Angel One Limited — Q2 FY26

Angel One Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=8OZm_54Mtro Published: 7 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Q2 FI26 earnings conference call hosted by Angel1. 0:09 9 seconds This conference call will contain forward-looking statements about the company which are based on the beliefs, opinions and expectation of the company 0:16 16 seconds has on date of this call. These statements are not the guarantees of future performance and involve risk and uncertaintities that are difficult to predict. 0:25 25 seconds As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 0:35 35 seconds Should you need assistance during the conference call, please signal an operator by pressing start then zero on your touchstone phone. I now hand the 0:43 43 seconds conference over to Mr. Hikl Gupka from Angel One. Thank you and over to you Mr. 0:51 51 seconds Good morning and welcome everyone. Thank you for joining us today to discuss Ang's Q2 FI26 financial and business performance. The recording of today's 1:00 1 minute earnings call and the transcript will be uploaded on our website under the investor relations section. The financial results investor presentation 1:08 1 minute, 8 seconds and the press release are also available on the website. For today's call, Angel One is represented by Vines Shakar, 1:15 1 minute, 15 seconds chairman, managing director, Amritish Kang, group CEO, Vinit Agraal, group CFO, Soral, 1:24 1 minute, 24 seconds uh, CEO, new business, Shrihan Sudman, co- co-founder of IMQ, A Bya, CEO AMC. 1:33 1 minute, 33 seconds We also have the senior leadership team of angel 1 along with SGA, our IR consultant. The leadership team give 1:41 1 minute, 41 seconds will give us a brief overview of the operational and the financial performance of the quarter gone by which will be followed by a Q&A session. 1:49 1 minute, 49 seconds Please note that there may be certain forward-looking statements during the course of the call which must be viewed in aggregate with the risk that the 1:56 1 minute, 56 seconds company faces. With the brief introduction, I now invite Mr. Dhaka for his opening remarks. 2:04 2 minutes, 4 seconds Thank you. Good morning everyone and thank you for taking the time to join us today. It is great to connect with all 2:12 2 minutes, 12 seconds of you again and to share how we see the opportunity ahead. After my remark, the team will take uh through our performance highlights. 2:22 2 minutes, 22 seconds India continues to stand out as one of world's most resilient and fastest growing economy. It strength a young 2:31 2 minutes, 31 seconds digital first population, steady formalization and a strong policy momentum give it a solid foundation for long-term growth. 2:40 2 minutes, 40 seconds Recent government reforms, especially in personal income tax and GX GST rationalization 2:48 2 minutes, 48 seconds are timely and meaningful. They put more money in people's hands, simplify compliance and encourage consumption 2:56 2 minutes, 56 seconds over time. That means higher saving and more investment in financial assets. We believe we are at the start of 3:05 3 minutes, 5 seconds multi-year expansion across investing, wealth management, protection, credit and fixed income. The last five years 3:13 3 minutes, 13 seconds have only shown the early signs of this shift. 3:17 3 minutes, 17 seconds India's adoption of digital financial solutions including equities, mutual funds, credit and insurance have grown rapidly. 3:28 3 minutes, 28 seconds Simp are at the center of this transformation. They are opening up excess removing friction creating 3:35 3 minutes, 35 seconds experience that are simpler, smarter and more inclusive. By using AI, data and automation, fintex platforms are 3:44 3 minutes, 44 seconds changing the way India invests, borrows and builds wealth. 3:49 3 minutes, 49 seconds At Angel One, our AI powered platform continues to bridge the gap between formal and informal financial worlds. 3:57 3 minutes, 57 seconds expanding our reach and offering personalized journey at scale. Our vision remains clear to touch a billion 4:04 4 minutes, 4 seconds lives and serve their financial needs to one integrated digital ecosystem. Today nearly 90% of our clients come from 4:13 4 minutes, 13 seconds beyond the metros and t1 cities which is a strong reflection of how deeply we are reaching into bank. Our platform now 4:22 4 minutes, 22 seconds goes well beyond equity broking. We are steadily added more products and some of these are beginning to generate annuity 4:30 4 minutes, 30 seconds revenue. Long-term wealth creation is being enhanced through mutual fund and other emerging wealth products. You can 4:39 4 minutes, 39 seconds see the shift across the industry as well. India's SIP inflows reached over rupees 290 billion in September 2025, 4:48 4 minutes, 48 seconds the highest ever compared to a monthly average of rupees 85 billion just 5 years ago. With innovations like MFI, 4:58 4 minutes, 58 seconds Chy SIT and specialized investment fund SIF expanding participation, our asset management business is well placed to 5:06 5 minutes, 6 seconds capture a growing wallet share. On credit side, fintech models like ours are improving discovery, underwriting 5:15 5 minutes, 15 seconds and delivery using alternate data and behavioral analytics. We are making credit distribution more efficient, responsible and inclusive. 5:26 5 minutes, 26 seconds As a part of our broader strategy to strengthen our presence across financial services, we have also entered into a 5:33 5 minutes, 33 seconds joint venture with Leavewell holding company PT Limited. Together we are launching a digital pure protection life insurance offering tailored for India. 5:44 5 minutes, 44 seconds This partnership combines legal insurance expertise with our technology data deep consumer insights allowing us 5:52 5 minutes, 52 seconds to shape the future of protection in India. Our goal is to reimagine how protection is delivered 5:59 5 minutes, 59 seconds with smarter underwriting and seamless claim. Build entirely a strong digital foundation. While this is an 6:07 6 minutes, 7 seconds collaborative adventure, it gives us opportunity to influence product design, embed protection within our platform and 6:14 6 minutes, 14 seconds deliver solution that are proactive and personalized, not one size fits all. 6:20 6 minutes, 20 seconds Angel one will hold a 26% stake in this rupees 4 billion joint venture subject to regulatory approvals. It is 6:28 6 minutes, 28 seconds partnership built on trust and credibility and it is positions and it positions us to capture a significant 6:36 6 minutes, 36 seconds disrup disruption opportunity. We are methodically building out every aspect of customers financial needs wealth 6:44 6 minutes, 44 seconds credit and protection each with a long-term view. These businesses take time to mature. So we have invested 6:51 6 minutes, 51 seconds early in AMC and wealth in 2024 and in credit 2025. This gives each line the 7:00 7 minutes time and space to compound meaningfully over time. At the heart of all this progress is our datadriven intelligence 7:08 7 minutes, 8 seconds layer. It powers smarter products, sharper segmentation, deeper client engagement. We are constantly using this 7:17 7 minutes, 17 seconds insights to design better journey and improve efficiency and we are seeing strong traction. Our platform keeps 7:25 7 minutes, 25 seconds evolving to stay simple, intuitive and personalized for every user. Looking ahead, the tailwinds are unmistakably 7:34 7 minutes, 34 seconds uh from a young ambitious population rising affluence and forwardl looking regulatory framework. Angel one is 7:42 7 minutes, 42 seconds uniquely positioned to lead this fintech revolution and shape how Indians participate in financial economy. It's 7:50 7 minutes, 50 seconds encouraging to see regulators adopting a balanced progressive approach, one that supports innovation while keeping the 7:58 7 minutes, 58 seconds ecosystem healthy and resilient. This strength make this strength market uh 8:05 8 minutes, 5 seconds this strength market confidence and reinforces long-term potential. We all see the opportunity before us is immense 8:13 8 minutes, 13 seconds and as always we will approach it with the same discipline innovation and client trust mindset that has brought us 8:22 8 minutes, 22 seconds so far. Thank you for your continued trust and confidence in India one. I will now hand it over to Amish. 8:31 8 minutes, 31 seconds Thank you DT. Good morning everyone. 8:34 8 minutes, 34 seconds Thank you for joining us on the call today. At Angel One, we continue to invest deeply in building stronger 8:41 8 minutes, 41 seconds client affinity with our platform powered by next generation technology and relentless focus on experience. As I 8:50 8 minutes, 50 seconds had mentioned in our previous quarter earnings call, AI is central to this continuous transformation, helping us 8:58 8 minutes, 58 seconds improve speed, accuracy, and achieve efficiencies. 9:03 9 minutes, 3 seconds I am very happy to share the launch of our AI powered chatbot ask Angel which 9:09 9 minutes, 9 seconds has been developed inhouse using open-source LLM models. 9:15 9 minutes, 15 seconds It has quickly become a key digital touch point delivering fast and reliable query resolution across mutual funds and equities. 9:25 9 minutes, 25 seconds Clients can simply type in their queries or use contextual widgets to receive precise and personalized responses. The 9:34 9 minutes, 34 seconds chatbots architecture leverages our proprietary agentic AI framework and the results have been exceptional with over 9:43 9 minutes, 43 seconds 80% of the users resolving their queries without escalation and 67% reduction in resolution time for 95% of the cases. 