Angel One Rallies 11% After Strong Q4, AI Push Adds Optimism

Shares of Angel One surged over 11% on Friday after the company reported strong Q4 FY26 earnings, supported by robust growth in profitability and improved operating performance.

The stock was trading around ₹323 in afternoon trade, extending sharp gains after reversing losses from the previous session, when it had closed 1.73% lower ahead of the results.

The rally was driven by a strong earnings performance, with net profit rising 83.5% year-on-year to ₹320 crore. Revenue grew 38.2% to ₹1,459 crore, while EBITDA jumped 74.6%, with margins expanding to 41% on the back of operating leverage and higher client activity.

Core pre-tax profit rose 19% quarter-on-quarter, excluding one-offs, supported by increased trading volumes and cost reversals. Retail participation remained strong amid market volatility, with trading orders rising 31% YoY and 13% sequentially. Realisations per order also improved marginally across segments.

Growth Across Segments, AI Focus In Spotlight

Angel One continued to see traction across business segments. Its wealth management arm reported a 22.7% sequential rise in assets under management (AUM) to ₹10,080 crore, while its asset management business AUM stood at ₹360 crore.

The company also saw strong momentum in mutual fund SIP registrations, which reached 2.1 million during the quarter. However, credit disbursals declined around 15% sequentially to ₹610 crore, indicating some moderation in lending activity.

Management attributed the performance to normalisation in client activity, increased adoption of digital platforms and continued investments in artificial intelligence (AI) to enhance customer experience and operational efficiency.

During the post-results concall, the company highlighted its ongoing AI implementation efforts, positioning itself as a full-stack digital financial platform beyond its core broking business.

Costs, Fundraising Plans and Outlook

Angel One indicated that employee costs are expected to remain broadly stable in FY27, providing some visibility on cost trends despite near-term pressures. However, it flagged potential cost headwinds in the June quarter due to IPL-related expenses, annual salary increments, variable pay provisions and fresh employee stock grants.

The company has also approved plans to raise up to ₹1,500 crore through non-convertible debentures to support growth initiatives.

Despite near-term cost pressures, the stock has delivered strong returns, rising over 33% in the past one year, significantly outperforming the Nifty 50.