Angel One shares tumble over 5% as it clocks single-digit profit increase in Q3FY25

Over the past one month, shares of Angel One have declined over 27 percent

Shares of Angel One fall over 5 percent to Rs 2,309 apiece on January 14 after the company reported its smallest quarterly profit increase since listing in 2020, as tighter regulations in the derivative sector weighed on performance.

The company reported a third-quarter profit (Q3FY25) that rose 8 percent to Rs 281 crore from a year earlier. However, on a sequential basis, profit fell 33.5 percent. Total revenue from operations in Q3FY25 rose 19 percent from a year earlier, while it fell 17 percent compared to the second quarter.

India’s market regulator had announced in October that it would tighten rules for equity derivatives, raising the entry barrier and making it more costly to trade in the asset class. This came after authorities raised concerns about unchecked surge in retail investor trading in derivatives, which may have contributed to the sector's challenges.

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Angel One, which provides trading and investing services through its app, saw its third-quarter average daily turnover drop by nearly 12 percent when compared to Q2FY25. The company also reported client additions of 2.1 million in Q3FY25, representing a 30.3 percent decline on a quarter-on-quarter (QoQ) basis. The total client base stood at 29.5 million, marking a 7.4 percent growth from the previous quarter.

On a more positive note, at the operating level, EBITDA increased 24.7 percent to Rs 496 crore in Q3FY25, compared to Rs 397.8 crore in Q3FY24. The EBITDA margin stood at 39.3 percent in Q3FY25, up from 37.6 percent in the corresponding period of the previous fiscal.

Dinesh Thakkar, Chairman and Managing Director, stated, "While a few regulations introduced this quarter caused a temporary industry-wide impact, we are confident that our aggressive client acquisition strategy, coupled with the normalisation of client activity, will drive renewed growth momentum in the coming quarters."

Over the past one month, shares of Angel One have declined over 27 percent, as compared to 6 percent decline in the Nifty 50 index.

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