Angel One shares fall 6% after reporting 37% QoQ decline in net profits

This company engaged in offering diversified financial services, saw its shares rise upto 2 percent, recovering from its day low, during the early trading sessions on Thursday after it announced its latest financial results on Wednesday. In this article, we will look at the results of this company.

Price Movement 

With a market capitalization of Rs 21,355 crore, the shares of Angel One ltd are currently trading at Rs 2,373 per share, down by 32 percent from its 52-week high of Rs 3,503.15 per share. The stock has given a negative return of 19.20 percent over the last one year.

Financial Highlights

The company reported a revenue of Rs 5,238 crore in FY25, up by 22.6 percent, from its FY24 revenue of Rs 4,272 crore in FY24. However, it reported a 16 percent decline in quarter-on-quarter revenue as compared to its Q3 FY25 revenue of Rs 1,262 crore and its Q4 FY25 revenue of Rs 1,056 crore.

It reported a net profit of Rs 1,172 crore, up by 4 percent, from its FY24 net profit of Rs 1,126 crore. However, its quarter-on-quarter net profit took a hit of 37 percent as compared to its Q3 FY25 net profit of Rs 281 crore, it made a net profit of Rs 175 crore in Q4 FY25.

It has also announced a final dividend of Rs 26 per share.

As of Q4 FY25, it derives 60 percent, 32 percent, 4 percent, 3 percent, and 1 percent of its revenue from gross broking, interest, depository, distribution, Ancillary Transaction Charges, and other income, respectively. It has an Asset Under Custody worth Rs 1.2 trillion and an AUM of over Rs 37.9 billion. 

Also read: Multibagger solar stock skyrockets 15% after reporting 83% YoY increase in net profits

Client Base

It holds a 16.1 percent share in India’s Demat Accounts, which has risen by 19 bps QoQ, and a 21 percent share in India’s Incremental Demat Accounts, which has risen by 50 bps QoQ.  It has a solid client base of over 680 in the wealth management industry, catering to its long-term success. As of FY25, its client base comprises 42 percent (below 25 years)  and 58 percent (above 25 years). It has been consistently acquiring younger clients.

Other information

Its market share in the NSE Active Client Base rose by 229 bps as compared to 13.1 percent in Q4 FY23, and 15.4 percent in Q4 FY25. However, its orders declined from 471 million in Q4 FY24 to 327 million in Q4 FY25, impacting the overall profitability of the business. 

Future Outlook

Although the financial results are not to the market’s expectations, the management is optimistic about its future through its strong client base. It plans to expand its presence in wealth management, credit distribution, and mutual funds, and also plans to deploy the latest AI technologies to enhance the client experience and operational efficiency.

Written by Satyajeet Mukherjee

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