Angel One — Q1 FY27 earnings call

Call held 16 Jul 2026

Management summary

Angel One delivered strong Q1 FY27 results with significant YoY growth in revenue and PAT, supported by a diversified business model and AI integration. Despite sequential moderation in market activity and credit disbursals, the company maintained healthy margins and continued strategic investments in wealth management and operational efficiencies. Management expressed confidence in long-term growth while addressing specific customer and market-related concerns.

Highlights

  • Revenue grew 25.4% year-on-year to ₹14.3 billion, demonstrating resilience.

  • Consolidated profit after tax increased 102.1% year-on-year to ₹2.3 billion, underscoring a strong diversified business model.

  • Normalized EBDAT margin stood at 43.6%, remaining comfortably within the guided operating range.

  • Total AUM grew 33.3% to ₹134.4 billion, dominated by recurring revenue-linked assets.

  • Credit distribution grew 130% year-over-year to ₹5.3 billion, driven by AI-led decisioning capabilities.

Concerns

  • Revenue moderated 2.3% sequentially, largely reflecting softer trading activities across capital markets.

  • Credit disbursals moderated sequentially from ₹710 crores (Q3) to ₹530 crores (Q1 FY27), attributed to lender calibration and customer sentiment.

  • A customer raised a significant concern about Angel One's unique 'restricted basket' policy, which limits trading of certain stocks and is not present with competitors.

Key financials

  1. Revenue ₹1,430 Cr +25.4%YoY
  2. Consolidated PAT ₹230 Cr +102.1%YoY
  3. Consolidated EBDAT Margin 32.7%
  4. Normalized EBDAT Margin 43.6% -0.8%QoQ
  5. Total AUM ₹13,440 Cr +33.3%YoY
  6. Credit Distribution ₹530 Cr +130%YoY
  7. EPS ₹11.4
  8. Net Worth ₹6,420 Cr

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.

Capital allocation

high confidence
  • Dividend ₹1/share (interim)
    I am also pleased to share that the Board has approved our first interim dividend for this financial year of 1 per share with the record date being July 21, 2026.
  • Liquidity Liquidity disclosed Net worth increased to ₹64.2 billion, while borrowings reduced meaningfully despite continued growth in client funding book. The company maintains a strong balance sheet and healthy cash generation.
    Our balance sheet remains one of our strongest competitive advantages. Net worth increased to 64.2 billion, while borrowings reduced meaningfully during the quarter despite continued growth in our client funding book.

Guidance & targets

Margin

  • Normalized EBDAT Margin Margin · long-term · High confidence 45% to 50%
    And that 45% to 50% margin guidance remains intact.

    — Ambarish Kenghe

Profitability

  • AMC Breakeven Profitability · long-term · High confidence 3 to 4 years
    We've always maintained that we have a plan that we are working with, which gives us about 3 to 4 years in terms of having a more potential breakeven visibility.

    — Srikanth Subramanian

  • Wealth Management Breakeven Profitability · long-term · High confidence 3 to 4 years

    — Srikanth Subramanian

Strategy

  • AMC Strategy Visibility Strategy · next 3 or 4 quarters · Medium confidence greater visibility
    But we are confident that over the next 3 or 4 quarters, we will have far greater visibility on our real strategy on the AMC front.

    — Amit Majumdar

Credit Growth

  • Credit Disbursal Growth Credit Growth · going forward · Medium confidence improved growth
    We, however, continue to work with our lending partners to improve conversion and strengthen the customer journey, and are very confident that the actions we are taking put us in a much stronger position to improve growth going forward.

    — Saurabh Agarwal

Business Scale

  • LAS Business Scale Business Scale · next two or three quarters · Medium confidence big
    As and when we get more experience from the customers, we'll open up the entire base, and in next two or three quarters, you should see that business becoming big.

    — Saurabh Agarwal

Operating Cost

  • Employee Cost Operating Cost · this year (FY27) · High confidence 11 billion
    My sense is that we will be in that similar range in this year. And it's a bit early to give you a complete sense, but the way I'm looking at the business, we will be in the range of about 11 billion as employee cost for the year.

