Revenue Up from Last Quarter, But Still Below Last Year
Angel One reported revenue of ₹1,143.1 Cr in Q1 FY26, which is down 18.9% compared to the same time last year. This drop was mainly due to lower F&O trading volumes. However, compared to the previous quarter, revenue grew by 8%, showing early signs of recovery. The company is trying to reduce its heavy dependence on F&O and focus more on direct clients, which now make up 76% of total revenue.
Profit Falls, But Management Optimistic for FY26 End
Net profit dropped 60.9% YoY to ₹114.5 Cr because of high costs for marketing, staff, and ESOPs. Operating margin also fell to 21.8%, far below the company’s goal of 40–45%. Management believes margins will improve by Q4 FY26, as big spending like IPL promotions will end and new business units grow. ESOP expenses are expected to total ₹210 Cr for the full year.
Client Base Stable, Growth from Small Towns
The number of active NSE clients dropped slightly to 73 lakh, down from 76 lakh in Q4. However, the company added 15 lakh new clients in Q1, bringing total users to 3.2 Cr. Most of these new clients (88%) came from Tier II and III cities. Angel’s share of NSE clients held steady at 15.2%, while its demat account share rose to 21.6%. The company is now focusing more on helping clients stay active through better tools and digital advice.
Broking Pressure Remains, But Other Areas Growing
Broking revenue stood at ₹691 Cr (down 25% YoY, up 9% QoQ), still making up 61% of total revenue. F&O was the largest part (74%), but the cash and commodity segments grew to 16% and 10% respectively. Orders and trading volumes were down YoY but improved slightly compared to the last quarter. The company is trying to reduce risk by offering more direct equity and passive investing options.
Margin Lending and Wealth Units Key for the Future
Margin funding grew 24% QoQ to ₹4,787 Cr, boosting interest income to ₹356 Cr, which is 31% of total revenue. Management sees this as a key profit area. Angel’s new verticals like wealth management and AMC are still in the investment phase and will hurt margins by 2–2.5% this year, but the wealth unit (Ionic) is expected to break even faster. From FY27, these businesses could help long-term growth.