Angel One Ltd Management Discussions

Management Discussion and Analysis

Indian Economic Environment

India continued to demonstrate strong macroeconomic resilience in FY26, with real GDP growth estimated at approximately 7.6%, maintaining its position among the fastest-growing major economies globally. Growth was primarily driven by robust domestic demand, supported by improving consumption, continued formalisation of the economy and stable macroeconomic conditions.

Private consumption remained a key driver, with Private Final Consumption Expenditure (PFCE) growing by 7.7% Y-o-Y(at constant prices), reflecting improving purchasing power and a supportive policy environment. These trends, along with rising financial awareness, are increasingly translating into higher household participation in formal financial markets.

Indias financial ecosystem continued to strengthen, underpinned by improving macro fundamentals, disciplined fiscal management and a stable banking sector. Fiscal deficit moderated to approximately 4.4% of GDP, while strong foreign exchange reserves provided resilience against external financial volatility.

This improving macroeconomic and financial stability is increasingly being reinforced by rapid digitisation of the economy. Enhanced digital infrastructure is expanding financial access, deepening market participation and supporting inclusive growth across geographies. Smartphone penetration of -76% in rural areas and 86% in urban areas amongst 15years and above population coupled with significant reduction in mobile data costs of nearly97% since2014, ledtoover4x jump in internet connections of over 1 billion by December 2025. This is materially expanding access to digital financial services.

Financial markets witnessed continued deepening during the year. Rising household financial savings, sustained inflows into mutual funds and increasing retail investor participation contributed to enhanced domestic liquidity. The growing adoption of digital platforms is significantly expanding access to financial products, particularly in Tier 2, Tier 3 and beyond geographies, accelerating financial inclusion.

The mutual fund industry continued to see strong momentum, with sustained SIP inflows reinforcing long-term investing behaviouramong retail investors. At the same time, digitisation of financial services, supported by regulatory initiatives and improving market infrastructure, is enhancing transparency, accessibility and investorconfidence.

The credit ecosystem also witnessed strong structural momentum. Indias household financial liabilities, as of March 2025, remains relatively low at over 41 % of GDP, as compared to the developed markets, highlighting significant headroom for growth. The rapid adoption of digital lending, use of alternative data for credit assessment and partnerships between fintechs, banks and NBFCsare enabling scalable and inclusive access to credit, particularly in underpenetrated geographies. Retail credit growth remained robust at over 18% Y-o-Y, as of December 2025, led by demand in home loans, gold loans and personal loans. While unsecured lending saw regulatory tightening, asset quality remained stable, supported by improved underwriting standards and declining NPAs across the banking system.

Outlook

Indias economic outlook remains favourable, with real GDP growth projected at approximately 6.5% in 2027. Structural drivers such as rising financialisation of savings, increasing-retail participation and continued adoption of digital platforms are expected to further deepen capital markets.

For the financial services and fintech sectors, this presents a significant long-term opportunity. Expanding access, improving user experience and leveraging technology will be key to unlocking the next phase of growth, particularly across underpenetrated markets.

While global uncertainties persist, Indias strong domestic fundamentals and continued policy support, position the financial ecosystem for sustained, technology-led growth.

Capital Markets: Democratisation and Structural Maturity

Market Performance and Domestic Stabilisation

The Indian capital markets entered a phase of democratisation and structural maturity in FY26, marked by healthy retail participation. Geopolitical tensions and shifts in global trade policies acted as retractive forces, leading to a muted domestic equity market performance of-5.1% and -7.1% for the Nifty 50 and BSE Sensex respectively. Domestic Institutional Investors(Dlls)(DMF + Banks, FI and lnsurance)ownership in NSE listed universe of companies increased to 16.6% as of December 2025, at par with foreign portfolio investment(FPI) holdings, underscoring the growing influence of domestic investors in Indias equity markets and the shift toward local capital as a primary stabilising force amid negative FPI flows.

Unprecedented Retail Participation

Retail participation reached historic milestones in FY26. The numberof unique investors with demat accounts, based on Permanent Account Number (PAN), reached over 129 million mark in March 2026, whilst total demat accounts in India reached nearly 225 million by March 2026, following addition of approximately 32 million new accounts during the fiscal year. This surge reflects a fundamental shift in how Indian households allocate savings: the share of equity and mutual funds flows in annual household gross financial assets rose from 1.8% in FY12to over 15.1% in FY25. This financialisation is increasingly broad-based, with significant participation originating from Tier 2 and beyond cities.

Women investors now comprise nearly one-fourth of the investor base, representing a meaningful demographic shift. More than half of newly registered investors on the NSE are below 30 years of age, with a median age of 28 years for new investors added during FY26, compared to 33 years for the overall registered base. This demographic transformation signals sustained long-term participation in Indias capital markets.

Primary Market Vibrancy

The primary equity market remained buoyant in FY26, with India emerging as one of the most active initial public offering (IPO) markets globally. Companies raised over Rs.770 billion of fresh capital through IPOs, on both mainboard and SME, during the first eleven months of the fiscal year, higher by more than 15% over the previous year. Following the trend in FY25, the industry continued to witness high share of Offer for Sale (OFS) in the current financial year as well, at over Rs.1 trillion, accounting for over 57% of capital raised through IPOs, reflecting a supportive environment for shareholder exits and enhanced secondary market liquidity. The country witnessed 8.1% Y-o-Y growth in the number of issuances to 346 in the first eleven months of FY26 with main board number of listings growing by 26.6% Y-o-Y to 100. SME listings also maintained strong momentum, with 246 companies raising over Rs.111 billion during the first eleven months of FY26, underscoring the growing depth and maturity of Indias primary market ecosystem for emerging enterprises.

SIP Culture as Market Bedrock

The Systematic Investment Plan (SIP) culture has firmly established itself as the bedrock of domestic liquidity. Average monthly SIP contributions increased from about Rs.36.6 billion in FY17to Rs.291.3 billion in FY26, reaching an all-time high of monthly inflows of about Rs.320.9 billion in March 2026.

The industry registered a compounded annual growth rate in annual SIP inflows of >29% over FY21-26.