    — Vineet Agrawal

  • Overall Burn (AMC + Wealth) Operating Cost · financial year (FY27) · High confidence 3% to 3.5%
    But overall, I think we will be in the range of about 3%, 3.5% as at the financial year.

    — Vineet Agrawal

What to watch in Q2 FY27

Credit Disbursal Growth

Next quarter
Current ₹5.3 billion (Q1 FY27), down from ₹6.1 billion (Q4 FY26)
Target Improved growth

Why it matters

Management is actively working with lending partners to improve conversion and strengthen the customer journey, expecting stronger growth going forward.

We, however, continue to work with our lending partners to improve conversion and strengthen the customer journey, and are very confident that the actions we are taking put us in a much stronger position to improve growth going forward.

Risks & concerns

  • Proprietary Restricted Stock Basket Policy

    high

    A customer complained about Angel One's unique policy restricting trading of certain stocks, which is not present with competitors and caused inconvenience. Management took it very seriously and promised personal intervention.

    Analyst acknowledged

  • Market Volatility Impact on Broking Volumes

    medium

    Analyst noted weak broking volumes in July; management stated it's too early to comment on short-term trends and nothing fundamental has changed.

    Analyst downplayed

  • Sequential Moderation in Credit Disbursals

    medium

    Credit disbursals declined sequentially; management attributed it to lender calibration, customer sentiment, and funnel friction, but expressed confidence in future growth.

    Analyst acknowledged

Q&A highlights

4 direct, 1 evasive
Credit Disbursal Slowdown Partial
So, you see generally disbursals in the quarter is driven by a combination of factors, your customer sentiment, lender underwriting and pricing and customer experience on the platform are the important ones. Over the long term, all of these do pan out. But in the short term, some of these can create some impact.

Analyst questioned the sequential dip in credit disbursals despite strong industry growth, highlighting a potential area of concern for a key growth segment.

Asked by Prayesh Jain

Broking Volumes and RBI Circular Impact Evasive
So the first 15 days, I wouldn't -- I mean, you can look at the industry volumes. We continue to monitor our market shares and those situations, but we don't comment on them in the middle of the quarter.

Analyst sought clarity on current broking trends and potential regulatory impacts, which management largely deferred commenting on due to short-term nature.

Asked by Swarnabh Mukherjee

Employee Cost and Customer Acquisition Cost (CAC) Direct
My sense is that we will be in that similar range in this year. And it's a bit early to give you a complete sense, but the way I'm looking at the business, we will be in the range of about 11 billion as employee cost for the year.

Analyst probed into cost efficiency, specifically employee costs and CAC, leading to management providing a full-year employee cost guidance.

Asked by Swarnabh Mukherjee

Distribution Revenue Decline and Client Funding Book Risk Direct
On the distribution revenue, some of these quarterly gyrations that you see are also because of the insurance distribution business because Q4, as you know, March tends to be very, very, very strong in that business. So I wouldn't read too much into it.

Analyst questioned a decline in a revenue segment and potential risks, which management explained by seasonality and strong risk management.

Asked by Raman KV

AMC Business Performance and Strategy Partial
And while we are building the passive, we also recognize the fact that as an AMC, and given the length and breadth of the product suite that is available for us to exploit, we are looking at how to further expand this portfolio beyond what we are currently doing in passive.

Analyst challenged the slow scale-up of the AMC business, prompting management to elaborate on its long-term passive strategy and future expansion plans.

Asked by Prayesh Jain

NSE Active Client Base Decline and Overall Trajectory Partial
I think that's also been quite flat, you'll see more investors come back in, and that should start showing you good numbers. At the same time, I think we continue to be quite strong, and if you look at the ranking on the active, so it continues to be strong, and we think in the future, you'll see us rise from there.

Analyst pointed out a decline in active client base, which management linked to market conditions and expressed confidence in future recovery and strength.

