Q3 results impact: Angel One shares jump 9% on strong sequential performance; Groww rises up to 9%

Angel One, Groww shares rise in trade.

Angel One shares rose more than 8 percent on Friday, tracking the company’s strong sequential performance for the December quarter.

On the National Stock Exchange (NSE), the stock climbed 8.16 percent to an intraday high of Rs 2,731.70. It opened the session with a gap-up gain of 2.48 percent. The stock has advanced for four consecutive sessions and is up nearly 17 percent over the period.

The rally came after the company reported an 11 percent sequential increase in revenue, while net profit rose 27 percent quarter-on-quarter to Rs 269 crore.

Sunny Agrawal - Head of Fundamental Research at SBI Securities, said "Market share for Angel One remained stable across segments despite market volatility and regulatory changes. 9 out of 10 incremental client additions from beyond tier 1 cities. Management anticipates F&O market share to expand going ahead led by normalisation in customer wallet share. Management anticipates earnings momentum to improve going ahead driven by increased FII and retail participation after a tepid market. Operating profit margin are expected to revive to 40%-45% range by the exit of 4QFY26."

Broking orders during the quarter grew 6 percent quarter-on-quarter to 380 million, while revenue per broking order increased 5 percent to Rs 16. EBITDA margin stood at 39 percent, supporting broking revenues, JM Financial said in a note. While the period-end client funding book remained flat, the average client funding book grew 11 percent quarter-on-quarter, leading to strong interest income, the brokerage added.

Angel One maintained its sequential growth momentum during the quarter, with a recovery in futures and options activity and a sharp rise in commodity trading offsetting the impact of market volatility on retail cash activity, according to Motilal Oswal Financial Services Limited (MOFSL).

Meanwhile, shares of Billionbrains Garage Ventures, the parent company of stockbroking platform Groww, rose as much as 9.4 percent to an intraday high of Rs 179.78. The stock has gained for the past two sessions and is up nearly 10 percent over the period.

MOFSL said it has raised its FY27 and FY28 earnings per share estimates by 2 percent each, citing strong expansion in the margin trading facility book and a better-than-expected launch of the commodities segment. The brokerage maintained its ‘Buy’ rating on the stock with a revised target price of Rs 190.

On a sequential basis, profit after tax grew 16 percent from Rs 471 crore reported in the September quarter. The year-on-year decline was largely due to a one-time post-tax gain of Rs 315 crore recorded in the year-ago period. Excluding this exceptional item, operating profit after tax rose 24 percent year-on-year to Rs 442 crore.

The global brokerage Jefferies recommended a "Buy" rating to the stock, increasing the price target to Rs 195 from Rs 190. It said that the new ventures are ramping up faster than expected. The adjusted PAT and revenue beat was led by higher-than expected commodity & margin trading facility revenues, it added.

Meanwhile, brokerage Citi also gave a 'Buy' rating to the stock, with Rs 195 as the price target as the company delivered solid Q3.

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