This article first appeared on GuruFocus .
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Gross Revenue:INR12 billion, a 5.3% increase quarter-on-quarter.
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Net Revenue:INR9.4 billion, a 5.6% increase quarter-on-quarter.
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Net Broking Income:INR5.5 billion, a 5.4% increase quarter-on-quarter.
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Client Funding Book:Averaged INR53 billion, up 26.1% quarter-on-quarter.
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Total Interest Income:INR3.8 billion, a 6.5% increase quarter-on-quarter.
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Finance Cost:INR932 million, a 12.4% increase quarter-on-quarter.
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Net Interest Income:Nearly INR2.9 billion, a 4.6% increase quarter-on-quarter.
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Distribution Income Growth:Nearly 28% increase during the quarter.
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EBITDA Margin:34.5%, higher by 1,270 basis points over Q1 FY26.
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Reported Profit After Tax:INR2.1 billion, an 85% increase quarter-on-quarter.
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Normalized Profit After Tax:10.1% increase quarter-on-quarter.
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Net Worth:INR58.3 billion as of September 30, 2025.
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Warning! GuruFocus has detected 8 Warning Signs with BOM:543235.
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Is BOM:543235 fairly valued? Test your thesis with our free DCF calculator.
Release Date: October 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Angel One Ltd ( BOM:543235 ) reported a 5.3% quarter-on-quarter increase in gross revenues, reaching INR12 billion.
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The company's client base expanded to over 34 million, with a 12.2% sequential increase in new clients.
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Angel One's demat market share rose to 16.5%, and retail equity turnover market share increased by 71 basis points to 20.5%.
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The company launched an AI-powered chatbot, Ask Angel, which has improved query resolution efficiency, reducing resolution time by 67% for 95% of cases.
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Angel One's asset management business has shown strong growth, with AUM increasing from INR8,700 crore to over INR15,000 crore.
Negative Points
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The cash segment realizations dipped, and there was a pricing action taken, which may impact future performance.
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The company's finance cost increased by 12.4% quarter-on-quarter due to higher borrowings to finance the client funding book.
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Income from depository operations decreased by 4.3% due to lower volumes.
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The company's other expenses decreased by 19.2% quarter-on-quarter, primarily due to the absence of IPL-related expenses, indicating reliance on external events for cost management.
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Angel One's new businesses, such as asset management and wealth management, are still in the incubation phase and are expected to take several years to become profitable.
Q & A Highlights
Q: Can you explain the pricing action taken on the cash segment and its impact on realizations? A: R. Ambarish Kenghe, Group CEO, explained that the pricing change was made to simplify the structure for consumers. Both delivery and intraday transactions are now priced at 0.1% with a maximum of 20% and a minimum of 5%. This simplification is expected to make the pricing more consumer-friendly.
Q: What is the guidance on operating profit margins for Q4, and how does it relate to the wealth management business? A: R. Ambarish Kenghe, Group CEO, confirmed the guidance of achieving a 40%-45% operating profit margin by the end of Q4. He noted that the wealth management business is being built separately but will eventually offer solutions to existing Angel One clients, enhancing the overall client offering.
Q: How does Angel One plan to achieve the 40%-45% operating margin target given the current customer acquisition costs? A: Arief Mohamad, Chief Business Officer - Direct Business, stated that customer acquisition costs are seen as an investment in acquiring the right customers. The company is confident that the quality of clients acquired justifies the spend, and revenue growth along with cost efficiencies will help achieve the margin target.
Q: What is the expected impact of the price increase on revenue, and how does it affect cash realization? A: R. Ambarish Kenghe, Group CEO, mentioned that the price increase is expected to result in an annual upside of INR50 crore to INR60 crore on a net basis. Vineet Agrawal, CFO, added that cash realization can vary based on market factors, and no specific details were provided beyond this.
Q: How does Angel One plan to leverage its platform for the new life insurance joint venture? A: Amit Majumdar, Group Chief Strategy Officer, explained that the joint venture will focus on co-creating digital-first life insurance products with the partner, LivWell Holding Company. Angel One will distribute these products through its platform, aiming to enhance access and penetration in the life insurance market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
