Good morning, and welcome, everyone. Thank you for joining us today to discuss Angel One's Q1 FY27 financial and business performance.

The recording of today's earnings call and the transcript will be uploaded on our website under the Investor Relations section. The financial results, investor presentation, and the press release are also available on the website.

For today's call, Angel One is represented by Dinesh Thakkar, Chairman and Managing Director; Ambarish Kenghe, Group CEO; Vineet Agrawal, Group CFO. We also have the senior leadership team of Angel One along with SGA, our IR consultants.

The leadership team will give us a brief overview of the operational and financial performance of the quarter gone by, which will be followed by a Q&A session. Please note that there may be certain forward-looking statements during the course of the call, which must be viewed in the aggregate with the risks that the company faces.

With this brief introduction, I now invite Mr. Dinesh Thakkar for his opening remarks.

Thank you, Hitul. Good morning, everyone, and thank you for joining us.

When I look at India today, I see a once-in-a-generation opportunity for financial services. We are a nation of more than 1.4 billion people, with nearly a billion people of working age, over a billion internet connection, world-leading digital infrastructure, and rising incomes.

Yet, participation in formal investing remains low relative to India's size and potential. Our opportunity lies in enabling the hundreds of millions of customers who will enter financial ecosystem for the first time, helping them progress from access to participation, and ultimately pointing them towards long-term wealth creation.

This opportunity extends well beyond the categories we operate today. As customers' financial needs evolve, they will increasingly look for integrated financial solution across investing, wealth, credit, protection, and retirement.

The platform that understand the customer best and fulfills their need responsibly will have a significant long-term advantage. We believe technology-led financial platforms will continue to have a lasting advantage.

Every interaction on our platform generates valuable data. Every transaction, query, and decision helps us learn, adapt, and improve.

In our view, the winners over the next decade will not be simply those with largest customer base, but those with deepest understanding of their customer and the ability to convert that understanding into relevant, trusted, timely solution. That is why we remain in a continuous build mode, because great fintech business are built by compounding intelligence over time.

As our platform matures, that intelligence compounds, enabling more relevant customer experiences. This deepens engagement, strengthens trust, and expands monetization opportunity across multiple financial products.

This leads to higher retention, a greater share of wallet, and ultimately stronger customer lifetime value. As we expand into new customer segment, future cohort do not need to monetize at the same level or at the same pace as earlier ones.

What matters is that customers' lifetime value grows through deeper engagement and increased cross-sell adoption, while our technology platform and scale continue to lower the cost to serve. Together, this creates a powerful flywheel: wider reach, deeper engagement, better unit economics, and sustained profitable growth.

Our progress in this quarter should therefore be viewed in the context of this long-term strategy. We are not simply building a fintech product.

We are building a long-term financial ecosystem designed to participate in India's financialization journey for decades to come, with technology, data, and customer first at its core. We believe we are still only at the beginning.

With that, I will hand it over to Ambarish to take you through our quarter one performance and key development during the quarters. Thank you.

Thank you, DT. Good morning, everyone.

As DT highlighted, India is in the early stages of a multi-decade financialization journey. For us, the opportunity is not only about acquiring users.

It is about building enduring relationships, deepening engagement, and becoming the preferred platform across every stage of their financial life cycle. At Angel One, we continue to execute on this vision by strengthening our platform, expanding our product ecosystem, and embedding intelligence into every user interaction.

Every trade, SIP, loan application, portfolio review, user query, etc. generate valuable data signals and insights.

Over time, these signals create a powerful flywheel. Higher engagement leads to richer data.

Richer data powers smarter AI, and smarter AI enables more relevant experiences. This allows us to deepen relationships with them and compound value over time through greater engagement, retention, and wallet share.

Importantly, this model is not built around one product. It is built around the user's evolving financial journey.

A user may begin their relationship with us through trading and investing, later adopt mutual funds, seek credit as their financial needs grow, and eventually require wealth management and long-term asset allocation solutions. As they evolve through various stages of their life, there is a continuous requirement for new financial products, allowing us to deepen relationships and expand monetization at minimal incremental cost to serve.

At the same time, the regulatory landscape continues to evolve. While we closely monitor these developments and remain agile in adapting to regulatory changes, our conviction in the long-term opportunity remains unchanged.

Over the years, we have consistently demonstrated our ability to navigate market cycles and regulatory transitions while continuing to invest in technology, product innovation, and user experience. Our strategy is built with long-term perspective, anchored in the structural growth of India's capital markets rather than short-term market conditions.

Our financial performance this quarter reflects the resilience of this approach. Revenue for quarter one FY27 grew 25.4% year-on-year to ₹14.3 billion.

We maintain margins within our desired operating band post normalization of IPL-related expenses and ESOP reversals during the period. Consolidated profit after tax increased 102.1% year-on-year to ₹2.3 billion, underscoring the strength of our diversified business model and disciplined execution.

Today, with over 38 million registered users, we are already seeing this play out. Broking continues to be a powerful gateway product, with nearly 60% of our mutual fund clients engaging with us first through our broking services, while a meaningful proportion of mutual fund first customers subsequently participated in broking activities.

This ability to create multi-product relationships has helped us achieve our lifetime best average client funding book of ₹61.4 billion, sustain a 22.2% turnover market share in equity derivatives, and improve our cash equity turnover market share to 17.4%, while maintaining a 20.2% share of overall retail equity turnover, reflecting the strong affinity users have for the Angel One platform. During the quarter, we continued to scale AI across both the user and operating stack.

ArcAngel has evolved into a conversational assistant, powering discovery, engagement, and support journeys, serving over 1.1 million users and addressing queries in finance and support. Beyond user-facing experiences, AI is embedded across user onboarding for face match, real-time signature validation, grievance and ticket automation, content generation, software development, analytics, and portfolio intelligence.

In addition to enhancing user experiences, AI is also enabling us to scale more efficiently by automating workflows and improving decision quality. As these capabilities continue to mature, we believe AI will increasingly become a source of both operating leverage and competitive differentiation.

Our AI-led decisioning capabilities are increasingly driving both engagement and monetization. In credit, our propensity models, probability of default scorecards, and lender approval engines enable intelligent user segmentation, richer engagement, and more relevant product matching, leading to 130% year-over-year growth in our credit distribution to ₹5.3 billion.

