- Number of Orders: Declined by 22.4% to approximately 327 million in Q4 FY25.
- Gross Revenue: Decreased by 16.3% sequentially in Q4 FY25.
- Net Revenue: Decreased by 15.7% sequentially in Q4 FY25.
- Gross Broking Revenue: Decreased by 22.6% sequentially to nearly INR6.3 billion in Q4 FY25.
- F&O Share in Gross Broking Income: Reduced to approximately 77% in Q4 FY25.
- Cash Segment Share: Increased to 14% in Q4 FY25.
- Commodity Segment Share: Increased to 8.6% in Q4 FY25.
- Interest Income on Client Funding Book: Declined by 5.2% sequentially.
- Gross Interest Income: Declined by 3.4% sequentially to nearly INR3.4 billion.
- Income from Depository Operations: Declined by 20.5% sequentially.
- Income from Distribution Operations: Grew by 4.6% sequentially to INR314 million.
- Finance Cost: Decreased by 3.9% quarter-on-quarter to INR803 million.
- Employee Benefit Expenses: Decreased by 21.3% sequentially to nearly INR1.9 billion.
- Operating Margin: Reported at 31.8%, lower by 1,019 basis points quarter-on-quarter.
- Profit After Tax: Declined by 38% quarter-on-quarter to INR1.7 billion.
- Full Year Gross Revenue FY25: INR52.5 billion, a growth of 22.6% year-over-year.
- Full Year Profit After Tax FY25: Over INR11.7 billion, a growth of 4% year-over-year.
- Return on Average Equity: Contracted to 27% for FY25.
- Consolidated Net Worth: Increased to INR56.4 billion as of March 31, 2025.
Release Date: April 17, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Angel One Ltd (BOM:543235, Financial) is optimistic about the long-term benefits of the F&O regulation, viewing it as a step towards a more sustainable and transparent market ecosystem.
- The company has seen healthy demat account openings and sustained retail participation, indicating strong underlying client interest.
- Angel One Ltd (BOM:543235) is expanding its financial services platform beyond broking to include credit, insurance, fixed income, wealth, and asset management.
- The company is investing significantly in technology, including AI and machine learning, to enhance client experiences and operational efficiency.
- Angel One Ltd (BOM:543235) has maintained a strong market share in demat accounts, NSE active clients, and trading turnover despite challenging market conditions.
Negative Points
- The implementation of F&O regulation and volatile geopolitical conditions have led to a decline in volume, reduced active client participation, and muted order activity.
- Q4 FY25 saw a 22.4% decline in the number of orders, leading to a decrease in gross and net revenues by 16.3% and 15.7% sequentially.
- The company's operating margin decreased by 1,019 basis points quarter-on-quarter due to sustained investments in client acquisition amidst softer market conditions.
- Angel One Ltd (BOM:543235) experienced a 38% quarter-on-quarter decline in consolidated profit after tax.
- The cost of acquiring new customers increased in the JFM quarter, impacting overall expenses.
Q & A Highlights
Q: Can you explain the rationale behind the reversal of variable pay and how expenses will look in FY26?
A: Dinesh Dariyanumal, Chairman and Managing Director, explained that the reversal of variable pay was due to not meeting targets because of regulatory changes. The practice of setting fixed and variable pay based on projections will continue in FY26. Vineet Agrawal, CFO, added that with increments and new variable pay provisions, expenses will be higher than the previous year.
Q: What is the outlook for EBITDA margins in FY26, considering the increased cost of acquisition?
A: Dinesh Dariyanumal stated that despite temporary fluctuations in acquisition costs, the company expects margins to return to 40-45% by the end of Q4 FY26. The focus remains on growth investments and maintaining a strong market position.
Q: How is Angel One's tech stack positioned to support its multi-vertical strategy?
A: Ambarish Kenghe, Group CEO, expressed confidence in the current tech stack, highlighting its ability to handle large volumes and features. He emphasized continuous evolution, particularly in AI and machine learning, to enhance customer experience and operational efficiency.
Q: What competitive advantages does Angel One have in the distribution of financial products?
A: Saurabh Agarwal, Chief Experience Officer, noted that Angel One's competitive edge lies in its high-quality customer base, strong engagement, and data insights. The platform's ability to offer multiple products enhances customer retention and satisfaction.
Q: How has the regulatory environment affected customer acquisition and market share in F&O and commodities?
A: Devender Kumar, Head of Online Revenue, explained that regulatory changes temporarily impacted retail client segments, affecting market share. However, the company expects to regain momentum as the market stabilizes. The decline in commodities market share was attributed to changes in market composition, particularly in crude oil.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
