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    Angel One

    ANGELONE
    Financial Services·17 Apr 2026
    Management Summary

    Angel One delivered a strong Q4 FY26, marked by significant sequential growth in gross income, net income, and profitability, driven by its core broking franchise and expanding market share. The company demonstrated robust operational efficiency with improved EBDAT margins and continued growth in emerging businesses like Ionic Wealth. Strategic capital infusions are planned for wealth management and NBFC, while navigating market volatility and a one-time client reimbursement.

    Highlights

    5

    • Gross income increased 9.7% sequentially to ₹14.7 billion, driven by strong client participation and trading intensity.

    • Profit after tax grew 19.2% sequentially to ₹3.2 billion, reflecting robust operational performance.

    • Normalized EBDAT margin improved significantly by 498 basis points sequentially to 44.4%, reinforcing platform scalability.

    • Retail equity turnover share expanded by 46 bps YoY to 20.4%, and demat market share increased by 54 bps YoY to 16.7%.

    • Ionic Wealth AUM crossed ₹100 billion, growing 23% QoQ and 2x over the last 12 months, with a proposed capital infusion of up to ₹1.5 billion.

    Concerns

    3

    • A one-time reimbursement of ₹192 million to clients due to an external market infrastructure disruption impacted costs.

    • AMC AUM was lower sequentially at ₹3.6 billion, impacted by softer market conditions and liquid fund redemptions.

    • Cash segment realization dropped sequentially by 4.6% and market share declined 117 bps QoQ, partly due to March market conditions.

    Key financials

    Single quarter

    06 metrics
    1. 01Gross Income₹14,700 Cr+9.7%QoQ
    2. 02Net Income₹11,300 Cr+10.4%QoQ
    3. 03Profit After Tax₹3,200 Cr+19.2%QoQ
    4. 04EBDAT Margin41.7%
    5. 05Normalized EBDAT Margin44.4%

    Segment breakdown

    Broking
    60.7% Share of Total Gross Income15.8% Commodity Broking Income Growth16.1% F&O Revenues Growth0.046 sequential Cash Segment Growth20.4% Retail Equity Turnover Share16.7% Demat Market Share51 bps F&O Premium Market Share Growth77 bps F&O Premium Market Share Growth100 bps Commodity Market Share Growth
    Credit
    ₹2,710 Cr Cumulative Disbursements₹610 Cr Disbursements During Quarter1,00,000 count Number of Credit Customers
    Wealth Management (Ionic Wealth)
    ₹10,000 Cr AUM23% AUM Growth2x AUM Growth (last 12 months)
    AMC
    ₹360 Cr AUM2,46,000 count Folio Count28.0% Folio Count Growth
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Cash ₹16,560 crores

    Client funding book at ₹54.5 billion and net worth of ₹61.5 billion provide ample liquidity and financial flexibility. The company also proposed a capital infusion of up to ₹1.5 billion each into its wealth management business and NBFC platform.

    Guidance & targets

    7
    CategoryTargetPriority
    Headcount
    Employee Cost (including ESOP)
    within the same range of ₹11 billion
    		High
    Headcount
    Employee Cost Growth
    not going to rise
    		High
    Margin
    Broking and Distribution Margin
    higher than 45%
    		Medium
    Margin
    Operating Margin Drag from Newer Businesses
    2.5% to 3%
    		High
    Profitability
    Wealth Business Breakeven
    breakeven
    		High
    Other
    Cost of Acquisition (CAC)
    remain in similar levels
    		Medium
    Tax
    Tax Rate
    25% to 26% of PBT
    		Medium

    Employee Cost (including ESOP)

    FY27
    Current~₹11 billion (FY26)
    TargetRemain within FY26 range

    Why it matters

    Confirms cost control and operating leverage in a key expense area.

    Yes. So, Swarnabha, on the employee cost, we will likely be within the same range of the FY 2026 number, which is about 11 billion, including the ESOP cost.

