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.

The competition in India's stock broking sector has reached unprecedented levels as Angel One significantly closes the gap with industry leader Zerodha in active client count. The difference between the two major players has shrunk to its narrowest margin in five years, signaling a major shift in market dynamics.

Active Client Count Comparison

The latest NSE data reveals a dramatic convergence in active client numbers between the two broking giants:

Active clients are defined as those who execute at least one trade annually. The current gap of approximately 90,000 clients represents a substantial reduction from the 311,000 difference in the previous fiscal year and the significant 1.17 million gap recorded in FY24.

Angel One's Market Performance

Angel One demonstrated strong performance metrics in its recent business update to stock exchanges. The company reported notable growth in market share despite challenging industry conditions:

The retail turnover market share encompasses overall equity performance, including cash segment turnover, notional turnover for equity futures, and premium turnover for the equity options segment.

Industry-Wide Regulatory Impact

The broking industry faces significant challenges following Sebi's comprehensive regulatory measures on weekly options trading, implemented from November 2024. These reforms have substantially impacted market participation:

• Overall active client count declined by 4.63 million to 44 million as of December 2025
• Market leader Groww experienced a reduction of 790,000 clients to 12.10 million
• Contract sizes increased to ₹15-20 lakh from ₹5-10 lakh
• Enhanced extreme loss margins on weekly expiry days
• Rationalization of weekly expiries to one per exchange from multiple earlier

Market Dynamics and Strategic Approaches

Zerodha's co-founder Nithin Kamath outlined the company's distinctive approach in December, emphasizing sustainable trading practices. The platform avoids conventional engagement tactics such as push notifications encouraging trading, trending stock displays, or dark patterns designed to manufacture activity. Instead, Zerodha focuses on building features that reduce unnecessary trading activity and encourages thoughtful investment decisions.

Industry analysts note that regulatory changes particularly impact new-age digital brokers, with participation declining at the lower end of the trading spectrum. HDFC Securities' Vice President Amit Chandra indicated that future market dynamics will likely shift toward algorithm-based trading competition between high-net-worth individuals and high-frequency traders.

Stock Performance

Despite industry challenges, Angel One shares demonstrated strong market performance, closing nearly 3% higher at ₹2,439.30 on Tuesday. This positive movement contrasted with the benchmark Nifty, which ended 0.22% lower at 25,732.30, highlighting investor confidence in the company's competitive positioning and growth trajectory.