Angel One Limited announced its unaudited financial results for the quarter ended December 31, 2025, along with several significant corporate decisions during its board meeting held on January 15, 2026. The broking services company reported mixed performance with revenue growth but profit decline compared to the previous year.

Financial Performance Overview

The company's consolidated financial results showed total revenue from operations of ₹13,348.96 million for Q3FY26, representing an increase from ₹12,017.58 million in the previous quarter. However, when compared to Q3FY25, revenue declined from ₹12,622.06 million.

For the nine months ended December 31, 2025, the company reported total revenue of ₹36,771.85 million and net profit of ₹5,948.62 million, compared to ₹41,823.66 million revenue and ₹9,975.60 million profit in the corresponding period of the previous year.

Revenue Composition and Segment Performance

The company's revenue streams showed varied performance across different categories. Interest income increased to ₹4,408.62 million in Q3FY26 from ₹3,493.86 million in Q3FY25. Fees and commission income, however, decreased to ₹8,895.84 million from ₹9,052.64 million year-on-year.

Major Corporate Decisions

Interim Dividend Declaration

The board declared the first interim dividend for Financial Year 2025-26 at ₹23.00 per equity share of face value ₹10.00 each. The record date is set for January 21, 2026, and the dividend will be paid on or before February 13, 2026.

Stock Split Approval

The board approved a significant stock split where each existing equity share of face value ₹10.00 will be subdivided into 10 equity shares of face value ₹1.00 each. This decision aims to make the company's equity shares more affordable and enhance liquidity for increased market participation by retail investors.

Business Transfer Withdrawal

The company withdrew its previously proposed business transfer undertaking that was approved on May 14, 2025. The proposal involved transferring securities broking business, depository participant business, mutual fund distribution business, and research analyst business to wholly-owned subsidiary Angel Securities Limited through a slump sale arrangement. The board cited careful consideration of various developments within the company and external environment as reasons for the withdrawal.

Operational Highlights

The company's expense management showed mixed results with total expenses increasing to ₹9,641.54 million in Q3FY26 from ₹8,764.76 million in Q3FY25. Employee benefits expenses rose to ₹2,743.15 million from ₹2,373.22 million, partly due to the impact of new Labour Codes notification, which resulted in additional gratuity provision of ₹42.94 million.

Other expenses included Indian Premier League sponsorship costs of ₹1,151.90 million during the nine months ended December 31, 2025. The company also established Angel One LivWell Life Insurance Limited as an associate company with a 26% equity stake, in collaboration with LivWell Holding Company Pte. Limited.

Financial Position and Outlook

The company maintains a strong financial position with equity share capital of ₹908.55 million as of December 31, 2025. The stock split and dividend declaration demonstrate management's confidence in the company's financial stability and commitment to enhancing shareholder value through improved accessibility and regular returns.

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.