Target Price: ₹2,820
Current Market Price: ₹2,493
Angel One’s financial results for the first half of FY26 indicate a gradual recovery in business following the regulatory changes implemented in the second half of FY25, despite a notable year-over-year decline in order levels. Key short-term factors contributing to this recovery include a 7% increase in average daily orders in H1 FY26 compared to Q4 FY25, a 44% rise in the margin trading facility (MTF) book ending September 2025 versus March 2025, and increasing momentum in non-broking operations, highlighted by a 30% quarter-on-quarter growth in distribution income, an assets under management (AUM) figure for wealth management reaching ₹6,100 crore, and ₹400 crore for asset management.
The target price of ₹2,820, based on a valuation of 20 times the unchanged FY27 estimated earnings per share (EPS) of ₹141, incorporates expectations for gradual growth in average daily orders, projected to rise from 5.6 million in H1 FY26 to 7.7 million in FY27. Additionally, it anticipates an increase in the blended net broking rate by approximately ₹0.5 due to price adjustments, with the average MTF book expected to reach ₹6,500 crore by FY27, up from ₹5,300 crore in Q2 FY26. The EBDAT margin is anticipated to hit 40% in accordance with guidance for FY27.
The recommendation to “Add” reflects a potential recovery in order volumes, alongside prospects for multiple expansions and enhanced performance in non-broking sectors.
Key risks to these projections involve potential declines in order volumes, lower than anticipated MTF book growth, unexpectedly high costs, reduced other income due to the impact of ASBA, and any new regulatory adjustments.
Published on October 17, 2025