9:55 9 minutes, 55 seconds We are also responding to a significant percentage of support emails using AI. 10:02 10 minutes, 2 seconds This is AI at work creating tangible impact and client delight. Over time, Ask Angel will extend across our full product suite. 10:13 10 minutes, 13 seconds We have also removed friction across client journeys. The launch of our cross widget discovery engine now enables 10:20 10 minutes, 20 seconds seamless navigation across mutual funds, loans, commodities and ETFs. 10:26 10 minutes, 26 seconds For our channel partners, we have enhanced the NXT platform offering them unified revenue views, discovery of 10:33 10 minutes, 33 seconds smart advisory and client group monitoring for sharper portfolio oversight. 10:39 10 minutes, 39 seconds These immersive experiences are driving stronger retention, deeper and more meaningful engagement, and expanding lifetime value. 10:49 10 minutes, 49 seconds Our operating metrics validate the positive momentum these efforts are yielding despite headwinds like fluid global geopolitical situations and 10:58 10 minutes, 58 seconds softer market conditions at home and a phase of constructive regulatory evolution. 11:04 11 minutes, 4 seconds As we've always believed, a strong well- reggulated ecosystem builds resilience and businesses that stay focused on 11:12 11 minutes, 12 seconds solving the real pain points of retail consumers thrive over the long term. 11:19 11 minutes, 19 seconds Our client base crossed 34 million with over 1.7 million new clients this quarter, higher by 12.2% sequentially. 11:29 11 minutes, 29 seconds Our DMAT market share rose to 16.5% and overall retail equity turnover 11:37 11 minutes, 37 seconds market share increased by 71 bips to 20.5%. 11:43 11 minutes, 43 seconds Reaffirming the quality of our franchise. 11:46 11 minutes, 46 seconds Average client funding book touched 53 billion rupees and clients executed over 360 million orders this quarter. 11:57 11 minutes, 57 seconds Our efforts of engaging better with clients for the mutual fund product continues to deliver stellar growth as 12:05 12 minutes, 5 seconds we registered nearly 2.4 million new SIPs, a growth of nearly 24% 12:12 12 minutes, 12 seconds sequentially and strengthened our position as the second largest player in incremental SIPs. 12:21 12 minutes, 21 seconds Mutual funds are a great engagement product with over 3 million clients having purchased it on our platform. 12:29 12 minutes, 29 seconds 40% of these clients got activated through the mutual fund product itself and nearly half of this cohort also 12:37 12 minutes, 37 seconds invests in equities showcasing the cross-pollination power of our platform. 12:45 12 minutes, 45 seconds Credit adoption is also accelerating with nearly 4.6 6 billion rupees dispersed this quarter up 97% 12:54 12 minutes, 54 seconds sequentially translating into an annual run rate of rupees 18 billion underscoring plan confidence and platform stickiness. 13:05 13 minutes, 5 seconds We are encouraged by the calibrated regulatory environment which continues to foster innovation while ensuring market stability. 13:15 13 minutes, 15 seconds Our proactive approach to compliance, data privacy, and AI governance keeps us well prepared for both current and future regulatory requirements. 13:26 13 minutes, 26 seconds We are equally excited about our emerging growth engines. Ionic wealth continues to expand its AUM to over 61 13:34 13 minutes, 34 seconds billion rupees from 1250 more than 1250 clients. While our asset management business has launched its first 13:43 13 minutes, 43 seconds commodity fund scaling folios to nearly 1.4 lakhs with 4 billion rupees in assets within a short span of time. 13:54 13 minutes, 54 seconds We are excited to announce that we will set up a branch in gift city a strategic move that opens up new growth avenues. 14:02 14 minutes, 2 seconds This will be subject to regulatory and statutory approvals. 14:07 14 minutes, 7 seconds We are scaling every product line with discipline and precision. What we are building is not just a digital platform, 14:14 14 minutes, 14 seconds but it is a long-term relationship founded on trust, intelligence, and reliability. 14:22 14 minutes, 22 seconds With our expanding product universe, deep AI capabilities and a unified digital ecosystem, Engelen One is 14:30 14 minutes, 30 seconds positioned to lead India's fintech transformation, reimagining how millions of Indians invest, borrow and build wealth. 14:39 14 minutes, 39 seconds Our journey has only begun and our focus remains on building for the long term 14:47 14 minutes, 47 seconds with technology, trust and transparency at the heart of everything we do. I now 14:54 14 minutes, 54 seconds invite Sorup to provide further updates on the emerging growth verticles. 15:01 15 minutes, 1 second Thank you AK. Good morning everyone. 15:04 15 minutes, 4 seconds It's great to have you with us. This quarter, we sharpened focus and executed with rigor, empowering clients to plan, 15:12 15 minutes, 12 seconds manage, and grow their finances seamlessly. Most users begin with investing and then naturally expand into 15:20 15 minutes, 20 seconds credit protection and savings. From checking credit scores, tracking chalance, comparing insurance prices, 15:29 15 minutes, 29 seconds viewing consolidated portfolios to investing in mutual funds or FDS. 15:34 15 minutes, 34 seconds Everything now lives in one intuitive interface. Each feature deepens trust, 15:41 15 minutes, 41 seconds strengthens engagement and makes Angel One the financial home screen for millions of Indians. 15:48 15 minutes, 48 seconds That's our flywheel. usefulness to drive trust, trust to drive depth, and depth to drive growth. 15:56 15 minutes, 56 seconds Starting with credit, credit continues to be one of our most exciting and strategic verticals. Dispersals rose 16:03 16 minutes, 3 seconds sharply from 2.3 billion last quarter to 4.6 billion this quarter, taking the cumulative dispersals to nearly 14 16:11 16 minutes, 11 seconds billion rupees. We also onboarded another lending partner taking the total to seven spanning multiple ROI and 16:18 16 minutes, 18 seconds ticket side segments allowing us to serve a wider range of customers. While dispersals grew 2.4x year on year only a 16:28 16 minutes, 28 seconds small fraction of our customers have taken trades from us so far. The headroom is massive both within our base and in the market. To put things in 16:36 16 minutes, 36 seconds perspective, our users alone took over 1 trillion rupees of personal loan from the open market last year. And when we 16:45 16 minutes, 45 seconds include secured categories, the opportunity becomes even larger. 16:50 16 minutes, 50 seconds We are hence strengthening our partner enablement right from equipping them to underwrite better using richer 16:57 16 minutes, 57 seconds intelligence enabling greater collection efficiency to operational prudence. 17:03 17 minutes, 3 seconds While we do not assume any credit or collection risk ourselves, our frameworks and insights help lending 17:11 17 minutes, 11 seconds partners achieve superior efficiency in managing these aspects. When partners manage risk better, lower their opex and 17:20 17 minutes, 20 seconds improve collections, we create tangible value for them and that value naturally acrrues back to us. 17:27 17 minutes, 27 seconds This foundation positions us to operate at one of the most efficient and profitable take rates in the industry. 17:35 17 minutes, 35 seconds Our platform economics are strong today and with deeper data loops, this advantage will only widen. Our aim is 17:43 17 minutes, 43 seconds simple to become the most trusted and performance-driven trade platform in the country and achieve a leadership position in the coming years. 17:52 17 minutes, 52 seconds On the mutual fund front, India's mutual fund industry continues to expand rapidly with AUM growing from around 67 18:00 18 minutes trillion in September 2024 to over 75 trillion in September 2025. We continue 18:06 18 minutes, 6 seconds to do well here. Our own AUM has grown from nearly 8,700 crores to over 15,000 18:13 18 minutes, 13 seconds crores now with continued gains in the direct SIP market share. Over 3 million customers have engaged with our MF 18:21 18 minutes, 21 seconds offering and repeat SIP participation continues to rise, reinforcing the trust users place in us. Mutual funds are 18:29 18 minutes, 29 seconds central to our engagement flywheel. They build lasting habits and strengthen platform retention. SIP customers show 18:36 18 minutes, 36 seconds deeper participation across other categories and our focus remains on making these journeys simpler, faster and more intuitive. 18:46 18 minutes, 46 seconds On insurance, we are focused on improving both discovery and buying experience through sharper targeting and omni channel reach. The business 18:53 18 minutes, 53 seconds continues to see decent traction and data scienceled models are improving funnel efficiency. Overall, our focus 19:00 19 minutes remains clear. Expand reach, deepen engagement and monetize with discipline. 19:06 19 minutes, 6 seconds With that, I'll hand it over to Srian to walk you through the wealth business. Thank you. 19:13 19 minutes, 13 seconds Thank you. So thank you s and good morning everyone. If India's asset management industry was formalized over the last decade then the coming decade will do the same for wealth management. 19:25 19 minutes, 25 seconds We in India are at the cusp of creating a large and profitable ecosystem much like what the west witnessed during its 19:32 19 minutes, 32 seconds own phase of financial decree. At ionic well we are seeing positive traction of our omni channel hypothesis. Since our 19:40 19 minutes, 40 seconds inception in 2024, we have reached an a of 61 billion with 1250 plus client 19:48 19 minutes, 48 seconds across nine cities. This shows that deep domain combined with a techled platform is key to key to capturing the unfolding 19:57 19 minutes, 57 seconds wealth management opportunity. Our UHNI business defined as servicing clients above 25 crores remains our growth 20:05 20 minutes, 5 seconds engine with several large mandates from marketing in families and entrepreneurs. 