Angel One Ltd Q1 FY26 Conference Call Highlights

Angel One Limited, formerly known as Angel Broking, is one of India’s largest retail-focused fintech platforms, offering services across broking, wealth management, asset management, credit, and distribution. With a client base of over 32 million, Angel One has consistently leveraged technology, AI, and data-driven models to deepen penetration beyond Tier 1 cities. The company is evolving from a pure-play broker into a comprehensive financial services ecosystem, aiming to empower a billion lives through intelligent, digital-first solutions.

Vision & Strategy (Dinesh Thakkar, CMD)

• Angel One sees huge growth potential in Indian financial services as penetration remains low – only ~115 million PAN holders have demat accounts, MF AUM is below 20% of GDP, and insurance penetration lags global norms.
• The company’s ambition is to become a full-stack fintech platform covering investments, borrowing, protection, and planning – all on a single “Super App.”
• Market Share Focus: Despite market volatility, Angel One prioritizes sustaining and consolidating share, ensuring long-term relevance.
• Broking Momentum: Nine out of ten new clients are from Tier 2/3 cities. Angel One is already the second-largest SIP registrar in India and sees mutual funds as a key long-term growth area.
• Credit Expansion: Demand for mid-ticket loans in non-metros is strong; Angel One is scaling partnerships with banks/NBFCs while focusing on risk management.
• Wealth & AMC Ventures: Early-stage but long-term drivers to capture affluent clients and expand passive investing.
• AI/ML at Core: Angel One is leveraging one of the richest industry datasets to drive personalization, engagement, and low-cost scalability across the platform.

Technology & Client Growth (Ambarish Kenghe, Group CEO)

• The platform processes billions of signals daily. AI/ML powers nudges, predictive risk detection, and client engagement.
• Angel One is experimenting with Agentic AI to automate workflows, improving speed and cost efficiency.
• Broking Leadership:
  • Market share: 16.3% in demat accounts, 21.7% in new acquisitions.
  • Q1 FY26 client addition: 1.5 million new clients (88% from Tier 2/3 towns).
  • Active client share stable at 15.3%.
  • Clients executed 343 million orders in Q1.
• Funding Book: Reached an all-time high of ₹48 billion.
• Assisted Business: Partner-focused, AI-generated podcasts in 4 regional languages, TechnoFunda/Options reports, and an upgraded NXT platform boosted engagement.
• Non-broking Businesses:
  • Added 1.9 million SIPs in Q1.
  • Distributed ₹2.3 billion in credit this quarter (₹9.3 billion cumulative).
• Wealth & AMC: Ionic Wealth serves 1,000+ clients with specialized strategies, while AMC has launched 5 passive products with ₹3.4 billion AUM in just 2 quarters.

Growth Verticals (Saurabh Agarwal – CBO, New Business)

• Credit: Household credit-to-GDP ratio in India is less than half global average – huge opportunity. Angel One facilitated ₹2.3 billion disbursals across 6 partners in Q1. AI-driven scorecards and propensity models improve partner risk management. Early experiments underway in secured credit.
• Mutual Funds:
  • 3 million clients engaged as of June 2025 (vs. 1.2 million a year ago).
  • Added 1.9 million SIPs in Q1.
  • Repeat SIPs, wallet share, and cross-product adoption rising – building client stickiness.
• Insurance: Growing steadily via sub-broker channels with a phygital approach; tech integrations improving client and intermediary journeys.

Wealth Management (Shobhit Mathur – Co-founder, Ionic Wealth)

• Macro: India GDP >6%, inflation at 2.7%, repo stable at 5.5%.
• Strategy: Shift from product-based to portfolio-based advisory. UHNI segment remains primary driver; HNIs showing early traction.
• AUM crossed ₹5,000 crore with 1,000+ clients across 9 cities.
• Launched Ionic Agent – an AI-powered portfolio diagnostics and advisory platform.
• Differentiation: Focused portfolios, global diversification, and early adoption of frameworks like accredited investors & Gift City funds.

