Angel One Dividend ₹1.75 FY26 — Record Date 27 March 2026, Yield & Analysis

Company Identifiers

Dividend Terms

Yield & Outflow (Computed)

Market Data

Why a circular resolution matters

A circular resolution is used when a decision is routine and already pre-agreed. Angel One had flagged its intent on 16 March 2026, four days ahead. There was no surprise element, no separate results announcement bundled with it, and no fresh strategy disclosure. In plain terms: this was an administrative sign-off on a payout that had already been decided in principle.

What the filing did NOT say

• Total dividend outflow — Not Disclosed by Company
• Shares outstanding on record date — Not Disclosed by Company
• Management commentary or rationale — Not Disclosed by Company
• Dividend payout policy reference — Not Disclosed by Company
• Funding source for the dividend — Not Disclosed by Company

Yield on this dividend alone

Yield on full-year FY26 dividend

Full-year dividend trend (split-adjusted)

FY totals assembled from ex-date records above. FY26 excludes any final dividend that may yet be declared for that year.

Classification: Consistent Payer with Cyclical Amounts

• Consistency: Strong. Angel One has paid a dividend in every financial year since listing — 20 declarations since November 2020. No suspensions.
• Growth trend: Broken. Three years of growth (FY23 → FY25) ended with a 15.6% cut in FY26, the first annual decline in the company's listed history.
• Special dividends: None declared. All payouts have been interim or final.
• Dividend cuts: One — FY26, tracking a 21.9% fall in profit.
• Suspensions: None.

Five-year growth record

The deceleration is stark. A business compounding profit at 25% over five years has compounded at just 1% over three years. The growth story is in the rear-view mirror; the last three years have been flat.

Return ratios

ROCE has collapsed from a 44% peak in FY23 to 14.8% in FY26 — a two-thirds reduction in three years. The equity base grew (helped by a capital raise reflected in the FY25 reserves jump from ₹2,955 crore to ₹5,531 crore) while profits shrank. More capital, less return.

Receivables versus revenue

Debtor days rose from 21 days in FY25 to 31 days in FY26 — a 48% increase — while revenue fell 1.9%. Receivables growing faster than revenue is a mild negative signal: collections are slowing slightly. In absolute terms 31 days is still comfortable for a broker, and well below the 42–45 day levels of FY23–FY24. This is a watch item, not an alarm.

Cash and investments

The Investments line on the consolidated balance sheet stood at ₹257 crore at March 2026, up from ₹202 crore. A broker's own cash cannot be cleanly separated from client funds in summary data, so a reliable standalone free-cash figure is Not Disclosed by Company in the dividend filing. Cash coverage of the ₹160 crore payout cannot be computed with confidence from public summary data and is therefore reported as Not Disclosed by Company.

What supports the balance sheet

• Net worth grew 8.8% to ₹6,118 crore despite the profit decline — reserves are still building.
• Book value per share of ₹67.20 against a market price of ₹328.95 implies a price-to-book of about 4.9x.
• Total assets grew 41.5%, indicating the lending and client book is expanding, not contracting.
• The company retains active credit ratings from ICRA, CARE and CRISIL, with updates published as recently as July 2026.

What pressures it

• Debt/equity doubled to 1.30x in twelve months.
• Interest cost of ₹438 crore now consumes 24% of operating profit, versus 15% in FY25 and 8% in FY24.
• Net debt position: borrowings of ₹7,951 crore against disclosed Investments of ₹257 crore. A precise net debt figure requires the full annual report cash breakdown — Not Disclosed by Company in the dividend filing.
• Working capital days at -592 reflect the negative-working-capital nature of broking, which is structurally favourable but hides how dependent the model is on continuous funding access.

Where Angel One stands out

• Middle of the pack on yield. At 1.23%, Angel One yields slightly above the industry average of ~1.1% and close to Motilal Oswal, but well below Nuvama's ~3.06%.
• Higher payout than Motilal Oswal. Angel One's 40.4% payout is more than triple Motilal Oswal's ~11.9%, meaning Angel One returns a much larger share of profits to shareholders rather than retaining them.
• Lowest promoter holding in the peer set. At 28.59%, Angel One's promoters hold less than half of Motilal Oswal's 67.5%. This has a direct bearing on who captures the dividend — see the next section.

