Angel one ltd (NSE: ANGELONE) Q1 2026 Earnings Call dated Jul. 17, 2025
Corporate Participants:
Unidentified Speaker
Hitul Gutka — Head of Investor Relations
Dinesh D. Thakkar — Chairman and Managing Director
Ambarish Kenghe — Group CEO & Whole Time Director
Saurabh Agarwal — Chief Business Officer- New Business
Shobhit Mathur — Co-Founder, Angel One Wealth
Hemen Bhatia — CEO of Angel One Asset Management Company Limited
Vineet Agrawal — Chief Financial Officer
Arief Mohamad — Chief Business Officer, Direct Business
Nishant Jain — Chief Business Officer, Assisted Business
Analysts:
Unidentified Participant
Swarnabha Mukherjee — Analyst
Prayesh Jain — Analyst
Vikram Raghavan — Analyst
Nidhesh Jain — Analyst
Pradyumna Choudhary — Analyst
Abhijeet Sakhare — Analyst
Sanketh Godha — Analyst
Raj Vyas — Analyst
Raman KV — Analyst
Sanjay Singh — Analyst
Bhuvnesh Garg — Analyst
Pranav Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 earnings conference call hosted by Angel One Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines should be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 100 on your Touchstone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Hitul Gutka from Angel One Limited. Thank you. And over to you, Mr. Gutka.
Hitul Gutka — Head of Investor Relations
Good morning and welcome everyone. Thank you for joining us today to discuss Angel One’s Q1 FY26 financial and business performance. The recording of today’s earnings call and the transcript will be uploaded on our website under the Investor Relations section. The financial results, investor presentation and the press release are also available on the website for today’s call. Angel 1 is represented by Dinesh Thakar, Chairman Managing Director Amrit Kenge Group CEO Vineet Agarwal Group CFO Saurabh Agarwal, CDO New Business Shobit Masood Co Founder, Ionic Wealth Amen Bhatia, CEO AMC we also have the senior leadership team of Angel One along with sbar, our IR consultants.
The leadership team will give us a brief overview of the operational and the financial performance of the quarter gone by followed by a question and answer session. Please note that there may be certain forward looking statements during the call which must be viewed in aggregate with the. Risks that the company faces.
With this brief introduction, I now invite Mr. Dineshakar for his opening remarks.
Dinesh D. Thakkar — Chairman and Managing Director
Thank you. Good morning everyone and thank you all for taking time to join us on the call today. It is always a privilege to connect with you and share our vision for the road ahead. The rapid advances in India’s financial services have been truly inspiring. And yet it is even more exciting to realize the huge potential waiting to be unlocked in the financial service sector. Over the past decade, digital has redefined how Indians manage their money. But let me put this in perspective. Only about 150 million unique plan holders have a demat account today. Mutual fund AUM is still below 20% of GDP and insurance penetration lags far behind global norms.
Fixed income credit protection products remain concentrated in top cities leaving most of India underserved. Clearly the runaway for growth is vast and it cut across every corner of financial services. At Angel One we have always believed technology is the bridge between exploration and excess. That belief has shaped our journey so far and it defines our ambition today which is to build a truly digital platform that can solve every financial need across our clients life cycle. Whether they are investing, borrowing, protecting or planning. Our vision is to deliver it all seamlessly through one trusted intermediate platform during period of heightened uncertainty.
Whether driven by market sectors or external factors, our foundational and ongoing strategy is to maintain and consolidate market share. We believe this focus will ensure long term sustainability and resilience, especially where the broader environment may be more volatile. In broking where we began, our digital first strategy has driven our reach deeper into part of India, especially in interiors. Nine out of ten clients we onboard today come from beyond Tier one which clearly shows the power of technology to take quality financial services to the place where they were probably unavailable. An important reason for the proliferation of our business over the years is that we have never regarded ourselves just a broker.
