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    Angel One

    ANGELONE
    Financial Services·16 Jan 2026
    Management Summary

    Angel One delivered strong financial performance in Q3 FY26, marked by double-digit sequential growth in gross income, net income, and PAT. The company's stand-alone EBITDA margin reached 43%, driven by a diversified revenue mix and disciplined cost management. Key business segments like client funding, credit disbursements, and wealth management AUM showed robust growth, reinforcing the company's technology-led financial services platform strategy.

    Highlights

    8

    • Gross income increased 11.1% QoQ to approximately ₹13.4 billion.

    • Net income grew 9.3% QoQ to ₹10.3 billion.

    • Profit after tax (PAT) rose 26.9% QoQ to ₹2.7 billion.

    • Stand-alone EBITDA margin improved to 43% for broking and distribution.

    • Client funding book grew 10.4% sequentially to ₹58.6 billion.

    • Credit disbursements reached ₹7.1 billion, up 56% QoQ.

    • Ionic's Wealth AUM crossed ₹82 billion, growing 34% QoQ.

    • Declared an interim dividend of ₹3 per share and announced a 1:10 stock split.

    Key financials

    Single quarter

    06 metrics
    1. 01Gross Income13,400 Mn+11.1%QoQ
    2. 02Net Income10,300 Mn+9.3%QoQ
    3. 03PAT2,700 Mn+26.9%QoQ
    4. 04Stand-alone EBITDA Margin43%
    5. 05Client Funding Book58,600 Mn+10.4%QoQ

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Debt

    Gross ₹59,700 million

    Dividend

    ₹3/share (interim)

    Liquidity

    Cash ₹1,35,800 million

    Cash and cash equivalents remained healthy at ₹135.8 billion, supported by higher client balances. We continue to maintain strong liquidity buffers and conservative leverage, providing flexibility to support growth while managing regulatory changes.

    Guidance & targets

    8
    CategoryTargetPriority
    Operating Margin
    Stand-alone operating margin for broking business
    40-45%
    		High
    New Business Burn Rate
    Burn rate for asset management and wealth management businesses
    3-3.5%
    		High
    Pricing
    Pricing per order changes
    No thought on more pricing changes
    		High
    AMC Strategy
    Focus of Asset Management Company
    Passive side
    		High
    Commodity Market Share
    Commodity market share trend
    Drop stabilizing, continued growth expected
    		Medium
    Fixed Costs
    Fixed costs trajectory
    Don't expect fixed costs to go up
    		High
    Customer Acquisition Cost
    Customer acquisition cost trend
    Generally flat
    		High
    Credit Business Strategy
    Consideration of NBFC license/own balance sheet
    Will consider as new opportunities come
    		Medium

    Resolution of Regulatory Finance Costs

    by the end of this quarter (Q4 FY26)
    CurrentFinance costs increased 36.4% QoQ due to regulatory upstreaming of client margins.
    TargetDecline in borrowings and finance costs post software update.

    Why it matters

    This will indicate if the temporary regulatory impact on finance costs has been successfully mitigated, improving profitability.

    As I mentioned, it's something which is transient📎 in nature because there is a software update that is going to happen in some time, which will help us segregate and then not upstream this amount. And therefore, by the -- hopefully, by the end of this quarter, we see a decline in the borrowings and therefore, the finance cost.

    How to verify

    capital_allocation.debt.gross_debt

    Risks & concerns

    3
    RiskSeverity

    Regulatory Impact on Finance Costs

    New SEBI regulations requiring upstreaming of client margins led to a temporary 36.4% sequential increase in finance costs to ₹1.3 billion, impacting EBDAT by ₹70 million. Management expects this to be transient and resolved by a software update by quarter-end. — Management acknowledged

    medium

    Revenue Realization Lag in Wealth Management

    Due to regulations, there is a lag in revenue realization from AUM movement in wealth management, despite significant AUM growth. Management acknowledges this as an inherent aspect of the business. — Management acknowledged

    low

    Competitive Pressure in MTF Pricing

    Analysts noted divergence in MTF pricing in the industry. Management maintains their simple pricing is optimal, viewing MTF as an integral part of the client's broking journey rather than a standalone product. — Analyst downplayed

    medium

    Q&A highlights

    8

    “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 difference in reported financials due to investments in new, long-gestation businesses.

    asked by Prayesh Jain

    2 min read7 chapters

    Detailed Narrative

    01

    Strong Q3 FY26 Financial Performance

    Angel One reported a robust Q3 FY26, with total gross income increasing 11.1% quarter-on-quarter to approximately ₹13.4 billion. Total net income grew 9.3% sequentially to ₹10.3 billion, and profit after tax (PAT) saw a significant 26.9% quarter-on-quarter increase, reaching ₹2.7 billion. The stand-alone EBITDA margin for broking and distribution improved to 43%, with the overall EBDAT margin expanding to 39.4%, a sequential improvement of 489 basis points.

    02

    Diversified Revenue Mix

    The company continued to diversify its revenue streams, with the share of gross broking income declining to 58.1% in Q3 FY26 from 64.7% in Q3 FY25. Interest income, including from the client funding book, increased its contribution to 33.0% (up from 27.6% YoY), while distribution income grew to 4.3% (from 2.4% YoY). Commodity broking income showed strong momentum, growing 46.2% year-on-year to ₹821 million and contributing 6.1% to total gross income.

    03

    Robust Client & Asset Growth

    Angel One's client funding book reached a new high of ₹58.6 billion, growing 10.4% sequentially, with the period-end book at ₹59.2 billion. Credit disbursements surged 56% quarter-on-quarter to ₹7.1 billion, translating into an annual run rate of ₹28 billion. Wealth management AUM for Ionic crossed ₹82 billion, a 34% QoQ growth, while the asset management business AUM stood at ₹4.7 billion. Mutual fund AUM grew to ₹171 billion with 2.3 million unique SIPs registered.

    04

    Strategic Technology & AI Adoption

    The company emphasized its technology-led approach, with AI being central to driving growth and efficiency. Initiatives include an in-house Data Analyst Agent for conversational analytics and adopting agentic AI in the software development lifecycle. Management noted that 37% of their codebase is AI-generated, enabling faster build cycles and iteration, aiming to build fundamentally better products.

    05

    Regulatory Impact 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 transient📎 impact resulted in a ₹70 million cost on EBDAT. Management expects a software update to resolve this by the end of the quarter, leading to a decline in borrowings and finance costs.

    06

    Long-Term Vision & Growth Drivers

    Angel One reiterated its strategy to build a technology-led financial services platform, leveraging India's financialization journey, a young digital native population, and a stable policy environment. The company aims to deepen trust, enable scalable platform-led monetization, and expand clients' lifetime value across investing, credit, wealth, and protection, fostering a compounding growth engine.

    07

    Shareholder Returns

    The Board approved an interim dividend of ₹3 per share, reflecting confidence in the company's performance. Additionally, a stock split of 1:10 was announced, which aims to improve liquidity and accessibility for investors. These actions underscore the company's commitment to delivering value to its shareholders.

    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.