Revenue
  • Commodity Derivatives
    6% Share of Total Revenue
  • Interest Income (Client Funding & Deposits)
    31% Share of Total Revenue
  • Direct Business (Net Broking)
    76% Share of Net Broking Revenue
  • Distribution Business (Credit, Insurance, IPOs)
    3% Share of Total Revenue

Capital allocation

high confidence
  • Liquidity Liquidity disclosed Consolidated net worth was at ₹55.7 billion as of June 30, 2025. Period ending client funding book stood at ₹48 billion, supported by incremental borrowings, which increased by ₹1.9 billion sequentially.
    On the balance sheet side, our period ending client funding book stood at ₹48 billion, supported by incremental borrowings, which increased by ₹1.9 billion sequentially. Consolidated net worth was at ₹55.7 billion as of June 30, 2025.

Guidance & targets

Profitability

  • Operating Margin (OPM) Profitability · by exit of quarter 4 · High confidence 40-45%
    So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform. ... If at all, revenue justifies cost and we are able to see that, okay, that will result in OPM 40-45%.

    — Dinesh Thakkar

Revenue

  • Revenue Growth Revenue · per quarter · High confidence 7-8%
    So clearly that if at all we are able to see that, okay, quarter-on-quarter revenue is going to grow at the rate of 7%, 8%, which we are very confident...

    — Dinesh Thakkar

Cost

  • Overall Operating Cost Growth Cost · every quarter · High confidence 2-3%
    if you want to achieve 40-45% EBITDA margin by end of the quarter, you said revenue growth of 7-8% is per quarter -- sequential growth will help it, which means that you expect ex IPL overall operating cost should grow at just 2 to 3% every quarter to deliver that 40-45% EBDAT margin by end of the fourth quarter? ... To answer your question, 2-3% or something like that would be in that region, that is what we believe.

    — Sanketh Godha, Dinesh Thakkar

Market Share

  • Total Demat Account Market Share Market Share · current · High confidence 16.3%
    Our total demat account market share stands at 16.3%, and we continue to be a leader in incremental acquisitions with a 21.7% share.

    — Ambarish Kenghe

  • Incremental Acquisitions Market Share Market Share · current · High confidence 21.7%

    — Ambarish Kenghe

Cost Efficiency

  • LTV to CAC Cost Efficiency · recent · Low confidence around 6x

    Previously 8x → around 6x

    Any comment on LTV to CAC? Earlier, we have disclosed 8x. And then I think recently, we've been talking about around 6x LTV to CAC. ... Yes. So we would like to refresh that LTV to CAC maybe once we see this cycle completely panning out. But just this quarter, we saw impact of F&O. As I said, it takes time for customer to really bounce back and search, which instruments they would like to participate. So too early to really refresh that chart. I would say let us wait for 1 or 2 quarters, let retail again get active the way they are active in the market. And then it will be a better time to refresh that chart.

    — Nidhesh Jain, Dinesh Thakkar

ESOP Expense

  • Full Year ESOP Cost ESOP Expense · current fiscal (FY26) · High confidence ₹2.1 billion
    The estimated full year cost of the grants made, to be made in FY 2026, along with the carrying cost of earlier grants is estimated to be ₹2.1 billion for the current fiscal.

    — Vineet Agrawal

  • Quarterly ESOP Cost ESOP Expense · next 3 quarters · High confidence ₹55-odd crores
    So it will be in the range of about ₹55-odd crores for the next 3 quarters.

    — Vineet Agrawal

What to watch in Q2 FY26

Operating Margin (OPM)

next quarter (Q2 FY26) and subsequent quarters leading to Q4 FY26
Current 21.8% (reported), 34.3% (normalized)
Target Progress towards 40-45%

Why it matters

Key indicator of profitability and efficiency, management has set a clear target for Q4 FY26.

So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform. ... If at all, revenue justifies cost and we are able to see that, okay, that will result in OPM 40-45%.

Risks & concerns

  • Regulatory recalibration in the broking industry

    medium

    The regulatory recalibration over the last few quarters has made the ecosystem all the more robust. While the near-term fluctuations are inevitable, we see this as essential groundwork for sustainable long-term growth.

    Management acknowledged

  • Market cycles and volatility

    medium

    The broking industry navigates a complex yet promising phase, having witnessed multiple peaks and troughs, which has only strengthened conviction in its long-term growth potential.

    Management acknowledged

  • Impact of new business incubation on margins

    medium

    The margin impact of these new businesses in the short term till they become profitable will be around 2%, potentially varying between 2-2.5% depending on quarterly performance.

    Management acknowledged

  • Competitive intensity in margin trading

    low

    Management does not currently see competitive pressure in margin funding, expecting market momentum and FII inflows to be tailwinds.

    Analyst downplayed

  • Potential SEBI actions on F&O segment

    low

    Management stated they have not heard of any new communications or changes from SEBI regarding the F&O segment beyond what is already in the news.

