Financial Performance Highlights

Consolidated Financials (Q1 FY27):

  • Gross revenue: ₹14.3 billion, growing 25.4% year-on-year but moderating 2.3% sequentially
  • Profit after tax: ₹2.3 billion, representing 102.1% year-on-year growth
  • Trailing 12-month PAT: ₹10.3 billion with EPS of ₹11.4
  • Reported EBDAT: ₹3.6 billion with margin of 32.7%
  • Normalized EBDAT margin: 43.6% (compared to 44.4% in previous quarter)
  • Interest income: ₹4.7 billion, accounting for 32.6% of gross revenues, growing 2.6% sequentially

Revenue Diversification:

  • Core trading platform contributes approximately 60% of gross revenues
  • Complementary businesses (client funding, distribution, depository, wealth, asset management) contribute 40% of revenues
  • Distribution income currently contributes about 3% of revenues

Dividend Declaration:

Board approved first interim dividend for FY27 of ₹1 per share with record date of July 21, 2026.

Operational Metrics

Client Metrics:

  • Registered users: Over 38 million
  • Average client funding book: ₹61.4 billion (lifetime best)
  • Period-end client funding book: Record ₹71.5 billion
  • Equity derivatives turnover market share: 22.2%
  • Cash equity turnover market share: 17.4%
  • Overall retail equity turnover market share: 20.2%
  • Orders processed: 406 million during the quarter

Wealth Management Business (Ionic Wealth):

  • Total AUM: ₹134.4 billion, growing 33.3%
  • Ionic Wealth-tech AUM: ₹32.3 billion
  • UHNI segment: 263 families with AUM of ₹87.3 billion
  • Asset Management AUM: ₹6.2 billion

Credit Business:

  • Credit distribution: ₹5.3 billion, representing 130% year-over-year growth
  • Works with 7 lending partners (banks, large NBFCs, and fintechs)

Strategic Business Updates

AI Integration:

  • Ask Angel conversational assistant serving over 1.1 million users
  • AI embedded across user onboarding (face match, signature validation), grievance automation, content generation, software development, analytics, and portfolio intelligence
  • AI-driven decisioning capabilities powering credit propensity models and lender approval engines

Technology Platform:

  • Operating with security by design approach supported by ISO-certified systems
  • Compliance with SEBI's CSCRF framework and digital privacy standards
  • Multiple layers of control, governance, monitoring, encryption, and authentication

New Business Initiatives:

  • Loan Against Securities (LAS) pilot ongoing, expected to expand in next 2-3 quarters
  • GIFT City license obtained for US equity offerings
  • Exploring expansion of AMC business beyond passive products

Risk Management

Client Funding Exposure:

  • 83% of exposure below ₹100,000 per client
  • 85% of portfolio less than 30 days old
  • Fully collateralized client holdings with negligible delinquency

Balance Sheet Strength:

  • Net worth: ₹64.2 billion
  • Borrowings reduced meaningfully during the quarter
  • Strong risk management framework for client funding activities

Management Commentary

Long-term Strategy:

Focus on building an intelligent AI-powered fintech platform that accompanies users through every stage of their financial journey. Strategy emphasizes deepening engagement, expanding product adoption, growing wallet share, and leveraging intelligence to create superior user outcomes.

Market Opportunity:

India represents a multi-decade financialization opportunity with structural growth in capital markets. The company aims to enable hundreds of millions of customers entering the financial ecosystem for the first time.

Investment Phase:

Newer businesses (Wealth Management, Asset Management, Distribution) remain in investment phase but are being built with financial discipline. The burn rate for these businesses is approximately 4% of operating margin.

Q&A Session Highlights

Credit Business Slowdown:

Management attributed quarterly disbursement fluctuations (₹7.1B to ₹6.1B to ₹5.3B) to lender risk calibration, pricing adjustments, and temporary funnel friction. Long-term thesis remains unchanged with significant embedded monetization opportunity.

Employee Costs:

FY27 employee cost guidance maintained at approximately ₹11 billion, similar to FY26 levels. Employee count decreased from 4,139 in FY25 to approximately 3,300 in FY26, driven by efficiency improvements.

Wealth Management Economics:

Business targeting breakeven in 3-4 years with current focus on building high-quality ARR-led AUM. Unit economics showing improvement with emphasis on productivity enhancements through technology.

Market Share & Volumes:

Company maintains strong market share positions despite industry volume moderation. July volumes too early to assess, but no fundamental changes to India's growth trajectory.

AP Channel Development:

Approximately 9,800 active Authorized Persons with plans to expand multi-product selling capabilities including mutual funds, loans, and insurance distribution.