This consistent domestic capital flow has reduced market vulnerability to global rate cycles and external shocks. Share of Individual investors in NSE-listed companies remained at 9.3% of market capitalisation of the universe as of December 2025. Including indirect holdings via mutual funds, the overall individual investors participation in NSE-listed equities has grown to 18.6% as of December 2025 from 16.3% in March 2024 and 18.2% in March 2025, contributing to an increase in the total retail equity wealth. This deeperengagementin markets has been visible in total net inflows, in direct equities across both primary and secondary markets, of Rs.5.3 trillion by individual investors in the cash segment over 2021-2026 resulting into the value of their holdings increasing to Rs.44.0 trillion as of December 2025 from Rs.16.8 trillion as of December 2020. This signifies a maturing ecosystem where domestic households are no longer passive savers but active participants in Indias long-term wealth creation story.

Credit Markets

Monetary Policy Transition

Entering FY26, Indian creditand debt markets were characterised by transition from prolonged tightening to more accommodative stance, supported by stable macroeconomic fundamentals and receding inflation. The Reserve Bankof India (RBI) aggressively lowered the policy repo rate by a cumulative 100 basis points in FY26, bringing itto 5.25% by December 2025. This decisive easing was made possible as headline CPI inflation averaged 2.1% during the fiscal year, well within the central banks tolerance band.

Credit Market Expansion

The credit market witnessed sustained expansion alongside structural shifts in funding and risk calibration, with system-wide retail credit growing by 18.1% Y-o-Y to approximately Rs.163 trillion by December2025(Source: CRIF High Mark). Within this. Home Loans, Gold Loans, Personal Loans and Auto Loans account for over half of the industrys retail credit book.

Personal Loans segment, the largest in terms of active loans, remains a critical growth engine, driven by consumption demand and young borrowers. Importantly, fintechs are addressing the structural credit gap by deepening access and digitising credit delivery. These trends reflect a credit ecosystem that is not only growing but also becoming more granular, technology-driven and inclusive with fintech-led models materially widening participation beyond traditional banking channels.

Indias Fintech NBFCs Enabling Access to Credit

Asset Management and Wealth Management

Indias asset and wealth management industry continues to demonstrate strong structural growth, supported by a resilient macroeconomic environment, rising financialisation of savings and increasing participation in capital markets. Investors are progressively shifting from traditional assets towards diversified financial instruments, driven by improving financial awareness, expanding digital access and supportive regulatory frameworks. These trends are broadening participation across geographies and reinforcing the longterm growth trajectory of the industry.

Asset Management: Momentum in Mutual Funds and Beyond

The mutual fund industry remains a key driver of this growth, with Assets Under Management (AUM) reaching over C73 trillion as of March 2026, reflecting a year-on-year growth of over 12%. Strong inflows into equity-oriented schemes and sustained contributions through SIP—with average monthly inflows of approximately C291 billion in FY26— highlight the increasing adoption of disciplined, long-term investing.

Growth has been broad-based across categories. The equity and hybrid funds witnessing strong traction, while passive funds have gained significant momentum with their AUM growing over 22% Y-o-Y as of March 2026. The expansion of digital platforms, combined with continued investor education and a robust regulatory framework, is enhancing accessibility, transparency and trust, thereby deepening participation in financial markets.

Wealth Management: Strategic Growth and Digital Expansion

Indias wealth management industry is entering a phase of accelerated expansion, driven by a rising base of HNIs and UHNIs, alongside a structural shift in household savings towards financial assets such as equities and mutual funds. Investor preferences are evolving towards diversified, customised and portfolio-led solutions, accelerating the transition from product-led distribution to advisory- led engagement.

Technology and digital platforms are further transforming the industry by enabling seamless access, real-time portfolio visibility and personalised advisory at scale. Supported by favourable policy frameworks and increasing investor sophistication, the wealth management industry is well positioned for sustained long-term growth.

Growth Potential

Indias asset management ecosystem continues to benefit from rapid advancements in technology, digitisation and data analytics, supported by a strong digital public infrastructure. Increasing adoption of digital payments and mobile platforms is simplifying investment journeys and expanding financial inclusion across the country.

Significant growth opportunities remain in Tier 2, Tier 3 and beyond markets, where rising financial awareness and expanding network are driving participation. Younger investor cohorts, including Gen and millennials, are increasingly entering financial markets early, reinforcing long-term investing behaviour.

Despite strong momentum, financial asset penetration in India remains relatively low, indicating substantial headroom for expansion. Continued regulatory support, alongside ongoing technological innovation and investor education, is expected to further deepen market participation and sustain the industrys long-term growth trajectory.

Regulatory Framework Evolution

In FY26, the regulatory landscape for Indias capital markets continued to evolve towards a more transparent, technology-aligned and investorcentric framework, led by the Securities and Exchange Board of India (SEBI). The year saw a clear shift toward building regulatory structures that are responsive to the growing digitisation of financial services, while reinforcing market integrity and investor confidence.

Advancing Market Infrastructure and Technology Governance

A key focus area was the formalisation of algorithmic and API-based trading, with the introduction of a comprehensive framework governing retail participation in automated strategies. These measures enhanced accountability through mandatory registration protocols, robust audit trails and tighter risk management controls. As technology-led participation deepens, such frameworks are critical in ensuring orderly market functioning while enabling innovation within clearly defined guardrails.

Strengthening Product Governance and Transparency

The mutual fund ecosystem underwent a structural recalibration, with revised expense frameworks introducing a base expense ratio complemented by performance-linked fee structures.

This was supported by stronger governance standards, enhanced disclosure requirements and a sharper true-to-label approach, ensuring closer alignment between product positioning and underlying portfolios. Further refinements in scheme categorisation and portfolio construction norms aimed to reduce overlap, improve differentiation and simplify investor choice in a maturing investment landscape. Investor protection remained a central theme during the year, with regulatory actions targeting unregistered entities and informal advisory ecosystems, including restrictions on finfluencers and tighter oversight of digital financial promotions.