Sector context for FY26

FY26 was a difficult year across Indian broking. Industry commentary points to three shared pressures: regulatory friction in the futures-and-options segment around charges and participation frameworks, heightened P&L volatility from treasury and investment books during market corrections, and a growing market preference for annuity-style revenue over transaction-driven models. Motilal Oswal, for context, reported a net loss of ₹221 crore in Q4 FY26. Angel One's 21.9% profit decline, while poor, occurred in a sector where at least one large peer swung to a loss.

TDS rules

• TDS under Section 194 applies at 10% for resident individuals.
• The threshold was raised in Budget 2025: no TDS unless total dividend from a single company in a financial year exceeds ₹10,000 (previously ₹5,000).
• If your PAN is not linked or updated, TDS is deducted at 20%.
• You can file Form 15G (under 60) or Form 15H (60 and above) to avoid TDS if your total income is below the taxable limit.
• TDS is not the final tax. It is a credit against your total liability, adjusted when you file your return.
• Non-resident shareholders face TDS at 20% plus surcharge and cess, subject to relief under an applicable tax treaty.

What this meant for Angel One holders

At ₹1.75 per share, you needed to hold more than 5,714 shares of Angel One for this single dividend to cross the ₹10,000 TDS threshold. At the March 2026 price of ₹230.20, that is an investment of roughly ₹13.15 lakh.

The overwhelming majority of retail holders would have received the full ₹1.75 per share into their bank account with no TDS deducted — and would still owe tax on it at their slab rate when filing their return. This is a common and expensive misunderstanding: no TDS does not mean no tax.

1. Regulatory risk in derivatives

Angel One's revenue is heavily weighted toward futures and options broking. SEBI has repeatedly tightened this segment — through STT increases, true-to-label charge rules, and participation frameworks. Each intervention has directly reduced industry volumes. Revenue fell 1.9% in FY26 partly as a result. Further regulatory action on retail F&O participation would hit revenue faster than costs can be cut.

2. Leverage and funding cost risk

Borrowings rose 133% to ₹7,951 crore and debt/equity doubled to 1.30x in one year. Finance costs rose 48% to ₹438 crore. The margin funding model depends on borrowing cheaply and lending at a spread. Any tightening of bank funding norms for brokers, a credit rating downgrade, or a rise in wholesale rates would compress that spread directly.

3. Client credit risk on the margin book

A margin trading facility book funded by ₹7,951 crore of borrowings is lending against client securities. In a sharp market correction, collateral values fall exactly when client ability to meet margin calls weakens. Angel One does not separately disclose MTF book stress metrics in its dividend filings — Not Disclosed by Company. This is the most under-examined risk in the business.

4. Cyclicality and earnings volatility

Quarterly PAT over the last eight quarters has swung between ₹114 crore and ₹423 crore — a range of nearly 4x. Three-year profit CAGR is just 1% against a five-year figure of 25%. Broking earnings track market activity, and market activity is not stable. Any dividend built on these earnings inherits the same volatility.

5. Declining promoter stake

Promoter holding fell from 44.55% (March 2021) to 28.59% (June 2026), a 16-percentage-point decline. Screening platforms list this as the company's primary negative. While DII holding rose over the same period, a continued reduction would raise questions about promoter conviction and, at the extreme, about control stability.

6. Return ratio erosion

ROCE fell from 44% in FY23 to 14.8% in FY26; ROE from a 5-year average of 29% to 15.6%. The equity base grew materially in FY25 while profits did not follow. If incremental capital continues to earn mid-teens returns rather than the 25–40% of prior years, the valuation premium the stock carries at 4.9x book becomes harder to justify.

7. Competitive pressure from discount and neo-brokers

Angel One competes against Groww, Zerodha and other zero-or-low-brokerage platforms in a market where switching costs for retail clients are minimal. Client base growth (to 38.6 million users) has not translated proportionately into profit growth — revenue per client is under structural pressure across the industry.

8. Compliance and enforcement risk

In March 2026, Angel One settled SEBI proceedings relating to its association with algorithmic trading platforms offering assured returns, paying ₹1,00,000 under a settlement scheme. The company was one of 122 brokers examined and stated there was no material financial impact. The amount is trivial; the pattern of regulatory scrutiny across the sector is not.

