Angel One Ltd.Strong Recovery with 43% Operating Margin

Angel One delivered a robust sequential recovery in Q3 FY26 despite three fewer trading days, with profit after tax surging 26.9% quarter-on-quarter to ₹2.7 billion and total gross income rising 11.1% to ₹13.4 billion.

The company's stand-alone operating margin expanded impressively to 43%, up 450 basis points sequentially, demonstrating strong operational leverage. Revenue diversification continued as broking income's share declined to 58.1% from 64.7% year-on-year, while interest and distribution income increased substantially, reducing dependence on volatile F&O revenues. The client funding book grew 10.4% to ₹58.6 billion, and credit disbursements jumped 56% quarter-on-quarter to ₹7.1 billion, translating to a ₹28 billion annual run rate.

Average daily orders recovered to 6.2 million from February's low of 4.9 million. Management provided 40-45% operating margin guidance on a stand-alone basis, emphasizing that fixed costs won't scale proportionally with growth. The Board approved a first-ever interim dividend of ₹23 per share and a 1:10 stock split, reflecting confidence in sustained profitability.