Motilal Oswal Initiates Coverage on Angel One, Sets Target Price at Rs 400

Angel One's Financial Performance Reflects Steady Growth

Angel One (ANGELONE) has reported a total income of INR 11.3 billion, marking a 37% year-over-year (YoY) and 10% quarter-over-quarter (QoQ) growth. This figure is in line with expectations. However, the company's total income for FY26 declined by 3% YoY to INR 40 billion.

Angel One's total operating expenses grew by 17% YoY and 6% QoQ to INR 6.6 billion, aligning with estimates. Employee expenses decreased by 11% QoQ, which is 10% lower than estimated, while administrative expenses increased by 20% QoQ, in line with expectations. The company's operating margin for 4QFY26 was 41.7%, a significant improvement from 31.8% in 4QFY25.

Revised Earnings Estimates and Rating

Motilal Oswal has raised its earnings per share (EPS) estimates for FY27 and FY28 by 12% and 19% respectively, considering the substantial improvement in order run-rate and the efficiency gains from automation-driven employee expenses. The research firm has reiterated its BUY rating on the stock with a revised target price (TP) of INR 400, based on 22 times FY28 estimated EPS.

| Fiscal Year | FY26 | FY27 (Revised) | FY28 (Revised) | | --- | --- | --- | --- | | EPS Estimate | - | +12% | +19% | | Target Price (TP) | - | - | INR 400 (based on 22x FY28E EPS) |

We will continue to monitor Angel One's financial performance and provide updates as necessary.