Angel One Q1 Review: Investec Maintains 'Buy' Remains Bullish Amid Market Headwinds

Angel One reported a PAT of Rs 1.14 billion for the first quarter of fiscal year 2026, marking a substantial 61% year-on-year decline. However, this figure still managed to beat Investec’s estimates by 9%, primarily due to lower-than-anticipated operating costs. Total revenue for the quarter declined 20% year-on-year, but was 1% higher than Investec’s projections.

The year-on-year revenue decline is attributed to several factors, including new F&O regulations, weak market sentiment impacting volumes, and “true to label” regulations that affected other operating income.

Broking revenue declined 23% year-on-year, but was up 7% quarter-on-quarter. Net interest income grew by 15% year-on-year and 6% quarter-on-quarter, while other operating income, despite a 52% year-on-year decline, improved by 11% quarter-on-quarter.

Operating costs remained flat year-on-year but increased by 23% quarter-on-quarter. This included IPL-related expenses of Rs 1.12 billion, comparable to Rs 1.14 billion in the previous year. Adjusted against this, non-employee expenses declined 10% quarter-on-quarter.

The Ebitda margin, however, saw a significant contraction, dropping to 22% from 38% in the first quarter of fiscal year 2025 and 32% in the fourth quarter of fiscal year 2025.