Shares of Angel One Ltd are in focus on Thursday morning, following its February business update. Even as the broker's client base jumped in February, gross client acquisition plunged year-on-year (YoY). Average daily orders took a hit, and so did futures and options turnover.
Angel One said its customer base stood at 3.058 crore at the end of February, higher than 3.013 crore in January and 2.143 crore in the year-ago month. The month of February was marked by a steep 6 per cent drop in benchmark stock indices amid concerns over tariff war, weak rupee and foreign outflows.
Gross client acquisition for the month stood at 4.9 lakh against 6.6 lakh in January and 10.1 lakh in February 2024. Average client funding fell 3.5 per cent month-on-month to Rs 4,053 crore from Rs 4,199 crore in January, but was up 99.1 per cent YoY over Rs 2,035 crore.
Number of orders fell 3.5 per cent MoM and 42.5 per cent YoY, Angel One said in a BSE filing. Average daily orders for the month fell 9.4 per cent MoM to 49.6 lakh from 54.8 lakh. They fell 36.6 per cent over 82.2 lakh average daily orders in February 2024.
Angel One's average daily F&O turnover fell 4.1 per cent MoM and 35.4 per cent YoY. Its market share in cash market stood at 16.7 per cent for the month, up 9 basis points from 16.6 per cent in January. F&O share fell 23 basis points to 21.5 per cent from 21.8 per cent MoM.
In the third quarter, the broking industry saw multiple regulatory changes including implementation of the True to label framework (from October 1, 2024). As per the framework, there has been standardisation in exchange charges with a flat fee structure regardless of the size of turnover.
For the Angel group, the income generated from this source stood at 8-9 per cent of topline, which reduced to nil from the third quarter of fiscal 2025. CRISIL recently noted that the company is taking various measures to offset this impact including reducing the discount brokerage products and focusing on further enhancing the diversity from other segments. The group’s ability to leverage cross-selling opportunities and increase diversification in revenue profile will remain monitorable, it said.
Angel One had added around 21 lakh clients during third quarters of fiscal 2025, taking its overall client base to 2.95 crore as of December 2024. The group’s active client base grew 46 per cent year-on-year and stood at 77.6 lakh as on December 31, 2024.