Angel One Limited announced significant corporate developments alongside its Q3FY26 quarterly results for the quarter ended December 31, 2025. The Board of Directors, in their meeting held on January 15, 2026, approved several key decisions that will impact shareholders and the company's corporate structure.

Major Board Decisions

The Board meeting, which commenced at 2:50 PM and concluded at 6:00 PM at the Maple Conference Room in Mumbai, resulted in multiple important resolutions. The directors approved and took on record the unaudited standalone and consolidated financial results along with the Limited Review Report by auditors for the quarter ended December 31, 2025.

Interim Dividend Declaration

The Board declared the first interim dividend for Financial Year 2025-26 at ₹23.00 per equity share on shares having face value of ₹10.00 each. The record date for dividend eligibility has been set as January 21, 2026, and the dividend payment will be completed on or before February 13, 2026.

Stock Split Approval

The Board approved a significant stock split, subdividing each existing equity share having face value of ₹10.00 into 10 equity shares having face value of ₹1.00 each. This decision aims to make the company's equity shares more affordable and enhance liquidity for increased market participation, especially by retail and individual investors.

The stock split requires approval from members through postal ballot, and the company expects completion within two months from receipt of all regulatory and statutory approvals.

Business Transfer Withdrawal

In a significant strategic reversal, the Board decided to withdraw the proposed business transfer undertaking that was initially approved on May 14, 2025. The original proposal involved transferring securities broking business, depository participant business, mutual fund distribution business, and research analyst business to Angel Securities Limited, a wholly owned subsidiary.

The Board cited various developments within the company and external environment factors over recent months as reasons for this decision. After careful consideration, the Board determined it would be prudent to withdraw the proposed business transfer in the interest of the company and its stakeholders.

Postal Ballot and Regulatory Approvals

The Board approved a Postal Ballot Notice dated January 15, 2026, seeking member approval for the proposed stock split and consequential alteration of the Capital Clause in the Memorandum of Association. The altered clause will reflect the new authorized share capital structure of ₹120.00 crores divided into 120 crore equity shares of ₹1.00 each.

The company expects to complete the stock split process tentatively within two months from receipt of all regulatory and statutory approvals, along with member approval through the postal ballot process.

Angel One Limited shares are likely to remain in focus following the company's announcement of third-quarter financial results and significant corporate actions during its board meeting held on January 15. The brokerage house reported mixed performance with revenue growth but profit decline, while announcing substantial shareholder returns through dividend and stock split.

Financial Performance Overview

The company reported a consolidated net profit of ₹268.60 crore for Q3, down 4.50% year-on-year from ₹281.40 crore in the same period last year. Revenue for the quarter increased 5.80% year-on-year to ₹1,334.80 crore from ₹1,262.20 crore, driven by higher market participation and improved client activity.

On a sequential basis, consolidated total gross revenues reached ₹1,337.70 crore, up 11.10% quarter-on-quarter from ₹1,204.20 crore in Q2. Consolidated EBDAT (earnings before depreciation, amortisation and taxes) rose 24.80% QoQ to ₹405.00 crore, with EBDAT margin improving to 39.40% from 34.50% in the previous quarter, supported by operating leverage and improved cost efficiency.

Revenue Mix Transformation

During the earnings concall, management highlighted a strategic shift in revenue composition. The share of Futures and Options (FnO) declined to 44.30% of total gross income, compared to 52.50% in the previous year, reflecting a deliberate shift towards a more balanced and less volatile revenue profile. This diversification strategy aims to reduce dependency on the highly volatile derivatives segment while strengthening other business verticals.

Business Segment Performance

EBDAT from broking and distribution (MF + credit) businesses increased 25.30% QoQ to ₹433.60 crore, with margin rising to 43.00% from 37.70% in Q2. Consolidated profit after tax grew 26.90% QoQ to ₹268.70 crore, while PAT from broking and distribution businesses rose 27.40% QoQ to ₹301.00 crore.

Operational Highlights

In the broking segment, the client funding book scaled to ₹5,860.00 crore as of December, marking a 10.40% QoQ growth. Non-broking businesses continued to scale, with unique SIPs registered reaching 23 lakh in Q3, reflecting rising retail participation in mutual funds. Credit disbursals grew 55.70% QoQ to ₹710.00 crore.

The wealth management business saw AUM rise 33.70% QoQ to ₹8,220.00 crore, with the client base expanding to over 1,600. In asset management, the business expanded to nine schemes, with AUM reaching ₹470.00 crore as of December.

Major Corporate Decisions

Interim Dividend and Stock Split

The board approved a first interim dividend of ₹23.00 per share and a stock split from the current ₹10.00 face value per equity share to ₹1.00 per share in the ratio of 1:10, subject to approvals from shareholders and statutory and regulatory authorities. The record date for the interim dividend is set for January 21, with payout scheduled on or before February 13.

Management Commentary and Operating Margin Guidance

Ambarish Kenghe, Group CEO, highlighted technology and AI as key drivers of growth and efficiency. "This quarter, we launched the beta of our in-house data analyst agent and began adopting agentic AI across our development lifecycle, reducing decision and execution time, boosting productivity and helping us stay ahead," he said.

Kenghe noted strong performance across channels: "Our direct and assisted channels remain strong, supported by a nationwide base of 10,000+ APs and 11,000+ MFDs. We delivered our highest-ever orders in commodities at 35 million and ₹1.70 trillion ADTO. Our emerging businesses continue to scale well, supported by strong SIP momentum and a 56% QoQ rise in credit disbursements to ₹7.10 billion, translating into a ₹28.00 billion annual run rate."

During the concall, management reiterated its operating margin guidance, maintaining expectations of 45.00% operating margin going forward. The company also provided specific guidance for the broking business, targeting an operating margin range of 40-45%.

Market Performance

Shares of Angel One ended 3.50% higher at ₹2,525.25 on Wednesday, gaining ₹86.05, indicating positive investor sentiment following the results announcement and corporate action decisions.