Mutual funds are already becoming a habit for many Indians and with SIP inflows at an industry high of over rupees 270 billion a month we see enormous opportunity to extend over. Here on our super app we are making mutual fund journey even more intuitive and personalized and I’m proud to say we are already second largest contributor in new SID registration in the country. Credit is another expanding transformative for Frontier. The high demand for mid ticket loans and personal credit in non metros have advanced digital partnerships with banks and NBFCs and we are scaling this business carefully.
This philosophy of reimagining financial services through technology extends into a front segment as well where traditional wealth management models are being challenged by the digital revolution. Year two we are creating a new kind of experience for digitally savvy affluent clients. Similarly, our asset management business has just begun and we regard it as a long term opportunity to offer differentiated products and capture greater wallet share. What ties all this together and what I am most excited about is the role of data, AI and machine learning. We are sitting on one of the largest and richest data sets in the industry and as we scale this data married with advanced technologies will enable us keep cost low, engagement high, interest intact even in the smallest of towns.
Because let us not forget the real India lives in FB and beyond which is where the next wave of investors and savers is coming from. Technology is the only way to solve them effectively and the only way to meet their aspirations at scale. Which is why we remain relentless in building a platform that is intelligent, affordable and deeply human in its design. We also recognize that some businesses take time to scale and we are entirely comfortable with that. Our approach is to ground them, give them the time they need to mature and integrate them thoughtfully into our broader platform.
Whether this process invokes product innovation, partnership, alignment or a redefined, intuitive digital experience, it will not be rushed. All the initiatives on which we embark will be deeply considered because our North Star is to empower billion lives leveraging the power of data and technology. We will not hesitate to take these calls when we believe they are in the service of our clients and our long term purpose. Looking ahead, I believe the tailwinds are all in place. India’s young population and their increasing wealth combined with digital openness and a more consistent, predictable regulatory regime will accelerate the delivery and use of financial services.
Angel One is perfectly positioned to lead this next chapter of India’s fintech story. We are no longer just a broking company. We are building Angel One as a fintech platform. One that is product agnostic, client centric and technology led. Crucially, this platform will serve every financial needs and grow with every client’s ambition. The opportunity ahead is immense and as always we will pursue it with same discipline, innovation and customer focus that brought us here. Thank you for your trust and confidence in us. I now hand over the proceedings to Amrish.
Ambarish Kenghe — Group CEO & Whole Time Director
Thank you Deepi Good morning everyone. Thank you for joining us on the call today. With the macro opportunity clearly laid out by dt, let me take a moment to share where we stand today. We remain deeply committed to scaling our platform as we continue to onboard newer products and features to expand the choices for our evolving client base. Our ambition is very clear to enrich client experience in a way that builds lifelong partnerships and I’m very confident that this path rooted in intelligence, scale and trust will drive our long term growth trajectory and enable us to reach our North Star to become India’s most trusted fintech brand.
Empowering a billion lives by leveraging the power of data and technology. Every single day we process billions of signals and through AIML we convert these into meaningful actions like personalized nudges, software risk insights, predictive engagement and smarter prediction. These are not just buzzwords. These are the building blocks of our platform architecture. Real capabilities embedded across the client lifecycle. For example, AI powered nudges are helping clients make better financial decisions. Predictive models are strengthening our risk and fraud detection frameworks. We have also begun working on agentic AI to automate workflows which will lead to improved speed, accuracy and cost efficiency across multiple operating metrics.
These capabilities will expand our platform’s intelligence, drive stronger client retention, deepen engagement and enhance lifetime value. We are already seeing this play out in the numbers even as the broking industry navigates a complex yet promising phase. Over the years we have witnessed the industry go through multiple peaks and drops which has only strengthened our conviction in its long term growth potential. Retail investors remain active, observant and digitally engaged and we are doubling down on technology to meet them where they are. The regulatory recalibration over the last few quarters has made the ecosystem all the more robust while the near term fluctuations are inevitable.
We see this as essential groundwork for sustainable long term growth. Despite this evolving environment, we have strengthened our market position. Our total DMAT account market share stands at 16.3% and we continue to be a leader in incremental acquisitions with a 21.7% share. We added over 1.5 million clients in in Q1 FY26 with 88% coming from tier 2, 3 and beyond. Our market share in active clients and overall retail equity turnover are stable at 15.3% and 19.7% respectively and our clients executed 343 million orders during the quarter. We continue to refine our acquisition and engagement engines using data backed tools that enhance advisory, improve cross sell and upsell effectiveness and ensure long term alignment with clients.