With only a small share of our customers having ever availed credit through the platform, we see a significant embedded monetization opportunity across our ecosystem. The same platform advantage extends into our wealth management business, where our technology-led experience continues to gain traction.

Onyx Wealth tech AUM crossed ₹32.3 billion, while the UHNI segment expanded to 263 families with a AUM of ₹87.3 billion. Across the broader franchise, total AUM grew 33.3% to 134.4 billion rupees, dominated by recurring revenue linked assets.

Our asset management business also continues to witness momentum, with its AUM crossing ₹6.2 billion. Over time, we believe this business will become an integral part of our broader investment ecosystem, complementing our existing offerings and strengthening customer engagement.

As we scale, security remains foundational. Trust is the currency of all fintech platforms.

We continue to operate with a security-by-design approach supported by ISO-certified systems, compliance in SEBI's CSCRF framework, and alignment with evolving digital privacy standards. Through multiple layers of control, governance, monitoring, encryption, and authentication, we remain focused on safeguarding the interests of all our stakeholders.

We are also at the forefront of safeguarding our users from AI-driven risks in the post-Mythos era. As financial relationships deepen and AI becomes more pervasive, we believe trust, security, and responsible use of data will increasingly become competitive differentiators.

To conclude, our strategy remains robust: deepen engagement, expand product adoption, grow wallet share, and leverage intelligence to create superior user outcomes. Increasingly, we see Angel One evolving into an intelligent AI-powered fintech that accompanies users through every stage of their financial journey.

Our technology capabilities are compounding, our platform moat continues to strengthen, and we believe we are exceptionally well-positioned to participate in India's vast financialization opportunity for many years to come. I'll now hand it over to Vineet, who's our Group CFO.

Thank you.

Thank you, AK. Good morning, everyone, and thank you for joining us.

Quarter one of this financial year was another quarter of healthy execution for the company. While market activity moderated sequentially across the industry, our diversified business model once again demonstrated its resilience, enabling us to deliver healthy profitability, maintain margins, while continuing to invest for long-term growth.

Consolidated gross revenue for the quarter stood at ₹14.3 billion, growing 25.4% year-on-year, while moderating 2.3% sequentially, largely reflecting softer trading activities across the capital markets. We processed 406 million orders during the quarter, with the moderation primarily driven by lower derivative volumes, broadly mirroring industry trends rather than any change in our competitive positioning.

Importantly, our revenue profile continues to become increasingly diversified. While our core trading platform remains our largest acquisition engine, contributing close to 60% of our gross revenues, the remaining 40% now comes from complementary businesses, such as client funding, distribution, depository, wealth, and other asset management businesses.

This diversification is steadily improving the resilience and quality of our earnings profile. Interest income remained a key contributor during the quarter, accounting for 32.6% of gross revenues and growing 2.6% sequentially to ₹4.7 billion.

This was supported by continued growth in our average client funding book to ₹61.4 billion, while the period-end book reached a record ₹71.5 billion, reflecting increasing client engagement and deeper adoption of our financing solutions. Distribution income moderated sequentially owing to seasonally softer insurance sales and muted credit disbursement.

While distribution currently contributes about 3% of revenues, we continue to see significant long-term opportunity across lending, insurance, wealth, and investment products as client relationships deepen. Let me now turn to profitability.

Reported consolidated EBDAT for the quarter stood at ₹3.6 billion, translating into a reported margin of 32.7%. Sequentially, profitability was primarily influenced by four largely seasonal or time-related factors: moderation in market activity, annual employee increments and variable pay accruals, fresh ESOP grants during the quarter, and higher IPL-related brand marketing expenditure concentrated in April and May of this quarter.

These impacts were partially offset through disciplined control over acquisition and operating expenses. More importantly, adjusting for these seasonal items, our normalized EBDAT margins stood at 43.6% compared with 44.4% in the previous quarter, remaining comfortably within our guided operating range.

I believe this is the more meaningful measure of the business. It demonstrates that our core franchise continues to generate strong operating leverage even as we consciously invest for the next phase of growth.

Our newer businesses, particularly wealth management, asset management, and distribution, remain in their investment phase, but we are building them with the same financial discipline that has defined our core business. We continue to balance growth investments with profitability, ensuring that these businesses scale responsibly without diluting the overall return profile of the company.

Consolidated profit after tax stood at ₹2.3 billion, representing 102% year-on-year growth, while our trailing 12-month PAT to ₹10.3 billion and EPS of 11.4. Profitability continues to compound faster than revenues, reflecting the scalability of our platform and disciplined execution across businesses.

I'm also pleased to share that the board has approved our first interim dividend for this financial year of ₹1 per share, with the record date being July 21, 2026. Our balance sheet remains one of our strongest competitive advantages.

Net worth increased to ₹64.2 billion, while borrowings reduced meaningfully during the quarter despite continued growth in client funding book. The temporary increase in borrowings at the end of the previous quarter was entirely related to the 1st April banking holiday and has since normalized.

Equally important is the quality of our assets. 83% of our client funding exposure is below ₹100,000 per client, while 85% of the portfolio is less than 30 days old, supported by fully collateralized client holdings and negligible delinquency.

Our capital allocation philosophy remains consistent and disciplined. We continue to deploy capital selectively into businesses where we see long-term structural opportunities, while maintaining a strong balance sheet, healthy cash generation, and prudent risk management.

We are not pursuing growth at the expense of returns, while investment is evaluated through the lens of scalability, profitability, and long-term shareholder value creation. Stepping back, I believe three things stand out from this quarter.

First, our business model is becoming increasingly diversified, with nearly 40% of our revenues now coming from businesses beyond core broking, making our earnings profile more balanced and resilient. Second, our core operating engine continues to demonstrate strong operating leverage, allowing us to absorb normal seasonal cost cycles while sustaining margins.

Third, we are investing in the future with discipline. Our newer businesses are scaling steadily, but importantly, they are being built without compromising profitability, balance sheet strength, or capital efficiency.

Taken together, these give us confidence that we remain well-positioned to deliver sustainable and profitable growth over the long term. With that, let me hand it back for the questions.

Thank you.

Yeah. Hi, good morning, everyone, and congratulations on a good set of numbers.

Firstly, on the credit side, what has caused the slowdown? It's been kind of dipping over the past couple of quarters.

What's kind of happening there, at Q3 we had disbursed about 710 crores, then 610, and now 530. What's kind of transpiring?