20:10 20 minutes, 10 seconds We are deeply w shared with high conviction research product ideas and diversification across global markets 20:17 20 minutes, 17 seconds and commodities to deliver strong return for our well set business defined as 1 to 25 cr 20:26 20 minutes, 26 seconds segment. We are seeing strong validation of our omni channel proposition. Our investment in digital capability is 20:33 20 minutes, 33 seconds translating into productivity gain and in driving scale. Next week we are launching our ionic agent for our 20:41 20 minutes, 41 seconds clients and AI powered feature to review portfolio plan boards and explorer investment. Today we have a team of over 20:49 20 minutes, 49 seconds 200 professionals including 85 in the client facing team, 40 tech engineers and 29 domain experts across fund 20:58 20 minutes, 58 seconds management, product and research. Our alternate AMC vertical has also kicked off well particularly with our cube city 21:07 21 minutes, 7 seconds based global innovation fund to prepare for fast changing trend. We do so by future proofing plan portfolio with 21:15 21 minutes, 15 seconds themes around tech and innovation investment opportunities, commodity, global diversification and quantity 21:22 21 minutes, 22 seconds strategy. With these pillars in place, we are trying to not just respond to the trends. We are almost anticipating them. 21:30 21 minutes, 30 seconds To conclude, I'll share a quick summary of our market view from our monthly newsletter asex. We have a positive view 21:38 21 minutes, 38 seconds on precious metal select global emerging markets whereas a media our focus continues on the ongoing season. Thank 21:46 21 minutes, 46 seconds you and with this I pass the bon to him. 21:52 21 minutes, 52 seconds Good morning everyone. I'm delighted to share that our asset management business continues to build strong momentum. The 22:00 22 minutes business in many ways is reflective of the growing understanding of financial assets, digital empowerment and the benefits of long-term and discipline 22:07 22 minutes, 7 seconds investing. Continuing with our strong pace of launches from Q1 FI26, we introduce two new offerings in the 22:15 22 minutes, 15 seconds commodity segment. Angel one gold ETF and Angel One Gold ETF fund. With these offerings, our product booking now 22:22 22 minutes, 22 seconds includes several schemes across equities, debt, and commodities. Each thoughtfully designed to cater to different investor goals with simplicity 22:30 22 minutes, 30 seconds and transparency. What's truly encouraging is a growing investor engagement. Our AUM now stands at rupees 22:37 22 minutes, 37 seconds 4 billion spread across nearly 1.4 lakh volume reaching investor in over 15,700. 22:45 22 minutes, 45 seconds This isn't just scale, it's inclusion. 22:48 22 minutes, 48 seconds Passive investing once niche is now resonating across. The transformation did not happen by chance. It is a result 22:56 22 minutes, 56 seconds of our consistent focus on in on investor education on making finance simpler and not intimidating through 23:04 23 minutes, 4 seconds digital content, vernacular videos and social media. We are demystifying passive investing thereby helping 23:11 23 minutes, 11 seconds investor to stay disciplined and long-term focused. Alongside our digital first approach, we are also leveraging 23:17 23 minutes, 17 seconds our captive distribution franchise along with the host of third party digital and offline partner enabling us to connect 23:25 23 minutes, 25 seconds with investors across channels from first time savers to seasoned wealth builders. At the core of this journey 23:32 23 minutes, 32 seconds lies our guiding philosophy simplicity, transparency and scalability. Passive investing represents the structural 23:40 23 minutes, 40 seconds shift in the way Indians diversify their investment to include lowc cost bias free wealth creation. As we look ahead, the momentum is only set to gather. 23:50 23 minutes, 50 seconds India's passive investing landscape is entering a golden ticket. Fig investing is unlocking access, trust and 23:58 23 minutes, 58 seconds transparency at scale, thus deepening adoption of such financial assets. At Angel AMC, our vision is very clear to 24:06 24 minutes, 6 seconds be at the forefront of this transformation. We are not just building products. We are creating habits of making investing simple, accessible and 24:14 24 minutes, 14 seconds rewarding for every Indian. I will now pause and invite Venice to take you through the financial performance for this quarter. Thank you. 24:24 24 minutes, 24 seconds Thank you. Good morning everyone. 24:27 24 minutes, 27 seconds Quarter 2 of financial year 2026 has been a healthy performance as we delivered on our operating and financial 24:34 24 minutes, 34 seconds KPIs despite macro headwinds. Our gross revenues increased by 5.3% quarteron 24:41 24 minutes, 41 seconds quarter to rupees 12 billion while our net revenues grew by 5.6% quarteron quarter to rupees 9.4 billion. 46% of 24:51 24 minutes, 51 seconds our gross revenues came from broking commissions in the FNO segment followed by 8% from the cash segment and 6% from 24:58 24 minutes, 58 seconds commodity derivative segment. Interest income from client funding book and fixed uh with fixed uh deposits with 25:07 25 minutes, 7 seconds clearing operations accounted for nearly 32% of our total uh gross income. The balance came from depository operations, 25:16 25 minutes, 16 seconds distribution, wealth and asset management businesses. After commissions paid to our authorized persons, the net 25:23 25 minutes, 23 seconds broking income grew by 5.4% quarteron quarter to rupees 5.5 billion. The share of direct business in net broking 25:31 25 minutes, 31 seconds revenue expanded by 84 basis points to 77% underscoring the strength and scalability of our digital platform. Our 25:39 25 minutes, 39 seconds client funding book reached a new high averaging at rupees 53 billion in the quarter up 26.1% 25:48 25 minutes, 48 seconds quarteron quartarter driving a 6.5% rise in total interest income to rupees 3.8 billion 25:56 25 minutes, 56 seconds our finance cost increased by 12.4% 4% quarteron quarter to rupees 932 million pursuant to increase in the borrowings 26:04 26 minutes, 4 seconds to finance this high client funding book partially offset by reduction in the average borrowing rate. As a result, net 26:12 26 minutes, 12 seconds interest income grew by 4.6% quarteron quarter to nearly 2.9 billion rupees. 26:18 26 minutes, 18 seconds Our income from depository operations decreased by 4.3% due to lower volumes. 26:25 26 minutes, 25 seconds Our distribution income witnessed a very strong growth in of nearly 28% during the quarter driven by nearly two3 26:33 26 minutes, 33 seconds two-fold jump in sale of credit products robust IPO market and sustained growth in mutual funds through our strip 26:41 26 minutes, 41 seconds channel. Our employee cost including ESOPS remained stable at rupees 2.7 billion during the quarter. 26:50 26 minutes, 50 seconds Other expenses decreased 19.2% 2% quarteron quarter to rupees 3.4 billion primarily due to the absence of IPL 26:58 26 minutes, 58 seconds related expenses. Net of IPL spends our other expenses were higher by 9.8% quarteron quarter primarily on account of 12 2% higher client acquisitions. 27:11 27 minutes, 11 seconds Our reported EBDAT margin at 34.5% is higher by 1,270 basis points over quarter 1 FI26. 27:22 27 minutes, 22 seconds However, on a normalized basis, adjusting for the IPL spends, our EBD is higher by 6.1% quarteron quarter to 27:31 27 minutes, 31 seconds rupees 3.2 billion. Our reported profit after tax grew by 85% quarteron quarter to rupees 2.1 billion. However, our 27:40 27 minutes, 40 seconds normalized profit after tax grew by 10.1% quarteron quarter. On the balance sheet side, our period ending client 27:48 27 minutes, 48 seconds funding book stood at rupees 59.5 billion supported by incremental borrowings which increased by 10.3 27:55 27 minutes, 55 seconds billion from March 2025 to aggregate to rupees 44.2 billion. Our 28:02 28 minutes, 2 seconds net worth increased to 58.3 billion as of September 30, 2025. Cash and cash EQ 28:09 28 minutes, 9 seconds balance remain healthy driven by higher client balances partly offset by deploying deployment into the funding book. With this I conclude the 28:18 28 minutes, 18 seconds presentation and open the floor for further discussion. Thank you. 28:23 28 minutes, 23 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one or they touched on 28:32 28 minutes, 32 seconds telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are 28:40 28 minutes, 40 seconds requested to use handset while asking a question. 28:44 28 minutes, 44 seconds Ladies and gentlemen, we will wait for a moment while the question assembles. 29:03 29 minutes, 3 seconds The first question comes from the line of P Shell with Motal. Please go ahead. 29:10 29 minutes, 10 seconds Uh yeah. Hi uh good morning. Congrats on a good set of numbers. Uh sir, first question is on the uh cash segment where 29:19 29 minutes, 19 seconds you know we saw the realizations dip and also I assume that you have uh taken a 29:26 29 minutes, 26 seconds pricing action uh on the cash side. So you know how do we see this uh panning 29:34 29 minutes, 34 seconds out from now and u uh so that would be the first question. Uh second would be on the breakup of uh distribution income 29:43 29 minutes, 43 seconds wherein you know if you could split that up into credit uh uh wealth management and the in some form uh that will help 29:53 29 minutes, 53 seconds us understand the uh you know the color of the color of the revenues. Uh uh 30:00 30 minutes third question is uh uh is on the uh margin trade funding book. Uh do we have 30:07 30 minutes, 7 seconds a separate uh realization for margin trade orders placed through margin trade funding book or it is same as the order that you charge on the cash delivery. 