Angel One — Q3 FY26 earnings call

Call held 16 Jan 2026

Management summary

Angel One delivered strong Q3 FY26 results with significant sequential growth in gross income and profit after tax, driven by diversified revenue streams and improved operating efficiency. The standalone EBITDA margin expanded to 43%, and key segments like commodities and client funding showed robust growth. The company also announced an interim dividend and a stock split, while addressing transient increases in finance costs due to regulatory changes.

Highlights

  • Total gross income increased 11.1% QoQ to ₹13.4 billion, reflecting growth across multiple revenue streams.

  • Reported profit after tax increased 26.9% QoQ to ₹2.7 billion, driven by revenue diversification and cost discipline.

  • Standalone EBITDA margin for broking and distribution improved to 43%, underscoring strong operating model.

  • Commodity ADTO reached a record ₹1.7 trillion, growing 43% QoQ and 169% YoY, indicating robust market expansion.

  • Client funding book grew 10.4% sequentially to ₹58.6 billion, reflecting rising client confidence and deeper wallet share.

  • The Board approved an interim dividend of ₹23 per share and a 1:10 stock split, enhancing shareholder returns and stock accessibility.

Concerns

  • Finance costs increased 36.4% sequentially to ₹1.3 billion, primarily due to regulatory changes requiring upstreaming of client cash margins, though management expects this to be transient.

  • Commodity turnover market share reduced from 65% in Q2 to 53% in Q3, attributed by management to overall market expansion rather than absolute volume loss.

Key financials

  1. Total Gross Income 13.4 Bn +11.1%QoQ
  2. Total Net Income 10.3 Bn +9.3%QoQ
  3. Reported PAT 2.7 Bn +26.9%QoQ
  4. Standalone EBITDA Margin (Broking & Distribution) 43%
  5. Reported EBDAT Margin 39.4%
  6. Average Client Funding Book 58.6 Bn +10.4%QoQ
  7. Finance Costs 1.3 Bn +36.4%QoQ
  8. Cash & Cash Equivalents 135.8 Bn

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

  • Broking (Gross Income Share)
    58.1% Share
  • Interest Income (Gross Income Share)
    33% Share
  • Distribution Income (Gross Income Share)
    4.3% Share
  • F&O (Total Gross Income Share)
    44.3% Share
  • Commodity Gross Broking Income
    821 Mn Value46.2% YoY Growth6.1% Contribution to Total Gross Income
  • Credit Disbursements
    7.1 Bn Value56% QoQ Growth28 Bn Annual Run Rate
  • Wealth Management (Ionic)
    82 Bn AUM34% QoQ Growth
  • Asset Management
    4.7 Bn AUM
  • Mutual Funds
    171 Bn AUM2.3 Mn Unique SIPs Registered

Capital allocation

high confidence
  • Dividend ₹23/share (interim)
    The Board has also approved our first interim dividend of ₹23 per share and a stock split of 1:10.
  • Liquidity Cash ₹135.8 Bn Cash and cash equivalents remained healthy at ₹135.8 billion, supported by higher client balances.
    Cash and cash equivalents remained healthy at 135.8 billion, supported by higher client balances.

Guidance & targets

Profitability

  • Operating Margin (Standalone Broking Business) Profitability · annual basis · High confidence 40-45%
    continue to guide the our stakeholders about operating margin of about 45%, 40-45% for the broking business, which we will continue to endeavour to obtain.

    — Vineet Agrawal

Finance Costs

  • Finance Costs Finance Costs · by the end of this quarter · Medium confidence lower
    But by -- hopefully, by the end of the quarter, we will have a more realistic number, which is going to be lower.

    — Vineet Agrawal

Wealth Management

  • Ionic AUM Wealth Management · coming year · Medium confidence double
    Our focus in the coming year will be to double down on our early omnichannel successes, while we actively engaged to activate Angel One HNI investor base with portfolio management being digitally facilitated through Ionic.

    — Srikanth Subramanian

Asset Management

  • Passive Franchise Asset Management · over time · Low confidence scalable education-led passive franchise
    As we look ahead, we remain focused on building a scalable education-led passive franchise that compounds steadily over time.

    — Hemen Bhatia

Credit Platform

  • Credit Platform Quality Credit Platform · long-term · Low confidence most trusted high-performance credit platforms
    To build one of the most trusted high-performance credit platforms in the country with strong unit economics and defensible differentiation.

    — Saurabh Agarwal

Customer Acquisition Cost

  • Customer Acquisition Cost Customer Acquisition Cost · generally · Medium confidence flat
    On the customer acquisition side, I think we don't -- you should just -- there's no specific guidance we can give on it. You can generally take it as flat where it is.

    — Ambarish Kenghe

Distribution Income Split

  • Direct vs. Assisted Business Split Distribution Income Split · for now · Medium confidence 75% direct to 25% assisted
    But overall, it will be in that same ballpark of the broking business, which is roughly 75 is to 25. For now, you can take that.

    — Vineet Agrawal

What to watch in Q4 FY26

Finance Costs Normalization

By end of Q4 FY26
Current ₹1.3 billion, up 36.4% QoQ due to regulatory upstreaming
Target Lower, more realistic number

Why it matters

Management stated the increase is transient and costs are expected to reduce, which will directly impact profitability.

But by -- hopefully, by the end of the quarter, we will have a more realistic number, which is going to be lower.

Risks & concerns

  • Regulatory changes impacting finance costs

    medium

    A regulatory change effective October 1, 2025, requiring the upstreaming of client cash margins, led to a 36.4% sequential increase in finance costs, though management expects this to be transient and resolved by quarter-end.

