Angel One Announces 1:10 Stock Split and Rs 23 Dividend

Introduction

Angel One Ltd. has announced significant corporate actions following its board meeting on January 15, 2026. The company approved a 1:10 stock split and declared a substantial interim dividend of Rs 23 per share. These shareholder-friendly moves were announced alongside the company's financial results for the third quarter of fiscal year 2026. The decisions are aimed at enhancing share liquidity, rewarding investors, and making the stock more accessible to retail participants. The news was met with positive sentiment in the market, with the company's shares closing higher.

Dividend Declaration Details

The Board of Directors has declared a first interim dividend of Rs 23 per share for the financial year 2025-26. This dividend applies to equity shares with a face value of Rs 10 each. The company has fixed January 21, 2026, as the record date to determine shareholder eligibility for the dividend payment. According to the regulatory filing, the dividend amount will be paid to eligible shareholders on or before February 13, 2026. This payout signals the management's confidence in the company's financial health and its commitment to distributing profits to its shareholders.

Understanding the 1:10 Stock Split

In a move to improve affordability and increase liquidity, the board has approved the sub-division of its equity shares. Each existing share with a face value of Rs 10 will be split into ten equity shares, each with a new face value of Re 1. This 1:10 stock split does not alter the company's total market capitalization but increases the number of shares in circulation. By lowering the per-share price, the company aims to attract a broader base of retail investors. The total value of an investor's holding remains the same immediately after the split, but the number of shares they own increases tenfold.

Impact on Share Capital

The stock split will change the structure of Angel One's share capital but not its total value. The company's authorized share capital will remain at Rs 120 crore, but the number of shares will increase from 12 crore to 120 crore. Similarly, the issued, subscribed, and paid-up equity share capital will stay at Rs 90.86 crore, while the number of shares will increase from approximately 9.08 crore to 90.85 crore. This ensures that there is no dilution of shareholder value. The record date for the stock split will be announced later, pending shareholder approval via a postal ballot.

Strategic Reversal on Business Transfer

A significant strategic decision made during the board meeting was the withdrawal of a proposal to transfer its core business segments to a wholly-owned subsidiary, Angel Securities Limited. The plan, initially communicated in May 2025, involved moving the securities broking, depository participant, mutual fund distribution, and research analyst businesses. The company stated that the decision to reverse this plan was made after a careful reassessment of internal and external developments, deeming it prudent for the company and its stakeholders.

Q3 Financial Performance

Angel One reported a mixed financial performance for the quarter ended December 31, 2025. The company's consolidated profit after tax (PAT) saw a year-on-year decline of 4.5%, falling to Rs 269 crore from Rs 281.5 crore in the same quarter of the previous year. However, revenue from operations grew by 5.8% YoY to Rs 1,337.7 crore. On a sequential basis, the performance was stronger. Revenue increased by 11% from the September quarter, and the consolidated Earnings Before Depreciation, Amortization, and Taxes (EBDAT) surged by 24.8% quarter-on-quarter to Rs 405 crore. The EBDAT margin also expanded significantly to 39.4% from 34.5% in the previous quarter, indicating improved operational efficiency.

Growth in Business Segments

The company's non-broking businesses showed strong growth momentum. The client funding book expanded by 10% sequentially to Rs 5,860 crore. Credit disbursals recorded a substantial 55.7% quarter-on-quarter increase, reaching Rs 710 crore. The wealth management division also performed well, with assets under management (AUM) rising by 34% QoQ to Rs 8,220 crore. The asset management business expanded its offerings to nine schemes, with its AUM reaching Rs 470 crore by the end of December 2025.

Market Reaction and Analyst Outlook

The announcements were well-received by the market, with Angel One's shares closing 3.5% higher at Rs 2,525.25 on the BSE. The stock experienced an intraday surge of nearly 7% following the news. Technical analysts remain positive on the stock's trajectory. Riyank Arora of Mehta Equities Ltd. noted that Angel One is in a strong medium-term uptrend and is holding above its key support zone. He suggested that a sustained move above the Rs 2,760 level could trigger the next phase of the rally.

Conclusion

Angel One's recent board decisions reflect a multi-pronged strategy focused on enhancing shareholder value and strengthening its market position. The 1:10 stock split is set to improve liquidity and accessibility for retail investors, while the Rs 23 interim dividend provides a direct return to shareholders. The withdrawal of the business transfer proposal offers clarity on the company's near-term corporate structure. While the Q3 profit showed a slight year-on-year dip, strong sequential growth and expanding margins demonstrate operational resilience. Investors will now await the announcement of the record date for the stock split, which is contingent on shareholder and regulatory approvals.