Angel One Q3 Results: Profit Dips 4.5%, Board Approves Stock Split and Dividend

Introduction

Stockbroking firm Angel One announced its financial results for the third quarter of fiscal year 2026 on January 15, 2026. The company reported a mixed performance, with a slight year-on-year decline in net profit but strong sequential growth and robust operational metrics. In a move to reward shareholders, the board approved a significant interim dividend and the company's first-ever stock split. These announcements position the stock for investor attention as markets reopen.

Q3 Financial Performance

For the quarter ending December 31, 2025, Angel One posted a consolidated net profit of ₹269 crore, marking a 4.5% decrease compared to the same period last year. However, the company demonstrated resilience with a strong quarter-on-quarter (QoQ) profit growth of 26.9%. Revenue from operations saw a 6% year-on-year (YoY) increase, reaching ₹1,335 crore. On a sequential basis, consolidated gross revenue grew by 11.1% to ₹1,337.7 crore from ₹1,204.2 crore in the second quarter.

Operational efficiency improved during the quarter. The company's Earnings Before Depreciation, Amortisation, and Taxes (EBDAT) stood at ₹405 crore, a substantial 24.8% increase from the previous quarter. EBDAT margins expanded significantly to 39.4% in Q3FY26, up from 34.5% in Q2FY26, indicating better cost management and operating leverage.

Shareholder-Friendly Corporate Actions

The Board of Directors approved two major proposals aimed at enhancing shareholder value. Firstly, an interim dividend of ₹23 per equity share was declared for the financial year 2025-26. This translates to a 230% dividend on the share's face value of ₹10. The record date to determine shareholder eligibility for this payout is set for January 21, 2026, with the dividend scheduled to be paid on or before February 13, 2026.

Secondly, the board approved a sub-division, or stock split, of its equity shares in a 1:10 ratio. This will change the face value of each share from ₹10 to ₹1. The primary goal of a stock split is to increase the number of shares in circulation, thereby making them more affordable for retail investors and improving trading liquidity. This proposal is subject to necessary shareholder and regulatory approvals, and the record date for the split will be announced later.

Key Financial Metrics for Q3 FY26

Operational Strength and Business Growth

Angel One's operational metrics underscored its growing business momentum. The client funding book expanded by 10.4% sequentially to ₹5,860 crore as of December 2025. The wealth management division also showed strong growth, with its Assets Under Management (AUM) surging by 33.7% QoQ to ₹8,220 crore. The client base in this segment grew to over 1,600.

The company's non-broking businesses also performed well. The number of unique Systematic Investment Plans (SIPs) registered in the third quarter reached 2.3 million. Credit disbursals saw a remarkable 55.7% sequential increase, amounting to ₹740 crore. These figures highlight the company's successful diversification and cross-selling efforts.

Strategic Decisions and Technology Focus

In a notable strategic move, the board decided to withdraw the previously proposed transfer of its securities broking, depository, and mutual fund distribution businesses to its wholly-owned subsidiary, Angel Securities Limited. The company cited recent internal and external developments as the reason for this decision, stating it was in the best interest of the company and its stakeholders.

Group CEO Ambarish Kenghe emphasized the role of technology and artificial intelligence in driving the company's strategy. The launch of a beta version of an in-house data analyst agent and the adoption of AI across the development lifecycle are aimed at improving decision-making and boosting productivity.

Market Reaction and Outlook

Ahead of the announcement, Angel One's shares closed 3.53% higher at ₹2,525.25 on the BSE on January 14, 2026, with a market capitalization of ₹22,943.28 crore. The Indian stock market was closed on January 15 for civic polls, so the market's reaction to the Q3 results and corporate actions will be seen on the next trading day. The combination of a generous dividend and a stock split is likely to be received positively by investors, potentially offsetting concerns about the minor YoY dip in profitability.

Conclusion

Angel One's third-quarter performance presents a picture of operational resilience and strategic focus on shareholder returns. While the year-on-year profit decline warrants attention, the strong sequential growth across key financial and operational metrics suggests a positive trajectory. The announced dividend and stock split are clear indicators of the management's confidence in the company's long-term prospects and its commitment to rewarding investors.