Our period ending client funding book reached an all time high of Rupees 48 billion this quarter, further validating client confidence and platform stickiness. Our assisted business too is scaling steadily, fueled by the same AI philosophy that drives our platform. We are embedding intelligence into every layer of the ecosystem, enhancing partner efficiency, engagement and effectiveness. AI generated podcasts in four regional languages now empower partners to educate and connect with clients more meaningfully while curated advisory reports like Technofunder Option Strategy and Daily Equity and Commodity Updates help deliver timely actionable insights. The NXT platform has been upgraded and redesigned with a more intuitive interface that improves navigation, enabling partners to serve clients with a greater speed and precision.
As a result, the assisted business is emerging as a vital growth engine, enriching client experiences, deepening trust and amplifying value creation across our ecosystem. In the non broking vertical, the emerging metrics remain strong. We added over 1.9 million new SIPs in the quarter and distributed 2.3 billion rupees in credit. With this, our cumulative distribution of credit now stands at over rupees 9.3 billion within a year of launching the offer. Here too, we have leveraged AI ML models to develop proprietary scorecards to predict propensity and improve precision and scale for the top of the what excites me most is the direction in which we are moving ahead.
A future where Angel 1 becomes India’s go to financial platform. An all encompassing platform that is simple, intelligent, rich in experience and trusted by millions. This vision is also what led us to scale horizontally into product manufacturing through our wealth and asset management verticals. Both these businesses are off to a strong start and are scaling in line with our expectations. Ionic wealth continues to expand its client base and now serves over 1000 clients as of June 2025. Here too we are bringing our digital and data capabilities to serve the next generation of wealth creators. Like DT rightly said, we are here to challenge the orthodox and redefine the rules with bold thinking, fresh ideas and relentless execution.
Recently introduced products like specialized investment funds and an accredited investor framework facilitate our intent to enhance market accessibility for investors. Our asset management business is also progressing well with a healthy cadence of product launches. The business is steadily gaining traction as reflected in our growing aum. As we scale, we will do so with discipline, staying true to our vision of technology driven sustainable growth. The platform we are building is not just a digital interface, it is an ever evolving, reliable partner in our clients financial lives. AI is no more just an enabler, it is the core engine driving every aspect of our platform.
With over 32 million clients and billions of data points processed every day, our deep focus on data science, machine learning and platform intelligence is enabling us to build India’s most inclusive and intelligent financial services ecosystem. I now invite Saurabh to provide further updates on the emerging growth verticals. Saurabh.
Saurabh Agarwal — Chief Business Officer- New Business
Thank you ak Good morning everyone. It’s great to have you with us. As AK said, we are not building just another financial services business. We are building an intelligent AI powered, product led, multi offering platform designed to meet the full spectrum of our consumers financial needs anchored in trust, engagement and lifetime value. Everything we are doing, from nudges to credit engines, from SIP journeys to partner intelligence is focused on making the customer experience smarter, more intuitive and deeply personalized. Today I’ll take you deeper into how this vision is playing out across our emerging growth verticals, the unique opportunity we see ahead and why we believe Angel One is uniquely positioned to lead.
Market is vast, there is tremendous headroom ahead. The ambition is very large and we are building to be systemic, not just a participant in the categories we operate in. Let me start with credit. Credit continues to be one of our most exciting and strategic verticals. The Opportunity is massive and we are building in a disciplined long term way. India remains structurally under penetrated with household credit to GDP ratio less than half of global average. The unmet demand, particularly in emerging towns, is vast and growing as incomes and aspirations rise. This is not just an economic opportunity, it’s a platform to deliver inclusion at scale.
