Buy Angel One; target of Rs 3200: Motilal Oswal

Motilal Oswal's research report on Angel One

Angel One (ANGELONE) reported a total income of INR8.9b (+7% QoQ/- 20% YoY) in 1QFY26, in line with our estimate. Sequential growth was driven by a slight recovery in F&O activity, strong improvement in cash realization, and robust traction in credit distribution. Total operating expenses grew 23% QoQ (flattish YoY), driven by higherthan- expected employee costs. Excluding IPL costs (INR1,117m), the company’s admin expenses declined 10% QoQ, in line with the decline in customer additions during the quarter. PAT was in line at INR1.1b (-34% QoQ/-61% YoY) for the quarter.

Outlook

We broadly retain our EPS estimates as the rise in distribution revenue and higher cash realization are offset by higher employee costs. Reiterate BUY with a one-year TP of INR3,200 (premised on 20x FY27E EPS).