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Dinesh Thakkar, Chairman & Managing Director of Angel One
Stockbroking firm Angel One has reported an 8% year-over-year increase in net profit for its third quarter ending December 2024, with profits rising to Rs 281 crore. This marks the brokerage’s smallest quarterly profit growth since its listing in 2020.
The company attributed the slower pace to tighter regulations in India’s derivative trading sector, which made it more expensive and complex for retail investors to trade options and futures.
Net profit fell 33.5%
Despite the year-on-year gain, Angel One’s net profit fell 33.5% compared with the previous quarter. Its average daily turnover for the quarter dropped nearly 12% against the second quarter, reflecting the immediate impact of new market rules introduced by the Securities and Exchange Board of India (SEBI).
These rules are designed to curb unchecked retail speculation, but they have also dampened trading volumes for brokerages.
"India’s capital market remains on a growth trajectory, reflecting increasing trust among retail investors. The evolving regulatory landscape has fostered greater client confidence, ensuring long-term retention and participation. While a few regulations introduced this quarter caused a temporary industry-wide impact, we are confident that our aggressive client acquisition strategy, coupled with the normalisation of client activity, will drive renewed growth momentum in the coming quarters," said Dinesh Thakkar, Chairman & Managing Director of Angel One.
Rise in revenue from operations
Angel One’s total revenue from operations in the quarter rose 19% compared with a year earlier, though it slipped 17% sequentially. The brokerage increased certain fees, including charges on futures and options trades, to offset the impact of stricter regulations.
Meanwhile, the company’s total expenses grew by 23.5% in the quarter, driven partly by higher costs associated with client acquisitions and platform enhancements.
Angel One’s board declared an interim dividend of Rs 11 per share of face value Rs 10. This amounts to Rs 99.3 crore, representing about 35.3% of the company’s consolidated profit after tax for the quarter. The record date for determining shareholder eligibility is Jan. 21, 2025, and the payment is scheduled on or before Feb. 12, 2024.
The brokerage also reported continued growth in its client base, which reached 29.5 million—up nearly 52% from the previous year and 7.4% from the prior quarter.
However, new client additions for the quarter stood at 2.1 million, indicating a decline of more than 30% on a quarter-on-quarter basis. The company’s share in India’s demat accounts climbed by 196 basis points to 15.9%.
Appointing Group CEO
Angel One also announced the appointment of former Google Pay Vice President Ambarish Kenghe as its Group Chief Executive Officer, effective March 2025.
Kenghe is recognized for his role in expanding Google Pay’s presence across Asia and advancing India’s UPI ecosystem. He has also held leadership positions at Myntra and Bain & Company.
"Our focus remains on achieving sustainable growth while maintaining strong controls over unit economics. Our digital model enables economies of scale with superior LTVs, allowing us to sustain robust profitability metrics in a dynamic external environment. The Board of Directors has approved reinstating dividend distribution at 35% of the quarterly consolidated profits," Thakkar added.