Angel One Ltd Q2FY26 – ₹2,117 Cr PAT, 34 Million Clients, and a Slump Sale So Complex Even SEBI Needed a Flowchart
1. At a Glance
Angel One, India’s most “retail-friendly” broker, is going through that awkward teenage phase where it’s half-fintech, half-family-office, and wholly confused about what it wants to be. At ₹ 2,497/share (down ~11 % in 3 months) and a ₹ 22 ,652 Cr market cap, the company trades at 29 × earnings, ROE 27 %, ROCE 26 %, and a dividend yield of 1.9 %. But Q2FY26 results looked more like a heart monitor: Sales ₹ 1 ,202 Cr (-20.7 % YoY), PAT ₹ 212 Cr (-50 % YoY).
Yet, Angel’s CEO still insists it’s “India’s largest digital retail brokerage,” which is like proudly saying you’re the biggest pani-puri vendor in an area where half the stalls are already on Zomato.
2. Introduction
Once upon a Dalal Street chatroom, a bunch of brokers decided to become tech companies. Zerodha wrote code, Groww wrote poetry, and Angel One wrote press releases.
Founded back in 1996 as Angel Broking, the company reinvented itself in 2020 as Angel One — because apparently adding “One” makes you sound like a super-app instead of a call centre with API access. Now they’re everywhere: equities, F&O, mutual funds, loans, insurance, even life insurance via a ₹ 4 Bn JV with LivWell.
In the last two years, client count exploded from 13.8 Mn (FY23) to 31 Mn (FY25) — roughly equal to every angry retail investor on Twitter. But profit per client? Falling faster than small-cap sanity.
And just when analysts began to understand the business, Angel announced a “slump sale” transferring 99 % of its revenue to a subsidiary. Because nothing says “simplifying operations” like needing a whiteboard and aspirin to explain your org chart.
3. Business Model – WTF Do They Even Do?
1️ Broking & Depository (72 % of FY25 Revenue): Core bread-and-butter, or rather trade-and-butter. Equity, F&O, commodity, and currency broking across web, mobile and desktop. Also includes depository ops and “advisory,” i.e. PDF of Nifty targets no one reads.
2️ Client Funding (12 %): Margin funding for the “YOLO” crowd. Funding book ₹ 36.5 Bn in FY25 (up 129 % YoY). Basically, Angel lends you money to lose faster.
3️ Third-Party Distribution (2 %): Mutual funds, IPOs, insurance, F Ds — because brokers realised cross-selling pays more than convincing clients to hold overnight.
4️ Others (14 %): NBFC income, tech services, and whatever buzzword their marketing team found on LinkedIn that week.
New verticals? 🟣 Angel One AMC with ₹ 74 Cr AUM and three funds that your mom probably has more assets than. 🟢 Ionic Wealth — wealth management for HNI clients who still think “Angel” is a temple donation app.
4. Financials Overview
Metric
Latest Qtr (Sep 25)
YoY Qtr
Prev Qtr (Jun 25)
YoY %
QoQ %
Revenue
₹ 1 ,202 Cr
₹ 1 ,515 Cr
₹ 1 ,141 Cr
-20.7 %
5.3 %
EBITDA
₹ 415 Cr
₹ 672 Cr
₹ 275 Cr
-38.2 %
50.9 %
PAT
₹ 212 Cr
₹ 423 Cr
₹ 114 Cr
-50 %
86 %
EPS (₹)
23.3
46.9
12.6
-50 %
85 %
Commentary: Revenue fell as retail volumes normalized post-2021 F&O mania. Margins compressed to 35 %, half of what fin-fluencers promise on YouTube. Still, 27 % ROE is no joke — but growth slowed to a crawl after three years of hyper-scaling.
5. Valuation Discussion – Fair Value Range Only
Method 1 – P/E Approach: EPS ₹ 86.5, industry P/E 17.8× → ₹ 1 ,540. Angel trades at 29× → premium for brand and tech fluff. 📊 Range ₹ 1 ,500 – ₹ 2 ,300.
