Angel One reported a 15% quarter-on-quarter growth in broking revenue for 4QFY26, with order volumes rising 13% QoQ. The company is strategically diversifying revenue streams to reduce dependence on equity broking.

Angel One Reports Robust 4QFY26 Performance with 15% Revenue Growth

Angel One saw its broking revenue grow by 15% quarter-on-quarter in the fourth quarter of fiscal year 2026. Order volumes increased by 13% sequentially, reaching approximately 431 million.

Reader Takeaway: Strong broking growth and revenue diversification drive future stability.

What just happened

Angel One announced its 4QFY26 financial results, highlighting a 15% quarter-on-quarter (QoQ) increase in broking revenue. Order volumes also saw a healthy 13% QoQ rise.

The company reported an EBDAT margin of 41.7% for the quarter. This was impacted by one-off expenses totaling Rs 30.7 crore, including Rs 11.5 crore for IPL marketing and Rs 19.2 crore for client payments due to a technical glitch. Excluding these, the adjusted EBDAT margin stood at a stronger 44.4%.

Why this matters

This performance indicates a significant recovery in Angel One's core broking business, with order volumes returning to levels seen before recent regulatory changes. The strategic shift towards diversifying revenue sources aims to create a more resilient business model less susceptible to market fluctuations and regulatory shifts.

The backstory

Angel One is proactively evolving its strategy to lessen its reliance on equity market cycles and potential impacts from regulations like 'True-to-Label' rules. This involves developing new revenue streams beyond traditional broking.

What changes now

The company is scaling up financial product distribution, wealth management, asset management, and credit distribution, including Loan Against Securities (LAS). Management anticipates the wealth management division will achieve breakeven within 3 to 3.5 years.

Core broking margins are projected to stay above 45%, with a slight 2.5-3% drag expected as new business segments grow.

Risks to watch

While diversification is a positive, investors will closely monitor the successful scaling of these new verticals and their ability to maintain profitability without significantly impacting overall margins.

Peer comparison

The company's strategy to diversify revenue streams aligns with global brokerage and financial services firms that derive substantial income from asset and wealth management.

Context metrics (time-bound)

As of May 2026, Angel One's client base stood at 38.2 million.

What to track next

Investors should watch the progress of Angel One's new business segments and their contribution to overall revenue and profitability. The company's ability to maintain its core broking margins above 45% while expanding will be a key indicator.