Angel One Board to Consider First-Ever Stock Split, Dividend on Jan 15

Angel One Ltd. shares are in focus as the company's board is scheduled to meet on January 15, 2026. The agenda includes two significant corporate actions: a proposal for the company's first-ever stock split and the declaration of an interim dividend for the financial year 2025-26. This announcement comes against the backdrop of a challenging second quarter and mixed operational metrics, making the board's decisions crucial for investors. The company will also announce its third-quarter financial results on the same day.

Key Proposals on the Board's Agenda

The primary focus of the January 15 meeting will be the consideration of a sub-division, or split, of the company's existing equity shares, which currently have a face value of ₹10 each. This marks the first time Angel One has proposed a stock split since its listing. A stock split is a corporate action where a company increases its number of outstanding shares while proportionally decreasing the face value and market price per share. The primary objective is often to enhance trading liquidity and make the stock more affordable for retail investors, thereby widening the shareholder base. The final ratio of the split will be determined at the meeting and will be subject to subsequent shareholder and regulatory approvals.

In addition to the stock split, the board will also deliberate on declaring the first interim dividend for the fiscal year 2025-26. Angel One has established a record of rewarding its shareholders through regular dividend payouts. The company has already set January 21, 2026, as the record date to determine the shareholders eligible to receive the dividend, should it be approved.

A Look at Recent Financial Performance

The proposal for these corporate actions follows a period of financial pressure for the brokerage firm. In the second quarter of FY26 (July-September), Angel One reported a significant 50% year-on-year decline in its consolidated net profit, which stood at ₹212 crore compared to ₹423 crore in the same quarter of the previous year. This drop was accompanied by a 20% decrease in revenue from operations, which fell to ₹1,201 crore from ₹1,514 crore year-on-year. The company attributed the weaker performance to muted trading activity and reduced client participation in high-margin segments, particularly equity derivatives, which have been impacted by regulatory changes.

The firm's profitability also took a hit, with Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) falling by 38.2% to ₹415.2 crore. Consequently, the EBITDA margin contracted sharply by 1,020 basis points, from 44.7% in Q2 FY25 to 34.5% in Q2 FY26.

November Operational Metrics Update

The company's business update for November 2025 revealed a mixed operational picture. While the total client base continued to grow, reaching 35.08 million—a 1.5% increase month-on-month and a 21.9% rise year-on-year—other key metrics showed a decline. Gross client additions for the month were 0.5 million, down 11.1% from the previous month and 16.6% from November of the prior year.

Furthermore, trading activity saw a slowdown. Total order volumes decreased to 117.3 million, a decline of 12.3% month-on-month and 10.4% year-on-year. Average daily orders also fell to 6.17 million, marking a 7.7% drop from October and a 15.1% decline compared to the same month last year. This slowdown in trading volumes aligns with the company's reported dip in quarterly revenue.

Shareholder Payout History

Despite recent challenges, Angel One has maintained a consistent dividend policy. In the previous financial year (FY25), the company rewarded its shareholders with multiple payouts. This track record suggests a continued commitment to returning value to investors, which the upcoming interim dividend proposal reinforces.

Market Reaction and Stock Analysis

Ahead of the announcement, shares of Angel One showed positive momentum. The stock closed at ₹2,472 on January 7, 2026, marking a 2.52% gain for the day. Over the last five trading sessions, the stock has risen by approximately 6%. However, looking at the longer-term performance, the stock has been an underperformer, declining by about 10% over the past 12 months.

From a technical standpoint, the stock is currently trading below its 50-day and 200-day simple moving averages (SMAs), which are at ₹2,588 and ₹2,566, respectively. This often indicates a bearish trend in the short to medium term. The proposed stock split could be a strategic move to improve investor sentiment and boost trading volumes, potentially helping the stock regain momentum.

What Lies Ahead for Angel One

The upcoming board meeting is a pivotal event for Angel One and its shareholders. The decisions on the stock split ratio and the interim dividend amount will be closely watched. These corporate actions, combined with the release of the Q3 financial results, will provide a clearer picture of the company's strategy to navigate the current market environment, which has been affected by regulatory headwinds and fluctuating retail investor activity. Investors will be looking for signs of stability and a clear path forward to drive growth in both client engagement and financial performance. The trading window for the company's shares will remain closed until January 17, 2026, 48 hours after the conclusion of the board meeting.