There's a credit growth in the industry seems to be very strong, but we've been kind of seeing weaker trends out there. How should we think about it, because you spoke about the potential of it, but it's kind of is being slowing down at our end.

That is point number one. Point number two is on the broking side of the business, what is the kind of expectations you have because the current trajectory definitely for the month of July started on quite a weak note, probably because of volatility or whatever the implications of BJ would have on the overall industry, the second-order impact would have happened on us.

How do you see it kind of playing out in the next couple of quarters and how should one read into the current weakness in the volumes? Third would be on your wealth management business.

Any color on, again, and I ask this every quarter, but not getting these numbers, but anything on revenue that the segment accounts for, cost, what's the kind of cost that's been incurred? Lastly, if I compare the top management and, particularly AMC, we've seen a massive churn in your top management.

How do you see this business, AMC in particular, going ahead, and what are the plans out there?

Thanks, Prayesh. We'll start one by one, as you went there.

On the credit side, I'll shortly hand it over to Saurabh, but I think you have to look at especially the credit business in the long term. If you see, year-over-year, there's a 130% increase.

I'll hand it over to Saurabh to provide a little bit more commentary on that.

Hi, Prayesh. Thanks for the question.

You see, generally, disbursements in a quarter is driven by a combination of factors. Your customer sentiment, lender underwriting, and pricing, and customer experience on the platform are the important ones.

Over the long term, all of these do pan out, but in the short term, some of these can create some impact. We, however, continue to work with our lending partners to improve conversion and strengthen the customer journey, and are very confident that the actions we are taking puts us in a much stronger position to improve growth going forward.

Having said that, our long-term thesis remains completely unchanged. We continue to see a very, very large opportunity in credit within the Angel ecosystem itself.

We have a very large, engaged customer base, strong proprietary data, and significant headroom to deepen credit penetration. Our focus is actually on building a scalable, high-quality business with strong unit economics and scalable lender partnerships, rather than optimizing for every single quarter's disbursements.

We actually believe this approach will create much larger and much durable business over the long term.

Thanks, Saurabh. On the broking piece, Prayesh, I'm assuming you're talking about the industry ADTO.

Look, I think we've seen 15 days of July, too early to think about anything. The way we think about it is, really, in years' time frame.

Nothing fundamental has changed about India, if anything, we are due for a big growth. I don't think there is anything to read into that one.

On the wealth management side, I'll hand it over to Srikanth to talk about it. Srikanth?

Yeah. Thanks, AK.

Thanks, Prayesh. Look, see, for us, one of the more important metrics as far as wealth is concerned is to build a high-quality asset-under-management-led kind of a business, and that's why one of the key focus that we put and a very inordinate focus on that is to have a very ARR-led AUM, because in this kind of market, as we are all aware, it's easy to give in to the temptations of getting AUM, which is very high on one-time transactional revenue, which actually puts a lot of pressure on building a long-term sustainable business.

All of us are brutally focusing on building a wealth management firm where not only are the assets growing at a very healthy rate, but the assets are growing the significant focus on ARR as a corresponding revenue to that. For us, what is also crucial is the unit economics are something that are starting to fire.

It's been about five or six meaningful quarters after we started our business, and hence, one of the reasons why we focus more on parameters such as AUMs and cost-to-serve economics and unit economic metrics is those are the building blocks. We've always maintained that we have a plan that we are working with, which gives us about three to four years in terms of having a more potential breakeven visibility.

At this point in time, all parameters are pointing towards that region. That's the approach with which we are building, Prayesh.

Thanks, Srikanth. I think on the AMC question, I'll invite Amit Majumdar to talk about it.

Hi, Prayesh. On the AMC, look, for us, AMC is an important capability, and within our wider wealth ecosystem, our objective is to always build products that are simple, relevant, and digitally distributed, while leveraging the strength of our customer base and technology platform.

At this stage, our focus is on building the right foundation and strengthening our product suite, distribution capabilities, and customer experience. You should think of the AMC as an important strategic investment that complements our platform and deepens customer engagement over time.

We will continue to evaluate opportunities across the spectrum, but our philosophy remains to build where we believe we can create genuine customer value and differentiate through digital distribution and technology.

I get that, Amit. Just two two two things.

One, what has so far not gone right? It's been some time that we have launched the AMC, and we have hardly scaled up to any AUM.

Second, on the credit part, again, where you've mentioned that so what has not worked for us in the last six months? Now, whether it is our platform, whether it is our relationship with the banks and with the partners, basically, or what has not worked for us that we've gone down by almost, say, 30-odd percent from the peak?

What has not really worked for us? Those would be I'll

pick up the AMC piece first, and then I'll let Saurabh explain the credit part. Look, AMC, all along, has been a passive-only approach for us at the start.

Passive businesses take a long time to mature. We started this about 15 months ago, not too long ago, so, and in that sense, passive grows as content grows, as educations grow.

Passive is largely sold as a DIY on digital platforms. The first 15 months has actually been to ensure that we roll out the right kind of products.

Today, we have all the products that we need, the most important ones that we have already rolled out, and these have all got rolled out over time. In fact, most of the product rollouts happened in the last quarter of the last fiscal.

This takes time for it to build. While we are building the passive, we also recognize the fact that as an AMC, and given the length and breadth of the product suite that is available for us to exploit, we are looking at how to further expand this portfolio beyond what we are currently doing in passive.

It's very early for us to actually comment on the performance as of now, but we are confident that over the next three or four quarters, we will have far greater visibility on our real strategy on the AMC front. On the credit, yeah, Saurabh.

Yeah. Prayesh, just to expand on what I had said earlier, I think there are two or three things which could have gone better.

In general, I think lenders keep calibrating their risk and their pricing on our base over time. Quarter-over-quarter, some of these do impact our disbursements.

Secondly, as well, since we work with lenders and who in turn work with a lot of tech partners themselves for underwriting and for KYC, etc., some friction in those parts of the funnels also do impact in the short term. Some of these have been identified and in the process of getting corrected.

We don't see any short-term to mid-term blip in the credit growth, and in the long term, we are actually very, very bullish on the same. Yeah.

Prayesh, I wouldn't read too much into the quarterly gyrations. It's a very long-term business.

You will see it grow.

Yes, yes.

Yeah. Hi, sir.

Thank you for the opportunity. Just two, three questions.

