Angel One has successfully diversified its income, with nearly 40% of revenue now coming from lending, wealth, and asset management. The company’s client funding book reached a record ₹7,150 crore, as it aims to reduce its traditional dependence on stock trading income.
Angel One is actively shifting its business model to reduce its reliance on stock broking revenue. In its latest update, the company reported that nearly 40% of its total income is now generated through non-broking segments, including lending, wealth management, and asset management. This shift is part of a broader strategy to create more stable, recurring revenue streams that are less sensitive to the volatility of daily stock market trading.
Scaling the Lending and Wealth Portfolio
The company saw significant momentum in its credit-linked products during the June quarter. Its client funding book reached a record ₹7,150 crore, supported by an average quarterly funding level of ₹6,140 crore. Beyond this, its credit distribution business grew by 130% year-on-year, reaching ₹530 crore. This growth is being driven by the use of artificial intelligence to better match customers with lenders. Additionally, the company’s wealth management arm, including Ionic WealthTech, now manages assets totaling ₹13,440 crore.
Strategic Investments and Financial Targets
Despite moving into new business areas, the company is managing its costs carefully. Management has set a target to maintain its operating profit margin, or EBITDA margin, between 40% and 50%. While the wealth management division requires continued spending, the company expects it to reach a break-even point in the next three to four years. To further expand its product range, the company has secured a license in GIFT City to offer U.S. equity products to its clients.
Regulatory Context and Market Position
The firm addressed concerns regarding recent Reserve Bank of India regulations, noting that it does not expect any liquidity issues and views the regulatory impact as temporary. Compared to traditional brokers who rely almost entirely on trading volumes, Angel One’s push into lending and asset management is a strategic effort to capture a larger share of a client’s total financial wallet. The company currently has no plans to enter the stock advisory business, choosing instead to focus on its existing research-driven offerings and technology platforms.
For investors, the key monitorables will be the actual profit contribution from the newer wealth management segment as it matures and the progress of the loan-against-securities product currently in pilot testing. The company’s ability to maintain its margin targets while continuing to spend on new technology and business expansion will remain a primary focus in upcoming quarterly reports.