Target: ₹350

CMP: ₹319

Angel One reported strong Q4FY26 earnings of ₹320 crore (+19 per cent q-o-q/+84 per cent y-o-y; +5 per cent JMFe).

While order growth was already known to Street (reported), the beat is attributable to higher revenue per order and controlled costs, resulting in a consolidated EBDAT margin of 41.7 per cent (44.4 per cent, excluding one-offs); for the broking & distribution (B&D) business, EBDAT margin came in at 44.6 per cent. Hereon, the company expects B&D margin of over 45 per cent and a hit of 2.5-3 per cent from new initiatives.

Angel One has been at the forefront of financialisation — drawing masses to markets, and that runway has still not run out. Its large active client base provides cross-sell opportunities, and its strong operating leverage ensures most of it flows through to the bottom line. We believe earnings trajectory of 30 per cent+ EPS compounding over FY26-28E is now largely priced in.

The stock has rallied 40 per cent since September 2025, and we believe the stock price now captures the near-term earnings momentum. We believe in Angel One’s medium-term diversification story and value the stock at 20x FY28E EPS of ₹18 (against 20x FY28E EPS of ₹17 earlier), yielding a revised target price of ₹350 (earlier ₹333); downgrade to Add.

Published on April 20, 2026