Angel One Q1 profit doubles to Rs 231 crore on credit surge
Angel One doubled its first-quarter profit as a surge in its credit book more than offset a drop in mutual fund registrations, highlighting a strategic shift toward higher-margin lending.
Angel One posted a consolidated net profit of Rs 231 crore for the first quarter of fiscal 2027, more than doubling the Rs 114 crore recorded a year earlier. Revenue from operations rose 25.3% year-on-year to Rs 1,430 crore. The brokerage achieved these gains while significantly expanding its underlying profitability.
Earnings before interest, taxes, depreciation and amortisation climbed 76.5% to Rs 485 crore. This pushed the EBITDA margin up ten percentage points to 34%, signalling that the company is extracting more profit from its revenue base without proportional increases in costs.
The primary driver of this margin expansion was the firm's credit business. The average client funding book reached a record Rs 6,140 crore, a 45.9% increase from the same period last year. Furthermore, credit distribution surged 129.7% year-on-year to Rs 530 crore.
However, the company's core retail distribution business showed signs of cooling. The number of unique systematic investment plans registered during the quarter fell 10.3% to 1.7 million. This decline comes amid aggressive competition from rivals, with Groww recently stating it overtook Angel One in commodities trading within a year of launching the service.
The diverging trends in credit and distribution underscore a shifting business model for the brokerage. Chairman and Managing Director Dinesh Thakkar framed the results around a broader macroeconomic theme rather than short-term market share fluctuations. "India's financialisation story continues to present a significant long-term opportunity, driven by a large working-age population, expanding digital infrastructure and rising participation in formal financial services," he said.
Thakkar noted that the firm is expanding its wealth and asset management divisions to build recurring assets. "Combined with our disciplined focus on security, governance and responsible innovation, these investments are strengthening the quality of our platform and positioning us to deliver durable, profitable growth over the long term," he added.
The board declared an interim dividend of Re 1 per equity share for fiscal 2027. The record date is fixed for July 21, 2026, with the payment scheduled on or before August 14. The payout signals management's confidence in the firm's cash flow as it scales its higher-margin lending operations.
