Angel One profit falls 27.74% sequentially as margin reverses
Revenue slipped 2.04% sequentially while expenses rose 9.75%, with management attributing the pressure to moderated user activity and higher employee costs.
Filed 15 Jul 2026, 17:42 IST · after market close · Angel One Ltd (ANGELONE)
Key takeaways
- Consolidated net profit rose 102.15% year on year to Rs 231.40 cr, but fell 27.74% sequentially as operating margin narrowed 7.10 percentage points.
- Revenue grew 25.35% year on year while expenses rose 9.12%, lifting operating margin 9.84 percentage points despite higher interest costs.
- The stock fell 2.50% initially and 10.88% over five sessions, compared with a 3.11% median absolute move after its last eight results.
Price around the results
Sequential slowdown follows a sharp yearly recovery
Angel One's consolidated revenue grew 25.35% year on year, while operating profit increased 76.54% and net profit rose 102.15%. Sequentially, revenue declined 2.04% and net profit fell 27.74%, reversing the momentum seen through the previous three quarters. The company told investors that user activity moderated in Q1FY27, which contributed to the revenue decline.
Employee costs drove the margin reversal
Operating margin narrowed 7.10 percentage points sequentially because expenses grew 9.75% while revenue fell 2.04%. Management attributed higher employee costs to annual increments and proportionate provisioning for variable pay in FY27. Year on year, the picture was better: revenue grew faster than expenses, lifting margin by 9.84 percentage points, although interest costs increased 55.86%.
Profit quality was not dependent on other income
Other income contributed only 1.24% of pre-tax profit, so it was not a material driver of reported earnings. The year-on-year tax-rate decline of 1.66 percentage points also supported net profit growth, while the sequential tax rate increased 1.53 percentage points. The 33.92% operating margin was 29.80 percentage points below the 63.72% median for 28 Financial Services peers that had reported the same quarter, placing Angel One seventh from the bottom.
Management is adding products and AI capabilities
The presentation said the company launched a Global Asset Allocation Fund during the quarter. Management also said Angel One is using AI across platform journeys to embed intelligence into its products. The company cited an expected 25-30% ten-year CAGR for the Indian wealth management industry; this is management's industry view, not a company earnings forecast.
The initial reaction was smaller than the later sell-off
The stock fell 2.50% initially after the results, with the move reaching a 10.88% decline over five sessions. Its initial reaction was below the 3.11% median absolute move across the last eight result reactions, while the five-session decline was larger than that norm. The reaction data is incomplete and overlaps with a corporate action, so the move is not a clean standalone read on the results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,430 cr | ₹1,459 cr | -2.04% | +25.35% |
| Other income | ₹4 cr | ₹8 cr | -48.33% | +57.42% |
| Expenses | ₹945 cr | ₹861 cr | +9.75% | +9.12% |
| Operating profit | ₹485 cr | ₹599 cr | -19.00% | +76.54% |
| Operating margin (%) | 33.92% | 41.02% | — | — |
| Interest | ₹129 cr | ₹134 cr | -3.29% | +55.86% |
| Depreciation | ₹35 cr | ₹33 cr | +6.47% | +17.18% |
| Profit before tax | ₹325 cr | ₹440 cr | -26.19% | +97.44% |
| Tax | ₹93 cr | ₹120 cr | -22.05% | +86.65% |
| Net profit | ₹231 cr | ₹320 cr | -27.74% | +102.15% |
| EPS (₹) | ₹2.54 | ₹3.52 | -27.84% | -79.94% |
Operating margin of 33.92% compares with a Financial Services sector median of 63.72% across 28 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.50% | -2.48% |
| Next session | -4.21% | — |
| 5 sessions | -10.88% | -10.01% |
Volume on the results session was 3.77× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The Indian wealth management industry is expected to grow at a 25-30% CAGR over 10 years.
Expansion
- The company launched a Global Asset Allocation Fund.
New initiatives
- Angel One is leveraging AI across platform journeys to embed intelligence in every product journey.
Problems & risks
- Revenues decreased as user activity moderated in Q1 FY27.
- Employee costs increased due to annual increments and proportionate provisioning of variable pay for FY27.
What to watch
- Whether operating margin holds above 33.92% after the 7.10-percentage-point sequential decline.
- Whether revenue recovers from the 2.04% sequential fall as user activity changes.
- Whether employee-cost pressure keeps expenses growth below the current quarter's 9.75% sequential increase.