Angel One Board to Consider Stock Split, FY26 Interim Dividend

Introduction to Angel One's Upcoming Board Meeting

Angel One Ltd has announced that its board of directors will convene on January 15 to deliberate on several key corporate actions. The agenda includes a proposal for a stock split, the declaration of the first interim dividend for the financial year 2025-26, and the release of the company's financial results for the quarter ending December. This announcement has generated interest in the market, with the company's shares closing 2.7% higher at Rs 2,472 on the National Stock Exchange following the news.

Stock Split on the Horizon

A primary item for discussion is the potential sub-division, or stock split, of the company's equity shares. The main objective of a stock split is to increase the liquidity of the shares and make them more affordable for retail investors, thereby widening shareholder participation. The company stated in its exchange filing that the final stock split ratio will be determined at the meeting. However, the implementation of any split is contingent upon receiving the necessary regulatory and shareholder approvals. This would be the first stock split for the company, as it has no prior history of such corporate actions.

Interim Dividend for FY26

In addition to the stock split, the board will also consider declaring the first interim dividend for the fiscal year 2025-26. While the dividend payout is subject to board approval, Angel One has proactively set January 21, 2026, as the record date. This date will be used to determine the shareholders eligible to receive the dividend, should it be approved. The company has a consistent track record of rewarding shareholders, having declared 18 dividends since November 2020.

A Look at Recent Financial Performance

The upcoming board meeting will also see the announcement of the December quarter earnings, which investors will watch closely. A review of the company's recent performance shows a mixed picture. For the quarter ended September, Angel One reported a consolidated net profit of Rs 212 crore, an impressive 85% increase from the Rs 114 crore profit in the preceding June quarter. Revenue also saw a sequential rise of 5.4%, moving from Rs 1,141 crore to Rs 1,202 crore. However, on a year-on-year basis, the company has faced headwinds. The profit for the July-September quarter declined by 50% compared to the same period in the previous year, a trend attributed primarily to regulatory curbs impacting equity derivatives trading and overall retail investor activity.

Stock Performance and Technical Indicators

Despite the recent positive session, Angel One's stock has underperformed the broader market over the past year, registering a decline of about 10%. According to data from Trendlyne, the stock is currently trading below its 50-day and 200-day simple moving averages (SMAs), which stand at Rs 2,588 and Rs 2,566, respectively. These levels often act as resistance points for the stock. Furthermore, the momentum indicator MFI (Money Flow Index) is hovering near 32. A reading below 30 is typically considered to be in the oversold region, which could suggest that the selling pressure may be nearing exhaustion.

Dividend History and Shareholder Payouts

Angel One has maintained a consistent dividend payout policy. For the financial year 2024-25, the company declared a total dividend of Rs 48 per share. This was composed of two interim dividends of Rs 11 each (declared in January and March 2025) and a final dividend of Rs 26 per share (declared in April 2025). This commitment to returning value to shareholders is a key aspect of the company's investor relations strategy.

Market Impact and Outlook

The decisions made at the January 15 board meeting will be pivotal for Angel One's stock trajectory. A stock split could attract more retail investors, potentially boosting trading volumes and liquidity. The declaration of an interim dividend would reinforce the company's image as a shareholder-friendly entity. However, the most critical element will be the December quarter earnings. Investors will be keen to see if the company has managed to navigate the regulatory challenges and improve its year-on-year performance. The management's commentary on future growth prospects and strategies to counter market challenges will also be closely scrutinized.

Conclusion

In summary, the upcoming board meeting places Angel One at a significant juncture. The potential stock split and dividend announcement are positive signals aimed at enhancing shareholder value and market participation. These corporate actions, combined with the crucial December quarter financial results, will provide a clearer direction for the company and its stock in the near term. Investors and market participants will be awaiting the outcomes on January 15 for insights into the brokerage firm's financial health and strategic plans for the future.