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    Angel One

    ANGELONE
    Financial Services·17 Jul 2025
    Management Summary

    Angel One delivered a healthy operational performance in Q1 FY26, marked by robust revenue growth and strong client engagement despite regulatory recalibrations. The company continues to expand its market share in broking, driven by digital-first strategies, and is making significant strides in new verticals like credit, mutual funds, wealth, and asset management, all underpinned by advanced AI/ML capabilities. While IPL-related marketing costs impacted reported margins, normalized profitability remains strong, and management is confident in achieving its OPM targets by Q4 FY26.

    Highlights

    8

    • Gross revenues increased by 8.1% QoQ to ₹11.4 billion.

    • Net revenues grew by 7.3% QoQ to ₹8.9 billion.

    • Reported operating margin was 21.8%, with a normalized operating margin of 34.3%.

    • Reported PAT stood at ₹1.1 billion, while normalized PAT was ₹1.9 billion, up 26% QoQ.

    • Total demat account market share reached 16.3%, with incremental acquisitions market share at 21.7%.

    • Added over 1.5 million clients in Q1 FY26, with 88% from Tier 2, 3 and beyond.

    • Period ending client funding book reached an all-time high of ₹48 billion.

    • AMC AUM stood at over ₹3.4 billion as of June 30, 2025.

    Key financials

    Single quarter

    09 metrics
    1. 01Gross Revenues₹1,140 Cr+8.1%QoQ
    2. 02Net Revenues₹890 Cr+7.3%QoQ
    3. 03Gross Broking Income₹690 Cr+9.1%QoQ
    4. 04Net Broking Income₹530 Cr+7.3%QoQ
    5. 05Total Interest Income₹360 Cr+5.5%QoQ

    Segment breakdown

    F&O Segment
    45% Share of Total Revenue
    Cash Segment
    10% Share of Total Revenue
    Commodity Derivatives
    6% Share of Total Revenue
    Interest Income (Client Funding & Deposits)
    31% Share of Total Revenue
    Direct Business (Net Broking)
    76% Share of Net Broking Revenue
    Distribution Business (Credit, Insurance, IPOs)
    3% Share of Total Revenue
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Consolidated net worth was at ₹55.7 billion as of June 30, 2025. Period ending client funding book stood at ₹48 billion, supported by incremental borrowings, which increased by ₹1.9 billion sequentially.

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    Operating Margin (OPM)
    40-45%
    		High
    Revenue
    Revenue Growth
    7-8%
    		High
    Cost
    Overall Operating Cost Growth
    2-3%
    		High
    Market Share
    Total Demat Account Market Share
    16.3%
    		High
    Market Share
    Incremental Acquisitions Market Share
    21.7%
    		High
    Cost Efficiency
    LTV to CAC
    around 6x
    		Low
    ESOP Expense
    Full Year ESOP Cost
    ₹2.1 billion
    		High
    ESOP Expense
    Quarterly ESOP Cost
    ₹55-odd crores
    		High

    Operating Margin (OPM)

    next quarter (Q2 FY26) and subsequent quarters leading to Q4 FY26
    Current21.8% (reported), 34.3% (normalized)
    TargetProgress towards 40-45%

    Why it matters

    Key indicator of profitability and efficiency, management has set a clear target for Q4 FY26.

    So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform. ... If at all, revenue justifies cost and we are able to see that, okay, that will result in OPM 40-45%.

    How to verify

    key_financials.metrics[label='Normalized Operating Margin']

    Risks & concerns

    6
    RiskSeverity

    Regulatory recalibration in the broking industry

    The regulatory recalibration over the last few quarters has made the ecosystem all the more robust. While the near-term fluctuations are inevitable, we see this as essential groundwork for sustainable long-term growth. — Management acknowledged

    medium

    Market cycles and volatility

    The broking industry navigates a complex yet promising phase, having witnessed multiple peaks and troughs, which has only strengthened conviction in its long-term growth potential. — Management acknowledged

    medium

    Impact of new business incubation on margins

    The margin impact of these new businesses in the short term till they become profitable will be around 2%, potentially varying between 2-2.5% depending on quarterly performance. — Management acknowledged

    medium

    Competitive intensity in margin trading

    Management does not currently see competitive pressure in margin funding, expecting market momentum and FII inflows to be tailwinds. — Analyst downplayed

    low

    Potential SEBI actions on F&O segment

    Management stated they have not heard of any new communications or changes from SEBI regarding the F&O segment beyond what is already in the news. — Analyst not addressed

    low

    Regulatory risk for high option trading volumes

    Management views high option trading as youth leveraging the market, expecting them to eventually move to long-term investments, and does not see it as a concerning structural issue. — Analyst downplayed

