Angel One Q2 FY27 PAT Rises 58%; Management Retains Around 45% Margin Guidance

Key Takeaways:

• Angel One's Q2 FY27 consolidated profit after tax rose 58% year-on-year to ₹3.35 billion, or ₹335 crore. 
• Management retained annual operating margin guidance of around 45% for the broking and distribution business, including IPL-related expenses. 
• The average client funding book reached ₹74.5 billion, and Angel One said it has begun piloting access to US stocks after receiving IFSC authorisation. 

Angel One Limited has retained annual operating margin guidance of around 45% for its broking and distribution business after reporting higher revenue and profit in Q2 FY27. 

The brokerage firm's consolidated gross revenue reached ₹14.3 billion, or about ₹1,430 crore, in the September quarter, up 18.9% from a year earlier. Consolidated operating profit rose 52% to ₹4.9 billion, while profit after tax increased 58% to ₹3.35 billion.  

The figures were discussed during Angel One's October 16 earnings call, whose transcript was filed with the exchanges on October 21.  

Annual Margin Guidance Remains Around 45% 

Angel One's consolidated operating margin stood at 45.1% in Q2 FY27, compared with 34.5% in the corresponding quarter a year earlier. The margin performance may also remain a key factor for investors tracking Angel One share price.

At the standalone level, operating margin reached 48.9%, above the company's guided range of 40% to 45%. After adjusting for seasonal IPL expenditure and ESOP-related reversals, consolidated operating margin was 43.8%, compared with 43.6% in the preceding quarter.  

During the analyst question-and-answer session, Group CFO Vineet Agrawal said the company continued to target an annual operating margin of about 45% for the broking and distribution business. 

He clarified that the guidance includes all expenses, including IPL-related costs. Quarterly margins may fluctuate, but the company will aim to deliver around the stated level for the full year.  

Client Funding Book Hits Record Level 

Angel One's average client funding book rose more than 40% year-on-year to ₹74.5 billion during Q2. The closing book reached a record ₹82.1 billion, while the number of funded clients increased nearly 30% over the previous year to 437,000.  

Interest income increased 34% year-on-year and 9% sequentially to ₹5.1 billion. Gross broking income accounted for about 55% of total revenue, down from nearly 60% a year earlier as other income streams expanded. 

Angel One added nearly 1.5 million clients during the quarter, 11.6% more than in Q1 FY27. Management said its NSE active-client market share improved month-on-month during each month of the quarter.  

Angel One Begins US Stocks Pilot 

The earnings-call transcript also disclosed that Angel One had received authorisation to operate as a Global Access Provider in the International Financial Services Centre and had begun piloting US stocks on its platform.  

The company is also expanding outside transaction-led broking. Ionic Wealth's assets under management stood at ₹160 billion, up 19.1% from Q1 FY27. Angel One's asset-management business had AUM of nearly ₹6 billion. 

Credit distribution reached its highest monthly level in September, taking the annualised run rate to ₹33 billion, according to management.  

Angel One also maintained its FY27 employee-cost guidance of about ₹1,100 crore, including stock-option costs. Management said this figure remains broadly flat on a year-on-year basis.