30:17 30 minutes, 17 seconds Yeah those would and lastly on the burn of the new businesses what is the burn on the new businesses? Yeah. 30:25 30 minutes, 25 seconds Yeah, thank you so much for uh the questions on the sort of uh on the cash segment realization. I mean again it 30:33 30 minutes, 33 seconds changes on what the what what the mix of various things is there but on the pricing action I just want to clarify because you've asked that question I 30:41 30 minutes, 41 seconds think the the the pricing change really is to bring things uh you know make things simpler. uh what we've done is 30:49 30 minutes, 49 seconds that across both delivery as well as intraday we have uh made it uh 0.1% with 30:57 30 minutes, 57 seconds max of 20 and min of five um what it will do is that it actually makes uh just the whole pricing very simple for 31:04 31 minutes, 4 seconds the consumer so that's on your first question on the second one on breaking out the distribution income today the way we don't break out that income the 31:12 31 minutes, 12 seconds way you should look at those businesses is look at aum as well as dispersers that's the best way to follow those businesses. They will uh build over a 31:20 31 minutes, 20 seconds period of time and they all have different gestation periods. So today we don't break break them out on the MTF 31:28 31 minutes, 28 seconds book uh realization. Uh Vinnie, do you want to take that question? 31:32 31 minutes, 32 seconds Yeah. So right now we are charging uh the same uh uh price broking commission that we charge for cash delivery where 31:38 31 minutes, 38 seconds there is no MTF that people avail. It's the same. Okay. 31:44 31 minutes, 44 seconds And on the burn I don't think we are breaking breaking out our burn of different entities. 31:49 31 minutes, 49 seconds Yeah. So uh as I've been telling in the past that uh the burn remains in that uh range of about 100 crores annual um for 31:58 31 minutes, 58 seconds the uh two uh new businesses that we are incubating the asset management and the wealth management business. 32:05 32 minutes, 5 seconds That rate continues right? Yes. Yes. Okay. Thanks. 32:16 32 minutes, 16 seconds Thank you. Our next question comes from the line of Sarna Mukharji with BNK Securities. Please go ahead. 32:31 32 minutes, 31 seconds Uh Mr. Narji, your line has been unmuted. Please go ahead with a question. 32:46 32 minutes, 46 seconds Uh sir Mukaj your line has been unmuted. Please go ahead with your question. 32:59 32 minutes, 59 seconds As there's no response, we'll move on to the next question. It's from the line of Nesh with Invest. Please go ahead. 33:07 33 minutes, 7 seconds Uh thanks for the opportunity. So first question is on uh uh operating profit margin guidance uh that we have initially talked about of around 40% 33:15 33 minutes, 15 seconds plus as we reach for Q4. So do we retrade that guidance or do we see some changes to that guidance of uh as we end this year? That is first question. 33:24 33 minutes, 24 seconds Second question is on wealth management business. Uh uh so as of now it seems like wealth management is completely 33:31 33 minutes, 31 seconds built separately from the existing uh angel one clients. uh is there any overlap with existing angel one clients 33:39 33 minutes, 39 seconds and what is the path to uh offer wealth management uh uh uh products to the to the clients of clients which angel one 33:47 33 minutes, 47 seconds has acquired over a period of time. Uh and third question is on uh on a comparison with your peer one of your peer has filed for an IPO. Uh their cost 33:57 33 minutes, 57 seconds their revenue structure and uh their uh client base is better higher uh than angel but their cost ratios are far far 34:05 34 minutes, 5 seconds lower. So if you have compared where do you see what are the reasons you see that the cost structure for that particular so tier is far lower than 34:12 34 minutes, 12 seconds angel these are the three questions sir uh thanks so much for um for your questions on the OPM guidance yes we 34:19 34 minutes, 19 seconds continue to have the same guidance at exit uh we we want to be at 40 to 45% OPM and uh we are well on our way uh to 34:29 34 minutes, 29 seconds that path from everything that we can see uh I I'll uh you know come back to the wealth question on the um the peer question that you asked. I think 34:37 34 minutes, 37 seconds different companies are built very differently and we take a very long-term approach to it. We are built in a different way and so it won't be 34:45 34 minutes, 45 seconds appropriate to compare uh different metrics. I think it's it's best to look at our metrics, our growth and where we are going. Uh we'll uh we are 34:53 34 minutes, 53 seconds continuously working on efficiencies and making sure that we get the most out of what we have but very different kind of 35:00 35 minutes businesses. So uh so best to compare look look at them differently. Also wealth on wealth management uh perhaps Shri Krant you can come in and talk about it. 35:10 35 minutes, 10 seconds Yeah. So no this is uh I think that's a valid uh observation you make. So while at most time the jies are created for 35:17 35 minutes, 17 seconds set of investors uh who uh has their own sort of uh unique identity of being the 35:24 35 minutes, 24 seconds large value investor but the current ecosystem of individual one also uh we are actually uh going to offer web 35:32 35 minutes, 32 seconds solutions through both uh fractionalized products and also through uh platform services that we provide. So there is a lot of work happening in terms of 35:40 35 minutes, 40 seconds harmonizing the throughput between the customers flowing in and the solutions flowing back from the web page. So you will over the course of the next few uh 35:48 35 minutes, 48 seconds months uh see that harmony sort of playing out between uh the customer cohort of engine and the solution cohort of ionic. 36:00 36 minutes Sure. Thank you. That's it from my side. 36:04 36 minutes, 4 seconds Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. 36:12 36 minutes, 12 seconds The next question comes from the line of sankit kora with Aendis Park. Please go ahead. Uh yes, thank you for the opportunity. 36:21 36 minutes, 21 seconds Uh I have question for you. Uh so so basically our margin rate funding book on sequential basis has grown by 24 36:29 36 minutes, 29 seconds percentage. But if I look at look at our mean number uh interest income it has grown just 5% QQ uh just wanted to 36:38 36 minutes, 38 seconds understand this uh divergence is it largely uh because we have cut the interest rates on the MF book with with 36:45 36 minutes, 45 seconds the rate cut environment or or or is it due to lower interest income earned on the float or margin money just uh and if 36:53 36 minutes, 53 seconds you can give the breakup it will be useful to to understand this this this disc divergence between between the MTF book growth the investing book. That's my first question. 37:05 37 minutes, 5 seconds Yeah. Yeah. Uh thank you for this question, Tankit. 37:09 37 minutes, 9 seconds Um so you're right. the uh while the MTF book has grown by almost 26% there has 37:16 37 minutes, 16 seconds been a uh growth of just about uh uh 6 and a half% for the uh interest income and that's primarily because uh almost 37:25 37 minutes, 25 seconds 45% of the total income that we earn comprises of uh the interest that we earn from fixed deposits and the balance 37:32 37 minutes, 32 seconds comes from the MTF and on that part on that 45% uh because the uh interest rates have declined uh so the yields 37:40 37 minutes, 40 seconds declined by almost 50 basis points and therefore we are seeing a lower uh income there and of course there was some moderation in the uh between the 37:48 37 minutes, 48 seconds quarter in client margins which have come back to normal levels now. So there was a little bit of uh uh decline in 37:55 37 minutes, 55 seconds that. So that has been the uh reason why it has got affected. There hasn't been any change in the interest rate that we charge from the uh clients on MTF. So it remains uh same at 14.99%. 38:09 38 minutes, 9 seconds Perfect. Perfect. Uh got it. And and see this client margin coming down is predominantly of the lower trading activity. Uh is it fair to say that's largely the reason? 38:19 38 minutes, 19 seconds Well, it could be due to multiple reasons but as I said uh that was a momentary thing and things have come back. So as we speak uh we are seeing 38:27 38 minutes, 27 seconds healthy client margins uh with us. So it's not a matter of concern. 38:33 38 minutes, 33 seconds Okay. Okay. Got it. Uh so the second question which I had uh was that excuse the number of orders per day uh in one 38:41 38 minutes, 41 seconds queue was around 5.6 million orders and even in 2Q it is at the same level exactly the same level honestly we were 38:49 38 minutes, 49 seconds of a view that if you see an improving trend uh uh to to the question which you answered previously that our we might by 38:57 38 minutes, 57 seconds end of the quarter uh we'll go to 6.8 96.9 million orders per per day by fourth quarter and that will lead to the 39:05 39 minutes, 5 seconds abat margin or operating margins to go back to 40 45% level. So also just just wanted to understand this 5.6 39:12 39 minutes, 12 seconds million orders per day how confident you are uh will will go to that kind of a number uh around 6.8 6.9 to deliver the 39:21 39 minutes, 21 seconds 40 45 and and if if it is going to achieve just just any any color you have what will lead to this number to go up 39:29 39 minutes, 29 seconds uh if if you're not changing any prices uh as you mentioned last time in the quarter. 