Quarterly Report: Angel One – Q1 FY26 (April–June 2025)

Financial Performance Overview: Angel One reported a significant decline in profit for Q1 FY26, with net profit dropping to approximately ₹114 crore. This marks a decrease of over 60% compared to the ₹292 crore profit in the same quarter last year. The decline in earnings was primarily attributed to regulatory restrictions impacting derivative trading volumes, a segment that previously contributed substantially to revenue. The company’s consolidated revenue for the quarter was approximately ₹1,140 crore, down nearly 19% year-on-year. However, quarter-on-quarter, revenue improved modestly, indicating potential early signs of recovery. Margins also came under pressure, with EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) shrinking from ₹470 crore in the same quarter last year to ₹274 crore. EBITDA margin also declined from 33% to around 24%. Strategic & Business Highlights: Regulatory actions, particularly those targeting the futures and options (F&O) segment, impacted trading volumes and commissions — leading to lower revenue. Despite headwinds in the brokerage segment, the company reported a 34% quarter-on-quarter jump in its wealth management assets under management (AUM), signaling a strategic shift toward long-term, higher-margin services. The company continues to invest in technology, advisory capabilities, and diversification across digital wealth products. Investor Considerations: Angel One’s short-term profitability has been significantly impacted by regulatory shifts. However, the rising AUM in its wealth management division could suggest a maturing business model less dependent on trading volumes. Investors should closely watch for how effectively the firm balances growth in wealth services against volatility in trading-related income. It is provided purely for educational purposes and readers are encouraged to conduct independent assessments based on their own understanding of the business and regulatory landscape.