Expanding Market Depth and Investment Avenues

Reforms in structures such as REITs and InvITs signalled a progressive expansion of the investment universe. Measures aimed at standardising treatment within portfolios, improving accessibility and enabling broader participation are expected to support capital formation while diversifying investment opportunities for both retail and institutional investors.

Structural Reforms under the Securities Markets Code, 2025

During the year, India proposed the Securities Markets Code (SMC), 2025, representing a significant step toward modernising and consolidating the countrys capital markets regulatory framework. The bill has been referred to the Parliamentary Standing Committee on Finance for review, before it becomes a law.

A key focus of the code is to enhance ease of doing business and regulatory clarity, especially for market intermediaries, fintech platforms and new-age investment products.

It seeks to introduce clear definitions, streamline approval processes and strengthen governance norms, while also enabling faster regulatory responses to innovation in areas such as algorithmic trading, digital distribution and new asset classes.

The code also places emphasis on investor protection and market integrity, proposing stronger enforcement mechanisms, improved disclosure standards and tighter risk management frameworks across exchanges, clearing corporations and intermediaries. At the same time, it is expected to provide a more enabling environment for market expansion, supporting broader retail participation and deeper capital formation.

Overall, the Securities Markets Code, 2025 is positioned as a forward-looking regulatory reset, balancing innovation with oversight and aligning Indias capital markets framework with global best practices while supporting the next phase of growth in a technology- driven financial ecosystem.

Enhanced Governance Framework for Stock Brokers

The 2026 regulations represent a structural reset of the broking regulatory framework, aimed at strengthening investor protection, enhancing systemic stability and enabling sustainable business scalability. In this evolving landscape, companies must take a proactive approach to align with the new requirements-ensuring compliance readiness, reinforcing operational resilience and positioning themselves for long-term strategic competitiveness.

Intermediaries are now permitted, subject to SEBI approval, to undertake other regulated financial services activities, including those governed by the RBI or IRDAI, facilitating their evolution into integrated financial services platform. This expanded scope is complemented by strengthened governance standards, including clearer accountability of Designated Directors, enhanced compliance oversight and extended record-retention requirements of up to eight years. The regulations also reinforce conduct and investor protection norms through explicit prohibitions on offering assured returns and accepting cash from clients, alongside tighter expectations around client fund segregation, outsourcing and risk management. Collectively, these measures are designed to enable scalable growth while reinforcing transparency, discipline and trust across the brokerage ecosystem.

Derivatives Market Reforms

TheSEBI, through itscircularonthe Frameworkfor Intraday Position Limits Monitoring for Equity Index Derivatives, introduced a more real-time, risk- sensitive approach to derivatives market oversight. Theframework requires exchangesand brokersto monitor client positions continuously throughout the trading session, ensuring that exposures always remain within prescribed limits, ratherthan being assessed only atend-of- day. This shift significantly reduces the build-up of excessive intraday leverage and mitigates the potential for abrupt market dislocations. For investors, it provides stronger safeguards against unintended oroutsized positions, while for intermediaries, it enhances accountability through tighter supervision and more robust risk controls. Overall, the framework represents an important step toward strengthening market discipline and resilience, ensuring that participation in complex instruments such as index derivatives remains aligned with prudent risk boundaries on a real-time basis. Key regulatory interventions during the year included the tightening of the Order-to- Trade Ratio (OTR) framework, along with a recalibration of margin requirements, including a reduction in calendar spread benefits as contracts approach expiry.

Key Structural Trends Shaping the Future of Investing in India

• Evolution Towards Integrated Investment Ecosystems: Investment platforms are transitioning from standalone execution tools to integrated ecosystems that combine investing, advisory, credit and protection solutions, enabling a more seamless and holistic investor experience.

• Shift From Product-centric to Solution-oriented Models: Investor engagement is increasingly centred on long-term portfolio outcomes and goal-based planning, driving a gradual move away from transaction-led product distribution towards advisory-led investment solutions.

• Institutionalisation of Data and Analytics: Advanced analytics and artificial intelligence are being embedded across investment platforms to support risk assessment, portfolio monitoring and more targeted investor communication, while preserving appropriate human oversight.

• Expanded Access within Regulatory Frameworks: Regulatory initiatives, including the accredited investor regime and the development of GIFT City, are facilitating access to a broader range of investment opportunities within defined suitability and disclosure norms.

• Emergence of Hybrid Advisory Models: The convergence of digital capabilities and human expertise is shaping hybrid advisory models, which are expected to underpin the next phase of inclusive and resilient growth in Indias investment landscape.

Company Overview

We continue to evolve from a broking- led franchise into a comprehensive financial services platform - designed to participate across the full client lifecycle through investing, wealth creation, credit and protection solutions. Our model is anchored in being product-agnostic, client-centric and technology-led, enabling deeper engagement, stronger retention and more durable monetisation over time. Through our digital platform, architected on the S.T.A.R.S. pillars (Simplicity, Transparency, Availability, Reliability and Swiftness), we enable seamless progression from firsttime participation to long-term financial planning within a unified platform experience.

Diversified Business Architecture

Our business model is designed to create a resilient, diversified revenue model - balancing transaction-led participation with annuity-oriented and advisory-led businesses that improve revenue quality and long-term earnings visibility. Whilst broking remains our core engine, we have scaled horizontal offerings across verticals:

Broking and Allied Services

Our broking and depository operations serve as the primary gateway to our platform and remain the cornerstone of our business, contributing a majority of our revenues. We enable seamless participation in capital markets across equity, derivatives and commodities through a fully digital, multi-channel ecosystem spanning mobile, web and desktop.

Built on a technology-led architecture, our platform integrates advanced trading tools, real-time data, research insights and margin funding capabilities to deliver a fast, scalable and intuitive investing experience fora rapidly expanding retail client base.

We complement our broking offering with depository services as a registered participant with Central Depository Services Limited (CDSL), enabling secure custody, seamless settlement and efficient portfolio management across asset classes.

Enhancing client experience remains a strategic priority. We are leveraging Al, machine learning and data science to drive personalisation, improve engagement and retention and deliver operating efficiencies at scale.

