Angel One , a prominent financial services company, has unveiled ambitious financial targets and a strategic roadmap for its business expansion, signaling a robust growth trajectory for the coming years. The company is also considering options to raise capital following new regulations in the sector.

Capital Raising Considerations

Angel One is considering either raising additional capital or allowing its foreign partner to increase their stake. This decision comes in the wake of new regulations that permit 100% foreign direct investment (FDI) in the sector. The move could potentially strengthen the company's financial position and support its growth plans.

Financial Targets

The company has set its sights on achieving an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin of 40-45% by the fourth quarter of fiscal year 2026. This target underscores Angel One's commitment to enhancing operational efficiency and profitability.

In the long term, Angel One aims to further improve its financial performance, targeting an operating margin of 45-50%. This goal reflects the company's confidence in its business model and its ability to scale operations efficiently.

New Business Ventures

Angel One has also outlined growth plans for its new business ventures:

These new ventures are expected to contribute significantly to the company's growth, with Angel One projecting double-digit revenue growth from these segments over the next 3-5 years.

Core Broking Business

While diversifying into new areas, Angel One remains committed to its core broking business. The company projects a long-term growth rate of 25-30% for this segment, indicating its continued importance in Angel One's overall business strategy.

Investor Insights

The company's ambitious targets, expansion plans, and potential capital raising may be viewed positively by investors looking for growth opportunities in the financial services sector. However, it's important to note that these projections are forward-looking and subject to various market factors and execution risks.

Angel One's strategy of balancing its established broking business with new ventures in wealth management and asset management demonstrates a multi-pronged approach to growth. This diversification may help the company tap into different revenue streams and potentially mitigate risks associated with market volatility in any single segment.

Investors and market observers will likely keep a close eye on Angel One's progress towards these targets, particularly the performance of its new ventures and their impact on the company's overall financial health.

Conclusion

Angel One's announcement of these financial targets, business expansion plans, and potential capital raising options reflects the company's ambition to strengthen its position in the financial services industry. As the company works towards these goals, stakeholders will be watching for quarterly updates and key milestones that indicate progress on this strategic roadmap.

Angel One , a leading fintech platform in India, has announced its unaudited consolidated financial results for the quarter ended September 30, showcasing robust growth across key metrics.

Financial Highlights

• Consolidated Total Net Revenues reached ₹9,410.00 million, up 5.6% quarter-on-quarter (QoQ) from ₹8,913.00 million in the previous quarter.
• Reported EBDAT (Earnings Before Depreciation, Amortization, and Tax) surged 67.0% QoQ to ₹3,246.00 million, with the EBDAT margin expanding to 34.5%.
• Consolidated Profit After Tax (PAT) jumped 85.0% QoQ to ₹2,117.00 million.

Operational Performance

Angel One continued to strengthen its market position:

• Total client base grew to 34.1 million, up 4.9% QoQ and 24.0% year-on-year (YoY).
• Gross client acquisition stood at 1.7 million for the quarter, a 12.2% increase QoQ.
• The company's share in India's demat accounts rose to 16.5%, a 15 basis points increase QoQ.
• NSE active client base reached 6.9 million, growing 5.9% QoQ.
• Number of orders processed increased by 5.0% QoQ to 360 million.
• Average Daily Turnover surged 31.8% QoQ to ₹1.4 trillion.
• Market share in retail overall equity turnover expanded by 71 basis points QoQ to 20.5%.

Emerging Business Segments

The company reported strong growth in its newer business verticals:

• Unique SIPs registered grew by 23.8% QoQ to 2.4 million.
• Credit disbursals nearly doubled, increasing by 97.0% QoQ to ₹4.60 billion.
• Wealth Management AUM rose 21.3% QoQ to ₹61.40 billion.
• Asset Management AUM grew 16.8% QoQ to ₹4.00 billion, with total folios increasing by 50.4% QoQ to over 138,000.

Strategic Developments

Angel One announced plans to set up a branch unit at GIFT City, Gandhinagar, Gujarat, subject to regulatory approvals. This move is expected to open new growth avenues for the company.

Management Commentary

Dinesh Thakkar, Chairman & Managing Director, emphasized the company's role in reshaping India's investment landscape: "Fintech platforms like us are reshaping how India invests, borrows and builds wealth. Our AI-driven platform bridges the formal and informal financial worlds, delivering personalized journeys at scale."

Ambarish Kenghe, Group CEO, highlighted the company's focus on technology and AI: "We continue to strengthen client engagement through technology, data and design. AI is at the core of this transformation. Our in-house built chatbot, Ask Angel, is now live, resolving more queries instantly and with higher accuracy."

Angel One's quarterly results demonstrate the company's ability to leverage technology and expand its product offerings to drive growth in India's evolving digital financial services landscape. The strong performance across traditional and emerging business segments positions the company well for continued success in the coming quarters.