    Analyst not addressed

  • Regulatory risk for high option trading volumes

    low

    Management views high option trading as youth leveraging the market, expecting them to eventually move to long-term investments, and does not see it as a concerning structural issue.

    Analyst downplayed

Q&A highlights

7 direct
Order run rate, client acquisition, payback period, new business contribution, and cash broking realization Direct
So in terms of current trend on order and revenue, you can see in this quarter, already we have seen growth of around -- in terms of revenue around 7% to 8%. So what we saw that, okay, if you see that FIIs were absent for like last year third quarter and fourth quarter and this first quarter, for first 2 months, they were positive and they had a positive inflow. And we can clearly see an impact of like momentum in the market and FIIs has strong correlation between retail activity and their orders. ... So we believe as this macro will improve and FIIs and retail will come back, we will see some kind of like good earning momentum and all that, we are very hopeful that we will be able to exit quarter 4 with a decent visibility on OPM that we were speaking about. So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform.

Comprehensive question covering multiple key operational and financial metrics, with management providing outlook on OPM and market correlation.

Asked by Swarnabha Mukherjee

Competitive intensity in margin trading and its impact on lending rates Direct
Currently, we don't see any competitive pressure because what we see, we have been doing margin trading since ages. So this margin trading fund book depends on market momentum and volatility. If at all, we are hopeful about movement would be positive, earning growth FIIs inflows will come again, I don't see any pressure. In fact, that will be tailwinds.

Addresses a potential risk to the company's Net Interest Margin (NIM) from competitive pressures in a key revenue segment.

Asked by Swarnabha Mukherjee

Revenue breakdown for wealth, AMC, mutual fund businesses, and tax rate explanation Direct
So Prayesh, on the split of the revenue, it is the distribution part of the business, which is about 3% of the total revenue. That is primarily driven by the distribution of insurance and credit products and IPO. For the other businesses, the asset management and the wealth management, they are spread across commissions and interest income because some part of the revenue that we get from the wealth business is the capital that we have put in treasury operations, etc. So it's spread there. ... And this is primarily because a couple of our businesses are loss-making, and therefore, the effective tax rate has gone up by about 3% because of those businesses. And the CSR contribution that we do quarter-on-quarter, that doesn't qualify for any tax deduction. So that's also about a 1% impact of the CSR contribution. So the effective tax rate for this quarter is about 30%.

Clarifies how revenue from new business segments is recognized and explains the reason for the higher effective tax rate, providing transparency on profitability drivers.

Asked by Prayesh Jain

Customer Acquisition Cost (CAC), Lifetime Value (LTV) to CAC ratio, wealth AUM retention, and ESOP budget Partial
On cost of acquisition, it remains same as what it was last quarter. It does not change significantly or even like marginally also, small fluctuation here and there is there. But overall, we are seeing trend in terms of customer acquisition also, we are able to maintain this trajectory and market share of around 21% on a new acquisition that we do. ... So we would like to refresh that LTV to CAC maybe once we see this cycle completely panning out. But just this quarter, we saw impact of F&O. ... On the ESOP cost, as I mentioned in my opening statement that the estimated total cost of the stock grants for this year and the previous year's put together is about ₹2.1 billion, 210 crores, of which we've spent about 45 crores in this quarter. So it will be in the range of about ₹55-odd crores for the next 3 quarters.

Addresses key efficiency metrics (CAC, LTV to CAC) and clarifies the significant ESOP expense for the current fiscal year, impacting profitability.

Asked by Nidhesh Jain

F&O market share evolution and potential SEBI regulatory changes Direct
What we are seeing is that because we are acquiring more customers, so market share improvement will be gradual. But what we are seeing is that this whole pie of like volume on F&O side is going to expand. That is going to help in terms of us gaining that normalized OPM by the end of quarter 4. ... No, we haven't heard anything like that, news which is going to come. There are articles published in media and all that. But overall, no communication or any changes on F&O segment.

Provides management's outlook on F&O market share growth and addresses concerns about potential regulatory interventions in a high-volume segment.

Asked by Pradyumna Choudhary

Exit quarter operating margins and quality of customer inflow/acquisition Direct
So clearly, it shows if you are able to maintain the trajectory of revenue at the rate of 7%, 8% quarter-on-quarter and keep our cost under control. Definitely, there is no reason for us to believe, to increase the cost right now because already platform has been built and cost of acquiring customers has been incorporated every quarter. So clearly, we are seeing at exit of quarter 4, this trajectory would be visible to all of you. ... Yes. So we are working on lots of parameters where quality of acquisition improves. And that's the reason we have been visible in IPL and all that. That's the long-term content strategy.

Reinforces management's confidence in achieving OPM targets and highlights the strategic focus on quality customer acquisition, which is crucial for long-term value.

