Angel One Q3 Update: Client Base Hits 35.7M, Stock Split Eyed

Introduction to Angel One's Recent Performance

Angel One Ltd, a prominent player in India's retail broking sector, has released its business update for December and the third quarter of the financial year, revealing substantial growth in its client base and trading volumes. The company's client base expanded to 35.71 million by the end of December, marking a significant year-on-year increase. Alongside these operational metrics, Angel One announced a crucial board meeting scheduled for January 15. The agenda includes considerations for a stock split and the declaration of an interim dividend, signaling potential value unlocking for its shareholders. These developments highlight the company's continued momentum in a competitive market and its focus on rewarding investors.

Detailed Client Acquisition and Base Growth

In December, Angel One demonstrated robust client acquisition, adding 0.68 million new clients. This figure represents a 35.3% increase compared to the previous month, although it reflects a 12.8% decline from the same period last year. For the entire third quarter ending in December, the company's gross client acquisition stood at 1.75 million. This was a marginal sequential increase of 0.5% but a 16.3% decrease compared to the year-ago quarter. Despite the annual dip in new acquisitions, the overall client base saw impressive growth. The total client base of 35.71 million in December was 1.8% higher than in November and a substantial 21% higher than in December of the previous year. On a quarterly basis, the client base grew by 4.8% sequentially and 21% annually, underscoring the company's success in retaining and expanding its user pool.

Analysis of Trading Volumes and Orders

Trading activity on the Angel One platform remained strong. The total number of orders in December reached 129.01 million, a 10% increase from November and an 8% rise from the corresponding month in the previous year. For the third quarter, the total number of orders was 380.07 million, up 5.4% sequentially. However, this figure was down 9.9% on an annual basis. Average daily orders in December were 5.86 million, showing a 5% decline month-on-month but a 3.1% increase year-on-year. The quarterly average daily orders stood at 6.23 million, which is a 10.6% increase from the previous quarter but a 9.9% decrease from the same quarter last year. This mixed performance in order volumes suggests a dynamic trading environment, with monthly fluctuations balanced by overall annual growth in daily activity.

Market Share Performance Across Segments

Angel One's market share performance varied across different segments in December. The company's retail turnover market share improved to 20.4%, up by 12 basis points from November and 62 basis points from the previous year. In the crucial Futures & Options (F&O) segment, its market share increased to 22%, a significant rise of 51 basis points month-on-month and 39 basis points year-on-year. However, the cash turnover market share saw a decline, dropping by 39 basis points from November to 17.9%, though it was still up by 56 basis points annually. The commodity turnover market share experienced a more pronounced decline, falling by 57 basis points month-on-month and 793 basis points year-on-year to 51.9%. This data indicates strong performance in derivatives while highlighting challenges in the cash and commodity segments.

Upcoming Corporate Actions: Stock Split and Dividend

The most significant forward-looking announcement from Angel One is the upcoming board meeting on January 15. The board will consider a proposal for the sub-division, or split, of its existing equity shares, which currently have a face value of ₹10 each. This would be the first time the company has announced a stock split. Such a move is typically aimed at increasing the liquidity of the shares and making them more affordable for retail investors. In addition to the stock split, the board will also consider declaring the company's first interim dividend for the financial year 2026. The record date for this potential dividend has been fixed as January 21. These corporate actions are generally viewed positively by the market as they reflect management's confidence in the company's financial health and future prospects.

Market Impact and Stock Performance

Following the business update and corporate action announcements, shares of Angel One reacted positively, ending the previous session 2.5% higher at ₹2,472 per share. However, the stock's performance over a longer period has been subdued, with a decline of 6.9% over the past year. The broking industry has been navigating a dynamic regulatory environment and fluctuating market participation, which has impacted stock performance across the sector. The proposed stock split and dividend could act as positive catalysts, potentially improving investor sentiment and attracting new interest in the stock. The company's ability to consistently grow its client base and maintain a strong position in the high-volume F&O segment remains a key strength.

Conclusion

Angel One's latest business update paints a picture of robust growth in its client base and a strong foothold in the derivatives market, despite some variability in other segments. The company's operational metrics for December and the third quarter underscore its position as a leading digital-first brokerage in India. The planned consideration of a stock split and interim dividend adds another layer of positive news for investors. All eyes will now be on the board meeting on January 15, as the decisions made will likely shape the stock's trajectory and reinforce the company's strategy for shareholder value creation in the coming months.