Angel One — Q2 FY26 earnings call

Call held 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

  • 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

  • Potential SEBI changes to expiry contracts

Key financials

  1. Gross Revenues ₹1,200 Cr +5.3%QoQ
  2. Net Revenues ₹940 Cr +5.6%QoQ
  3. Reported EBDAT Margin 34.5%
  4. Normalized EBDAT ₹320 Cr +6.1%QoQ
  5. Reported PAT ₹210 Cr +85%QoQ
  6. Client Base 3,40,00,000 clients +12.2%QoQ
  7. Retail Equity Turnover Market Share 20.5%
  8. Demat Market Share 16.5%
  9. Credit Disbursals ₹460 Cr +97%QoQ
  10. Ionic Wealth AUM ₹6,100 Cr
  11. AMC AUM ₹400 Cr
  12. Net Broking Income ₹550 Cr +5.4%QoQ
  13. Average Client Funding Book ₹5,300 Cr +26.1%QoQ
  14. Total Interest Income ₹380 Cr +6.5%QoQ
  15. Net Interest Income ₹290 Cr +4.6%QoQ
  16. Employee Cost ₹270 Cr 0%QoQ
  17. Other Expenses ₹340 Cr -19.2%QoQ
  18. Period Ending Client Funding Book ₹5,950 Cr
  19. Networth ₹5,830 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.

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)

Capital allocation

high confidence
  • M&A LivWell Holding Company PTE Limited Joint venture · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    To launch a digital-led pure protection life insurance offering tailored for India, combining LivWell's insurance expertise with Angel One's technology, data, and consumer insights.

    Angel One will hold a 26% stake in the joint venture.

    Angel One will hold a 26% stake in this 4 billion joint venture, subject to regulatory approvals.
  • Liquidity Liquidity disclosed Cash and cash equivalents remained healthy, driven by higher client balances, partly offset by deployment into the funding book.
    Cash and cash equivalents remained healthy, driven by higher client balances, partly offset by deployment into the funding book.

Guidance & targets

Profitability

  • EBDAT Margin Profitability · Q4 FY26 exit · High confidence 40-45%
    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.

    — Ambarish Kenghe

  • Wealth Business Breakeven Profitability · within 2.5-3 years · Medium confidence 2.5-3 years
    The wealth business, we anticipate should turn breakeven incrementally, say, in about 2.5 - 3 years' time

    — Vineet Agrawal

  • AMC Business Breakeven Profitability · within 7-8 years · Medium confidence 7-8 years
    whilst the AMC business, which is a low-cost, long gestation period business should be able to turn incrementally breakeven in about 7 to 8 years.

    — Vineet Agrawal

  • Long-Term Operating Margins Profitability · long term · Medium confidence 45-50%
    Long term, we should be able to achieve 45-50% operating margins as we go along and grow the businesses.

    — Vineet Agrawal

Revenue

  • Net Revenue Upside from Pricing Action Revenue · yearly basis · High confidence ₹50-60 crores
    on a yearly basis, at current run rate, it should have about 50 to 60 crores upside on a net basis to us.

    — Ambarish Kenghe

Client Funding Book

  • Client Funding Book Scale Client Funding Book · next few quarters · Medium confidence ₹10,000-₹12,000 crores
    we can easily double this book from where we are today without having to raise any additional capital. And as you would have seen, the gearing ratio for us is pretty low debt equity ratio. So we don't have any challenge there. We can easily raise more funds on the debt side to be able to leverage and fund this book.

    — Vineet Agrawal

Market context

  • Newer Businesses Top Line Contribution Revenue · 3 to 5 years · Medium confidence double digit
    The newer businesses, especially the distribution, the wealth and the asset management businesses, between 3 to 5 years, our estimate, they should contribute double digit to our top line.

    — Vineet Agrawal

What to watch in Q3 FY26

EBDAT Margin Trajectory

Q4 FY26 exit
Current 34.5% (Reported EBDAT margin)
Target On 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.

Risks & concerns

  • Potential SEBI changes to expiry contracts

    high

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

    Analyst deflected

  • Fluid global geopolitical situations and softer market conditions

    medium

    These factors present headwinds for the business.

    Management acknowledged

  • Constructive regulatory evolution

    medium

    The company is prepared for current and future regulatory requirements.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
SEBI changes to expiry contracts Evasive
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

Employee base comparison with peers Partial
Yes. Look, I mean, one is that we don't break these out. We give you sort of the total information. However, we are slightly different businesses, which is what I was saying that -- and long term, we've shown there is a strength to having that business.

Analyst questioned the significantly higher employee count compared to peers, and management attributed it to different business models without providing a detailed breakdown.

Asked by Bhuvnesh Garg

Divergence in MTF book growth and interest income Direct
And that's primarily because almost 45% of the total income that we earn comprises of the interest that we earn from fixed deposits and the balance comes from the MTF. And on that part, on that 45% because the interest rates have declined, so the yields have declined by almost 50 basis points, and therefore, we are seeing a lower income there.

Management explained the reason for lower interest income growth despite strong MTF book growth, attributing it to declining yields on fixed deposits and some moderation in client margins.

Asked by Sanketh Godha

Entry into life insurance business Direct
We have actually been waiting for a while to see if there is a way to give out a product on the life side, which can be end-to-end digitally enabled. ... So we realized that this was one reason that for a very long time, we could not achieve decent penetration in life. And what we have also observed that whenever a digital platform like ours has been able to solve for access, businesses have grown, retail consumers have begun to consume products, which otherwise was not available to them.

Management provided a strategic rationale for entering the life insurance business through a digital-first JV, highlighting the potential for disruption and leveraging their platform for access.

Asked by Shobhit Sharma

Operating Profit Margin (OPM) guidance Direct
On the OPM guidance, yes, we continue to have the same guidance at exit, 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.

Management reiterated its commitment to achieving a 40-45% OPM by Q4 FY26, providing confidence in future profitability.

Asked by Nidhesh

Cash segment realization and pricing action impact Direct
What we have done is that across both delivery as well as intraday, we have made it 0.1% with max of 20 and min of 5. What it will do is that it actually makes just the whole pricing very simple for the consumer. ... on a yearly basis, at current run rate, it should have about 50 to 60 crores upside on a net basis to us.

Management clarified the simplified pricing structure for cash and intraday segments and quantified the expected annual net revenue upside from this action.

Asked by Prayesh Jain

Burn rate of new businesses Direct
So as I've been telling in the past that the burn remains in that range of about 100 crores annual for the two new businesses that we are incubating the asset management and the wealth management business.

Management confirmed the ongoing annual burn rate for its new asset and wealth management businesses, providing clarity on investment in growth verticals.

Asked by Prayesh Jain

YoY revenue decline explanation Direct
So YoY basis, the revenue decline is primarily on 2 fronts. One, there was a lot of buoyancy in the market this time around last year because of the general elections and the overall activity in the market. And two, there was a stream of income that the industry used to earn, which was an arbitrage on the transaction fees, the turnover charges that the exchanges used to levy on the brokers and the brokers used to levy on the client. That became zero from 1st of October last year.

Management provided a clear explanation for the YoY revenue decline, attributing it to a high base from last year's market buoyancy and the elimination of a specific arbitrage income stream.

Asked by Deeya

3 min read 7 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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.
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