Angel One margin rises as revenue growth outpaces costs
Consolidated revenue grew 9.33% QoQ, while a lower tax rate also helped net profit rise 19.20%; the stock gained 10.2% after the filing.
Filed 16 Apr 2026, 19:59 IST · after market close · Angel One Ltd (ANGELONE)
Key takeaways
- Consolidated revenue rose 9.33% QoQ as management said client activity normalised.
- Operating margin expanded 1.37 percentage points to 41.02% because expenses grew 6.86%, slower than revenue.
- The stock gained 10.2% after the results, well above its 3.11% median absolute move after the last eight results.
Price around the results
Client activity lifted Q4 revenue
Angel One’s consolidated revenue increased 9.33% QoQ to Rs 1,459.42 cr, and operating profit grew 13.08% to Rs 598.6 cr. Management said the improvement reflected normalisation in client activity. The company also reported a 20.4% retail equity turnover market share in Q4FY26, down 4 bps QoQ.
Lower cost growth widened the operating margin
Expenses rose 6.86%, below the 9.33% revenue growth rate, lifting operating margin by 1.37 percentage points. Management attributed higher operating expenses, excluding IPL costs and a one-time client reimbursement, to CSR, branding and acquisition-related spending. It also said an operational disruption linked to an external market infrastructure institution led to client reimbursements of Rs 192 million.
Margin recovery continued, but remained below peers
Operating margin rose for a fourth consecutive quarter, from 24.08% in Q1FY26 to 41.02% in Q4FY26. The 19.20% QoQ increase in consolidated net profit also benefited from a 0.86 percentage-point decline in the tax rate, while interest expense rose 5.10%; other income was only 1.77% of pre-tax profit, so it was not a material profit driver. Angel One’s 41.02% margin was 18.39 percentage points below the 59.41% median for 52 Financial Services peers that had reported.
Results reaction was unusually positive
The stock rose 10.2% on the first trading session after the results and was up 7.49% after five sessions. That response was larger than the 3.11% median absolute move across the last eight result reactions, which were evenly split between four rises and four falls. The presentation says Q1FY27 EBDAT will be affected by higher IPL costs because more matches are scheduled than in Q4FY26, while it cites a 25–30% expected CAGR for India’s wealth management industry.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,459 cr | ₹1,335 cr | +9.33% |
| Other income | ₹8 cr | ₹3 cr | +189.96% |
| Expenses | ₹861 cr | ₹806 cr | +6.86% |
| Operating profit | ₹599 cr | ₹529 cr | +13.08% |
| Operating margin (%) | 41.02% | 39.65% | — |
| Interest | ₹134 cr | ₹127 cr | +5.10% |
| Depreciation | ₹33 cr | ₹32 cr | +4.54% |
| Profit before tax | ₹440 cr | ₹373 cr | +17.79% |
| Tax | ₹120 cr | ₹105 cr | +14.20% |
| Net profit | ₹320 cr | ₹269 cr | +19.20% |
| EPS (₹) | ₹3.52 | ₹29.59 | -88.10% |
Operating margin of 41.02% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.20% | +9.56% |
| Next session | +9.07% | — |
| 5 sessions | +7.49% | +8.72% |
| 15 sessions | +8.40% | — |
| 30 sessions | +17.10% | — |
Volume on the results session was 7.14× 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.
This quarter
- Q4 FY26 revenues increased as client activity normalised.
Guidance & outlook
- India’s wealth management industry is expected to grow at a 25–30% CAGR.
- Q1 FY27 EBDAT will be impacted by higher IPL costs due to more matches than in Q4 FY26.
New initiatives
- Angel One digitised journeys to improve the client experience.
Competition
- Angel One reported a 20.4% overall retail equity turnover market share in Q4 FY26.
Problems & risks
- Higher operating expenses were driven by CSR, branding and acquisition-related costs.
- An operational disruption linked to an external market infrastructure institution led to client reimbursements of ₹192 million.
- Client revenues were affected by external challenges including COVID-19 and geopolitical tensions.
What to watch
- Whether operating margin holds above 41.02% after management flagged higher IPL costs for Q1FY27.
- Whether retail equity turnover market share recovers from 20.4%, after the 4 bps QoQ decline.
- How CSR, branding and acquisition-related spending affects expenses after the 6.86% QoQ increase.