Angel One (ANGELONE) Q3 FY26 Profit Falls 4.6% Even as Revenue Climbs 5.8%
India's second-largest retail broker saw profits slip year-on-year despite higher revenue, as a regulatory-driven cost surge squeezed margins.
Angel One reported a 5.8% rise in Q3 FY26 revenue to ₹1,337.7 crore, but net profit fell 4.6% to ₹268.66 crore. The decline was driven by higher finance costs from new margin rules, though sequential margins improved sharply.
Angel One’s latest quarter shows a business recovering its footing after a regulatory shock, but still paying the price for stability. The company, India’s second-largest retail broker, posted higher revenue from a growing client base and new wealth products. Yet profit fell from a year ago, held back by costs that arrived with new rules.
The numbers tell a story of two directions. Revenue for the December quarter rose 5.8% year-on-year to ₹1,337.7 crore. Sequentially, it grew a stronger 11.1%. Profit, however, slipped 4.6% from last year to ₹268.66 crore, though it jumped 26.9% from the September quarter.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ3 FY26 | PreviousQ2 FY26 | Same quarter LYQ3 FY25 |
|---|---|---|---|
| Period | Dec 2025 | Sep 2025 | Dec 2024 |
| Revenue (₹ Cr) | 1,337.7YoY +5.8% | 1,204.2 | 1,263.8 |
| Profit (₹ Cr) | 268.66YoY -4.6% | 211.73 | 281.47 |
| Net Profit Margin | 20.1%YoY -9.9% | 17.6% | 22.3% |
The net profit margin fell 220 basis points from a year ago to 20.1%. But it recovered smartly from 17.6% in the prior quarter, showing operational efficiency is returning.
The regulatory cost that ate the profit
The year-on-year profit drop happened because revenue growth was outpaced by a surge in costs. A key driver was a sharp rise in finance charges. According to the company's earnings call, this was due to a regulatory change requiring the 'upstreaming' of client cash margins.
This rule forced Angel One to borrow more to fund client positions, increasing its interest expense. Management called this cost 'transient' and expects a solution to reduce borrowings soon. For this quarter, however, it was a direct hit to the bottom line.
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· ANGELONE
(BSE)
ISIN: INE732I01013
New engines start to fire
Beyond the core broking squeeze, newer businesses showed promising scale. The wealth management arm, Ionic, saw assets under management jump 33.7% sequentially to ₹8,220 crore. Credit disbursals surged 55.7% quarter-on-quarter to ₹710 crore.
These segments are part of a deliberate push to build annuity income and reduce reliance on volatile F&O trading. The client funding book, which drives interest income, also grew 10.4% to ₹5,860 crore.
The guidance that holds steady
Management's outlook, noted in the concall transcript, remains focused on margin discipline. The company reiterated its annual operating margin target of 40-45% for the broking and distribution business. This suggests confidence in controlling costs as revenue scales.
Revenue growth is expected to stay strong, driven by client additions and deeper penetration in cash and commodity markets. The focus is on operating leverage playing out over time.
Key Points
- Consolidated net profit declined 4.6% year-on-year to ₹268.66 crore despite a 5.8% rise in revenue, due to higher finance costs from new margin rules.
- Sequential performance was robust, with profit up 26.9% and the net profit margin expanding to 20.1% from 17.6% in Q2 FY26.
- New verticals scaled rapidly: wealth management AUM grew 33.7% QoQ and credit disbursals jumped 55.7% QoQ, diversifying the revenue base.
- Management maintains its annual operating margin guidance of 40-45% for the core broking business, emphasizing cost control and operating leverage.
- The stock trades at a P/E of 29.4, a slight discount to the industry average of 31.2, and has delivered a 22.1% return over the past year.
Hexa Perspective
Angel One’s quarter illustrates the transition phase of a discount broker. The core F&O engine is under regulatory pressure, lifting costs. But the sequential margin recovery shows the business model can adapt and find efficiency.
The success of this pivot now hinges on two factors. First, the new wealth and credit lines must continue their steep growth to meaningfully offset core broking volatility. Second, the company needs the promised resolution to the transient borrowing costs to protect profitability. If both hold, the path from a transaction platform to a financial ecosystem becomes clearer.
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