Brokerage firm Angel One reported its third consecutive quarterly profit decline on Wednesday, attributing this downturn to restrictions on equity derivatives trading implemented last year, which have reduced retail investor participation.
For the quarter ending September 30, the company’s consolidated profit plummeted by 50% to ₹212 crore ($24.08 million). This decline comes as Angel One competes with emerging start-ups like Zerodha, Groww, and Upstox.
In November 2022, the Securities and Exchange Board of India (SEBI) raised the minimum contract value and limited weekly index options to a single exchange, which has made trading in this sector more expensive. SEBI’s intention behind these changes was to limit speculative trading practices, particularly since approximately 90% of traders in this area incur losses. Consequently, these measures have adversely affected trading volumes and revenues for brokerages that rely significantly on derivatives trading.
In October, Angel One reported a 41.9% decrease in gross client acquisition and a 26.3% drop in total orders for the second quarter. Furthermore, SEBI announced in August its consideration of extending equity derivatives contract tenures and restricting trader eligibility.
In response to these challenges, Angel One has intensified its efforts to diversify its offerings, venturing into margin funding, wealth management, insurance, loan distribution, and asset management. Analysts suggest that this diversification strategy could significantly boost the company’s non-brokerage revenue share over the next five to seven years, potentially mitigating its dependence on unpredictable derivatives income.
During the quarter in question, Angel One’s overall revenue fell by 20.7% to ₹1,202 crore, as stated in an exchange filing. Ahead of the results announcement on Wednesday, the company’s shares saw a slight increase, closing 1.7% higher. ($1 = 88.0400 Indian rupees)
Published on October 15, 2025.
