Angel One Limited's Loan, Investment and Borrowings Committee has successfully concluded its meeting and approved the comprehensive terms for Non-Convertible Debentures (NCDs) worth ₹50 crore. The committee meeting, held on February 03, 2026, finalized all key parameters for the private placement of 5000 secured NCDs.

Committee Meeting Outcome

The committee meeting, which commenced at 02:00 p.m. and concluded at 02:20 p.m., approved the issuance of Senior, Rated, Secured, Redeemable, Listed NCDs on a private placement basis to eligible investors. This approval follows the company's earlier regulatory intimations dated January 15, 2024, and January 29, 2026.

Security and Charge Structure

The NCDs will be secured by a first pari-passu charge by way of hypothecation over all present and future trade receivables and loans in the form of margin trading facilities of the company. The security cover is maintained at 1.00 times to be sustained on the outstanding amounts throughout the tenor of the NCDs.

Default Protection Mechanism

In case of default in payment of outstanding principal amounts or coupon on the relevant due date, the company has agreed to pay additional interest rate of 2% per annum above the coupon rate on the outstanding principal amounts. This additional interest will apply from the date of default occurrence until the default is cured or the NCDs are fully redeemed.

Regulatory Compliance

The NCD issuance maintains full compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has been provided pursuant to SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring proper regulatory disclosure and investor protection measures.

Market Positioning Strategy

The approved NCDs will be listed on the Wholesale Debt Market Segment of the National Stock Exchange of India Limited, providing institutional and eligible investors with liquidity options and transparent price discovery. The 8.75% coupon rate reflects competitive market positioning while the 18-month tenure offers medium-term investment opportunity for debt investors.

Angel One reported its Q3FY26 financial results, showing steady revenue growth and improved operational efficiency. The brokerage firm delivered total income of ₹10.30 billion, marking a 4% year-on-year increase and 9% quarter-on-quarter growth, which aligned with analyst estimates.

Financial Performance Highlights

The company's quarterly performance demonstrated strong operational leverage with improved margins despite controlled expense growth.

Nine-Month Performance Overview

For the nine-month period ending Q3FY26, Angel One reported total income of ₹28.60 billion, reflecting a 13% year-on-year decline. The operating margin for 9MFY26 stood at 32.3%, compared to 43.4% in the corresponding period of the previous fiscal year.

Operational Efficiency Improvements

The company demonstrated strong cost management with operating expenses growing 9% year-on-year to ₹6.20 billion while remaining flat on a quarter-on-quarter basis. This expense control, combined with revenue growth, led to a significant improvement in the cost-to-income ratio, which declined to 60.6% from 65.5% in Q2FY26.

The operating profit for Q3FY26 reached ₹4.10 billion, translating to an operating margin of 39.4%, a substantial improvement from 34.5% recorded in the previous quarter.

Analyst Outlook and Recommendations

Motilal Oswal has revised its earnings estimates upward, raising FY27 and FY28 EPS projections by 8% and 3% respectively. The revision reflects strong traction in distribution revenue and improvement in cash realization, though this is partially offset by increased finance costs.

The brokerage firm maintains its positive outlook on Angel One, citing the company's ability to generate strong distribution revenue and improve cash realization metrics as key drivers for the upgraded target price of ₹3,400, based on 21 times FY28 estimated earnings per share.