Asked by Abhijeet Sakhare

Impact of RBI rate cuts on margin funding lending rates and NIM Direct
So Sanketh, what typically happens is that today, the borrowings are all linked to MCLR. And therefore, the rate cut on the borrowing side happens slightly with a lag. But yes, there would be a margin expansion as we go along as we see the rate cut happening on the borrowing side, and that will help the business.

Clarifies the mechanism and potential positive impact of interest rate changes on the company's margin funding business and overall profitability.

Asked by Sanketh Godha

Recent F&O volume drop in July and regulatory risk for high option volumes Direct
Currently, what happens is a knee jerk reaction to Jane Street, and it takes time for players to get readjust to something like this scenario. So we have seen like a market if something happens like this, there's an impact for 10-15 days and things go back to normal. So we should not read anything from this number what we are seeing in 7 to 8 days. Only it has been volatile, it's not that every day it was low. ... See what happens, as I was answering previous this thing question, there is a concern like wallet of a customer, they would put some amount in this because of nature of kind of people like youth. Young people, they like to leverage and try out something in the market. So you see currently, they prefer trading in option. But if you look at their journey, slowly they moved to investment and all that.

Addresses recent market volatility and a broader concern about the sustainability and regulatory oversight of high option trading volumes in India.

Asked by Sanjay Singh

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Detailed narrative

Q1 FY26 Financial Performance Overview

Angel One reported a robust financial performance in Q1 FY26. Gross revenues increased by 8.1% quarter-on-quarter to ₹11.4 billion, while net revenues grew by 7.3% QoQ to ₹8.9 billion. Gross broking income saw a 9.1% QoQ increase to ₹6.9 billion, with net broking income rising 7.3% QoQ to ₹5.3 billion. Total interest income also grew by 5.5% QoQ to ₹3.6 billion. Despite IPL-related marketing spends, the normalized operating margin stood at a healthy 34.3%, leading to a normalized PAT of ₹1.9 billion, up 26% QoQ.

Broking Business & Market Share Expansion

The company maintained its leadership in the broking segment, achieving a total demat account market share of 16.3% and an incremental acquisitions market share of 21.7%. Angel One added over 1.5 million clients in Q1 FY26, with a significant 88% originating from Tier 2, 3, and beyond cities, showcasing the power of its digital-first strategy. The period ending client funding book reached an all-time high of ₹48 billion, indicating strong client confidence and platform stickiness. The direct business contributed a steady 76% to net broking revenue.

Growth in New Business Verticals

Angel One's non-broking verticals demonstrated strong growth. The company added over 1.9 million new SIPs in the quarter and facilitated credit disbursals of ₹2.3 billion, bringing cumulative disbursals to over ₹9.3 billion within a year of launch. The distribution business, primarily driven by insurance, credit products, and IPOs, contributed 3% to the total revenue. Mutual funds are becoming a habit for many Indians, and Angel One is the second-largest contributor in new SIP registrations.

Wealth & Asset Management Progress

Ionic Wealth, the company's wealth management arm, continues to expand its client base, now serving over 1,000 clients as of June 2025. The asset management business is also progressing well, with AUM standing at over ₹3.4 billion as of June 30, 2025. The AMC has launched 5 products across equity and fixed income, including passive products like the Angel One Nifty Total Market Index Fund and Angel One Nifty 50 Index Fund, aiming to democratize wealth creation across Bharat.

Technology & AI Integration for Enhanced Experience

Technology, AI, and machine learning are core to Angel One's strategy. The company processes billions of signals daily, converting them into personalized nudges, sharper risk insights, and predictive engagement. AI-powered nudges help clients make better financial decisions, while predictive models strengthen risk and fraud detection. Agentic AI is being developed to automate workflows, improving speed, accuracy, and cost efficiency. This intelligence is embedded across the client life cycle to enhance retention, engagement, and lifetime value.

Capital Allocation & Costs

Angel One continued to invest in brand building, notably through its IPL associate sponsorship, which resulted in IPL and associated media spends of ₹1.1 billion in Q1 FY26, compared to ₹344 million in the previous quarter. Excluding these IPL costs, underlying operating expenses declined by 9.9% QoQ. The company also made fresh grants of stock options, with the estimated full-year cost for FY26 being ₹2.1 billion, and approximately ₹55 crores expected for each of the next three quarters. These investments are strategic for attracting and retaining top talent and supporting long-term growth.

Market Outlook & Long-Term Strategy

Management expressed strong bullishness on India's growth story, particularly the untapped potential in Tier 2 and Tier 3 cities, where 88% of new clients originate. They believe technology is the key to serving these aspirations at scale. The company's vision is to build a truly digital platform that serves every financial need across clients' life cycles, from investing and borrowing to protecting and planning. Angel One aims to be India's most trusted fintech brand, empowering a billion lives by leveraging data and technology.

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