Asset Management Business (Hemen Bhatia – CEO, AMC)

• AMC has launched 5 passive products: Total Market Index Fund/ETF, Nifty 1 Day Rate Liquid ETF, Nifty 50 Index Fund, and Nifty 50 ETF.
• AUM reached ₹3.4 billion by June 30, 2025.
• Growth achieved with zero marketing spends – traction via investor education and digital distribution.
• Next phase: expanding equity suite and commodity-based passive products.
• Goal: Become a category leader in passive investing.

Financial Performance (Vineet Agrawal – Group CFO)

• Revenues:
  • Gross revenue ₹11.4 billion (+8.1% QoQ).
  • Net revenue ₹8.9 billion (+7.3% QoQ).
• Revenue Mix:
  • Broking (F&O: 45%, Cash: 10%, Commodities: 6%).
  • Interest income: 31%.
  • Others (Depository, Distribution, Wealth, AMC).
• Broking Income: ₹6.9 billion gross, ₹5.3 billion net (+7.3% QoQ).
• Client Funding Book: ₹42 billion avg (₹48 billion period-end).
• Other Income: Depository ops (+14.3%), Distribution (+11%).
• Expenses: IPL sponsorship drove spends up to ₹1.1 billion (vs. ₹344m last qtr). Excluding IPL, operating expenses declined by 9.9%.
• Margins:
  • Reported OPM: 21.8%.
  • Normalized OPM (ex-IPL/one-offs): 34.3%.
• PAT: Reported ₹1.1 billion (-34% QoQ), but normalized PAT ~₹1.9 billion (+26% QoQ).
• Balance Sheet: Net worth ₹55.7 billion; borrowings up ₹1.9 billion to support funding book.

Question and Answer Session Highlights

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Q: Order trends seem lower in June vs May. When do you expect run-rates and client acquisition to normalize? Also, how are new businesses impacting margins?
A: Revenue already grew 7–8% QoQ. FIIs inflows are linked to retail momentum, and we expect recovery by Q4 with OPM back to ~40–45%. Payback periods fluctuate with markets, but cost-to-revenue remains disciplined. New businesses (Wealth/AMC) will take time to break even; impact ~2–2.5% on margins.

Q: Cash broking realization per order has risen. What drove this? Any competitive pressure in MTF lending?
A: Rise is due to higher MTF activity – larger ticket sizes. Currently, no competitive pressure in margin funding; demand depends more on market momentum and FIIs activity.

Q: How are revenues split between Wealth, AMC, and Distribution? And what about tax rate trends?
A: Distribution (credit, insurance, IPOs) forms ~3% of revenue. Wealth/AMC are still incubation-stage, revenues spread across commissions/interest income. Tax rate was higher (~30%) due to loss-making new businesses and non-deductible CSR spends.

Q: What is the CAC trend? Any update on LTV-to-CAC ratio?
A: CAC remains stable vs last quarter. LTV-to-CAC will be refreshed in coming quarters once F&O activity normalizes. Current acquisition market share is ~21%.

Q: How do you see F&O market share evolving?
A: Retail activity has moderated, but our equity/MTF share is growing. Month-to-month volatility in F&O share is temporary; gradual improvement expected as new customers scale activity.

Q: If OPM doesn’t reach 40–45% by Q4, will you consider pricing changes?
A: No. Pricing decisions won’t be linked to a single quarter. Our focus is on sustainable customer activity and long-term revenue-cost alignment.

Q: With RBI rate cuts, will you lower MTF rates?
A: MTF pricing isn’t linked to repo cuts. Borrowing costs may ease with a lag (MCLR-linked), helping NIM expansion.

Q: Promoter shareholding has declined over the years. Why?
A: Decline is due to ESOP allocations, promoter reclassification, and a QIP in 2024. No promoters have sold in the open market.

Q: Any impact from the Jane Street episode on volumes or revenues?
A: Too early to assess. Angel One isn’t an institutional broker; no direct impact. Retail and FIIs determine long-term flows, not opportunistic players like Jane Street.