Angel One’s shares jumped over 10% on Friday to ₹322 after its March-quarter (Q4FY26) results offered relief following a difficult stretch. Net revenue from operations rose 37% year-on-year to ₹1,014 crore, while operating margin expanded to 42% from 32%, aided by operating leverage.
The rebound comes after a prolonged adjustment to tighter regulations that dragged revenues lower in the nine months to December. Even with a strong fourth quarter, full-year FY26 revenue declined 3% to ₹3,553 crore.
At the heart of the volatility is a slowdown in Angel One’s key growth engine—F&O broking. Segment revenue rebounded to ₹686 crore in Q4FY26 from ₹488 crore a year earlier, but remains well below the ₹784 crore reported in Q4FY24.
Regulatory curbs by the Securities and Exchange Board of India (Sebi), including reduced leverage, fewer weekly expiries, higher capital requirements and tighter position limits, have cooled retail participation. For a broker closely tied to retail trading, that directly pressures revenue.
That said, the latest quarter points to a recovery in underlying activity, not just headline growth. Total orders rose 32% year-on-year to 431 million in Q4FY26, with F&O orders growing faster at 39% to 320 million. Average daily orders increased to 7.4 million in March 2026 from a low of 5 million in February 2025. Industry-wide, net active client additions on the National Stock Exchange have also resumed after a period of decline.
Market share trend also remains resilient. Angel One held a 20.4% share in retail equity turnover and increased its demat market share to 16.7% at the end of FY26 from 16% a year earlier. Management expects cash market share to rebound from April after a temporary dip in March.
Margins could improve further. Management has guided that employee costs will remain largely flat, suggesting incremental revenue growth should flow through to earnings.
There are also early signs of diversification. The company sees a large credit opportunity, with its client base already consuming over ₹1 trillion in personal loans annually across the market. Wealth management is gaining traction, with Ionic Wealth's assets under management (AUM) crossing ₹10,000 crore, up 23% quarter-on-quarter. The AMC business, though still small, is scaling steadily, with folios rising 28% sequentially.
Taken together, Angel One appears to be moving past the regulatory disruption. Competition, particularly from discount brokerages, remains a risk to market share.
For long-term investors, the key question is valuation. Much of the recovery appears priced in, with the stock trading at about 20x FY28 estimated earnings, according to Bloomberg. Sustaining the Q4FY26 momentum will be critical, especially in a business inherently exposed to regulatory risk.