As mentioned earlier in Q1FY26 we facilitated disbursals of 2.3 billion rupees across six partners taking our cumulative disbursals to 9.3 billion rupees within a year of launch. But again, these are outcomes. What matters more is the system we are building beneath it with rich behavioral signals from our platform, proprietary AI, ML driven scope for creditworthiness, propensity and partner mapping, deep integrations that allow for seamless journeys and stronger approval funnels and intent based models that match customers with lenders more intelligently. We are clear we are not underwriters. We are a platform play with deep data driven intelligence.
Our job is to orchestrate a match between the right customer and the right lender and make that match as precise, scalable and efficient as possible. We are already seeing our data led approach help partners manage risk better and our margins are healthy in line or better than market. Importantly, our credit ambition is not just limited to our broking platform. While our customer base is premium and highly engaged, the opportunity is too large to be constrained by one channel. We have started experimenting with models to see serve users beyond our core base and we are actively working on cracking unit economics for this broader play.
We’ve also begun early work on secured credit. These are initial steps but the direction is clear. As digital assets become more visible and verifiable, we see meaningful opportunity to build experience led secured journeys again with the same data first approach. This is a long game and we are building to win it with a deep pool of high quality customers, high engagement on the platform and long term intelligence first approach we are sure to create rent in this business. Coming to Mutual Funds Mutual funds are the cornerstone of our engagement and habit forming Strategy. As of June 2025, over 3 million customers have engaged with our mutual fund offering, up from nearly 1.2 million a year ago.
Our tip engine continues to perform well with 1.9 million new SIPS added in Q1 FY26. This is not just about scale, it’s about deepening relationships. Magic lies in the behavioral depth and not just in raw count. Repeat SIPs are growing, wallet share is growing, cross product adoption is increasing, client stickiness is clearly rising. Clients are starting to think of Angel 1 as a long term investment partner. This is trust in action and trust is our biggest moat. What’s working here is a combination of smart journeys, nudges and education. Our AI driven explainers are helping simplify fun discovery.
Personalized nudges are creating habit loops and all of this is driving stickiness and cross product engagement. As customers build confidence we will see a direct impact on their lifetime value not just through SIPs but through their openness to engage with other products as well. Lastly, on insurance we are seeing some traction especially on the physical side across both life and health. The business is growing steadily throughout sub broker channel and we are layering in technology to improve both customer and intermediate experience. From partner dashboards to smooth out policy journeys, the focus is on making insurance simpler and more intuitive.
This is a category that has historically seen broken experiences and we are solving for that one layer at a time. Foundations are strong and we are confident of scaling this meaningfully over time. Overall, across the emerging growth verticals we are still in the early innings but with a strong scalable foundation in place, we see a clear path to meaningful and sustainable growth ahead. With advanced technology, deep data science capabilities and client centric mindset, we are uniquely positioned to unlock the full potential of India’s untapped wealth and trade markets, creating lasting impact at scale. We focus on the user and let his trust on us create value.
To reiterate, we are not here just to cross sell. We are here to create enduring relationships across products over years and let those relationships fuel sustainable growth. As trust compounds, so does loyalty. As loyalty compounds, so does value. And value when built with intent scales naturally and sustainably. With that, I’ll hand it over to SOBIT to walk you through the wealth business. Thank you.
Shobhit Mathur — Co-Founder, Angel One Wealth
Thank you Sourabh. Good morning everyone. Let me begin with a brief overview of the macroeconomic environments shaping investment decisions in 2025. Globally, trade tensions, especially US China tariffs, have raised sector input costs by 15 to 20%, causing volatility but also creating long term opportunities in supply chains and innovation, notably in semiconductors and AI. Global GDP growth is set to slow to 2.6% in 2025 with persistent inflation keeping central banks cautious. India’s GDP growth is tracking above 6%, inflation has moderated to 2.7% year on year and RBI has kept the repo. Rate steady at 5.5%. Given this backdrop, 2025 is shaping up as the year of asset allocators and presents opportunities for patient investors while domestic equities remain attractive. We recommend cautious Diversification also select global equity markets are also doing very well and we are taking a calibrated exposure there. Wealth Management India is moving from a product to portfolio solution approach mirroring the US shift that drove 3-4x profit multiples driven by deeper advisory discretionary portfolios and private market access. In addition to the triple multiplier effect, growth is also fueled by rising Investor participation from Tier 2 and Tier 3 cities, IPO monetization and the accelerating integration of technology and artificial intelligence.