39:35 39 minutes, 35 seconds Yeah. Hi Sanank I think the way to look at this is uh you know again like uh you know I have said this Venita has also said there's been ton of macro headwinds 39:44 39 minutes, 44 seconds and in spite of that so so we publish our uh you know orders per day number every month so if you look at February 39:52 39 minutes, 52 seconds we were at you know about let's say you know uh approximately you know 49 to 50 million you know lakh orders a day right 40:00 40 minutes so five five million orders a day now that has if you look at that in September that has gone to 58 lakhs 5.8 40:10 40 minutes, 10 seconds um uh million orders a day. So that has been a very so month-to-month there'll be some variation there are sometime you 40:17 40 minutes, 17 seconds know some you know you see some market changes and it you know you can see some variations because of that but that has been a very healthy growth when you see 40:25 40 minutes, 25 seconds um in the last 6 months or so. So we think uh we we think that that is a you know good good base and uh good base of 40:34 40 minutes, 34 seconds growth and we think it'll uh you know we we'll continue to get the kind of revenue growth we are thinking in terms of um uh in terms of creating that kind 40:43 40 minutes, 43 seconds of OPN and we are also being very very conscious on our costs as you can see I think we are being very uh clear on 40:50 40 minutes, 50 seconds being efficient there. So com combination of both of those things should result in a extopian for sure. 40:57 40 minutes, 57 seconds Got it. Got it. And lastly lastly uh given given shi chairman or or has been pretty vocal about elongating the tenure 41:05 41 minutes, 5 seconds of the expiry contracts. Um um suppose it comes I don't know when it will come uh given given they are pretty vocal in 41:12 41 minutes, 12 seconds communicating this point in public forums. So have you done any sensitivity analysis at your end uh to see a likely 41:20 41 minutes, 20 seconds impact on the profitability if if if say eight number of expireies in a month get reduced to either two or one if if they 41:29 41 minutes, 29 seconds directly move to monthly thing. Uh so so any sensitivity you guys have done and and likely impact on on the numbers if you could share that would be useful. 41:39 41 minutes, 39 seconds Yeah. Hi Sanit. I think there's a lot of speculation uh in this area. So it's best for us to not add to that and talk 41:47 41 minutes, 47 seconds about it because we don't know you know uh what is going to happen or if there is anything that is going to happen. So 41:55 41 minutes, 55 seconds best to stay away from that. Let's just look at if there's something coming and then we can talk about it. 42:00 42 minutes Okay. Perfect. Uh that answers my question. Thank you. Thank you. 42:06 42 minutes, 6 seconds The next question comes in the line of Moit Surana with HDSCMC. Please go ahead. 42:14 42 minutes, 14 seconds Uh just one question from my side. If you can break up the MTF book between customers that mean that have been 42:22 42 minutes, 22 seconds acquired from the uh direct channel and the AP channel. That's it for me. 42:29 42 minutes, 29 seconds Uh Mo, we don't give out that number. uh um and u I mean honestly it doesn't matter because uh for us both the 42:36 42 minutes, 36 seconds clients give us similar uh uh um interest so it doesn't really matter and anyways we don't give out that number 42:46 42 minutes, 46 seconds and sir the commission that is uh paid out to the uh to the partners and the 42:52 42 minutes, 52 seconds channel um between uh broking uh and nonbroking uh products uh is there uh 43:01 43 minutes, 1 second way to think about it how that is split up between broking one broken. 43:06 43 minutes, 6 seconds No, it's primarily for the broken commission that we share the uh the uh fees with the partners. uh we do some uh sharing for the mutual fund uh for the 43:15 43 minutes, 15 seconds regular plan but it's primarily on the broking commission and if at all there is a NPF book 43:23 43 minutes, 23 seconds sitting with the u with the customers uh that have been acquired through the channel there is no sharing uh on on on 43:31 43 minutes, 31 seconds the NPF part right is that correct as I said as I said we share commission for the broking revenues that we earn 43:38 43 minutes, 38 seconds from the clients that are tagged with the AP channel. 43:43 43 minutes, 43 seconds Understood. Very clear. Thanks a lot for your responses. 43:50 43 minutes, 50 seconds Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. 43:59 43 minutes, 59 seconds The next question comes from the line of So Sharma with HDFC Securities. Please go ahead. 44:05 44 minutes, 5 seconds Yeah. Hi sir, thanks for the opportunity. Uh so I have two questions. 44:09 44 minutes, 9 seconds Firstly is on the customer acquisition cost. Can you give us some trends around how the customer acquisition cost has been trending and how do you expect that 44:17 44 minutes, 17 seconds to play around in the second half of the year and uh uh we have seen over the last 12 months we have uh we have slowed down considerably in terms of the new 44:25 44 minutes, 25 seconds client acquisition. So what's going to be our strategy on that side? And lastly, can you help us understand what's your idea behind entering into 44:33 44 minutes, 33 seconds the life insurance business given uh that's some uh that's a little bit complex in nature. So yeah, that would be two of my questions. Yeah. 44:44 44 minutes, 44 seconds Um so on on CAC uh you know it's mostly flat to slightly down perhaps but you know these these things just think of it 44:52 44 minutes, 52 seconds as as really flat. uh we have actually I mean just just to point out you know we did uh do more client acquisition you 44:59 44 minutes, 59 seconds know last quarter we had done 1.55 uh million and this quarter we did 1.74 million so we grew about 12% in terms of 45:06 45 minutes, 6 seconds client acquisition so that uh that growth has happened for life uh uh I can give it to honest 45:13 45 minutes, 13 seconds yeah hi thank you so for that question and the the the way we look at this uh particular opportunity is slightly 45:20 45 minutes, 20 seconds different than how it has been so far on the legacy the life insurance uh piece uh we have actually been waiting for a 45:27 45 minutes, 27 seconds while to see if there is a way to give out a product on the live side which can be end to end digitally enabled and so 45:35 45 minutes, 35 seconds for a while we have been while being a distributor on the live side we have not been able to really enable um a complete 45:44 45 minutes, 44 seconds end to- end digital journey while that is quite well played out in some parts of general insurance like motor for 45:51 45 minutes, 51 seconds instance but that doesn't get played out in the life in a big way. Uh it's only recently that uh we came across uh an 45:58 45 minutes, 58 seconds opportunity to do so uh with a set of people who have been successful in 46:04 46 minutes, 4 seconds rolling out uh uh critical illness and protection plans purely on the back of 46:11 46 minutes, 11 seconds digital enablement and also uh uh using proprietary technologies like face scan 46:19 46 minutes, 19 seconds and so on. there are certain other uh technologies that this particular organization is also holding a patent for. So we realized that this was one 46:28 46 minutes, 28 seconds reason that for a very long time we could not achieve decent penetration in life. And what we have also observed 46:36 46 minutes, 36 seconds that whenever um digital platform like ours has been able to solve for access 46:43 46 minutes, 43 seconds businesses have grown uh retail uh consumers have begun to consume products which otherwise was not available to 46:50 46 minutes, 50 seconds them. We saw that play out in the wealth. We see that played out in the credit two and we are very confident that similar trajectory will get played 46:59 46 minutes, 59 seconds out even in protection and therefore we thought perhaps the timing is right customer orientation is better. they 47:07 47 minutes, 7 seconds have begun to understand the need for protection especially postcoid and regulatory enablement which is in some 47:15 47 minutes, 15 seconds form uh enabling us to give this confidence that with insurance now for everyone by 2047 with IDA's bill uh 47:25 47 minutes, 25 seconds pending approval from the parliament which has some very interesting suggestions including uh bundling of 47:32 47 minutes, 32 seconds life insurance products with uh with uh with wealth uh with uh savings And so we believe that we have the right 47:39 47 minutes, 39 seconds to play in a segment like that when products are getting digital and also an enablement to uh to u to bundle them and 47:48 47 minutes, 48 seconds hence we have decided to start uh our our journey. These are long-term businesses. This will take more than a decade for us to turn profitable. 47:56 47 minutes, 56 seconds But we know that these businesses often take time while they will while they will take time. But in a digital ecosystem, we are far more confident of 48:05 48 minutes, 5 seconds how this will play out. I hope that addresses your question. 48:09 48 minutes, 9 seconds Yeah. Yeah. Thanks. Uh Amish, just a followup. Uh so should we expect similar kind of acquisition run rate for the clients going forward for next 12 to 18 months? 48:20 48 minutes, 20 seconds Uh look, I don't want to give a uh give a forward-looking statement on that, but you can look through sort of the last few quarters and and that should help 48:27 48 minutes, 27 seconds you extrapolate. We look at a variety of factors when we uh when we go into uh what we want to acquire because it has 48:35 48 minutes, 35 seconds to be uh the right set of customers, people who want to uh make investments. 