    How to verify

    guidance_and_targets[category='Headcount'][metric='Employee Cost']

    Risks & concerns

    5
    RiskSeverity

    Geopolitical events, global trade tariffs, ongoing wars, F&O regulations

    These factors contributed to a softer macro backdrop, but the business demonstrated resilience. — Management acknowledged

    medium

    RBI directions on banks' capital market exposures

    Expected to have limited operational impact due to existing funding structures and collateral framework. — Management downplayed

    low

    Market volatility impacting client behavior

    Volatile markets, like in March, lead to fewer users on the platform, though active users tend to be higher-end. — Management acknowledged

    medium

    Softer market conditions impacting AMC AUM

    AMC AUM was lower sequentially due to softer market conditions and redemptions in liquid funds. — Management acknowledged

    low

    Inflationary pressures and interest rates impacting MTF yields

    Interest rates are hard to predict, and management prefers not to venture into specific predictions for MTF yields. — Analyst acknowledged

    low

    Q&A highlights

    8

    “On the NSE active, like you rightly said, it's a 12-month metric. So there is a lot that goes in in terms of sort of what was happening 12 months back, which reflects potentially in the number that you see today. Of course, the last year has been quite tumultuous. And what you're starting to see now, you're starting to see actually the industry add, starting to add net clients at NSE active clients, which was not the case for a few months.”

    Addresses a key investor concern about client engagement metrics despite higher trading activity, indicating a lag in reported metrics and industry-wide challenges.

    asked by Swarnabh Mukherjee

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q4 FY26 Performance Driven by Core Broking

    Angel One reported a robust Q4 FY26, with gross income growing 9.7% QoQ to ₹14.7 billion and net income increasing 10.4% QoQ to ₹11.3 billion. Orders executed rose 13.3% sequentially to 431 million, with average daily orders reaching 7.4 million in March '26. The core broking franchise was a primary driver, contributing 60.7% of total gross income, with commodity broking income up 15.8% and F&O revenues up 16.1% QoQ.

    02

    Market Share Gains and Operational Efficiency

    The company expanded its retail equity turnover share by 46 bps YoY to 20.4% and strengthened its demat market share by 54 bps YoY to 16.7%. Operational efficiency was evident with EBDAT margin expanding 227 bps QoQ to 41.7%, and normalized EBDAT margin improving 498 bps QoQ to 44.4%. This strong performance translated into a 19.2% sequential increase in profit after tax to ₹3.2 billion.

    03

    Growth in Emerging Businesses and AI Integration

    Emerging businesses continued to scale with discipline. Ionic Wealth's AUM grew 23% QoQ to ₹100 billion, achieving 2x growth over the last 12 months. The AMC business saw a 28% QoQ increase in folio count to 246,000, despite a sequential dip in AUM to ₹3.6 billion. Angel One is also transitioning to an AI-native platform, with Ask Angel evolving into a conversational AI assistant and over 50% of development augmented by AI, enhancing client experience and internal workflows.

    04

    Strategic Capital Infusion and Credit Business Expansion

    To support future growth, Angel One plans to infuse up to ₹1.5 billion each into its wealth management business and NBFC platform. The NBFC will focus on Loan Against Securities (LAS) products, leveraging existing client assets and digital disbursal capabilities. The credit business saw cumulative disbursements of ₹27.1 billion, with ₹6.1 billion disbursed in Q4, and management noted significant headroom for growth given its large KYC base of 3.5-3.7 crore clients.

    05

    Navigating Regulatory and Market Headwinds

    The company acknowledged a softer macro backdrop due to geopolitical events and F&O regulations, which caused some market volatility🌐 and impacted client behavior in March. Despite these challenges, management expressed confidence in the business's resilience and long-term growth opportunity in India's underpenetrated financial services market, supported by a balanced regulatory framework. RBI directions on banks' capital market exposures are expected to have limited operational impact.

    06

    Cost Management and Future Outlook

    Employee costs for FY27 are expected to remain within the FY26 range of approximately ₹11 billion, including ESOP costs, reflecting continued cost discipline. Management anticipates further margin expansion beyond 45% for broking and distribution, while the operating margin drag from newer businesses is expected to be in the range of 2.5% to 3% for the current year. The wealth business is targeted to achieve breakeven within 3-3.5 years, and the tax rate is expected to normalize📎 to 25-26% of PBT in the future.

    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.