Our omnichannel model further strengthens our reach and resilience. While digital channels drive scale, ourassisted business- supported by over 10,000 Authorised Persons (APs)and overll.OOO Mutual Fund Distributors(MFDs)- enables relationship-led engagement for clients seeking support, powered by a unigue technology-enabled partner ecosystem, NXT.

We continue to scale our client funding book as a structurally attractive growth lever. This portfolio delivers high margins, anchored with strong risk management frameworks, secured exposures and a well-diversified client base, providing both resilience and headroom for growth.

Together, these capabilities create an integrated investment ecosystem that drives scale, deepens client engagement and supports sustainable, recurring revenue streams.

During FY26, we sustained strong market positioning with a 16.7% share of demat accounts and 20.2% share of overall retail eguity turnover, supported by average daily orders of 6.2 million.

Our standalone EBDAT margin for the broking and distribution business stood at 38.1% forthe year and improved to 44.6% in 04 FY26-within the guided range of 40-45%—reflecting the inherent operating leverage of our platform-led model.

Wealth Management (Ionic Wealth)

Angel One Limiteds wholly owned subsidiary, Angel One Wealth Limited, operating under the Ionic Wealth brand, represents our strategic expansion into advice and distribution-led, portfoliocentric engagement for affluent, HNI and UHNI clients. Combining institutional-grade domain expertise with a technology-first architecture, Ionic Wealth is designed to deliver structured wealth management solutions across advisory and distribution, at scale. During FY26, the platform scaled to an AUM of over Rs.100 billion, serving over 1,900 clients.

Built on an omnichannel model, Ionic Wealth integrates relationship-led engagement with superiordigital capabilities, enabling consistent and scalable delivery of portfolio-based strategies. Anchored in a portfolio- first philosophy, the platform leverages data science, advanced analytics and

Al to support asset allocation, portfolio diagnostics and ongoing monitoring, enhancing client engagement and portfolio outcomes.

In FY26, we analysed over Rs.115 billion of client portfolios through our diagnostic frameworks, strengthening insight- led engagement.

Technology is a key differentiator in our approach to scale. We have made significant investments in digital capabilities, with 80% of our codebase now Al-generated. Our proprietary initiatives include an Al-powered conversational interface for portfolio review and goal planning, automated client engagement tools such as Al-led portfolio updates, deep portfolio analytics enabled through Account Aggregator integrations and digital transaction capabilities for specialised investment products. Together, these capabilities enhance advisor productivity, improve client experience and enable institutional-quality service delivery at scale.

Positioned to address the structurally underserved affluent and emerging HNI segments, Ionic Wealth bridges the gap between traditional private banking and digital investing platforms. Its open architecture provides access to a diversified investment universe across public markets, alternatives, fixed income and global opportunities, aligned to client objectives and risk profiles.

As part of Angel Ones broader platform ecosystem, Ionic Wealth supports the natural progression of clients from transaction-led participation to disciplined, long-term wealth creation. With a focus on scalable advisory, technology-enabled productivity and recurring revenue streams, it is emerging as a key pillar in our evolution into a comprehensive, technology-led financial services platform.

Asset Management (Angel One AMC)

Angel One Asset Management Company (AMC) represents our strategic expansion into an annuity-oriented asset management franchise, aligned with Indias evolving investment landscape. Anchored in passive investing, the platform focuses on low-cost, transparent and rules-based strategies that enable disciplined, long-term participation in capital markets. During FY26, the business scaled to an AUM of Rs.3.6 billion across 11 schemes, with a growing base of over 246,000 folios spread across 17,500+ pin codes, reflecting early traction in a structurally expanding segment.

Equity

• Angel One Nifty Total Market Index Fund

• Angel One Nifty Total Market ETF

• Angel One Nifty 50 Index Fund

• Angel One Nifty 50 ETF

• Angel One Nifty Total Market Momentum Quality 50 Index Fund

• Angel One Nifty Total Market Momentum Quality 50 ETF

Debt

• Angel One Nifty ID Rate Liquid ETF - Growth

Commodity

• Angel One Gold ETF

• Angel One Gold ETF Fund of Fund

• Angel One Silver ETF

• Angel One Silver ETF Fund of Fund

Our investment approach emphasises clarity, consistency and cost efficiency. By prioritising index-based and rules-driven strategies, we minimise discretionary bias and align investor outcomes with sustained market participation. Alongside core passive offerings, we expanded into smart-beta and factor-based strategies, providing systematic exposure to differentiated investment factors while retaining scalability and transparency.

The business is complemented by a lean, technology-led operating model, which supports operating efficiency and scalability. As AUM grows, the model is expected to deliver operating leverage and a stable, fee-based annuity income stream.

Indias passive investing ecosystem remains at a nascent stage relative to global benchmarks, presenting a significant long-term opportunity. Supported by increasing financialisation, rising cost awareness and digital adoption, we are focused on scaling AUM, expanding our product suite and strengthening investor education. Over time, the AMC business is expected to diversify our revenue mix and contribute to sustainable, long-term growth.

Credit Distribution

Our credit distribution business is structured as an intelligence-led, asset- light distribution platform, leveraging data science, Al and deep partner integrations to deliver seamless and responsible access to credit. Anchored in our large and highly engaged client base, the platform identifies credit needsthrough behavioural signals and transaction data, enabling contextual and timely credit offerings within the client journey.

A key differentiator is our ability to offer clients a high degree of confidence for theircredit disbursement. Our platform

combines proprietary propensity models, PD scoring and lender-specific approval frameworks to match clients with the most suitable lender. Preapproved best fit offers from an array of lenders and frictionless digital journeys enhance conversion quality, creating a superior client experience. These capabilities position us beyond a traditional lead-generation model, enabling end-to-end credit fulfilment with near-instant, low-friction credit distribution.

Our partnerships are deeply embedded through API integrations, enabling dynamic lender matching and improved portfolio outcomes. By delivering high- quality borrower cohorts and actionable insights, we create value for our lending partners. As we deepen these partnerships and further leverage data, we expect continued improvement in monetisation and operating efficiency.

