Angel One Q3 Results: Angel One announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Monday, January 13, reporting a rise of 8.1 per cent in net profit at ₹281.4 crore, compared to ₹260.4 crore in the corresponding period last year. Angel One reported its smallest quarterly profit increase since listing in 2020 as tighter regulations in the derivative sector weighed.
The domestic brokerage's revenue from operations in the third quarter of current fiscal rose 19.2 per cent to ₹1,262.2 crore, compared to ₹1,059 crore in the year-ago period. On the operational front, the earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 24.7 per cent to ₹496 crore, compared to ₹397.8 crore in the same period last year.
Angel One, which provides trading and investing services through its app, said third-quarter average daily turnover dropped by nearly 12 per cent compared with the second quarter. The company's total expenses increased 23.5 per cent in the quarter-under-review.
In October, capital markets regulator Securities and Exchange Board of India (SEBI) had said that it will tighten the rules for equity derivatives, raising the entry barrier and making it more costly to trade in the asset class. Authorities had raised concerns about the unchecked explosion of retail investor trading in derivatives.
“While a few regulations introduced this quarter caused a temporary industry-wide impact ... our aggressive client acquisition strategy, coupled with the normalisation of client activity, will drive renewed growth momentum in the coming quarters,” said Dinesh Thakkar, Chairmand & Managing Director, Angel One.
The domestic brokerage's margin in the December quarter came in at 39.3 per cent compared to 37.6 per cent in the year-ago period. Angel One's board declared its first interim dividend for FY25 at the rate of Rs. 11 per share on equity shares having face value of Rs. 10 per share. This is equivalent to ₹99.3 crore, which is about 35.3 per cent of the consolidated profit after tax for the quarter.
The record date for determining the eligibility of shareholders for payment of the dividend is set as January 21, 2025. “The dividend will be paid on or before February 12, 2024 to those members, whose names appear on the register of members or in records of depositories as beneficial owners of the shares as on the closure of business hours of January 21, which is the record date fixed for the purpose,” said Angel One in a regulatory filing to the stock exchanges.
Angel One— which competes with startups such as Zerodha, Groww and Upstox —reported client addition of 2.1 million in Q3 FY25, representing a 30.3 per cent decline on a quarter-on-quarter (QoQ) basis. The client base stood at 29.5 million, marking a 7.4 per cent growth from the previous quarter.
The average daily turnover (ADTO) on a notional basis was ₹40 trillion in Q3 FY25, down 11.8 per cent from ₹45.4 trillion in Q2 FY25. It also raised brokerage charges during the quarter, including those on options and futures trading, to mitigate the impact of tighter regulations. The company said its share in India's demat accounts, which allow investors to hold securities electronically, rose 196 basis points to 15.9 per cent in the quarter from a year earlier.
Angel One named former Google Pay Vice President Ambarish Kenghe as its Group Chief Executive Officer (CEO). He will assume his role as Group CEO in March 2025. Ambarish is a distinguished technology and product leader with extensive experience in fintech, e-commerce, and consumer electronics.
“I am truly honored to be part of Angel One, a brand that has been at the forefront of transforming India’s fintech landscape. With its focus on innovation and customer-centricity, Angel One has built a strong foundation. I am eager to work with the talented team to drive the next phase of growth and empower users with advanced financial solutions,” he said on his appointment.
In Kenghe's previous role as Vice President and General Manager at Google Pay APAC, he was instrumental in scaling Google Pay’s footprint and advancing the UPI ecosystem in India. He also played a pivotal role in the launch of Chromecast and contributed significantly to Google TV’s development.
Before Google, he served as Chief Product Officer at Myntra, where he spearheaded AI/ML powered innovations that redefined the fashion e-commerce landscape. He also worked as a strategy consultant at Bain & Company in San Francisco and as an engineer specializing in high-speed switching at Cisco Systems in San Jose.
Kenghe has pursued MBA from UC Berkeley, a master’s degree in computer science from Purdue University, a master’s degree in computer science and engineering from IIT Kanpur, and a bachelor’s degree in computer engineering from AMU.
Chairman Thakkar, welcomed Ambarish, stating “Ambarish’s appointment as CEO marks an exciting new era for Angel One. With his proven track record of driving innovation and deep expertise in the industry, he is the visionary leader we need to propel us into our next chapter of growth. At Angel One, we believe strong leadership shapes the future of FinTech."
"Ambarish’s guidance will position us not only to keep pace with the everchanging financial landscape but also to lead the charge in transforming how financial services are delivered, empowering our customers with groundbreaking solutions and unparalleled value," added Thakkar. Shares of Angel One settled 3.87 per cent lower at ₹2,444.10 apiece on the BSE.
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