48:39 48 minutes, 39 seconds So I just say you know looking at the past few quarters should give you a sense of it. Okay. Thank you anomalist. 48:48 48 minutes, 48 seconds Thank you. The next question comes from the line of Natsal with UBS securities. Please go ahead. 48:56 48 minutes, 56 seconds Hi. uh my question is again on the uh price increase what you have taken and uh if you can give more quantitative sense and how much increase in revenue 49:04 49 minutes, 4 seconds that can have because we don't know how many customer were you know at the minimum earlier uh on the earlier economics and uh also on the cash 49:14 49 minutes, 14 seconds realization I think uh uh even was a bit of a pick but but we saw again you know 49:22 49 minutes, 22 seconds a kind of a moderation so uh what kind of dynamic stream because that potential anyway is down uh throughout the year. 49:31 49 minutes, 31 seconds So and uh how can we think of it you know uh playing out in the future if can give some kind of feedback? 49:40 49 minutes, 40 seconds Uh I could understand your first question was about pricing the second one can you please repeat was it about CAC? 49:47 49 minutes, 47 seconds It was on cash realization uh which went down in this quarter compared to an uptick what we saw in Q1. 49:54 49 minutes, 54 seconds Got it. Got it. Okay, I got it. So, let me let me take your price question. I think I just you know for earlier question talked about what is the sort of exact price change and just to 50:03 50 minutes, 3 seconds reiterate the price change just to make things simpler for the customers it becomes sort of the same pricing for intraday and delivery. Uh since you 50:11 50 minutes, 11 seconds asked for the quantitative uh you know thought on that uh we expect that on a yearly basis uh at current um run rate 50:20 50 minutes, 20 seconds it should have about 50 to 60 cr um uh you know upside on a net basis um to us 50:28 50 minutes, 28 seconds so it actually just falls down to the PBT in that uh in that sense and on cash realization I think uh Vinnie talked a bit about it I I don't have anything 50:36 50 minutes, 36 seconds more to add but Vinnie do you want to talk about that I think that based on the market factors and other things uh keep on varying. So 50:44 50 minutes, 44 seconds not really anything that we can give any further details on. 50:50 50 minutes, 50 seconds Uh got it Dr. Thank you. 50:57 50 minutes, 57 seconds Thank you. The next question is from the line of Abijit with COC Securities. Please go ahead. 51:05 51 minutes, 5 seconds Hey. Hi. Uh good morning everyone. Uh my first question was that uh you know typically of all the customers you acquire in a quarter how many would come from the AP network versus direct. 51:19 51 minutes, 19 seconds So the AP uh the clients acquired through the AP channel contribute about 24 25% of the total acquisitions that we 51:26 51 minutes, 26 seconds do in a uh in any uh quarter. Uh and this number could vary between 20 to 25% depending on the uh you know the 51:35 51 minutes, 35 seconds quarter. So yeah that's the kind of u uh proportion. 51:40 51 minutes, 40 seconds Got it. Uh second question was that if I look at the distribution revenues that you've called out now obviously there is 51:46 51 minutes, 46 seconds wealth within that but if I strip that out of the rest of the business uh is it possible to get some sense how much is 51:55 51 minutes, 55 seconds coming from the AP network versus direct? 51:59 51 minutes, 59 seconds Yeah know we don't we don't break that out. writing on on distribution. The best way to follow it is using the numbers we are giving on AUM and 52:06 52 minutes, 6 seconds distribution. Uh as uh you know as those businesses mature, we can perhaps break them out in the future. But but they're growing. I mean you can look at the numbers and they're growing really well. 52:16 52 minutes, 16 seconds If you look at you know credit distribution or AMC or wealth all of those numbers have been growing really well. 52:23 52 minutes, 23 seconds Got it. So the question was that you know when I look at the broking business as such um just trying to figure out if 52:29 52 minutes, 29 seconds there are ways to improve margin profile of this business uh you know especially you know given the earlier comments around automation and some of the other 52:38 52 minutes, 38 seconds points you mentioned at the start of the call uh are there any levers low hanging fruits or any plans to kind of cut down 52:46 52 minutes, 46 seconds on some of the cost and make it a more profitable business? 52:51 52 minutes, 51 seconds Uh look uh you know we are continuously looking at efficiencies uh and and the idea is that where we are going in terms 52:58 52 minutes, 58 seconds of OPM right I mean we want to like we said we uh we looking to exit at 40 45 uh% OPM uh and and that's that's where 53:06 53 minutes, 6 seconds we are we are going in terms of that in terms of cost uh efficiencies and overall efficiencies you know don't just think of cost but overall efficiencies 53:14 53 minutes, 14 seconds that is definitely happening for example if you look at the chatbot that I talked about if we didn't have that we would have had to take on the cost. Same way with email responses. There's a lot 53:23 53 minutes, 23 seconds happening inside the company on AI that will improve uh efficiencies. So we are looking at at efficiencies all the time 53:31 53 minutes, 31 seconds and saying look you know what how do we make ourselves better every day. Uh so that is a constant continuous um uh you 53:38 53 minutes, 38 seconds know journey that we are on but but there is definitely things that we look at and make sure that we we get the most out of what we have. And I just want to 53:47 53 minutes, 47 seconds recheck the number you mentioned uh in terms of impact of price hike. It was 50 to 60 crores, right? 50 to 60. 53:54 53 minutes, 54 seconds That's right. 50 to 60 cr on a net basis. All right. Got it. Thanks a lot. 54:03 54 minutes, 3 seconds The next question comes from the line of Kak with Magma Ventress. Please go ahead. 54:10 54 minutes, 10 seconds Yeah. Uh thank you for the opportunity sir. A couple of questions from my side. uh firstly on the customer acquisition. 54:18 54 minutes, 18 seconds So just want to understand that what has led to the increase in this customer acquisition cost because it has been elevated for last two three quarters and 54:26 54 minutes, 26 seconds uh uh how do you feel going forward because it has disrupted the economics of our business for now and what uh 54:33 54 minutes, 33 seconds whether it is a new normal or if it is expected to go down what will drag it down for it? Uh that's the first question. 54:43 54 minutes, 43 seconds Uh RF do you want to take the customer acquisition um cost question? Yeah. Hi uh RF am I audible? 54:51 54 minutes, 51 seconds Yes sir. 54:53 54 minutes, 53 seconds Yeah. Uh so uh the way we look at it is cost of acquisition uh is a investment that we 55:02 55 minutes, 2 seconds you know uh do in terms of you know acquiring the right customer. We feel that the customer is right and we feel that the return you know on that investment you know makes uh sense 55:11 55 minutes, 11 seconds economically. We think uh that's the right thing to do. So we are quite confident that the quality of client you know uh acquiring for the spend we are doing you know makes sense economically. 55:21 55 minutes, 21 seconds So we will uh be you know aggressive on this wherever you find the opportunity. Yeah. 55:27 55 minutes, 27 seconds Right. Right. But if if the customer attention cost doesn't come down then how how will we achieve our 40% data 55:34 55 minutes, 34 seconds market uh target that we have secured because for last two three quarters it has been hovering around the same level of 34 35%. 55:43 55 minutes, 43 seconds So two three things right one uh obviously you know we' want the revenues to go up and we would want the revenue market share to go up and all of that 55:50 55 minutes, 50 seconds but costwise also we're looking at you know how do we you know push our organic how do we you know push our content you know based acquisition some of those 55:58 55 minutes, 58 seconds things but again uh as I say that uh we look at business in slightly long term also uh that today if uh we have to you 56:06 56 minutes, 6 seconds know invest something into you acquiring the right client even if it is slight dilution in the OPM in short term but if it gives 56:14 56 minutes, 14 seconds us return in long term and that's something that we are interested in. Okay, sure. Thanks. 56:21 56 minutes, 21 seconds To that just to clarify uh just to clarify this look one one of the aspects is the you know customer acquisition cost which I said look stable to 56:30 56 minutes, 30 seconds slightly down perhaps uh but there is also the revenue increase that that is happening quarter over quarter you're seeing that for a for a couple of 56:39 56 minutes, 39 seconds quarters as well. So that will that will happen as well and that should result in a 40 45% opium anyway. 56:46 56 minutes, 46 seconds Okay. Understood. foundation and second thing is on our employee base. So overall out of around 4,000 employees I 56:53 56 minutes, 53 seconds believe nearly 900 are in digital uh digital team of the remaining let's say around 3,000. So if you can share some 57:01 57 minutes, 1 second break up of how much of it is in let's say customer uh customer service uh I want to understand from the perspective 57:08 57 minutes, 8 seconds of that that uh in in one of earlier question one participant asked compared with the pier that they have around 1500 57:15 57 minutes, 15 seconds employees for the similar uh scale of operations as we have and we have 4,000. 