Angel One Limited — Credit Ratings, 01-03-2025: Credit Rating

**Angel One Limited Quarterly Financial Summary**

Angel One's consolidated financial performance showcases robust growth, with total income reaching ₹4,190 crore, marking a year-over-year increase of approximately 43%. This growth was underpinned by a 34% rise in broking income to ₹2,678 crore, mainly due to a significant increase in active clients, which grew by 46% year-on-year to 7.76 million as of December 2024.

Net profit after tax stood at ₹998 crore, reflecting a strong trajectory compared to the previous year. The Earnings Per Share (EPS) thus calculated also underscores this positive trend. The cost-to-income ratio escalated to 68%, up from 65% in FY 2024, mainly influenced by the ‘True to label' framework's market impact which standardised exchange charges, leading to reduced income from key broking services.

The balance sheet remains strong with a gearing ratio of 0.7 times as of December 2024, supported by net worth increasing to ₹5,628 crore, signaling a healthy capital position. However, the high dependence on broking revenue remains a focal risk, necessitating diversification efforts through enhanced offerings in wealth management, mutual funds, and margin funding, which has shown promising growth.

Strategically, Angel One is focused on leveraging its technology-driven operations to bolster client acquisition while enhancing service offerings to mitigate regulatory impacts. Given the current outlook and growth trajectory, a **buy** position is recommended for investors, balancing strong financial health with diligent risk management in a competitive landscape.