Angel One · forward-looking guidance across the available source record.
Guidance tracker
Management reiterated the long-standing margin band, noting Q1 reported margin of 32.7% was impacted by one-time IP expenses, ESOP reversals, and seasonal items (IPL marketing, increments, variable pay). Normalized margins of 43.6% demonstrate operating leverage within guided range.
Management confirmed the previously communicated timeline, with both businesses currently burning ~400bps of operating margin. Focus remains on building recurring-revenue AUM with disciplined cost management rather than aggressive scaling.
Management confirmed a small pilot is live for LAS product through own NBFC. Full rollout is expected in the next 2-3 quarters as the team gains experience with customer behavior and operational processes.
AMC currently operates only passive funds (launched ~15 months ago). Management indicated plans to expand the product portfolio beyond passive, with greater visibility expected in the next 3-4 quarters as current products mature.
Management reiterated guidance to exit FY26 with operating profit margin between 40% and 45%, driven by revenue growth and stable costs.
Over the long term, Angel One aims to achieve 45-50% operating margins as new businesses scale and efficiencies improve.
Distribution, wealth, and asset management businesses are expected to contribute double-digit percentage to total revenue within 3-5 years.
The wealth management business is expected to turn incrementally profitable in about 2.5-3 years, while the AMC business will take 7-8 years.
Management reiterated guidance for broking and distribution business operating margin of 40-45% on an annual basis, with quarterly fluctuations due to events like IPL.
Elevated borrowings due to client margin upstreaming are temporary; software update expected by end of Q4 to reduce finance costs.
Management plans to continue investing in wealth, AMC, and credit, with burn impacting consolidated margins by ~3-3.5%.
Management expects employee costs including ESOP to be in line with FY26 spend, driven by efficiency gains from technology and AI.
Management guided for margin expansion from the H2 FY26 base of ~42-43%, though they may reinvest in growth opportunities.
Total IPL-related costs for the season will be similar to prior years, with Q4 booking only a portion due to late start.
Proposed capital infusion to scale wealth management and NBFC (loan against securities) businesses.