Shares of Angel One rose as much as 3% to hit an intraday high of Rs 2,607 on the BSE on Thursday, snapping a three day losing streak during which the stock had declined about 8%. The recovery was possibly driven by value buying at lower levels, as investors stepped in after the recent correction.

The company reported a 4% year on year decline in consolidated net profit at Rs 269 crore for the quarter ended December 2025. Alongside the results, the board approved an interim dividend of Rs 23 per share and a stock split in the ratio of 1:10.

The record date for the interim dividend was Wednesday, January 21, with the payout scheduled on or before February 13. The record date for the stock split will be announced in due course.

Sequentially, revenue rose 11% to Rs 1,336 crore from Rs 1,204 crore in the September quarter, driven by increased market participation, improved client activity and stronger contributions from non broking verticals such as distribution, credit and wealth management.

Earnings before depreciation, amortisation and taxes (EBDAT) stood at Rs 405 crore, up 24.8% quarter on quarter from Rs 325 crore. The EBDAT margin expanded to 39.4% from 34.5% in Q2FY26, supported by higher operating leverage and improved cost efficiency.

The broking and distribution segment, which includes mutual fund and credit operations, reported EBDAT of Rs 434 crore for the quarter, marking a 25% sequential increase from Rs 346 crore in Q2.

Earlier this month, Citi initiated coverage on Angel One and pegged the target at Rs 3,215, implying an upside of 25% from the previous close.Angel One, Citi says, has demonstrated strong business agility by successfully transitioning from a traditional brokerage to a digital first platform. NSE active clients grew at an 18% CAGR between March 2022 and November 2025, with market share expanding by 495 basis points. The contribution of net broking revenue has declined to around 54% in 1HFY26 from about 60% in FY2022, reflecting progress in diversification.

The company is focused on expanding its product bouquet across credit, distribution and Ionic Wealth, among others. Over the medium term, Citi expects adjusted EBITDA margins to improve to 36.1% by FY2029E from 34.2% in FY2026E, driven by a pickup in broking volumes, revival in customer acquisition and operating leverage from new initiatives. EPS is projected to grow at a 26% CAGR over FY2026 to FY2029, with re rating dependent on prudent execution of the diversification strategy.

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