    Management acknowledged

Q&A highlights

6 direct
Gap between consolidated and standalone financials Direct
So as we have been mentioning in the past, there is a burn of incubating the newer businesses, the asset management and the wealth management businesses, which is in the range of about 3-3.5% of the operating margin, and that's the gap.

Clarifies the impact of new business investments on the reported operating margin difference between consolidated and standalone results.

Asked by Prayesh Jain

Revenue realization lag in Wealth Management despite AUM growth Direct
As you would be aware, while the AUM continues to build up, there is a lag in the revenue realization because of the regulations where you cannot realize revenue on the movement of the AUM up to a certain point in time.

Explains why strong AUM growth in wealth management is not immediately translating into proportional revenue, indicating future revenue potential.

Asked by Prayesh Jain

Future pricing changes for orders Direct
Look, we have as all of us have said, we are operating at a fairly healthy margin. We are focused on building a great product and serving our customers. So there is no thought on more pricing changes.

Provides clarity on the company's pricing strategy, indicating no immediate plans for further price hikes, which impacts revenue per order.

Asked by Nidhesh

Increase in finance costs due to regulatory changes Direct
But the majority of it, as I mentioned in my opening remarks, is due to the regulation, which came into effect from 1st October for the industry, wherein the upstream of client funds is required.

Explains the primary reason for the sequential increase in finance costs, attributing it to a transient regulatory change rather than a structural issue.

Asked by Sanketh Godha

Expected duration of elevated finance costs Direct
This -- for some period during the quarter, it will continue. But by -- hopefully, by the end of the quarter, we will have a more realistic number, which is going to be lower.

Provides a timeline for when the elevated finance costs are expected to normalize, offering visibility on future profitability.

Asked by Sanketh Godha

Decline in commodity turnover market share Direct
So what is happening is that there is a tremendous growth in the commodity market and the market is expanding. So what you're seeing is that the pie is expanding quite rapidly.

Clarifies that the market share decline is due to the overall expansion of the commodity market, rather than a loss of absolute volume or competitiveness.

Asked by Devansh Tandon

Plans for NBFC license for credit business Partial
As of now, we are doing the distribution play only, but we are building capabilities to build it into a full-fledged platform play over time where we can get much more credit for what we are doing for our partners over time. And as and when newer opportunities come, we'll think of doing things on our own balance sheet or not over time.

Indicates a potential future strategic shift towards an own balance sheet for the credit business, which could significantly impact its risk profile and margin structure.

Asked by Jayshree Bajaj

MTF book scale-up and funding avenues Partial
RBI has circulated the draft circular where they have taken a step forward in terms of enabling banks to offer lending towards margin trading funding, that is something which is still in works.

Highlights potential new funding avenues for the MTF book from banks, which could support substantial growth and diversification of borrowing sources.

Asked by Abhishek Wagadre

2 min read 6 chapters

Detailed narrative

Strong Financial Performance and Margin Expansion

Angel One reported a robust Q3 FY26, with total gross income increasing 11.1% QoQ to ₹13.4 billion and total net income growing 9.3% sequentially to ₹10.3 billion. This performance led to a significant 26.9% QoQ increase in profit after tax to ₹2.7 billion. The standalone EBITDA margin for broking and distribution expanded to a healthy 43%, underscoring strong operational efficiency and cost discipline, with the reported EBDAT margin improving by 489 basis points sequentially to 39.4%.

Diversified Revenue Streams and Business Growth

The company's revenue mix continued to diversify, with the share of gross broking income declining to 58.1% in Q3 FY26 from 64.7% in Q3 FY25. Conversely, interest income's share rose to 33.0% from 27.6%, and distribution income increased to 4.3% from 2.4%. The commodities segment achieved its highest-ever order volume of 35 million and ADTO of ₹1.7 trillion, with QoQ growth of 21% and 43% respectively. Credit disbursements saw a substantial 56% QoQ increase to ₹7.1 billion, translating to an annual run rate of ₹28 billion.

Wealth and Asset Management Traction

The Wealth Management arm, Ionic, demonstrated strong growth, with AUM crossing ₹82 billion, a 34% QoQ increase, and serving over 1,600 clients across 10 cities. The Asset Management business also scaled steadily, reaching an AUM of ₹4.7 billion across 1.9 lakh folios in over 16.9 thousand PIN codes. Management emphasized that these are long gestation businesses, with a focus on building a scalable education-led passive franchise and integrating wealth platforms into the Super App.

Impact of Regulatory Changes on Finance Costs

Finance costs increased 36.4% sequentially to ₹1.3 billion, primarily due to a regulatory change effective October 1, 2025, requiring the upstreaming of client cash margins. This resulted in a ₹70 million impact on EBDAT for the quarter. Management clarified this is a transient issue, not a permanent feature, and expects a resolution by the end of the current quarter (Q4 FY26) that will lead to a reduction in these costs.

Strategic Focus on Technology and AI

Angel One continues to invest heavily in technology and AI to drive growth and efficiency. Currently, 37% of its code base is AI-generated, enabling faster build cycles and iteration. Recent initiatives include an AI-powered conversational analytics tool for data insights and the adoption of agentic AI across the software development lifecycle. This focus aims to enhance productivity, operating efficiency, and build fundamentally better products across its financial services platform.

Shareholder Returns and Stock Split

The Board approved a first interim dividend of ₹23 per share and a stock split of 1:10. This move is intended to enhance liquidity and accessibility of the stock for a broader investor base, reflecting management's confidence in the company's performance and future prospects. The company's net worth strengthened to ₹61.5 billion as of December 31, 2025, supported by healthy cash and cash equivalents of ₹135.8 billion.

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