Angel One Limited Q3 FY26 Earnings Call Summary

Summary

Angel One Limited - Q3 FY 2026 Earnings Call Summary Friday, January 16, 2026

Event Participants

Executives 18 Ajit Sinha, Ambarish Kenghe, Amit Majumdar, Ankit Rastogi, Arief Mohamad, Bhavin Parekh, Dinesh Thakkar, Hemen Bhatia, Hitul Gutka, Manmohan Singh, Naheed Patel, Nishant Jain, Ravish Sinha, Rohit Chatter, Saurabh Agarwal, Sridhar Govardhan, Srikanth Subramanian, Vineet Agrawal

Analysts 11 Abhishek Wagadre, Amit Jeswani, Devansh Tandon, Dipanjan Ghosh, Gautam Jain, Jayshree Bajaj, Nidhesh, Prayesh Jain, Raghvesh, Raman KV, Sanketh Godha, Vatsal Nagelia

Financials & KPIs

Geographic & Segment Commentary

• Broking: Market share in retail equity turnover remained resilient at 20.4%, with demat market share increasing to 16.5%. The segment experienced a shift toward a balanced revenue profile as F&O contribution to gross income declined to 44.3% from 52.5% YoY.
• Commodities: Achieved highest-ever quarterly performance with 35 million orders and ADTO of ₹1.7 trillion. Gross broking income from this segment grew 46.2% YoY, contributing 6.1% to total gross income.
• Credit: Disbursements reached ₹7.1 billion for the quarter, growing 56% QoQ. The business achieved an annual run rate of ₹28 billion, with only a small fraction of the existing client base currently captured.
• Wealth Management (Ionic): AUM crossed ₹82 billion, representing 34% QoQ growth. The segment services over 1,600 clients across 10 cities using an omnichannel technology-led model.
• Asset Management: AUM scaled to ₹4.7 billion with 1.9 lakh folios across 16.9k PIN codes. The focus remains on passive smart-beta offerings, recently launching 2 new index and ETF products.

Company-Specific & Strategic Commentary

• AI-Native Transformation: Launched a beta in-house “Data Analyst Agent” for conversational analytics and adopted agentic AI in software development, with 37% of Ionic’s code being AI-generated.
• Revenue Diversification: Broking income share of gross revenue decreased to 58.1% (vs 64.7% YoY) as interest income and distribution income (credit/MF/IPO) scaled up.
• Assisted Business Advantage: Maintained a pan-India network of over 10,000 APs and 11,000 MFDs, providing a strategic “phygital” reach into Tier 2 and Tier 3 cities.
• Governance: Strengthened leadership by appointing Ajit Sinha (formerly of NSE) as General Counsel to oversee legal, regulatory, and compliance frameworks.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Broking & Margins

• Question: What is the gap between standalone and consolidated EBITDA? (Prayesh Jain)
• Answer: The gap represents a 3-3.5% burn from incubating newer businesses like AMC and Wealth Management; standalone margins are significantly higher (Vineet Agrawal).
• Question: Is the increase in pricing per order the new normal? (Nidhesh)
• Answer: The increase reflects a mid-quarter price hike and order mix; management is comfortable with current healthy margins and is not looking at further hikes (Ambarish Kenghe).

Credit & Distribution

• Question: Are you looking to acquire an NBFC license? (Jayshree Bajaj)
• Answer: Current focus is on a distribution/platform play; will evaluate balance sheet usage as capabilities and opportunities evolve (Saurabh Agarwal).
• Question: How does B2B2C contribute to growth? (Sanketh Godha)
• Answer: The assisted channel provides a “phygital” advantage in Tier 2/3 cities, maintaining a consistent ~25% share of business despite direct growth (Nishant Jain).

Financials & Finance Costs

• Question: Why did finance costs spike 36% QoQ? (Sanil Desai)
• Answer: Primarily due to regulatory upstreaming of client funds from Oct 1st; this is transient and expected to decline as software solutions are implemented by Q4 end (Vineet Agrawal).
• Question: Does the 40-45% margin guidance include IPL costs? (Amit Jeswani)
• Answer: Guidance is annualized; Q1 FY27 will likely see specific pressure from IPL spends depending on the match schedule (Ambarish Kenghe / Vineet Agrawal).

Key Takeaway

Angel One delivered a resilient Q3 FY26, marked by a recovery in average daily orders to 6.2 million and a significant 26.9% QoQ growth in PAT to ₹2.7 billion. The company demonstrated successful revenue diversification, with the non-broking share of gross income rising to ~42%, supported by a rapidly scaling credit business (₹7.1 billion disbursements) and a 34% QoQ jump in Wealth AUM to ₹82 billion. While regulatory changes regarding fund upstreaming temporarily inflated finance costs and borrowings (₹59.7 billion), management expects these to normalize by the end of Q4. The focus remains on maintaining a 40-45% standalone operating margin while aggressively institutionalizing agentic AI to drive engineering and analytical efficiency. Looking forward, the proposed 1:10 stock split and consistent dividend payout signal management’s confidence in the long-term compounding potential of its “Super App” ecosystem, despite near-term incubation costs in AMC and Wealth segments.