First, on the industry volume side, sir, I just wanted to understand that how you are at the current run rate seeing the broking volume. In the first 15 days of July, how are we seeing the broking volumes particularly on the derivative side?

Do you see any impact of the RBI circular, second-order impact on your number, if you can highlight that if there is any possibility of a spillover effect that might come through, although I understand that we do not do the prop trading part, but if any spillover effect is coming, if you could highlight. That is one.

Secondly, wanted to understand also on the MTF run rate, how are we seeing as we move in the first 15 days of July, if you could give some color on that, because I think at the industry level it looks tepid, any color would be helpful. Thirdly, on the cost front, sir, wanted to understand our employee expense, the flattish trend despite the increment, how should we think about the employee count, has it kind of degrown over this period or if you can give some color on that?

Fourthly, in terms of our customer acquisition costs, you have mentioned that the acquisition cost has been lowered this quarter. Would you mean in terms of the per-client acquisition cost or is this a function of lower number of customers acquired vis-a-vis earlier quarter?

These would be my questions. Thanks.

Thanks, Swarnabha. I think on the first two questions, really, we again talk about the quarter after it's done, first 15 days, you can look at the industry volumes.

We continue to monitor our market shares and those situations, but we don't comment on them in the middle of the quarter, I wouldn't want to talk about that. Vineet, do you want to talk anything about the RBI circular at all, because it's really hard to say, hard for us to predict that?

No, we're not seeing any kind of a liquidity issue as far as the funding position is concerned, so, I think this is something which is transient and, over a period of time, will even out.

Vineet, also on the employee cost, do you want to talk about employee costs and the number of employees? Yeah.

Swarnabha, if you recall in the conversation that we were having in April, I had mentioned that we would be more or less flat as far as our employee cost is concerned vis-a-vis the last financial year. In the last financial year, we were at about ₹11 billion for the entire year, including the cost for stock options.

My sense is that we will be in that similar range in this year. It's a bit early to give you a complete sense, but the way I'm looking at the business, we will be in the range of about ₹11 billion as employee cost for the year.

I think, across the board, you see that as we grow, we want to continue to drive the business efficiently. On the CAC, I don't think we comment on the CAC itself.

Overall, you may see some changes in the total acquisition costs, and that is just dependent on how rich the market is in terms of acquiring the customers, but we don't comment specifically on the CAC itself.

Right. Sir, I don't want any specific number in terms of the CAC, I just wanted to understand that your presentation comment was at a overall level, at the total cost level or at the unit cost level of acquiring one customer?

Swarnabha, it was at a total acquisition cost level.

Understood. Helpful, sir.

Thank you so much, and all the best.

Thank you, Swarnabha.

Hello, sir. Can you hear me?

Yeah. I have two questions.

One is from the presentation and from the numbers, one can see that our distribution revenue has declined over the past two quarters as a percentage of percentage of gross revenue. Can you is there any headwinds that we are facing in the distribution business?

One is that. Second is with respect to client funding book, which has grown substantially quarter-on-quarter.

I just want to understand what what is the risk of this client funding book on the at the company level if there is a if the market for next two quarters turns doesn't perform or the market takes a dive downtown?

Hi, Raman. Thanks for the questions.

On the distribution revenue, some of these quarterly gyrations that you see are also because of the insurance distribution business, because Q4, as March tends to be very, very, very strong in that business. I wouldn't read too much into it.

We talked a bit about our lending business, but beyond that, not much. I think it's a very strong business.

We continue to have great momentum there, we do think you will see more momentum on that business. On the MTF, on the client funding book, there is actually very, very limited risk to us because we have exchange-prescribed margins, and sometimes we go over and above that as well, we stay quite safe.

Vineet, do you want to comment anything else on the risk?

I think, as I've been mentioning it in the past, the risk management system remains a strong backbone for any broking entity, and especially for the client-funding-related activities. We have a very strong risk management framework, and if you see in the past also, there have been instances where the markets have been flattish or there are events that have resulted in sharp decline in the market, but we haven't seen any kind of a issue.

As far as the momentum is concerned, there are multiple factors which drive the momentum, including movements in the market. I think the overall penetration at this point in time amongst our client base is pretty low, and therefore, we see a long-term strong growth opportunity in the client funding segment, and therefore, we are very bullish about it.

Understood, sir. Sir, my final question is on the AMC business.

It has grown substantially, I think since we have launched, we have been able to grow this business at 80%, 90%. I just want to understand what's our long-term vision.

Is there any internal target of reaching ₹100 billion AMC AUM in the near term?

Amit will take that question.

Yeah. Hi, Raman.

Look, we of course have set some targets for ourselves. While until so far, our AMC has been primarily a passive AMC, but over time, we have been trying to figure out ways in which we want to expand this beyond what we are currently doing.

We do have an expectation on the AMC over the next few years, but obviously we cannot state that now, because these are all in the works as of now. I'm sure you will hear more about this over the next couple of quarters.

Thank you, sir.

Hi. Sir, in NSE active client base, we see some decline over there and obviously client acquisition has also been a little slower.

Just wanted some sense how given the July activity has also started with a bit muted. How should one think about overall this trajectory, and in that sense, the target for FY27?

Look, I think NSE client base, as tends to be overall a 12-month metric. Depending on what has happened during those 12 months, that metric will sometimes move month to month.

We continue to focus on getting a good client base, acquiring a good set of customers when they're available, and we keep monitoring as well as figuring out which level we want to acquire clients. We're acquiring at a fairly good market share in terms of when you look at our market share, we continue to acquire at a high market share there.

Especially, some of these are also dependent on market conditions. As you see, perhaps, more IPOs when people get interested, as you see some more activity in the Nifty, right, I think that's also been quite flat, you'll see more investors come back in, and that should start showing you good numbers.

At the same time, I think we continue to be quite strong if you look at the ranking on the active, it continues to be strong, and we think, in the future, you will see us rise from there.

Okay. In terms of the overall target and the aspiration for 40%, 45% margin, that kind of stays ex of the wealth rundown what we're having every quarter.

There's no change in trajectory over there, right?

No, no change in that. You can actually see that quarter-over-quarter we've been actually doing that.

Just to be clear, when we give you that guidance, we always talk about the stand-alone margin, but overall console also, I think you see our margins have been fairly, fairly healthy. This quarter, of course, because of IPL and other adjustments, you have to look at it on a adjusted basis,

and

that 45% to 50% margin guidance remains intact.