The opportunity to scale remains significant. Within our client ecosystem, over Rs.1 trillion of personal loans is currently sourced outside our platform annually, compared to Rs.20 billion distributed by us to our clients in FY26, indicating substantial opportunity for growth. This positions credit as a high- growth, scalable business with strong alignment to client needs.

Insurance Distribution

AFAPL, our wholly-owned subsidiary and an IRDAI registered corporate agent, distributes a range of life and general insurance products. In FY26, the business collected premiums of approximately Rs.738 million in the life and non-life insurance space.

In FY26, we announced ourstrategic expansion into life insurance through ourjoint venture where we will own 26% equity (subject to regulatory approvals), aimed at building a technology-first protection platform for Indias structurally under penetrated insurance market.

Leveraging digital underwriting capabilities and data-driven risk assessment, the platform envisages faster policy issuance while maintaining actuarial discipline. Integration within the broader platform will allowfor personalised recommendations based on clients life stage and financial needs, thus improving adoption quality and long-term engagement.

Subject to regulatory approvals, the business will focus on building a scalable, digital-first protection franchise with a curated suite of products designed for clarity, affordability and accessibility. This approach aligns with our broader objective of embedding financial solutions seamlessly within client journeys.

This proposed strategic partnership with LivWell Holding Company PTE Limited will enable Angel Oneto sell digital life insurance products, manufactured bythe JV.toourvast network of more than 37 million clients, thereby creating a strong foothold in the digital insurance distribution space.

IPOs

Angel One delivers a seamless, insight- led IPO experience through contextual discovery, simplified digital journeys, integrated analytics and Al-assisted guidance — enabling clients to make informed decisions while participating in IPOs through our platform.

Geographic and Distribution Strength

Our expanding presence across Bharat remains a key driver for scale and growth. During FY26, more than 89% of new clients were added from Tier 2, Tier 3 and beyond markets, reflecting the broadening base of financial participation and the strength of our model.

This reach is enabled by a balanced omnichannel approach. Ourdirect digital platform facilitates seamless, self-directed engagement, while our assisted business —supported bya network of over 10,000 Authorised Persons and over 11,000 Mutual Fund Distributors — extends accessto clients seeking guided support. This integrated model allows us to serve diverse client segments efficiently while maintaining consistency in experience and deepening engagement.

As client needs evolve, we are also building capabilities to support global investing. We have initiated the process to establish a presence in GIFT City (subject to regulatory approvals), which will enable access to international investment opportunities and support portfolio diversification within a unified platform.

Innovation and Al Institutionalisation

Innovation remains a core driver of Angel Ones operating model, with Al embedded across client journeys, engineering workflows and decision systems. Our proprietary assistant. Ask Angel, enables contextual, real-time interactions across service, discovery and insights, enhancing engagement and usability across key journeys on the platform.

Al is now integral to engineering. Within our Al-enabled engineering teams over 50% of development is augmented by Al—accelerating build cycles, improving productivity and enabling faster innovation. These capabilities extend across operations, powering automated grievance handling, real-time verification and intelligent onboarding processes, improving both speed and accuracy.

At an organisational level, Al-driven tools such as the Data Analyst Agent are enhancing decision velocity by enabling seamless access to insights across complex datasets. Together, these initiatives reflect a shift toward an Al- first architecture—driving efficiency, scalability and a more responsive client experience.

Strengths

• Al-native Fintech Platform: Strong positioning as a technology-led financial platform with deep penetration across Bharat, supported by a robust omnichannel model and a tech-enabled network of over 10,000 APs and over 11,000 MFDs

• Operating Leverage: Highly profitable core broking engine, delivering standalone operating margins of 38.1% in FY26, reflecting strong scalability and cost efficiency

• Diversified Offerings: Well-diversified product offerings on the platform, enables us to fulfil clients needs for various financial products during their lifecycle

• Market Leadership: Sustained leadership with market share of 16.7% in demat accounts, 20.2% in overall retail eguity turnover and 56.4% in commodity segment

Challenges

• Regulatory Evolution: Ongoing regulatory evolution reguires continuous adaptation of operating models, product structures and client engagementframeworks to ensure sustainable and compliant growth

• Wealth Segment Positioning: Scaling affluent and HNI engagement reguires patient execution, strong advisory credibility and sustained wallet-share capture against established private banking and wealth platforms

• New Business Incubation: Continued investments in scaling emerging businesses such as Wealth Management and Asset Management impacted consolidated margins by approximately 3.1% in FY26.

These are deliberate long-cycle investments aimed at improving revenue guality, annuity mix and long-term platform monetisation

• Competitive Intensity: Elevated competition from established players and emerging fintech platforms strategically positioning themselves to capture and expand their market share

Opportunities

• Financialisation Tailwind: Structural shift towards financialisation of household savings, with the share of equities and mutual funds in household financial assets increasing from 1.8% in FY12toover15.1% in FY25, supporting long-term growth in market participation

• Credit Disruption: Significant untapped opportunity within the existing client base, which sources over Rs.1 trillion of personal loans annually from the broader market, with only a small proportion currently addressed through the platform

• Insurance Opportunity: Entry into the insurance segment through a proposed joint venture with LivWell Holding Company PTE Limited, targeting Indias large protection gap, where a significant portion of the population remains underinsured

• Regulatory Enablement: Evolving regulatory frameworks, including the proposed Securities Markets Code, 2025, creating opportunities for brokers to expand into broader, integrated financial services platforms

• Global Expansion: Planned presence in GIFT City (subject to regulatory approvals) provides access to international markets and enables global investment solutions for clients

Threats

• Global Market Volatility: Evolving geopolitical developments and potential global economic slowdowns may impact market sentiments, liquidity and flows into capital markets

• Cybersecurity Risks: As platform scale increases, cybersecurity and operational resilience remain critical institutional priorities requiring continuous investment in controls, monitoring and response capabilities to protect trust and platform integrity

• Regulatory Uncertainty: Potential for further regulatory interventions could impact client participation