Asked by Neeraj Toshniwal

Wealth Management Engagement and Monetization Direct
So I think we are actually seeing momentum in mutual fund. It's an important business to create wealth for our investors. And so one of the metrics that we look internally at is just how many active SIPs and what is our share of that.

Analyst questioned the monetization strategy for wealth management, especially given the disparity between stock AUC and MF assets, leading to management detailing their engagement efforts.

Asked by Nidhesh Jain

Customer Complaint on Restricted Stock Basket Policy Direct
Subhash, first of all, thank you so much for doing this. I'm extremely sorry that you've not been able to reach our customer support, and I take it very, very seriously. Please write to me at ceo@angelone.in and I'll personally look into it.

A direct customer complaint about a unique and restrictive policy, which management acknowledged as serious and promised personal intervention, indicating a high-priority operational issue.

Asked by Subhash

3 min read 7 chapters

Detailed narrative

Q1 FY27 Financial Performance Highlights

Angel One reported a robust Q1 FY27 with revenue reaching ₹14.3 billion, marking a 25.4% year-on-year growth. Despite this, revenue saw a sequential moderation of 2.3% due to softer trading activities. Consolidated profit after tax surged by 102.1% year-on-year to ₹2.3 billion, demonstrating strong profitability. The company maintained a normalized EBDAT margin of 43.6%, comfortably within its guided operating range, reflecting disciplined execution.

Diversified Business Model and Operating Leverage

The company's business model is increasingly diversified, with approximately 40% of revenues now stemming from non-broking segments, including client funding, distribution, and wealth management. This diversification enhances resilience and quality of earnings. Angel One's core operating engine continues to demonstrate strong operating leverage, allowing it to absorb normal seasonal cost cycles and higher IPL-related marketing expenses while sustaining margins. This scalability ensures that profitability compounds faster than revenue growth.

Wealth Management and Asset Management Growth

Angel One's wealth management business, Ionic Wealth, showed strong traction with AUM crossing ₹32.3 billion. The Ultra High Net Worth (UHNI) segment expanded to 263 families with an AUM of ₹87.3 billion. Across the broader franchise, total AUM grew 33.3% to ₹134.4 billion, primarily driven by recurring revenue-linked assets. The Asset Management business also gained momentum, with its AUM crossing ₹6.2 billion, complementing existing offerings and strengthening customer engagement.

Credit Business Performance and Outlook

The credit distribution segment achieved a significant 130% year-over-year growth, reaching ₹5.3 billion. However, credit disbursals moderated sequentially from ₹710 crores in Q3 FY26 to ₹530 crores in Q1 FY27. Management attributed this to lender underwriting calibration, customer sentiment, and friction in funnels. Despite the short-term moderation, the company remains bullish on the long-term opportunity, focusing on building a scalable, high-quality business with strong unit economics and lender partnerships.

AI Integration and Operational Efficiency

Angel One continued to scale AI across both user-facing experiences and its operating stack. The 'Ask Angel' conversational assistant served over 1.1 million users, addressing queries in finance and support. AI is embedded in various processes, including user onboarding (face match, signature validation), grievance automation, content generation, and portfolio intelligence. These AI capabilities enhance user experiences, automate workflows, improve decision quality, and are expected to become a source of operating leverage and competitive differentiation.

Customer Acquisition and Engagement Strategy

With over 38 million registered users, Angel One leverages its broking services as a powerful gateway, with nearly 60% of mutual fund clients engaging through broking first. The company sustained a 22.2% turnover market share in equity derivatives and improved its cash equity turnover market share to 17.4%. The strategy focuses on acquiring a good client base with high lifetime value, adjusting acquisition spend based on client segments and market conditions, rather than solely optimizing for quarterly disbursals.

Risk Management and Customer Feedback

Angel One emphasized its robust risk management system, particularly for the client funding book, which reached a record ₹71.5 billion. 83% of client funding exposure is below ₹100,000 per client, with negligible delinquency. A significant customer concern was raised regarding Angel One's unique 'restricted basket' policy, which limits trading of certain stocks and is not present with competitors. Management acknowledged the seriousness of this feedback and promised personal intervention to address the issue.

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