Operating margin target of 40-45% by Q4 FY26
Management reiterated guidance to exit FY26 with operating profit margin between 40% and 45%, driven by revenue growth and stable costs.
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Long-term operating margin target of 45-50%
Over the long term, Angel One aims to achieve 45-50% operating margins as new businesses scale and efficiencies improve.
New businesses to contribute double-digit to top line in 3-5 years
Distribution, wealth, and asset management businesses are expected to contribute double-digit percentage to total revenue within 3-5 years.
Wealth business breakeven in ~2.5-3 years, AMC in ~7-8 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.
Standalone operating margin target of 40-45%
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.
Finance cost normalization from regulatory upstreaming
Elevated borrowings due to client margin upstreaming are temporary; software update expected by end of Q4 to reduce finance costs.
Continued investment in emerging businesses
Management plans to continue investing in wealth, AMC, and credit, with burn impacting consolidated margins by ~3-3.5%.
Employee cost to remain flat in FY27 vs FY26 at ~₹11 billion
Management expects employee costs including ESOP to be in line with FY26 spend, driven by efficiency gains from technology and AI.
Further EBITDA margin expansion expected in FY27
Management guided for margin expansion from the H2 FY26 base of ~42-43%, though they may reinvest in growth opportunities.
IPL spend for FY27 season to be ~₹1.5 billion
Total IPL-related costs for the season will be similar to prior years, with Q4 booking only a portion due to late start.
Capital infusion of ₹1.5 billion each into wealth and NBFC
Proposed capital infusion to scale wealth management and NBFC (loan against securities) businesses.