Performance Review

Overview

Consolidated Financial Statements A) Results of Operations

Extract of Profit and Loss Statement

(Rs. in Million)	Year ended 31 March, 2026	Year ended 31 March, 2025
Revenue from operations
(a) Interest Income	16,316.96	13,409.52
(b) Fees and Commission Income	34,841.61	38,739.37
(c) Net gain/loss on fair value changes	207.50	234.90
Total Revenue from operations (I)	51,366.07	52,383.79
(d) Other Income (II)	156.27	92.90
Total Income (I+II=III)	51,522.34	52,476.69
Expenses
(a) Finance Costs	4,367.49	2,948.03
(b) Fees and commission expense	7,202.40	8,246.39
(c) Impairment on financial instruments	31.15	24.65
(d) Employee Benefits Expenses	10,670.45	8,552.00
(e) Depreciation, amortisation and impairment	1,249.99	1,034.21
(f) Others expenses	15,281.99	15,751.91
Total Expenses (IV)	38,803.47	36,557.19
Profit before share of associate company and tax (lll-IV=V)	12,718.87	15,919.50
Share of profit /(loss) of associate company (VI)	(1.30)	-
Profit before tax (V-VI=VII)	12,717.57	15,919.50
Tax Expense:
(a) Current Tax	3,578.27	4,090.50
(b) Deferred Tax	1.11	108.30
(c) Taxes for earlier years	(12.80)	(0.11)
Total Income tax expense (VIII)	3,566.58	4,198.69
Profit for the year (VII-VIIMX)	9,150.99	11,720.81
Net other comprehensive income for the year (X)	(18.22)	(37.70)
Total comprehensive income for the year (IX+X)	9,132.77	11,683.11

Interest Income

Interest income, accounted for31.7% of the Companys consolidated total income, grew by 21.7% Y-o-Y to Rs.16,317 million in FY26from Rs.13,410 million in FY25. This income stream comprises of interest earned on the client funding book and deposits with banks.

The average client funding book grew by 45.3% Y-o-Y to approximately Rs.53.0 billion in FY26from Rs.36.5 billion in FY25, driving a 38.6% Y-o-Y growth in interest income on the book to Rs.8.4 billion in FY26from Rs.6.1 billion in FY25. Effective November2024, the Company revised the interest rate on the Margin Trading Facility from 18.00% p.a. to 14.99% p.a. resulting in a marginally lower growth in income as compared to the growth in average client funding book.

Average deposits with banks increased by 17.0% Y-o-Y to T120.4 billion in FY26from Rs.102.9 billion in FY25, with interest earned on these deposits growing by 7.1% Y-o-Y

to Rs.7.8 billion in FY26 from Rs.7.3 billion in FY25. The central bank reduced repo rate by 100 bps resulting in lower yields on the deposits. Approximately 41% of this income was generated from deposits attributable to the Companys own funds.

Fees and Commission Income

Brokerage Income

Broking income in FY26 reflected normalisation following an exceptionally strong first half of FY25, which benefited from favourable macro conditions and elevated market activity.

Gross broking income accounted for 59.7% of consolidated total income in FY26, against 63.0% in FY25. This income declined by 6.8% Y-o-Y to Rs.30,784 million in FY26 from Rs.33,043 million in FY25, driven by 10.9% Y-o-Y moderation in orders to 1.5 billion, partly offset by the pricing action undertaken in the cash segment.

Decline in orders was largely driven by softer macroeconomic environment and implementation of eguity derivatives regulations from the second half of FY25. Flowever, with a base established in 04 FY25, the business witnessed sequential improvement through FY26, supported by a steady recovery in client activity, as witnessed from progressively stronger operating performance across subsequent quarters. During the year, the Company witnessed higher adoption of the commodity segment, leading to an all- time high orders of 135 million.

Depository Income

Depository income comprising of depository transaction charges, pledge-unpledge charges and annual maintenance charges stood at Rs.1,928 million in FY26, accounting for 3.7% of the consolidated total income. This income declined by 16.9% Y-o-Y due to lowerorders in cash delivery segment.

Distribution Income

Distribution income continued to scale meaningfully, contributing 3.7% to consolidated total income in FY26 and growing 84.9% Y-o-Y to Rs.1,922 million. This growth was driven by higher commission income across credit, insurance, mutual funds, IPOs and wealth management products. Notably, distribution of credit witnessed strong traction, increasing 3.1xto T20.1 billion in FY26 against Rs.6.6 billion in FY25, emerging as a key driver of distribution- led revenue growth.

Other operating Income

SEBI implemented True-to-Label regulation from October 2024, where it was mandated that clients be charged the same turn over fees that the market infrastructure institutions levied on market intermediaries. As a result, this revenue, which accounted for 4.3% of our FY25 total income, wasfully extinguished from October 2024 onwards.

The Companys otheroperating income, excluding ancillary transaction income mentioned above, stood at approximately T208 million in FY26 against over Rs.64 million in FY25.

Net gain on fair value changes

Net gain on fair value changes stood at Rs.208 million in FY26. This was primarily on account of income earned on investments in short-term fixed income products, as part of the overall treasury operations.

Other Income

The Companys other income increased by 68.2% Y-o-Y to Rs.156 million in FY26.

Expenses

Finance cost

Finance cost for the Company increased by 48.1% Y-o-Y to Rs.4,367 million due to elevated average borrowings during the year driven by higher averageclient funding book and margin obligations on the back of growth in ADTO. This was partially offset by lower average cost of borrowings. Additionally, there was a temporary and timing related increase in borrowings during the year, owing to change in regulations which required the Company to upstream client cash margins under MTF trades. Large part of such temporary borrowings has been repaid during 04 FY26.

Further 01 April, 2026 being a banking holiday, liquidity arrangements were undertaken with higher borrowings, on the balance sheet date, to ensure uninterrupted operations.

Fees and commission expenses

The Assisted Business unit of the company has an exclusive network of over 10,000 Authorised Persons, registered with NSEfas on 31 March, 2026), and over 11,000 mutual fund distributors, with whom it has a revenue sharing arrangementforbroking and distribution business incomes, generated from clients acquired and serviced by them. The pay-out to these Authorised Persons declined by 12.7% over the previous year to Rs.7,202 million in FY26.

