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

Angel One Ltd. announced its financial results for the third quarter of fiscal year 2026, presenting a mixed performance. While the company reported a 4.5% year-on-year decline in net profit, it demonstrated strong sequential growth and unveiled significant measures to enhance shareholder value, including a substantial interim dividend and a proposal for a 1:10 stock split.

Q3 Financial Performance Overview

For the quarter ending December 31, 2025, Angel One's consolidated net profit stood at ₹268.6 crore, a decrease of 4.5% compared to the same period in the previous year. However, the company's revenue from operations saw a healthy increase of 5.8% year-on-year, reaching ₹1,334.8 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 6.7% to ₹529.1 crore, with the EBITDA margin showing a slight improvement to 39.6%.

Strong Sequential Growth Signals Recovery

The quarter-on-quarter figures paint a more optimistic picture, indicating a robust recovery and operational momentum. Consolidated total gross revenues surged by 11.1% sequentially to ₹1,337.7 crore. The company's consolidated EBDAT (earnings before depreciation, amortisation, and taxes) experienced a significant jump of 24.8% compared to the previous quarter, amounting to ₹405 crore. This improvement was accompanied by a notable expansion in EBDAT margins, which rose to 39.4% from 34.5% in the second quarter. Consequently, the profit after tax also registered a substantial sequential growth of 26.9%.

Shareholder Value Initiatives

In a move to reward its investors, the company's board has approved a generous interim dividend of ₹23 per equity share for the financial year 2025-26. Furthermore, the board has proposed a stock split in the ratio of 1:10. This corporate action will involve sub-dividing each existing equity share with a face value of ₹10 into ten equity shares with a face value of ₹1 each. The primary goal of a stock split is to increase the stock's liquidity in the market and make it more affordable for retail investors. This proposal is subject to necessary approvals from shareholders and regulatory authorities.

Key Financial Metrics for Q3 FY26

Business Segment Performance

Angel One's core business segments demonstrated solid growth during the quarter. The broking and distribution segments were key drivers, with their EBDAT increasing by 25.3% sequentially. The client funding book also expanded by 10.4% QoQ, reaching a total of ₹5,860 crore. The company's efforts to diversify its revenue streams are also yielding results. Non-broking businesses showed considerable strength, with the number of unique Systematic Investment Plans (SIPs) reaching 23 lakh. Credit disbursals saw a remarkable 55.7% sequential climb to ₹710 crore, and the wealth management Assets Under Management (AUM) grew by an impressive 33.7% QoQ to ₹8,220 crore.

Technology as a Strategic Enabler

Group CEO Ambarish Kenghe emphasized the central role of technology and artificial intelligence in the company's growth strategy. He highlighted the launch of a beta version of an in-house data analyst agent, designed to streamline data interpretation and decision-making. Kenghe also noted that the adoption of AI across the entire development lifecycle is aimed at reducing decision times and enhancing overall productivity. This focus on technological innovation is reflected in the company's operational achievements, including its highest-ever commodity orders and significant growth in emerging business lines like credit disbursals.

Market Context and Outlook

The strong sequential performance in Q3 comes after a challenging second quarter, where the company had reported a significant year-on-year decline in profit. The rebound suggests that the company is effectively navigating market volatility and regulatory shifts. The proposed stock split and consistent dividend payouts are likely to be viewed positively by investors, reflecting management's confidence in the company's long-term prospects. The focus now shifts to securing the necessary approvals for the stock split and sustaining the growth momentum seen in the third quarter.