Angel One Q2 FY27 Profit Jumps 58% YoY to ₹3.35 Billion

Revenue reported at ₹ 14.3 billion (+18.9% YoY); Consolidated PAT at ₹ 3.35 billion (+58% YoY).

Reader Takeaway: Strong client acquisition and margin expansion drive profitability despite regulatory shifts, though new business burn continues.

What just happened

Angel One reported robust consolidated financial results for the second quarter of FY27. The company's net profit saw a significant 58% year-on-year increase, reaching ₹ 3.35 billion. Revenue also grew by 18.9% to ₹ 14.3 billion compared to the same period last year. Notably, the operating margin expanded to 45.1%, up from 34.5% in the previous year.

Why this matters

This performance highlights the effectiveness of Angel One’s shift from a pure-play brokerage to a diversified financial services provider. Despite temporary regulatory changes that moderated trading activity, the company successfully scaled its client base to 40 million users. The board has declared an interim dividend of ₹ 1.4 per share, with a record date set for October 22, 2026.

Business Performance

Client acquisition remained a highlight, with 1.5 million new users added in the quarter. The company’s wealth management arm, Ionic Wealth, reached an AUM of ₹ 160 billion, a 19.1% growth over Q1. Additionally, the average client funding book increased by 40.5% to ₹ 74.5 billion, indicating strong demand for leverage-based products.

What changes now

Management continues to prioritize its diversified model, focusing on annuity-based revenue from wealth and credit products. The company has guided for annual operating margins of approximately 45%. Employee expenses for FY27 are expected to remain flat at roughly ₹ 11 billion.

Risks to watch

Investors should closely monitor the impact of ongoing regulatory changes in capital markets, which can cause volume fluctuations. Additionally, while the burn rate for new business units is currently managed at 3.5% to 4%, the successful scaling of these segments is critical for long-term margin sustainability.

What to track next

The company is piloting a U.S. stock trading program through GIFT City, which marks a new expansion front. Continued progress in its credit distribution business, which currently has an annualized run rate of ₹ 33 billion, will be a key performance metric for the coming quarters.