57:20 57 minutes, 20 seconds We just want to understand where is the difference. Do we have ketone ketone street for our business assisted business and how much would that be uh 57:28 57 minutes, 28 seconds for the assisted business? So where is the difference in this employment? 57:32 57 minutes, 32 seconds Yeah. Uh look I mean one is that we don't break these out we give you sort of the total information. However we are slightly different businesses which is 57:40 57 minutes, 40 seconds what I was saying that and long-term we've we've shown sort of there is a strength to having that business. So we have both as you know a AP business as 57:49 57 minutes, 49 seconds well as a direct business and and so the there is no feed on suite that we have but of course you know in the AP business we have APS and we have folks 57:58 57 minutes, 58 seconds you know RMs and stuff like that where they uh would be working with the APS so the slightly different uh structures and 58:06 58 minutes, 6 seconds uh but over a period of time we are definitely you know uh creating more and more efficiency so you'll see more output out of out of what we have and 58:14 58 minutes, 14 seconds what's also happened is that we are also a much more mature organization where we have built out all the functions already and therefore you're not going to see 58:23 58 minutes, 23 seconds more getting added to this which is why you see sort of our employee benefit uh expense being the same last quarter and 58:30 58 minutes, 30 seconds this quarter. So part of it is that we've sort of built out we're more mature we built out these functions. uh part of it is just slightly different 58:37 58 minutes, 37 seconds business but uh we'll continue to work um towards making everything that more efficient and uh get the most out of what we have. 58:46 58 minutes, 46 seconds Sure. Sure. Understood. And just the data keeping portion so if you can share the number of numbers on regular and 58:54 58 minutes, 54 seconds amum under mutual fund and also our market share in SAP. We give the data on number of SAP but what would be our 59:02 59 minutes, 2 seconds market share in SAP flows? Yeah. 59:09 59 minutes, 9 seconds Yeah. Hi. Uh we don't share those uh those breakups at this time. So we can't can't give you that data. We we do share 59:17 59 minutes, 17 seconds I think the number of sips and we share the total AUM for AMC but we don't break out these numbers. We don't have the market share there. 59:27 59 minutes, 27 seconds Okay. Fine. Thank you sir. That's it from Michael and all the best. Thank you. 59:35 59 minutes, 35 seconds Thank you. The next question comes from the line of Raman KV with CQN Investments. Please go ahead. 59:43 59 minutes, 43 seconds Uh hello. Uh can you hear me? Yes sir, please go ahead. 59:48 59 minutes, 48 seconds Uh sir, uh I joined the call late so apologies if my questions are repetitive. I just want to understand 59:56 59 minutes, 56 seconds this uh life insurance JV which you planned uh subjected to the set approval. Uh I just want to understand 1:00:05 1 hour, 5 seconds are you planning to uh become a distribution launch or distribution is it is this a distribution type of 1:00:14 1 hour, 14 seconds business or will you be launching your own products? 1:00:24 1 hour, 24 seconds Yeah. Hi um hi Raman um thanks for the question. So look this is a uh 26% uh joint venture partnership from our 1:00:33 1 hour, 33 seconds end and so uh while the actual manufacturing might will come from the 1:00:39 1 hour, 39 seconds 74% partner and all we are uh doing is uh helping to see if there's a way to 1:00:47 1 hour, 47 seconds co-create some of these products with the insurance company given our better understanding about the customer segment that we service on our platform. So 1:00:56 1 hour, 56 seconds while the manufacturing largely will be managed by the 74% uh uh partner in this case Livewell uh company holdings PT 1:01:04 1 hour, 1 minute, 4 seconds Limited Singapore and they have all the requisite expertise to do so. Uh we would also be offering our uh platform 1:01:12 1 hour, 1 minute, 12 seconds exclusively for distributing the uh the products that we are going to co-create with the manufacturer. So to that extent 1:01:20 1 hour, 1 minute, 20 seconds they will be exclusive to us on our platform. uh but that's all uh so far as this particular joint venture is concerned. 1:01:29 1 hour, 1 minute, 29 seconds So basically the other JB partner he will be uh they will be coming up to print the uh uh insurance products and 1:01:37 1 hour, 1 minute, 37 seconds you will leverage your angel on one's platform to cross-ell that product if my understanding is right. 1:01:43 1 hour, 1 minute, 43 seconds Yeah that's right. So the so the so the JB company actually will have uh its own distribution network. Largely it will be 1:01:52 1 hour, 1 minute, 52 seconds relying on digital networks for distribution. We will be one of those digital partners uh who will be distributing those products on our 1:02:00 1 hour, 2 minutes platform. However, by virtue of us being the uh being a joint venture uh partner, there is an opportunity to co-create 1:02:08 1 hour, 2 minutes, 8 seconds products which are specific to our platform. 1:02:12 1 hour, 2 minutes, 12 seconds Okay. answer uh on the I just want to understand uh you initially you mentioned 46% of the gross revenue came 1:02:21 1 hour, 2 minutes, 21 seconds from global segment in in this quarter uh what can you give the other split I I 1:02:29 1 hour, 2 minutes, 29 seconds wasn't able to note the other gross revenue split Hello. 1:02:41 1 hour, 2 minutes, 41 seconds Hello. 1:02:42 1 hour, 2 minutes, 42 seconds Hello. Yeah. Uh can you agree? 1:02:45 1 hour, 2 minutes, 45 seconds Yes. Yes. Yes. So the uh FNO segment contributed 46% to our gross revenues while cash segment contributed 8% and 1:02:54 1 hour, 2 minutes, 54 seconds commodities about uh 6%. Interest income from client funding and deposits uh brought in about 32%. And the balance 1:03:03 1 hour, 3 minutes, 3 seconds came from depository distribution uh businesses. Okay. Thank you sir. 1:03:11 1 hour, 3 minutes, 11 seconds Thank you. Participants who wish to ask a question may press star and one. 1:03:18 1 hour, 3 minutes, 18 seconds The next question comes from the line of pra with motil losal. Please go ahead. 1:03:24 1 hour, 3 minutes, 24 seconds Yeah. Hi thanks for the caller. Uh we have guidance on a 40 to 45% exit rate by fourth quarter. Right. And if I 1:03:33 1 hour, 3 minutes, 33 seconds assume that the uh cost uh remains the same uh and assume that uh exit rate 1:03:41 1 hour, 3 minutes, 41 seconds would be 45% AITA margin, we're talking about almost a 20% kind of a jump in 1:03:48 1 hour, 3 minutes, 48 seconds revenue rate from the current quarter to the fourth quarter. Uh so how do you think this would come through? How much 1:03:56 1 hour, 3 minutes, 56 seconds would be from broking? How much would be from your new businesses? 1:04:00 1 hour, 4 minutes uh and obviously in that period uh how should the cost kind of pan out right so just trying to understand when you say 1:04:09 1 hour, 4 minutes, 9 seconds 40 to 45% what are the thoughts behind it broking growth or these businesses capturing a larger share of the growth 1:04:17 1 hour, 4 minutes, 17 seconds how should we think about this uh uh as you've been seeing we we've been growing our uh uh order run rate uh 1:04:26 1 hour, 4 minutes, 26 seconds every month and we see that uh in uh H2 we will see a better order run rate and therefore broking will continue to be 1:04:34 1 hour, 4 minutes, 34 seconds the main stay of the growth. Uh obviously the uh distribution businesses are also now contributing to the top line. So uh hopefully uh with all these 1:04:43 1 hour, 4 minutes, 43 seconds things coming in the uh exit in quarter 4 we should see a 40% plus operating margin. Costs are more or less stable at 1:04:51 1 hour, 4 minutes, 51 seconds where we are today. Uh and therefore I don't see a bump up in cost. Margin margin trading funding is also something 1:04:59 1 hour, 4 minutes, 59 seconds which is growing uh significantly and therefore uh these things will help us improve the uh margin. Customer 1:05:08 1 hour, 5 minutes, 8 seconds additions also are a uh uh growth engine for us. So as we keep on adding clients and those clients become active, they 1:05:15 1 hour, 5 minutes, 15 seconds will start contributing to the uh orders and the uh revenues. 1:05:21 1 hour, 5 minutes, 21 seconds uh the 5,900 margin trade funding book that we have at the end of the quarter. 1:05:27 1 hour, 5 minutes, 27 seconds Uh you know how much there's a balance sheet kind of provide you the room to go up to uh considering more borrowings uh 1:05:35 1 hour, 5 minutes, 35 seconds or net worth. the simultaneously if the ADTO's and the cash or the uh uh is going up we will also require network to 1:05:44 1 hour, 5 minutes, 44 seconds support the margins right so what is the kind of balance sheet flexibility you have to kind of scale this up to say about 10,000 or 12,000 cr in the next 1:05:52 1 hour, 5 minutes, 52 seconds three quarters yeah so as we've been mentioning that we can easily double this book from where we are today without having to uh raise 1:06:01 1 hour, 6 minutes, 1 second any additional capital and uh as you have would have seen the gearing ratio for us is pretty low debt equity ratio. 1:06:08 1 hour, 6 minutes, 8 seconds So we don't have any challenge there. We can easily raise more funds on the debt size debt side to be able to uh leverage and fund this book. 1:06:19 1 hour, 6 minutes, 19 seconds Got it. And last question, you know, in terms of a customer acquisition, uh how much would be organic and how much would be through the paid and how 1:06:28 1 hour, 6 minutes, 28 seconds is that been kind of trending in the past uh past few quarters? 