    low

    Q&A highlights

    8

    “So in terms of current trend on order and revenue, you can see in this quarter, already we have seen growth of around -- in terms of revenue around 7% to 8%. So what we saw that, okay, if you see that FIIs were absent for like last year third quarter and fourth quarter and this first quarter, for first 2 months, they were positive and they had a positive inflow. And we can clearly see an impact of like momentum in the market and FIIs has strong correlation between retail activity and their orders. ... So we believe as this macro will improve and FIIs and retail will come back, we will see some kind of like good earning momentum and all that, we are very hopeful that we will be able to exit quarter 4 with a decent visibility on OPM that we were speaking about. So we are confident that our OPM is going to return back to normal by exit of quarter 4, looking at the trend of customer acquisition and looking at activity of customers, which is increasing on our platform.”

    Comprehensive question covering multiple key operational and financial metrics, with management providing outlook on OPM and market correlation.

    asked by Swarnabha Mukherjee

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance Overview

    Angel One reported a robust financial performance in Q1 FY26. Gross revenues increased by 8.1% quarter-on-quarter to ₹11.4 billion, while net revenues grew by 7.3% QoQ to ₹8.9 billion. Gross broking income saw a 9.1% QoQ increase to ₹6.9 billion, with net broking income rising 7.3% QoQ to ₹5.3 billion. Total interest income also grew by 5.5% QoQ to ₹3.6 billion. Despite IPL-related marketing spends, the normalized operating margin stood at a healthy 34.3%, leading to a normalized PAT of ₹1.9 billion, up 26% QoQ.

    02

    Broking Business & Market Share Expansion

    The company maintained its leadership in the broking segment, achieving a total demat account market share of 16.3% and an incremental acquisitions market share of 21.7%. Angel One added over 1.5 million clients in Q1 FY26, with a significant 88% originating from Tier 2, 3, and beyond cities, showcasing the power of its digital-first strategy. The period ending client funding book reached an all-time high of ₹48 billion, indicating strong client confidence and platform stickiness. The direct business contributed a steady 76% to net broking revenue.

    03

    Growth in New Business Verticals

    Angel One's non-broking verticals demonstrated strong growth. The company added over 1.9 million new SIPs in the quarter and facilitated credit disbursals of ₹2.3 billion, bringing cumulative disbursals to over ₹9.3 billion within a year of launch. The distribution business, primarily driven by insurance, credit products, and IPOs, contributed 3% to the total revenue. Mutual funds are becoming a habit for many Indians, and Angel One is the second-largest contributor in new SIP registrations.

    04

    Wealth & Asset Management Progress

    Ionic Wealth, the company's wealth management arm, continues to expand its client base, now serving over 1,000 clients as of June 2025. The asset management business is also progressing well, with AUM standing at over ₹3.4 billion as of June 30, 2025. The AMC has launched 5 products across equity and fixed income, including passive products like the Angel One Nifty Total Market Index Fund and Angel One Nifty 50 Index Fund, aiming to democratize wealth creation across Bharat.

    05

    Technology & AI Integration for Enhanced Experience

    Technology, AI, and machine learning are core to Angel One's strategy. The company processes billions of signals daily, converting them into personalized nudges, sharper risk insights, and predictive engagement. AI-powered nudges help clients make better financial decisions, while predictive models strengthen risk and fraud detection. Agentic AI is being developed to automate workflows, improving speed, accuracy, and cost efficiency. This intelligence is embedded across the client life cycle to enhance retention, engagement, and lifetime value.

    06

    Capital Allocation & Costs

    Angel One continued to invest in brand building, notably through its IPL associate sponsorship, which resulted in IPL and associated media spends of ₹1.1 billion in Q1 FY26, compared to ₹344 million in the previous quarter. Excluding these IPL costs, underlying operating expenses declined by 9.9% QoQ. The company also made fresh grants of stock options, with the estimated full-year cost for FY26 being ₹2.1 billion, and approximately ₹55 crores expected for each of the next three quarters. These investments are strategic for attracting and retaining top talent and supporting long-term growth.

    07

    Market Outlook & Long-Term Strategy

    Management expressed strong bullishness on India's growth story, particularly the untapped potential in Tier 2 and Tier 3 cities, where 88% of new clients originate. They believe technology is the key to serving these aspirations at scale. The company's vision is to build a truly digital platform that serves every financial need across clients' life cycles, from investing and borrowing to protecting and planning. Angel One aims to be India's most trusted fintech brand, empowering a billion lives by leveraging data and technology.

    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.