Angel One , a leading fintech platform in India, has reported a significant decline in its net profit for the first quarter, despite an increase in revenue. The company's financial performance was impacted by higher expenses, particularly related to marketing and employee costs. However, Investec has maintained a 'buy' rating on the stock with a target price of ₹2,700.00.

Financial Highlights

Key Factors Affecting Performance

The company's profitability was significantly impacted by:

1. Marketing Expenses: A substantial increase in branding spend, including ₹112.00 crore for IPL-related expenses.
2. Employee Costs: Higher employee benefits expenses and costs related to the Employee Stock Option Scheme.
3. Revenue Decline: A decrease in fees and commission income, which fell from ₹1,108.00 crore to ₹778.00 crore.

Operational Performance

Despite the financial challenges, Angel One showed growth in several operational metrics:

• Total client base increased by 31.30% year-over-year to 32.50 million.
• NSE active client base grew by 9.10% to 7.30 million.
• Number of orders processed increased by 25.80% to 343.00 million.
• Average daily turnover rose by 40.00% to ₹1.00 trillion.

Management Commentary

Dinesh Thakkar, Chairman & Managing Director of Angel One, commented on the results: "India is at the cusp of a financial revolution, with digital adoption accelerating and vast sections still underserved. At Angel One, we are using technology, data and AI to bridge the gap, creating smarter and more inclusive access to financial services."

Ambarish Kenghe, Group CEO, added: "Angel One's platform continues to deliver healthy performance in a dynamic business environment. This quarter we added over 1.50 million clients and maintained stable market shares of 15.30% in NSE active clients and 19.70% in overall retail equity turnover, a testament to the resilience and scalability of our model."

Future Outlook and Investec's View

Angel One remains focused on leveraging technology and data analytics to enhance client engagement and expand its product offerings. The company is investing in brand building and expanding its presence in Tier 2, 3, and beyond cities, which contributed over 88.00% of gross client additions in the quarter.

Despite the 61.00% YoY decline in PAT, Investec has maintained a 'buy' rating on Angel One with a target price of ₹2,700.00. The company beat estimates with ₹1.14 billion PAT, showing strong traction in new initiatives like credit disbursements and wealth management. Investec expects sequential improvement in revenue and earnings growth.

Investor Presentation Highlights

The company also released an investor presentation highlighting:

• Expansion into wealth management, with AUM increasing by 33.60% quarter-on-quarter to ₹50.70 billion.
• Growth in credit disbursals, which increased by 123.60% quarter-on-quarter to ₹2.30 billion.
• Launch of two new schemes in asset management, bringing the total to five schemes with an AUM of ₹3.40 billion.
• Client funding book reached ₹48.00 billion.

Angel One's focus on technology-driven growth and expansion into new financial services segments suggests a strategic approach to navigating the challenging market conditions and positioning itself for future opportunities in India's financial services sector.

Angel One Limited , a leading digital fintech company in India, has reported its Q1 results while continuing to expand its comprehensive financial services platform. The company is leveraging technology to enhance its position in various asset classes and develop annuity-driven wealth and asset management services.

Financial Performance

Angel One reported consolidated total net revenues of ₹8,913.00 million in Q1, showing a 7.3% growth quarter-on-quarter. The company's reported consolidated EBDAT (Earnings Before Depreciation, Amortization, and Tax) stood at ₹1,944.00 million, with an EBDAT margin of 21.8%. However, when adjusted for one-off expenses, the EBDAT reached ₹3,061.00 million, representing a 30.5% growth from the previous quarter and an adjusted EBDAT margin of 34.3%.

The reported consolidated Profit After Tax (PAT) for Q1 was ₹1,145.00 million. After adjusting for one-off expenses, the adjusted PAT stood at ₹1,922.00 million, showing a 26% growth quarter-on-quarter.

Business Highlights

Angel One's digital-first approach continues to drive growth across various segments:

• Client Base: The total client base expanded to 32.5 million, a 4.7% increase from the previous quarter.
• Market Share: The company maintained a 15.3% share in NSE active clients and a 19.7% share in overall retail equity turnover.
• Order Volume: The number of orders processed grew by 4.8% quarter-on-quarter to 343 million.
• Client Funding: The broking client funding book reached an all-time high of ₹48.00 billion.

Expansion in Non-Broking Services

Angel One is making significant strides in diversifying its revenue streams:

• Mutual Funds: Unique SIPs registered grew by 0.9% quarter-on-quarter to 1.9 million.
• Credit: Disbursal increased by 123.6% quarter-on-quarter to ₹2.30 billion.
• Wealth Management: AUM increased by 33.6% quarter-on-quarter to ₹50.70 billion, with the client base expanding to over 1,000.
• Asset Management: Launched two new schemes in Q1, bringing the total to 5 schemes with an AUM of ₹3.40 billion.

Strategic Focus

Dinesh Thakkar, Chairman & Managing Director of Angel One, emphasized the company's role in India's financial revolution, stating, "We are using technology, data and AI to bridge the gap, creating smarter and more inclusive access to financial services." He highlighted the company's product-agnostic fintech platform that addresses a full spectrum of client needs, from investing and borrowing to protecting and planning.

Ambarish Kenghe, Group CEO, noted the company's focus on embedding intelligence across every layer of operations, leveraging data, AI, and advanced analytics to deliver more meaningful engagement and improve retention. He also mentioned the company's brand investments, including IPL sponsorship, which are building trust and credibility at scale.

Angel One continues to position itself as a comprehensive fintech platform, aiming to empower a billion lives through data-driven, technology-enabled financial services. The company's focus on disciplined execution, innovation, and evolving client needs underscores its commitment to maintaining its leadership position in India's rapidly growing fintech landscape.