1:06:34 1 hour, 6 minutes, 34 seconds Uh so we don't uh we don't break it out pre because it's uh you know even if we were to try to it's not super 1:06:42 1 hour, 6 minutes, 42 seconds straightforward and it's not very reliable because uh you know it depends on how you attribute various things. You know there are all kinds of attribution 1:06:49 1 hour, 6 minutes, 49 seconds mechanisms. So so we generally stay away from it. You you get to see sort of some of the costs that we are incurring and that that's probably the best guidance there. 1:06:59 1 hour, 6 minutes, 59 seconds Very good. Okay. Thanks uh Mr. Graish. Does that answer your question? 1:07:07 1 hour, 7 minutes, 7 seconds Yeah. Yeah. Thanks. 1:07:09 1 hour, 7 minutes, 9 seconds Okay. Thank you. The next question is on the line of Sanjay Lada with Bastian Research. Please go ahead. 1:07:17 1 hour, 7 minutes, 17 seconds Yeah. Hi sir. Thank you for the opportunity. So I hope so. So so we are developing uh various 1:07:24 1 hour, 7 minutes, 24 seconds product in house like mutual fund, credit, fixed income, wealth management. 1:07:29 1 hour, 7 minutes, 29 seconds So can you share at what or at what time frame we are looking to break even or start generating profit? I understand 1:07:38 1 hour, 7 minutes, 38 seconds this all the products are long-term product but wanted to understand the scale and profitability from 3 to 5 year standard horizon. 1:07:49 1 hour, 7 minutes, 49 seconds Yeah. So uh I think this is a question which we've been answering for a while now. uh the wealth business uh we 1:07:57 1 hour, 7 minutes, 57 seconds anticipate should turn uh break even incrementally say in about two and a half three years time while the MC business which is a low cost long 1:08:06 1 hour, 8 minutes, 6 seconds gestation period business uh should be able to turn incrementally uh break even in about uh 7 to 8 years. 1:08:16 1 hour, 8 minutes, 16 seconds Okay. And uh and then my another question would be uh so what is the cross-ell ratio for us as we are largely you know top three players in the 1:08:24 1 hour, 8 minutes, 24 seconds broking business but incrementally and you know we as we move forward our cost to acquisition cost is keep on 1:08:33 1 hour, 8 minutes, 33 seconds increasing. So I understand you guys are developing uh you know uh client acquisition base and improving the trend 1:08:41 1 hour, 8 minutes, 41 seconds so forth. uh but just wanted to understand what is the cross-ell issue and how you guys are thinking on that line so that you know we try to 1:08:49 1 hour, 8 minutes, 49 seconds understand as going forward uh you know how things will change from here on in terms of crossell ratios and developing 1:08:56 1 hour, 8 minutes, 56 seconds on that side right now we are able to actually leverage the platform quite well right uh you know people are coming in for 1:09:05 1 hour, 9 minutes, 5 seconds broking most of the acquisition is for broking and then people are going to mutual funds lending other places so so we are definitely seeing that advantage 1:09:13 1 hour, 9 minutes, 13 seconds and as these businesses grow you're going to see more and more of this crosspollination advantage uh that will come in but we don't we don't define the 1:09:21 1 hour, 9 minutes, 21 seconds ratio except for we gave you know I gave you one data point in my uh opening remarks where you know 50% of the mutual 1:09:29 1 hour, 9 minutes, 29 seconds fund customers are also uh buying equities so you can see there there is sort of that crosspollination already happening 1:09:38 1 hour, 9 minutes, 38 seconds thank you sir thank you Thank you. The next question is from the line of S Jafi with Ajenta Capital. 1:09:47 1 hour, 9 minutes, 47 seconds Please go ahead. 1:09:49 1 hour, 9 minutes, 49 seconds Yeah. Uh good morning sir. Uh I just had one uh question um on the the income 1:09:56 1 hour, 9 minutes, 56 seconds breakup. Now brokerage as of now contributes for about 60% of the uh gross number as I see in the presentation. 1:10:06 1 hour, 10 minutes, 6 seconds Um and we've been incubating a couple of these new businesses um under like and 1:10:14 1 hour, 10 minutes, 14 seconds we management now insurance and credit products on a more longerterm basis um 1:10:21 1 hour, 10 minutes, 21 seconds what would be according I mean what how do you see these businesses revolving say 3 years out four years out 1:10:30 1 hour, 10 minutes, 30 seconds where do you think you know this break up will settle or or you Think about it in another way. Where do you what do you 1:10:39 1 hour, 10 minutes, 39 seconds feel will be a good diversified uh you know income mix for you? What would be that number? 1:10:46 1 hour, 10 minutes, 46 seconds Um yeah. So um on a longerterm basis uh while our broking uh business itself is going to grow at almost 25 30% long 1:10:56 1 hour, 10 minutes, 56 seconds term. So there will be a long uh uh you know growth story for this business. the uh newer businesses especially the 1:11:03 1 hour, 11 minutes, 3 seconds distribution the uh wealth and the asset management businesses between 3 to 5 years our estimate they should 1:11:10 1 hour, 11 minutes, 10 seconds contribute double digit to our top line and uh while in the absolute uh numbers they will be uh significant. So that's 1:11:17 1 hour, 11 minutes, 17 seconds how we see uh the business evolving in terms of revenue uh diversity over the next 3 to 5 years. 1:11:25 1 hour, 11 minutes, 25 seconds Okay. And of the three new businesses that you have discussed, the credit business, the AMC and the wealthy, which 1:11:34 1 hour, 11 minutes, 34 seconds will probably have a higher sale of the three? 1:11:39 1 hour, 11 minutes, 39 seconds Well, uh wealth and uh distribution businesses should have a higher share in the revenue because AMC being a passive business is a low uh uh yielding 1:11:48 1 hour, 11 minutes, 48 seconds business and therefore the uh uh wealth and the distribution businesses will will have a higher share in the diversification. 1:11:56 1 hour, 11 minutes, 56 seconds Okay. And and currently the products that you have on the AMC what is the sir? 1:12:10 1 hour, 12 minutes, 10 seconds So uh see our the fees the T which we charge is in line with the what is the 1:12:17 1 hour, 12 minutes, 17 seconds market practice. So on average the PR which we are charging across product in our direct is approximately 25 to 30. 1:12:27 1 hour, 12 minutes, 27 seconds Got it. That's lengthed of the seven products. 1:12:38 1 hour, 12 minutes, 38 seconds Got it. That is it from my Thank you. The next question comes from the line of DIA with Sappire Capital. 1:12:48 1 hour, 12 minutes, 48 seconds Please go ahead. No, sir. Am I on? 1:12:55 1 hour, 12 minutes, 55 seconds Yes, you are. Yes, ma'am. 1:12:58 1 hour, 12 minutes, 58 seconds So, so your revenue decreased on a Y basis. So, what is the reason behind that? And uh do you see this trend 1:13:06 1 hour, 13 minutes, 6 seconds continuing this year or uh will it get better this year and for FY27? 1:13:18 1 hour, 13 minutes, 18 seconds Yeah. Hi. Uh so why are why this is the revenue decline is primarily on two fronts. one there was a lot of growing 1:13:25 1 hour, 13 minutes, 25 seconds in the market uh uh this time around last year uh because of the general elections and the uh overall uh activity 1:13:33 1 hour, 13 minutes, 33 seconds in the market and two uh there was a uh stream of income that all the industry used to earn which was a arbitrage on 1:13:42 1 hour, 13 minutes, 42 seconds the transaction fees the turnover charges that uh the exchanges used to levy on the brokers and the brokers used to levy on the client that uh became 1:13:51 1 hour, 13 minutes, 51 seconds zero from 1st of October last year. So that was one big decline that uh the entire industry saw and of course the market factors. 1:13:59 1 hour, 13 minutes, 59 seconds Uh and the just to add to that if you're following year-over-year the other thing to follow is the uh you know how the market share has been has been doing for 1:14:07 1 hour, 14 minutes, 7 seconds us. Uh because if you look at for example our cash market share it's gone from 17.5% to 18.7%. 1:14:14 1 hour, 14 minutes, 14 seconds The FNO you know premium market share has gone from 20.7 to 21.7. Same way commodity has gone from 62.2 2 to 65.1. 1:14:23 1 hour, 14 minutes, 23 seconds So there's been very large increases in uh market shares that we've shown year over year. So the company as a company we continue to perform really well in 1:14:31 1 hour, 14 minutes, 31 seconds this segment and uh long-term we believe in the value of the industry the macro in India all of that that you know DT 1:14:39 1 hour, 14 minutes, 39 seconds talked about at the beginning. So so the f future in that sense you know is very good. This is like a one-year aberration that we are talking about. 1:14:50 1 hour, 14 minutes, 50 seconds Okay. And for uh the revenue target for next year, what do you think it could be? 1:14:58 1 hour, 14 minutes, 58 seconds We don't give out any uh targets on revenue. The only uh guidance that we give is on uh operating margins. Uh and 1:15:06 1 hour, 15 minutes, 6 seconds we've said this uh year exit will be uh 40% plus. Long-term we should be able to achieve 45 50% operating margin as we go along and grow businesses. 1:15:19 1 hour, 15 minutes, 19 seconds Okay sir. Thank you. 1:15:23 1 hour, 15 minutes, 23 seconds Thank you ladies and gentlemen. That was the last question for today's conference call. I now hand the conference over to Mr. Dhaka for closing comments. 1:15:33 1 hour, 15 minutes, 33 seconds Thank you once again for joining us today. I hope we have been able to answer your questions and share useful insights. If you need any assistance, 1:15:43 1 hour, 15 minutes, 43 seconds please reach out to Hitur Boutka, our head of investor relations, or to SGA, our investor relations advisor. Have a wonderful day. 1:15:54 1 hour, 15 minutes, 54 seconds Thank you on behalf of Angel One. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.