Got it. Lastly, again, on the distribution bit, as you mentioned that it will pick up and you have confidence in that, just wanted some sense, is seasonality here, usually Q4 has generally more towards distribution side in later part of the year, but are we seeing some trends or do we something different to make it improve from here?

Neeraj, I mentioned earlier, definite seasonality, especially in insurance, you see definite seasonality there. On lending, we talked about it.

You will see it rise from there. We are actually where we want to go compared to that, we are at a very small base, you will see it rise from there.

Also, very small number of our customers have ever taken loans from us. You will see definite momentum in those areas.

Again, we don't think of especially a business like lending, you don't want to think of it quarter-over-quarter. It's really important to grow it responsibly.

We look at a very long-term view of that. We have a fantastic set of seven partners.

All of them are growing, you will see momentum there.

Okay. Okay.

Thank you. That is from my side.

Thanks for the opportunity. My first question is on the wealth management for the existing clients of Angel One platform.

If you look at our AUC of stock is very high at 1.7 lakh crore, but mutual fund assets that these clients are managing on your platform is quite low at I think around 20,000 crores. How do you plan to, first of all, increase the engagement from a mutual fund perspective?

Secondly, how do you see monetization of the AUC of stock that our clients are managing in terms of stock advisory or anything else?

I think we are actually seeing momentum in mutual funds. It's an important business to create wealth for our investors.

One of the metric that we look internally at is just how many active SIPs and what is our share of that. Across the board, we're seeing definitely that do well for us.

You'll see a few things here that will change the momentum further. One is, I think we've started to use AI to make sure that people can get their questions answered and you'll see momentum on that front.

We're also improving UX and UI on certain front to make the usability even better. Also, on the assisted business side, we have a focus on mutual fund distributors, you're going to see value on that front also.

We're seeing momentum, and there is more momentum coming on that front for sure.

Any plan to offer stock advisory, etc., to further clients to manage their investment in stocks better?

Not at this time. We do, of course, we have RAs and we provide calls, as those are different.

No plans on the stock advisory front. We of course have Onyx, which is our sort of wealth management business so people can sort of have a full solution set there on that front.

Sure. Secondly, in terms of AP channel, what is the count of active AP that you have as of June, June '26?

Secondly, in that channel, I think we had plans to scale up loan distribution, mutual fund distribution, and other financial service product distribution. What is happening there?

Any data that you can share?

I'd let Nishant take that question.

Count of AP was the question, I guess. It should be around 9,800 at this point, active APs.

Approximate count, think of the number of APs as about 10,000 is what you should think of. I think your next question was about mutual fund distribution?

Yeah.

We have very aggressive plans

around to use AP channels for mutual fund distribution, loan distribution, insurance distribution, and other financial service product distribution. What is happening there?

Yeah. That is a natural progression, which is making our APs more salient with regards to their capabilities and their ability to offer multi products.

That has been a very clear visioning that we have had with regards to multi product selling GTM on back of our existing APs, as also, like AK alluded, we are looking at restarting the acquisition on the mutual fund distributor side as well. I think you would find multichannel, multi-product play as we move forward.

Do you also plan to originate, let's say, small DSAs on the platform for loan distribution or

No, not at this point.

Sure. The last question is on wealth management.

What is the contribution of wealth management in terms of revenue and cost for the quarter? Let

Vineet take that.

Revenue right now, we're not disclosing any revenue, as Ambarish mentioned earlier, it's a very nascent stage, we don't disclose the revenue for the wealth management or the AMC business separately. As far as the cost is concerned, the cost is in line with our plans for this year.

Overall, as far as the operating margin decrement is concerned, it's about 4% for both the AMC and the wealth businesses put together from the overall. On an adjusted basis where you're seeing about a 44% operating margin for the consolidated business, this includes the burn that is there for the wealth and AMC businesses.

So

400 basis points is the burn from the wealth and AMC for the quarter.

Given that this quarter was different in terms of the spends on IPL and all, therefore, this burn is about 4%, 400 basis points.

Sure. Thank you.

Hi. Good morning, everyone.

A few questions from my side. Firstly, if I look at your annual report, it seems that there has almost been a 15% to 20% decline in the employee count in FY26.

Now, if I were to take a view over the next two to three years in terms of your employee base, the way I see it is on one side, you'll probably continue to invest in the new businesses, maybe sales teams, product teams, while on the other side, you might want to kind of rationalize your existing base on the pure-play platform or the traditional business that you're building on the platform side and APs. Just wanted to get some sense of how does your employee count look like from a business perspective when you think of it from medium term?

Second question is on the wealth franchise. Now, if I look at it out of your overall AUM, ultra-HNI AUM, the way you classify it, is still the biggest contribution to the overall AUM number.

Now, looking at the ticket size, it seems that you would be competing with the incumbent wealth companies in that segment. The question really is, what's your strategy from a client acquisition perspective, and especially in linkage with that relationship manager acquisition perspective?

Are these RMs people who have been working in existing banks or maybe boutique wealth franchises who, when they get onboarded on the platform, already have a clientele list which they can tap into? Just wanted to get some sense of the client and RM acquisition strategy in that business.

Finally, the last question, in one of your comments, you mentioned that on the wealth side, you want to build a franchise around recurring revenues. When I look at the broader markets and maybe compare it globally also, I think access to exotic deals, one-off transactions have been a key driver of acquiring new clients in certain segments.

At a certain point of time, once the AUM scales up, how does your product strategy really shape up?

Thank you, Dipanjan. On the first question of employee count, as I've mentioned before, we continue to make sure we drive our business in the most efficient manner.

At the same time, we are always looking for talent in the right places. If we find a good talent that will result in growth for us, we'd always go after that because long-term growth always will beat that cost.

Overall, over the next two, three years, you're definitely going to see the world change. There's AI, other tools, all of that.

We'll continue to stay on that trajectory. Overall, I don't want to give a guidance on employee count, but you will see employee productivity increase for sure as we have all this access to all of these things.

Across the board, not just with employee count, and across the board, you should think of us as continuing to work on running our business more efficiently, get more productivity out of the unit resource that we have, whether it's capital, people, anything else. On the wealth stuff, Srikanth, can you come in on those two questions on the AUM as well as the recurring revenue stream, please?

I'll do that. Dipanjan, firstly, congrats.

