Angel One Q3FY25: Dividend Declared to Attract Investors
Angel One Ltd: Overview
Angel One Ltd. (formerly Angel Broking) is one of India’s leading retail stockbroking firms, offering a wide range of financial services, including online trading, investment advisory, and portfolio management. Established in 1996, the company provides its services through a robust digital platform, catering to retail investors and traders across equities, derivatives, mutual funds, commodities, and more. As a full-service broker, Angel One combines affordability with comprehensive offerings, making it a preferred choice for investors in India’s growing capital markets. The company’s strong growth is driven by increasing retail participation and its ability to cater to the evolving needs of tech-savvy investors. Angel One is renowned for its user-friendly digital trading platforms like Angel One App and Angel BEE, catering to a diverse customer base, including first-time investors. The broking industry in India is poised for strong growth, driven by favourable demographics, the expanding middle class, and increasing penetration of financial products. As more individuals diversify their investment portfolios, the demand for innovative, tech-enabled platforms will continue to rise. Firms with robust technology, strong customer focus, and diversified offerings are well-positioned to capture market opportunities in this evolving landscape.
Latest Stock News (16 Jan 2025)
Angel One’s shares plunged nearly 7% to an intra-day low of Rs 2,280 after the company reported a fall in EBITDA margins in its quarterly earnings for the third quarter. Angel One’s EBITDA margin dipped 500 basis points to 39.3% from 44.4% quarter-on-quarter, while its net profit fell by 34% from the previous quarter to Rs 281 crore. The broker’s revenue declined by 17% QoQ to Rs 1,262 crore in Q3 FY25. Plus, the company’s operating profit (EBITDA) fell by 26% sequentially to Rs 496 crore in the third quarter of the current financial year. However, the company’s net profit rose to Rs 281.47 crore, an 8.13% increase from Rs 260.31 crore in Q3 FY24. Its revenue from operations stood at Rs 1262.21 crore, up 19.18% from Rs 1059.05 crore during the third quarter of the previous financial year. To fortifies against the results impact and lure investors, the company declared a dividend of Rs 11 per equity share, equivalent to Rs 99.30 crore. This is 35.3% of the consolidated net profit of Q3 FY25. Angel One announced the record date for determining the eligibility of shareholders for payment of the said Interim Dividend, as Tuesday, January 21, 2025. The company’s performance was impacted after the markets’ watchdog (SEBI) implemented new rules to curb the F&O participation of retail investors. It raised minimum contract size, reduced weekly expiries, upfront collection of premiums, discontinued popular contracts, etc.
Business Segments:
- Broking: Angel One Ltd operates as a leading digital-first stockbroking platform, offering trading services across equities, commodities, and derivatives. The company caters to retail and institutional investors, providing seamless access to capital markets through its state-of-the-art trading platform and mobile app. Angel One’s broking services are known for low-cost trading, real-time analytics, etc.
- Client Funding: Angel One Ltd offers client funding services to enable investors leverage their positions in market. This segment allows clients to borrow funds against securities, facilitates higher trading volumes. Angel One ensures that its funding solutions are efficient, compliant, and tailored to meet the diverse needs of its customer base.
- Distribution: Angel One distributes a wide range of financial products, including mutual funds, insurance, loans, and portfolio management services. This segment leverages the company’s extensive digital ecosystem to provide value-added investment options to clients, enhancing their wealth creation journey. Through strategic tie-ups and an easy-to-use interface, Angel One ensures comprehensive financial solutions under one platform.
Subsidiary Information:
- Angel Financial Advisors Pvt Ltd: It operates as an IRDAI-registered corporate agent, distributing a diverse range of life, health and general insurance products. We are empanelled with prominent insurance providers such as TATA AIA Life Insurance Company Limited, ICICI Prudential Life Insurance Company Limited and HDFC Life Insurance Company Limited for life insurance. AFAPL is empanelled with Manipal Cigna Health Insurance Company Limited, Care Health Insurance Company Limited and Niva Bupa Health Insurance Company Limited.
- Angel Crest Ltd: The Company is formed with the objective to provide broking services across equities, commodities and currency derivative segments, margin trading facility, research analyst and investment advisory services, depository services, and distribution of third-party financial products, through the digitally advanced mobile application, tablet and web platforms of the Transferor Company, to its clients.
- Angel One AMC Ltd: The Company is formed with the objective to carry on the activities of raising or acquiring funds for, and managing any and acting as managers, consultants, advisors, administrators, attorneys, agents or representatives or nominees of or for any mutual funds, offshore funds, insurance funds, unit trusts, venture capital funds, investments funds or any other pool or portfolio of securities, assets or investments of any kind, including any pension, provident fund or superannuation fund, etc.
- Angel One Wealth Management Ltd: The Company is formed with the objective of providing all kind of distribution services, advisory services in investment, wealth management, insurance products [including life, general and health] and financial planning products in accordance with the applicable laws and to carry on the business of advising on investments in stocks, shares, securities, debentures, bonds, warrants, depository receipts, commodities, currency, real estate, options, derivatives and all kinds of financial instruments including portfolio management services mutual funds, market linked debentures, fixed income products, structured products, Alternate Products, Corporate Fixed Deposits, Gold Related Products, Primary & Secondary Market Corporate Bonds, Small Savings Investment Plans, Retirement Plans, IPOs, REITs, INVITs, unit linked policies, insurance policies, and any other wealth management products either onshore or offshore and providing financial and investment advisory services.
Q2 FY25 & Business Highlights
- Revenue of ₹1262 crore in Q3 FY25 up by 19.2% YoY from ₹1059 crore in Q3 FY24.
- EBITDA of ₹496 crore in this quarter at a margin of 39% compared to 38% in Q3 FY24.
- Profit of ₹281 crore in this quarter compared to a ₹260 crore profit in Q3 FY24.
- The unique SIPs registered in Q3 FY25 are 226,000 which accumulate the clients’ AUM to ₹101.4bn.
- For credit distribution company has tie up with 3 NBFCs and there is pipeline for new 3 banks & NBFCs.
- About 88%client acquisition is done from tier 2-3 cities and beyond in Q3 FY25.
- Average daily index option contracts trading has reduced to 0.3 billion and Angel One’s F&O to 3.9 million in December.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 1059 | 1262 | 3002 | 4272 |
| Expenses | 661 | 766 | 1708 | 2579 |
| EBITDA | 398 | 496 | 1294 | 1693 |
| OPM | 38% | 39% | 43% | 40% |
| Other Income | 2 | 2 | 18 | 7 |
| Net Profit | 260 | 281 | 890 | 1126 |
| NPM | 24.5% | 22.3% | 29.7% | 26.4% |
| EPS | 31.1 | 31.2 | 106.7 | 133.9 |