1. Operating cash flow direction in FY27

OCF has been negative for three years and worsening: -₹330 crore, -₹1,860 crore, -₹4,142 crore. The key question is whether FY27 shows the deficit stabilising or narrowing. If the MTF book growth slows and OCF turns less negative while profit holds, the cash-versus-earnings gap closes. If the deficit widens again toward ₹6,000 crore, the funding model is running faster than the profit engine.

2. Borrowings and debt/equity trajectory

Watch the half-yearly borrowings figure against the ₹7,951 crore March 2026 base. Debt/equity crossing 1.5x would be a meaningful escalation. Equally, watch finance cost as a share of operating profit — it has moved from 8% (FY24) to 15% (FY25) to 24% (FY26). Another jump toward 30% would materially cap profit recovery.

3. Operating margin recovery

OPM ran 40% (FY24), 38% (FY25), 35% (FY26). Quarterly it hit 41% in Q4 FY26 then fell back to 34% in Q1 FY27. A sustained return above 38% would signal costs are being brought back into line with revenue. Continued sub-35% margins would confirm that the cost base has permanently reset higher.

4. Revenue per client, not client count

Angel One's client base reached 38.6 million in June 2026, growing 19% year-on-year. But revenue fell 1.9% in FY26. The metric that matters is revenue divided by active client, and specifically the mix shift from F&O broking toward annuity streams like mutual fund distribution, wealth management and MTF interest income. Track this in the quarterly investor presentation.

5. Promoter holding at each quarterly disclosure

The stake moved 35.55% → 28.97% → 28.59% across recent quarters. Watch whether the June 2026 level of 28.59% stabilises or continues drifting down. Any move below 26% would be a distinct change in trend. Cross-check against DII holding — currently 20.34% and rising — to see who is absorbing the supply.

6. SEBI policy on retail derivatives participation

Any new SEBI consultation paper or circular affecting F&O lot sizes, expiry structures, margin requirements or retail eligibility is a direct revenue event for Angel One. Historically these have arrived with limited notice and immediate volume impact. Monitor SEBI board meeting outcomes and consultation papers, not just the company's own filings.

7. Credit rating actions

ICRA, CARE and CRISIL all rate Angel One, with updates published in July 2026, April 2026 and December 2025. With borrowings having doubled, rating rationale commentary is now the cheapest available third-party read on the company's funding health. Any outlook change from Stable would precede a change in funding cost.

8. FY27 dividend cadence versus FY26

FY27's first interim dividend was declared at ₹1.00 per share on 15 July 2026 — against ₹2.30 (split-adjusted) for the first interim of FY26. If subsequent FY27 payouts do not make up the gap, the full-year dividend will decline for a second consecutive year. Track the cumulative FY27 total against the ₹4.05 FY26 base.

Positives

• Unbroken dividend record — 20 declarations since 2020, no suspensions.
• Correct payout ratio of 40.4% is conservative; earnings cover the full-year dividend 2.48x.
• Over 71% of the payout went to non-promoter shareholders — unusually retail-friendly for an Indian mid-cap.
• Fast payment cycle: 22 days from record date, comfortably inside SEBI's 30-day limit.
• Net worth grew 8.8% to ₹6,118 crore even in a down year.
• DII holding rose to 20.34% — institutional absorption of promoter selling.
• Q1 FY27 PAT of ₹231 crore roughly doubled year-on-year, and a fresh dividend followed in July 2026.
• The board cut the dividend rather than over-distribute — capital discipline, not cosmetics.

Negatives

• Free cash flow of -₹4,222 crore — the dividend had zero FCF coverage.
• Operating cash flow negative for three straight years, deficit widening each year.
• Borrowings up 133% to ₹7,951 crore; debt/equity doubled to 1.30x.
• PAT down 21.9%; three-year profit CAGR of just 1%.
• First-ever full-year dividend cut: FY26 DPS down 15.6%.
• ROCE collapsed from 44% to 14.8% in three years.
• Promoter holding down 16 percentage points in five years.
• Post-tax effective yield of just 0.52% for a 30%-slab investor.