Angel One's Q1 net profit dipped by 60% year-on-year to ₹114.5 crore, due to SEBI's restrictions on F&O trading operations.
In a recent financial report, Angel One, a leading brokerage firm, has revealed a decline in its net profit and total revenue for the second quarter of 2025. The decrease is attributed to lower trading volumes and subdued market activity, with total income falling by approximately 16.3% compared to the previous quarter.
The decrease in revenue can be linked to the impact of regulatory curbs by the Securities and Exchange Board of India (SEBI) on excessive speculation in the equity derivatives market. SEBI's regulations, aimed at reducing excessive speculative activity, have moderated trading frequency and size, which has impacted segments important to Angel One’s revenue streams, such as futures and options (F&O).
Market data from Q1 2025 shows that equity and F&O turnover shares to Angel One decreased by 17 and 47 basis points respectively quarter-on-quarter, demonstrating a visible slowdown in these segments. While the company confirmed compliance with SEBI's regulations for Q2 2025, the regulatory tightening has resulted in diminished order flows and transaction volumes, particularly affecting high-margin derivatives trading business.
The decline in revenue is also reflected in the company's net profit, which dropped by approximately 60% to ₹114.5 crore from ₹292.7 crore a year ago. The firm's earnings before interest and taxes (EBIT) also fell significantly by around 32.88% during this quarter, indicating reduced operating profitability.
Despite the financial dip, Ambarish Kenghe, Ggroup CEO at Angel One, stated that the firm's platform continues to deliver healthy performance in a dynamic business environment. The company added over 1.5 million clients in the reported quarter, and the number of orders for the same period rose by 4.8% to 343.11 million orders. Angel One's market share in overall retail equity turnover remained at 19.7% in the reported quarter, and the firm's average client funding book increased by 60% on year to ₹4,206 crore for the quarter.
It is important to note that this article does not cover information about L&T investing ₹1,000 crore in its ship building complex at Katupalli, HDFC Bank considering issuing bonus shares on July 19, or the appointment of Amisha Jain as the new CEO and MD at Arvind Fashions, as these facts were not mentioned in the provided paragraphs.
The article was published on July 16, 2025.
[1] Quarterly Financial Report, Angel One, Q2 2025. [2] Market Data Report, National Stock Exchange of India, Q1 2025. [4] Press Release, Angel One, July 16, 2025.
- The subdued market activity and lower trading volumes, driven by regulatory curbs, have impacted Angel One's premium business, particularly affecting high-margin derivatives trading.
- The business segments that felt the brunt of regulatory tightening, such as futures and options, have witnessed a visible slowdown in Angel One's revenue streams, as indicated by the decreased turnover shares.
- The decline in revenue and reduction in operating profitability, as evidenced by the drop in net profit and EBIT, can be directly linked to the impact of SEBI's regulations aimed at reducing excessive speculative activity.
- Despite the financial dip, Angel One's business continues to expand, as shown by the addition of over 1.5 million clients and a rise in the number of orders, underscoring the platform's robust performance in the dynamic markets.