I think you've asked some questions which are at the heart of wealth management itself. I'll give you our take of how we are sort of building this franchise.

Look, I think it's a it's been our stated position since the beginning that we are building a full-service suite as far as wealth management is concerned. We are catering to most customer cohorts, largely split as either the ultra-high net worth, which we loosely qualify as customers with net worth of ₹50 crores and above, and people between the ₹1 crore and ₹50 crore net worth.

As far as the first is concerned, it's something that majority of the leadership team have done for about two decades, and hence, the ability for us to have attracted the right quality of talent, and along with the right quality of talent, the right quality of clients sort of walking in. That's been one of the reasons why you see an initial higher sort of AUM building towards UHNI.

I see that trend continue, but I also see that trend where it starts becoming more flatter and more equally distributed between the ultra-high net worth and the second business, which is the 1 to 50 crore wealth tech segment. The difference between the two businesses is the first business of ultra-high net worth continues to be a RM-relevant, high-touch, and a domain-led capability.

A lot of productivity-based experiments happen behind the scenes where, to keep every RM productive and relevant, we are able to, now at a at a very initial date, are able to demonstrate a far superior unit cost unit cost economics as compared to what is the traditional, conventional norm. Whether it is in terms of coverage of RM from a service point of view, coverage of RM from an operational point of view, coverage of RM from an advisory analytics point of view, those, using some of the automation that we've been able to bring together, we are seeing the integration of the RM providing the right comfort for the investor from an experience point of view, and behind the scenes, the productivity and efficiency getting some high-quality traction.

Now, as far as the second business is concerned, where currently we are at close to about 3,400, 3,500 crores of AUM, that's a business which is built more granularly, because unlike the UHNI business, where there could be lumpy assets that comes in, in the second business, the fun of building that business is that that business gets built granularly, is extremely sticky as you continue to build, and from a volume point of view, that's the one that sort of stretches the belly horizontally if we build that right. Now, that business, for us, also pivots from being a high-touch wealth business into an omnichannel business, where we use the availability of technology and RM, and we put the power of choice in the hands of the investor.

The way we are positioning this is instead of preaching to the investor what is right, we put the power in hands of the investor to choose whether they wish to have services disseminated to them through technology or through the RM. Now, that's how the two businesses are fairly delinked.

We, on the other hand, have made a fairly innovative call where we do not differentiate between the two businesses, basis products or service superiority or inferiority. In many cases, if a client is characterized in a lower or a higher segment, you are also assumed that they will also get better service or better product.

What technology has shown us all throughout is you need not have differentiation in your service or product capabilities, but you can have the ability to service one-to-many and one-to-one using a tech or an RM kind of an interface. That's the core with which we are operating as far as your customer acquisition question was concerned.

The first business self-answers it. The UHNI business usually works with high-quality RMs bringing in their customers, and usually the referral flywheel in a UHNI business is extremely strong.

With the team having done this for a fairly long period of time, this part of the business comes fairly naturally naturally to us. On the other side, having good-quality access to products and not all products need need to be exotics or not all products need to be transactional, but products could also be, for example, one for us, one of our very strong product focus has been international experiences for investors.

Now, those are the areas, including products, right research, domain, and high-quality RMs, have been the reason why our customer acquisition flywheel continues to be extremely strong at this point in time. Second question, in some sense, is partly answered that why you're absolutely right that you can't always have only a very similar asset allocation products.

While on the more sustainable basis, that is the that is the approach that builds the core, but what is equally crucial is that you always have to have access to high-quality products, which could be at some point of time privates, unlisted, international, or for that matter, even listed equity. I think with the experience of a very strong product and research team, we are in no shortfall of that as well.

I don't think we have a philosophy of cutting products as transactional or revenue. We look at products as exclusive, contextual to market, strong barriers of having gone through suitability and product approval committee approvals, but we have enough products at all points of time where we are able to grab the right attention from an investor point of view, Dipanjan.

Right.

Thanks for a detailed answer. Maybe one small follow-up.

If you were to hypothesize and think of this business, let's say, 5 years from now, would it be fair to say that new-to-Angel customers would form bulk of the AUM on the wealth space, specifically Onyx?

I think it should be an important pivot. That's one of the superpowers that we all have, right, that we have a strong customer acquisition throughput through Angel One.

We have a strong product and domain platform here at Onyx. The combination of the two should, in some sense, play out in the right form.

At this point of time, we are also seeing extremely strong organic customer acquisition on the UHNI as well. While it is possible what you are saying could be a reality, but on the other hand, we continue to see the organic acquisition through the current team, organic customer acquisition through the product that we are launching, and also client references continuing to grow very strong.

Difficult to hypothesize, but, yes, it would be one of the stronger pillars, for sure.

Got it. Thank you, everyone, and all the best.

Thank you.

Sir, thank you for the opportunity, and congrats on really good performance. A couple of questions.

Can you please give me update on launch or progress of loan against securities via your own NBFC? That is one.

On the personal loan side, can you give update on addition or reduction in any of the partners with whom you are distributing the loans? Third question, touching on the earlier question by another participant, the employee count has gone down from 4,139 at the end of FY25 to about 3,300 at the end of FY26.

Can you give which divisions have seen significant reduction? The fourth question, on the cash realization, right, they seem to have shot up meaningfully this quarter from about ₹15, ₹16 earlier to close to ₹19.

Is this driven purely by the increase in ticket sizes or any other reason? Thank you.

These are my questions.

Thank you, Pavan, a really good set of questions. I'm going to shortly hand it over to Saurabh, but on the LAS, the quick answer is that we have a pilot going on, which is a very small pilot, but you're going to see that expand.

Saurabh, you want to talk about LAS and personal loan partners?

Hi, Pavan. We've spent quite some time building the infrastructure and the journey for the LAS business, and we are in COG mode right now.

As and when we get more experience from the customers, we'll open up the entire base, and next two or three quarters, you should see that business becoming big. On the PL side, we work with seven lenders right now, and over time, some of the lenders come in and they scale with us, and some of the lenders who don't scale with us, we sort of offload them.

Seven it is right now. It is across banks and large NBFCs primarily, with a couple of fintechs getting added over the last two or three quarters.

Thanks, Saurabh. Pavan, you'll see that listed on our page 18 of our quarterly report.

On the employee count, I think we don't break out specifically in different functions, but, as I have said, we continue to become more and more efficient. On the cash realization question, I think there's a few factors there.

