Angel One (ANGELONE) Q2 25/26 earnings summary

Executive summary

• Delivered strong Q2 FY26 performance with gross revenues up 5.3% QoQ to INR 12 billion and net revenues up 5.6% QoQ to INR 9.4 billion, with PAT of INR 2.1 billion, up 85% QoQ.

• Client base surpassed 34 million, with 1.7 million new clients added, a 12.2% sequential increase.

• Broking remains the main revenue driver, with strong growth in mutual funds, credit, wealth, and asset management.

• Launched AI-powered chatbot and enhanced digital journeys, improving client engagement and operational efficiency.

• Entered a JV for digital-led life insurance, expanding the product suite and annuity revenue streams.

Financial highlights

• Gross revenues rose 5.3% QoQ to INR 12 billion; net revenues up 5.6% QoQ to INR 9.4 billion.

• Net broking income grew 5.4% QoQ to INR 5.5 billion; distribution income up nearly 28% QoQ.

• EBITDA/EBDAT margin improved to 34.5%, with normalized EBITDA/EBDAT up 6.1% QoQ to INR 3.2 billion.

• Reported PAT grew 85% QoQ to INR 2.1 billion; normalized PAT up 10.1% QoQ.

• Client funding book averaged INR 53 billion, up 26.1% QoQ; period-end at INR 59.5 billion, up 40% QoQ.

Outlook and guidance

• Maintains guidance for 40%-45% operating profit margin (OPM) exit by Q4 FY26.

• Focus on expanding digital-first insurance via JV, targeting India's under-penetrated protection market.

• Continued investment in AI/ML for client engagement and operational efficiency.

• Broking expected to remain the main growth driver, with distribution and new businesses contributing more over time.

• Wealth business expected to break even in 2.5-3 years; AMC in 7-8 years.