Angel One Ltd. Records Strong Quarterly Results Amid Increasing Competition in Broking Industry

Angel One Ltd has reported robust financial results for the fourth quarter of FY24, showcasing a 27% increase in pretax profit to INR 340 crores. The company’s gross broking revenue surged by 64.3% to INR 1,357.2 crores during the same period.

Angel One’s primary revenue driver remains its broking business, contributing to nearly 70% of its total revenue. However, the company faces stiff competition in the broking industry, especially as more players opt for a flat fee structure, moving away from traditional brokerage rates.

Amid this competitive landscape, Angel One is exploring other revenue streams, including ventures into asset management and wealth management. The company has recently raised INR 1,500 crores through a Qualified Institutional Placement (QIP) to support its growing margin funding requirements.

The growing retail ownership of Indian equities, more than doubling from INR 17 trillion to INR 35 trillion over three years, has not necessarily translated to higher brokerage for Angel One and other industry players.

Despite a solid performance in the quarter, Angel One faces challenges in maintaining its growth trajectory, with increasing competition in the financial services sector. As the broking business remains its mainstay, diversification of revenue sources is becoming imperative for sustained growth.