If you look at it over a period of time, in November, we had made a small pricing change. That definitely has an impact.

Recently, quarter-over-quarter, what you have seen is two major factors. One is the change in the ticket sizes, right, greater than 20,000 versus less than 20,000 orders, you're seeing a different mix there, so that is resulting it.

Second is that, on the assisted side, we have different plans. There is a value-added plan that we have started, where we get a better cash realization, and that has been doing extremely well, because customers are liking it and signing up for it.

We see in this business that when you provide the right set of features and service to the customers, they're willing to pay more for it, because their investment and money is much more important than what they pay as a brokerage. We're seeing that play out.

Just one follow-up. Do you see further scope for the increase in the realization on the cash from the assisted acquisition?

Look, it's very hard to predict, especially on the mix size, I wouldn't bake in any further increase from here, and it can change quarter-to-quarter depending on how the mix of orders come in, which we don't necessarily control. Yeah.

Thank you, sir. All the best.

just wanted to understand the opportunity on the US equity side. We would look to maybe position in terms of pricing or maybe product differentiation?

Just a broad would help. Thank you.

Look, I think it's good question. US equities is a very interesting opportunity.

We already have certain offerings, but we are looking to upgrade these offerings. We got a GIFT City license also on that front, as you would have seen.

We can't talk about any pricing at this time, because we haven't launched the product. I would say just wait for it, but we do think it's in important segment where you'll see more activity from us, for sure.

Sir,

just one follow-up, if I may. For the offerings which are already there in the market, is is there a number maybe, in terms of how profitable it is, and all and also maybe, what is the allowable limit and etc., which, just to maybe understand for customer basis per customer, how much would be the allowable limit there?

Two questions, two follow-ups.

Look, the industry stuff we can follow up with you on, but that's sort of a industry data that's out there. On the limit, really, these are the LRS limits that are prescribed by the RBI.

This is actually a fully cumulative limit for the year. It's really $250,000 is what the LRS limit is, but depending on what you're doing, there are different limits may apply.

I don't want to provide regulatory answer here, but that's sort of what you should look at is that it's really based on the LRS limits. It is part of that.

It is not outside of that.

Sure. Thank you.

Hello, sir. Thank you for the opportunity.

First question is on the client acquisition side. We've seen some moderation in this quarter.

Is that a deliberate approach that we have taken to control costs, etc., or are we seeing some challenge on ground to acquire new customers, given that the leader has become more active, is client active market share has gone up slightly from March levels? Just wanted to touch upon that.

Hi, Deepak. Thank you for the question.

On the client acquisition, you should look at the overall industry data if you see what is sort of the CDSL number for client acquisition. That itself actually has been softer last few months.

The way we look at our client acquisition is that we are looking at what kind of client segments are. We have different channels of acquisition, and we say, "Look, what is the cost at which a client is coming?

What segment are they from? What kind of LTV can we get out of them?"

Based on that, we keep adjusting our spend. This is not to reduce costs in any way.

If we get great clients at some time through channels, we've mentioned in the past that we would definitely be biased towards growth, there's no specific intention to reduce costs on that front. Sometimes it's just when the markets are not doing that well, a lot of customers don't get excited by being first time coming to the equity market.

When markets are doing well, lots of IPOs are happening, customers get excited and more people want to join the fray. Long-term, you will see the trend that equities are very underpenetrated in India, only 5% to 10% of retail wealth is in equities, so long-term trend will continue, I wouldn't read too much into the sort of last month or two there.

Understand that. Sir, the cost related to these client acquisitions, if you just divide the cost by the client acquisition run rate, it seems to be on the higher side.

I understand there's an IPL cost associated with it, but apart from the lumpy IPL cost, is there a structural increase in our cost to acquire new clients or will we be getting back to our older levels of client acquisitions?

One thing, I just want to make sure, I know you're not sort of alluding to that, but I just want to clarify that IPL costs are really not an acquisition cost, it's branding costs, very, very long-term cost, so that has to be kept very much out of it. Even though sort of you're not going there, but that said, generally what happens, and we've said this in the past, is that during the IPL time, the activity is a lot.

There's a lot of activity in the market, the client acquisition cost does tend to creep up a little bit, but it does come back down, we expect that to happen. I do think really it is dependent more on how the markets are doing, and that can get people excited about it.

When markets are flattish over a period of time, a new investors may not want to come into the fray, because they've not seen the long-term trajectory and the long-term advantages, but over a period of time, they see it and they come in.

Got it. I just wanted to touch upon the wealth division.

Although we've scaled up well, I just want to understand a level deeper on our right to win in this segment, because our assets are largely coming from the ultra-high-net-worth individuals today, and it's mostly ARR assets, it's the best of two that we can have. What exactly have we gotten right and what's our right to win in terms of scaling up on our current efforts?

What you've answered in the previous question was the talent pool which is available with us and the scale that each RM can get to. How much more juice is left in the productivity of that particular RM and the scale-up of RM that you will be incurring in the coming years?

If you can touch upon the scalability that you're envisaging with the Onyx Wealth brand as well.

Srikanth, can you take that question, please?

Yeah. No, Deepak.

Fair. I think I did maybe give a slightly more detailed answer in the previous one, but just to sort of quickly touch upon our vision in terms of how it's scaling.

One, look, I don't think wealth is going to be a winner-takes-all market. I think in all developed parts and in all significant markets, there is always room for eight to 10 high-quality wealth players even in the top end of the pyramid.

As you start going down the pyramid, the ability for multiple people to coexist only increases there. A, I think this question of each one having a unique right to win while strategically each one will figure their own sort of strategy.

For us, it's the holy grail of integration between the right relationship talent, the right domain talent, and the right tech talent, and the intersection of these three sort of come. I think the way newer sort of wealth management clients are coming into the fold, the scalability is abundant.

We had coined a term two two years ago in the media called triple multiplier. Essentially, what it says is that this is one of the unique industries where you're seeing three engines of growth expanding the market.

You've got the assets that are already deployed appreciating by X percentage. You've got newer customers entering the world of investments each year, and you've got the current investor increasing their investment amount each year due to their disposable income going higher.

All three are mutually exclusive, which is feeding into this market growing at a pace which is unparalleled to many other markets. As India grows from a 2,800, 2,900 per capita GDP towards greater heights, financialization is going to be a crucial sort of theme.

