Angel One (ANGELONE) reported a total income of INR8.3b (-16% QoQ), which was broadly in line with our estimate. F&O regulations as well as weak market activity in 4QFY25 adversely impacted the company’s sequential growth. For FY25, total income grew 24% YoY to INR41.3b. While total operating expenses were flat sequentially, excluding a onetime reversal of variable employee pay (INR640m) and IPL costs (INR344m), the company’s opex jumped QoQ, indicating a spike in customer acquisition costs. PAT at INR1.7b declined 38% QoQ (13% miss). For FY25, ANGELONE’s PAT grew 4% YoY to INR11.7b. The number of orders declined 22% QoQ to 327m. The average MTF book was largely stable QoQ at INR40.3b. Loan distribution volumes were down sequentially to INR1b from INR2.4b in 3QFY25. The revenue curve has picked up in Mar’25, and a similar trajectory is being witnessed in Apr’25. Management expects the impact of F&O regulations to gradually normalize, which would lead to an operating margin of 40-45% in 4QFY26.
OutlookWe cut our EPS estimates by 15%/7% for FY26/27, factoring in a slower MTF growth trajectory and elevated cost structure due to higher client acquisition costs and continued investments in new businesses. Consequently, we revise our TP to INR2,800 (based on 18x FY27E EPS).
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