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    Angel One

    ANGELONE
    Financial Services·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

    6

    • 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

    2

    • 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

    Single quarter

    08 metrics
    1. 01Total Gross Income$13.4B+11.1%QoQ
    2. 02Total Net Income$10.3B+9.3%QoQ
    3. 03Reported PAT$2.7B+26.9%QoQ
    4. 04Standalone EBITDA Margin (Broking & Distribution)43%
    5. 05Reported EBDAT Margin39.4%

    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 billion Value56.0% QoQ Growth28 billion Annual Run Rate
    Wealth Management (Ionic)
    82 billion AUM34% QoQ Growth
    Asset Management
    4.7 billion AUM
    Mutual Funds
    171 billion AUM2.3 Mn Unique SIPs Registered
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Dividend

    ₹23/share (interim)

    Liquidity

    Cash ₹135.8 billion

    Cash and cash equivalents remained healthy at ₹135.8 billion, supported by higher client balances.

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    Operating Margin (Standalone Broking Business)
    40-45%
    		High
    Finance Costs
    Finance Costs
    lower
    		Medium
    Wealth Management
    Ionic AUM
    double
    		Medium
    Asset Management
    Passive Franchise
    scalable education-led passive franchise
    		Low
    Credit Platform
    Credit Platform Quality
    most trusted high-performance credit platforms
    		Low
    Customer Acquisition Cost
    Customer Acquisition Cost
    flat
    		Medium
    Distribution Income Split
    Direct vs. Assisted Business Split
    75% direct to 25% assisted
    		Medium

    What to watch in Q4 FY26

    4

    Finance Costs Normalization

    By end of Q4 FY26
    Current₹1.3 billion, up 36.4% QoQ due to regulatory upstreaming
    TargetLower, 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

    1
    RiskSeverity

    Regulatory changes impacting finance costs

    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

    medium

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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%.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    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.