Impairment on financial instruments

This cost, which has increased by 26.4% Y-o-Y to Rs.31 million in FY26, is an aggregate of provisioning on account of expected credit loss of trade receivables along with accounting for bad debts.

Our robust risk management framework has helped keep this exposure stable at 0.06% of the gross total income for FY26.

Employee benefits expenses

The Companys employee benefits expenses, excluding costs associated with grant of stock options, increased by 17.9% over the previous year, to Rs.8,839 million in FY26. The FY25 employee benefit expenses of Rs.7,496 million, included T641 million of variable pay reversal. Adjusting for this, the underlying increase was 8.6% Y-o-Y. FY26 expenses also reflect a higher gratuity provision for past service period, in line with the New Labour Code.

The cost of stock options granted to employees grew by 73.5% Y-o-Y to Rs.1,832 million in FY26, with almost all grants being in the nature of RSUs.

In absolute terms, 9,564,456 RSUs were granted under Angel Broking Employee Long Term Incentive Plan 2021, whilst 1,665,991 options were granted under the Angel One Wealth Long Term Incentive Plan 2024.

Depreciation and amortisation expense

Depreciation and amortisation expense increased to Rs.1,250 million in FY26, as the Company capitalised investments in augmenting its technology infrastructure and enhancing the data centre and disaster recovery capacity.

Other operating expense

Other operating expenses remained broadly controlled during FY26, declining 3.0% Y-o-Y to Rs.15,282 million against T15/752 million in FY25, reflecting disciplined cost management aligned with business activity levels. Gross client acquisitions and orders executed moderated to 6.9 million and 1.5 billion respectively, resulting in lower variable cost.

Advertisement and publicity expenses stood at Rs.8,192 million, including Rs.1,267 million towards Indian Premier League sponsorship and associated advertisement spends. Demat charges declined 7.0% Y-o-Y to Rs.452 million, in line with lower cash segment activity, while legal and professional expenses reduced significantly by 33.4% to T476 million. CSR spend increased by 16.8% Y-o-Y to Rs.281 million, in line with higher average profits overthe past three years.

These savings were partly offset by a 15.5% increase in software connectivity costs to Rs.4,626 million, reflecting continued investment in platform scalability and performance. Additionally, the Company undertook a one-time reimbursement of Rs.192 million to clients arising from an external market infrastructure disruption.

Profit After Tax

HI FY26 was largely impacted due to softer market conditions driven by geopolitical tensions and slow. but steady, normalisation of client behaviour post the full implementation of the equity derivatives regulations.

In H2 FY26, the Company witnessed healthy progression in order run rate supported by market buoyancy, thus returning to its steady state profitability metrics. Despite the transitionary phase, the Company continued to invest in growth.

The resultant FY26 EBDAT margin contracted by 610 bps Y-o-Y to 35.0%, culminating into a 21.9% Y-o-Y decline in the reported profit aftertax to Rs.9,151 million.

B) Balance Sheet

		(Rs. in Million)
Particulars	As at 31 March, 2026	As at 31 March, 2025
Assets
Financial Assets
(a) Cash and cash equivalents	1,623.60	7,592.19
(b) Bank balance other than cash and cash equivalents	1,63,981.30	1,10,451.97
(c) Trade receivables	4,344.52	2,995.91
(d) Loans	51,280.67	36,987.75
(e) Investments	2,573.55	2,015.86
(f) Otherfinancial assets	8,198.25	1,984.96
Non-financial assets
(a) Current tax assets (Net)	72.63	85.11
(b) Investment property	31.04	31.62
(c) Property, plant, and equipment	3,768.40	4,204.27
(d) Right of use assets	706.03	299.81
(e) Capital work-in-progress	6.43	-
(f) Intangible assets underdevelopment	90.46	38.66
(g) Intangible assets	544.07	455.32
(h) Other non-financial assets	1,816.96	1,742.70
Total Assets	2,39,037.91	1,68,886.13
Liabilities and Equity
Liabilities
Financial liabilities
(a) Trade payables
(i) total outstanding dues of micro-enterprises and small enterprises	4.37	0.64
(ii) total outstanding dues of creditors other than micro-enterprises and small enterprises	91,698.46	73,176.51
(b) Debt securities	29,528.07	8,743.25
(c) Borrowings(other than debt securities)	49,262.54	25,085.05
(d) Lease Liabilities	723.48	309.07
(e) Otherfinancial liabilities	5,009.13	4,048.24
Non-Financial liabilities
(a) Current tax liabilities (Net)	119.26	0.03
(b) Provisions	511.53	392.69
(c) Deferred tax liabilities (Net)	251.08	255.71
(d) Other non-financial liabilities	440.69	483.92
Equity
(a) Equity share capital	910.86	902.94
(b) OtherEquity	60,267.05	55,311.04
(c) Non-controlling interest	311.39	177.04
Total Liabilities and Equity	2,39,037.91	1,68,886.13

The Companys balance sheet expanded to Rs.239.0 billion as on 31 March, 2026 from Rs.168.9 billion as on 31 March, 2025. Cash, cash equivalents and bank balance grew by 40.3% to Rs.165.6 billion as on 31 March, 2026, from Rs.118.0 billion as on 31 March, 2025, on account of increase in client balances and corresponding margins placed with the exchanges.

Healthy client activity in the cash delivery segment, led to a 41.2% growth in the period ending client funding book, comprising of margin trading funding and interest bearing trade receivable balances, to T54.5 billion as on 31 March, 2026, as against Rs.38.6 billion as on 31 March, 2025.

Investments of Rs.2.6 billion comprises of monies kept in liquid funds by the Companys subsidiaries as on the balance sheet date. Deposits as security with stock exchanges increased to Rs.7.4 billion as on 31 March, 2026 as against Rs.1.5 billion as on 31 March, 2025.

During the year, the Company continued its investments in augmenting its technology infrastructure as it also enhanced the data center and disaster recovery capacity. This resulted in 2.3% Y-o-Y increase in total fixed assets to Rs.5.1 billion, as on 31 March, 2026.

The increase in other non-financial assets to Rs.1.8 billion was due to higher prepaid expenses and advances to vendors, offset by lower balances with government authorities.