I think, for us, scale, availability of both customer base and talent pool, while enough is being said about it, we don't see that as a huge challenge. I think if we do the basic parts of wealth management right, which is ensure that master products that we do are, at all points of time, right to both the customer suitability and market, we are able to ensure that we get talent pool which is uniquely right for our DNA rather than getting talent pool for any reason, and, C, using technology to make sure that the cost does not put its head up in a manner that it becomes untenured.

I think if we keep these three things right, and that's the reason why I gave that slightly more exaggerated answer in the first question, that for us, using technology to make sure productivity is high is extremely crucial. After that, a quick last answer as a rejoinder is, given the experience of the team and given the fact that we've been fairly sort of lucky to have been joined by very high-quality talent on all three sides, which is relationship, tech, and domain, every now and then, the team is able to lay its hand on slightly unique offerings, be it global, be it commodities, be it multi-asset allocation through discretionary formats.

These are some of the early successes. The right sprinkling of ideas, which are slightly ahead of its time, and growing extremely strong on basic foundational principles and the fact that India continues to grow means that, I think, none of the serious wealth players should worry about the scale opportunity that India presents.

Sure. Understood.

Sir, you mentioned in the previous remark that a break-even period is going to be about three to five years, if you can dwell deeper on this as to how you're thinking about breaking even. Is it going to be revenue-led or you're not going to increase cost much?

One is on that. On an absolute basis, earlier you used to speak about 3% of revenues being burnt in these new ventures, and now you're talking about 4%, is there an absolute quantum that you can give us, maybe ₹100 crores, ₹150 crores for these new ventures that Angel One is ready to bear until the next three, four years?

I know percentages are good, but an absolute quantum should be useful.

Let Vineet take that question.

Hi, Deepak. On the cost overall for the business, yes, as I mentioned, it's about 4% for both the AMC and the wealth businesses put together for this quarter.

Overall, I think we will be in the range of about 3%, 3.5% as at the financial year. Given that this quarter was different in terms of the seasonality as well as other costs that are there, therefore, you're seeing a higher contribution as far as the burn is concerned in the operating margin level.

On the breakeven side, I think we've been quite consistent that this business, over a period of, say, about three to four years, should be incrementally breaking even. Having said that, if we see opportunities to accelerate growth, we will definitely look forward to accelerate the growth and build the business on a stronger platform for a longer-term growth and sustainability perspective.

As of today, as I said, in the past also, we mentioned that from the beginning, we are contemplating in about three to four years this business should incrementally break even.

Hello. Am I audible?

Can you speak a

Sorry. My question is not regarding your financials.

Your app is great. I'm one of your longest-standing customers, and I've referred you to so many people.

Because of a problem that I'm facing with your app or the restriction that you placed in that, I've stopped referring you to other people. I've tried calling your customer care, escalating to next level, nothing has worked.

That's why I thought maybe I could join earnings call and talk to the top-level management. I think you are aware about the RSM category in Angel One, right, which is called as restricted basket, where a group of stocks which are put under this basket are restricted to either buy or sell.

Even if we call the customer care and if we ask them to buy or sell, even they are not able to do it. This restriction is not from SEBI.

This is a restriction which is done at the Angel level. My question is, when there are so many restrictions already which are very overwhelming by SEBI already in India, if you see the ESM, the T2T, there are so many, right, circuit filters, so many things are there.

Why this restricted basket is created by Angel when no other app has any such restriction? For example, if I go to Zerodha, Upstox, or Groww, none of these apps have this restriction.

I can buy any stock, I can sell any stocks there. Only for this reason, I have gone to CDSL website, I had to move my SME segment shares from Angel One to Zerodha because of this restriction.

Let's say that this restriction is not put on a stock when I'm buying, but then after some days it is put under that basket, and I won't be able to sell it, even though I have it in my portfolio. This is a very, very big problem for the existing customers, because of which you're losing some business.

I know that you are growing at a very rapid pace, I'm very happy about it, but I think feedbacks like this should be considered very seriously. I would like to hear you why you have that restricted basket.

Subhash, first of all, thank you so much for doing this. I am extremely sorry that you've not been able to reach our customer support, and I take it very, very seriously.

Please write to me at [email protected], and I'll personally look into it. You have many, many channels, and absolutely, we'll make sure that we look at it.

In terms of the risk, we have our own risk management on top of what SEBI would prescribe, because brokers have their own requirement to do things. Let's connect offline and take your requirement.

We are continuously reviewing all the set of securities, all the rules that we have, and we keep making these changes. I'd love to connect with you.

Please write to me, and we'll have somebody reach out to you literally today as soon as I get a email from you. I'm extremely surprised that you've not been able to connect with us.

I take it very seriously.

No, no, I was able to connect. I brought up this problem, but all they say is this is just the policy from Angel One, we cannot change it.

They are also helpless, the customer representative.

We'll connect

Sure, sir. I will definitely connect, but I just like to hear a little bit more about this.

Why do you have that restricted basket when no other broker in India has such

Look, like I explained, we have a set of risk policies based on which we decide, because there is risk surveillance, bunch of things that we do. We can speak more to you about it.

You will consider removing this, right?

Look, as we get your feedback, any feedback that we get, Subhash, I look through CEO escalation mails. Every CEO mail, I take these things very seriously, and therefore you're seeing the tone and the me giving out the email on this conference call is that regardless of that, we will follow up every bit of feedback.

Of course, we have to be logical about it, we have to do the right thing for the customer, right thing for the ecosystem, and stay within compliance. Absolutely, we'll look through it, and we will regain you back, Subhash.

You have to come back to Angel One, and I'd love to see No,

no, I'm already in Angel One. 90% of my investment is in Angel One.

Why do I have to move to some other broker, right? I would like to have everything in one account.

I don't lose anything by creating another account, I can easily transfer, but I wanted to give this feedback. Yeah.

So

I appreciate that. Again, not appropriate to talk more on this call, but I appreciate it.

We'll connect with you offline,

yeah? Could you please repeat your email ID?

I will just write it down.

It's [email protected].

Okay. Thank you so much.

Yeah. Thank you so much.

I look forward to hearing from you.

Thank you once again for joining us today. As always, it has been a pleasure engaging with you to discuss our results and progress.

If you need any further information, feel free to reach out to Hitul Gutka, our Head of Investor Relations, or to SGA, our investor relations advisers. Have a wonderful day.

Thank you.