Angel One Group CEO Ambarish Kenghe said that the introduction of the Closing Auction Session (CAS) created some initial disruption in the market as participants adjusted to the new system.
“CAS created a little bit of disturbance in the market as people were getting adjusted to it. We were among the first entities to implement CAS in the system. The regulators are looking to develop the market,” Kenghe said in an interview, adding that it was difficult to quantify the incremental impact of CAS on the company's business.
The implementation of CAS and other regulatory measures has affected futures and options (F&O) turnover across the industry. Kenghe said the company continues to focus on growth while maintaining operating profitability, having guided for an operating profit margin in the range of 45-50%.
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Angel One reported a 45% quarter-on-quarter (QoQ) increase in consolidated net profit to Rs 335 crore in the second quarter of fiscal 2027. Revenue remained largely flat at Rs 1,427 crore, compared with Rs 1,430 crore in the preceding quarter. EBITDA rose 31% to Rs 636 crore from Rs 485 crore, while the EBITDA margin expanded to 44.6% from 33.9%.
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Kenghe said the company expects its lending business to perform well in the coming quarters. Angel One has started offering loans against securities through its non-banking financial company (NBFC) subsidiaries, while its assets under management (AUM) business has grown 40% year-on-year (YoY).
The company expects margins to improve going forward, supported by cross-selling opportunities that could help keep customer acquisition costs control. Around 5% of its brokerage comes from distribution and other income, Kenghe said.
He also highlighted improving demand amid a rise in initial public offerings (IPOs) and increasing interest among investors in US stocks.
Angel One is also working towards obtaining an Online Bond Platform Provider (OBPP) licence to expand its presence in the bond market.
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