Financial and Non-Financial liabilities of the Company in aggregate grew by 57.8% to Rs.177.6 billion as on 31 March, 2026 from Rs.112.5 billion as on 31 March, 2025. Trade payables, which represent the ledger balance of clients funds kept with the Company as margins, to execute theirfuture trades, grew by 25.3% to approximately Rs.91.7 billion as on 31 March, 2026.

Total borrowings increased by 132.9% to Rs.78.8 billion as on 31 March, 2026 against Rs.33.8 billion as on 31 March, 2025. Higher borrowings were largely on account of higher client funding book, margin obligations with Clearing Corporation and liquidity arrangements undertaken to ensure uninterrupted operations around the banking holiday on 01 April, 2026.

Other financial liabilities, including lease liabilities, which increased to Rs.5.7 billion as on 31 March, 2026. Increase in lease liabilities, payable to employees and liabilities towards dividend payout were offset by lower payables to vendors and authorised persons.

Increase in the net worth of the Company to Rs.61.5 billion as on 31 March, 2026 was contributed by growth in retained earnings by Rs.3.1 billion, share premium by Rs.1.2 billion and equity-settled share-based payment reserve by Rs.640.3 million. Majority of the increase in share premium was on account of increase in equity settled share-based payment reserve, attributable towards exercise and grant of employee stock options.

Cash Used in Operating Activities

Net cash (used in)/generated from operating activities stood at Rs.(41.4) billion for the year ended 31 March, 2026 from Rs.(18.6) billion for the year ended 31 March, 2025. The Company generated healthy Rs.19.6 billion of operating profit before working capital changes. During theyear, the Company witnessed an increase in its working capital requirements owing to higher client funding book and deployment towards other financial and non- financial assets. Higher bank balance on account of increase in client margin money(trade payables)and temporary borrowings also impacted working capital change. Tax outgo on profit for the period also led to utilisation of cash in operating activities during the year.

Cash Generated from Investing Activities

Netcashfused in)/generated from investing activities stood at Rs.(1.1)billion for the year ended 31 March, 2026 from Rs.(3.4) billion for the year ended 31 March, 2025. Net cash used in investing activities was on account of capacity expansion of disaster recovery data center and investments in augmenting the technology infrastructure, in addition to our net investments in treasury operations made by our subsidiary companies.

Cash Generated from Financing Activities Position

Netcashfused in)/generated from financing activities stood at T36.6 billion forthe year ended 31 March, 2026 from Rs.19.2 billion forthe year ended 31 March, 2025. This was primarily due higher net borrowings and proceeds from issue of equity shares on account exercise of stock options by eligible employees. Elevated borrowings also led to higher interest outgo of Rs.5.0 billion in FY26 against Rs.2.6 billion in FY25. In FY26, the company distributed dividends aggregating to Rs.4.4 billion which included final dividend for FY25 and two interim dividends for FY26, which was higher compared to Rs.2.0 billion acrosstwo interim dividends distributed in FY25.

C) Cash Flow position

		( Rs. in Million)
Particulars	As on 31 March, 2026	As on 31 March, 2025
Net cash (used in)/ generated from operating activities	(41,417.42)	(18,598.42)
Net cash (used in)/ generated from investing activities	(1,109.28)	(3,408.22)
Net cash (used in)/ generated from financing activities	36,558.24	19,169.05

D) Key Financial Ratios

Particulars	As on 31 March, 2026	As on 31 March, 2025	Variance (%)
Debt Equity Ratio	1.28times	0.60 Times	113.3%
Debt service coverage ratio	4.69 times	7.15 Times	(34.4%)
Interest service coverage ratio	3.96 times	6.44 Times	(38.5%)
Debtors turnover ratio	8.02 times	12.93 Times	38.0%

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefore, including:

Debt Equity Ratio

The Companys debt equity ratio increased to 1.28 times as on 31 March, 2026 from 0.60 times as on 31 March, 2025, dueto increase in total borrowing.

Debt Service Coverage Ratio

The Companys debt service coverage ratio decreased to 4.69 times as on 31 March, 2026 from 7.15 times as on 31 March, 2025, due to increase in interest expense during the year on account of higher borrowings coupled with lower profitability.

Interest Service Coverage Ratio

The Companys interest service coverage ratio decreased to 3.96 times for FY26from 6.44timesfor FY25, due to higher borrowings coupled with lower profitability.

Debtors Turnover Ratio

The Companys debtors turnover ratio decreased to 8.02 times as on 31 March, 2026 from 12.93 times as on 31 March, 2025, dueto increase in trade receivables.

Outlook

We remain structurally positive on Indias long-term financialisation journey and the role of technology-led platforms in deepening market participation, improving financial outcomes and expanding access across underpenetrated segments. Our priorities for FY27 remain focused on deepening platform monetisation - strengthening wealth integration, scaling credit distribution, improving annuity contribution from emerging businesses and sustaining margin resilience through disciplined execution and operating leverage.

We will continue to selectively expand our capabilities including the proposed GIFT City branch (subject to regulatory approvals), while further institutionalising Al as a core capability across client journeys, engineering and decision systems.

As operating metrics improve, client relationships deepen and our product architecture matures, we believe Angel One is increasingly positioned to create durable long-term value across the full financial lifecycle of its clients.

While near-term market cycles may influence activity levels, our strategic focus remains on improving the quality and durability of earnings through deeper client participation, stronger annuity businesses and diversified platform monetisation. We are not building for short-term expansion alone -we are building for long-term relevance and sustainable value creation across the full financial lifecycle of our clients.

Internal Control Systems and Adequacy

We maintain a robust internal control framework designed to safeguard assets and ensure the accurate recording and reporting of financial transactions. Our internal financial controls are commensurate with the scale and complexity of our operations and are continuously strengthened in line with business growth and the introduction of new products and services.

Oversight provided by the Board and its Committees ensures effective implementation of governance frameworks, policies and standard operating procedures, supporting strong risk management and fraud prevention. Our technology architecture incorporates system- driven controls and audit trails, which are regularly reviewed and validated by internal and statutory auditors to ensure their ongoing effectiveness and reliability.