Angel One (ANGELONE) Q1 25/26 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q1 FY26, with diversified revenue streams and robust client engagement despite regulatory changes in index derivatives and ancillary transaction income.

• Continued expansion beyond broking into credit, wealth, and asset management, leveraging AI and data-driven strategies to deepen client relationships and drive sustainable growth.

• Maintained leadership in client acquisition, especially from tier 2/3 cities, with total client base reaching 32.5M (+4.7% QoQ) and assets under custody rising 16.9% QoQ to ₹1.4T.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with auditor review confirming compliance and no material misstatements.

• Platform continues to scale with diversified offerings in broking, wealth management, mutual funds, credit, and insurance.

Financial highlights

• Gross revenues rose 8.1% QoQ to INR 11.4B; net revenues up 7.3% to INR 8.9B; consolidated net profit for Q1 FY26 was INR 1.1B, down 34% QoQ; normalized PAT (adjusted for one-offs) grew 26% QoQ to INR 1.9B.

• Gross broking income increased 9.1% sequentially to INR 6.9B; net broking income up 7.3% to INR 5.3B.

• Operating margin reported at 21.8%, but normalized margin (excluding IPL and variable pay) improved to 34.3%.

• Cost to net income increased to 81.6% in Q1'26 from 71.6% in Q4'25, impacted by IPL expenses and new business incubation.

• Book value per share at ₹613.4 and TTM EPS at ₹110.1 as of June 30, 2025.

Outlook and guidance

• Confident of returning to normal operating margins by Q4, targeting 45% OPM, supported by 7–8% sequential revenue growth and cost discipline.

• Focus on expanding product suite and deepening client engagement through technology and data-driven solutions.

• Strategic investments in manufacturing, distribution, and content platforms to drive future growth.

• New businesses (wealth and AMC) expected to break even over time, with short-term margin impact of 2–2.5%.

• No immediate plans for pricing changes; focus remains on expanding client activity and organic growth.