Angel One Reports 32.6% Rise in Q1 Profit Amid Surge in Trading Activity
Indian brokerage Angel One sees a 32.6% rise in Q1 profit to 2.93 billion rupees, driven by increased trading activity and a growing client base, despite higher expenses due to IPL partnership.
Bollywood Fever: Indian brokerage firm Angel One has announced a significant rise in its first-quarter profit, bolstered by a surge in trading activity. The company reported a consolidated profit increase of 32.6% year-on-year, reaching 2.93 billion rupees ($35.1 million) for the three months ending June 30.
During the June quarter, Indian benchmarks reached record highs, marking their fifth consecutive quarterly gain. This growth was supported by policy stability following the general election results and optimistic economic growth prospects.
Angel One experienced a remarkable 86% year-on-year increase in orders, with its total client base growing by 64%. The average daily turnover also saw a substantial rise, almost 93%, reaching 43.8 trillion rupees.
The brokerage, which offers trading and investing services through its app, reported a 74% increase in consolidated total revenue from operations, amounting to 14.05 billion rupees. However, the company’s total expenses nearly doubled, largely due to its partnership with the Indian Premier League (IPL) cricket tournament. The IPL-related expenses for the quarter stood at 1.15 billion rupees, representing over 11% of Angel One’s total expenses.
Despite these increased expenses, Angel One has strengthened its market position, with its share in India’s demat accounts rising to 15.2% from 12.5% a year earlier.
Earlier this month, India’s market regulator directed exchanges to impose uniform fees from brokers instead of volume-based fees, aiming to control the frenzy in the country’s derivative markets. Analysts at HDFC Securities have revised their earnings estimates for Angel One for the financial years 2025 and 2026 to reflect the potential impact of these new rules, which are set to take effect in October. The new regulations could potentially reduce brokerages’ revenue and transaction charges.
Ahead of the results, Angel One’s shares closed 1.5% higher. Despite this positive news, the stock has lost about 36% of its value so far this year, compared to a 10% rise in the broader Nifty Financial Services Index.
Angel One’s robust performance in the first quarter demonstrates the company’s ability to capitalize on increased trading activity, even as it navigates the challenges posed by higher expenses and regulatory changes.
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