The convergence of investor maturity, regulatory support and digital adoption continues to validate our strategy of building an omnichannel wealth platform. For India’s HNI and UHNI segments. UHNI continues to be our growth driver. Our approach continues to be on focused portfolio strategies anchored in high conviction themes and timely tactical allocation to capture market opportunities for our clients. Our domain experts blend deep India conviction with global diversification offering portfolios that go beyond the conventional. The UHNI growth is powered by strong. Referrals and word of mouth. HNI we are seeing early green shoots. We are continuing to build our digital stack with a dual objective to deliver a seamless intuitive experience for clients while equipping relationship managers with tools that enable deeper, more informed engagements. Our app experience is built around what we call the 4K’s key touch points that define every investor’s journey with us understanding their portfolio, designing the right asset mix, unlocking exclusive investment opportunities and benefiting from the guidance of a dedicated relationship manager. We have also been early to adopt emerging industry initiatives including the Accredited Investor Framework, specialized investment funds and fractionalized access to high quality strategies like Gift City Funds, long India strategy, etc.
Business update We’ve crossed 5000 crores in AUM with over 1000 clients across 9 cities. This includes both active mandates and custody assets with a team of 184 across domain, client relationships and technology. Our latest technology launch is Ionic Agent, a proprietary intelligence platform that empowers relationship managers to construct clients investment portfolios in real time. It is integrated with a suite of AI agents trained to handle complex client queries, run portfolio diagnostics and gain financial insights without human biases. We believe this blend of domain expertise, strong relationships and tech led advisory is what will define the next decade of.
Private wealth in India. Thank you. And now I invite him in to. Give you an update about the AMC business.
Hemen Bhatia — CEO of Angel One Asset Management Company Limited
Thank you Shobhit Good morning everyone. I am excited to share that our asset management business continues to gain meaningful traction and momentum. As you would recall in Q3FY25 we had started we had shared the exciting news of receiving regulatory approval to commence mutual fund operations. Since then, the progress has not only been steady but also encouraging. In a short span of time we have launched five products across equity and fixed income. In Q4FY25 we debuted with three passive products, the Angel One New Nifty Total Market Index Fund, Angel One Nifty Total Market ETF and our first debt product, Angel One Nifty One Day Raised Liquid ETF.
I am proud to share that in this quarter we have continued that momentum with the addition of two new offerings, Angel One Nifty 50 Index Fund and Angel 100 Nifty 50 ETF. These additions represent our continued commitment to building a broad based, low cost and efficient passive product created suite that caters to India’s growing investor base. With the inclusion of this scheme, we are not just expanding product basket but are also deepening our alignment with the needs of both new and seasoned investors who are seeking transparent cost efficient investment solutions. I am very pleased to share that our AUM stood at over rupees 3.4 billion as of 30th of June 2025.
But more than the number, it is the quality and breadth of traction that truly stands out. We continue to see Pan India participation across investor cohorts reaffirming the core thesis behind our strategy that passive investing is not just an urban trend but a structural shift that is democratizing wealth creation across Bharat. Another dimension we are particularly proud of is our distribution architecture. We have stayed true to a multichannel approach as we leverage our captive distribution reach through our vast digital client base and enable direct access to clients who prefer that route. This strategy ensures that our products are available and discoverable regardless of where the investor is in their financial journey.
Importantly, all of this growth has come with zero marketing expenditure to date. Instead of chasing speed scale with spend, we have stayed focused on building organic traction through meaningful investor education and product awareness campaigns. We have been active on social media, shared information, creative and bite sized content and this content first education led approach is already bearing fruit as we see clients engage more meaningfully with our products and platform. Looking ahead, we are gearing up for the next wave of exposure expansion. We plan to continue adding to our equity bouquet and are now working towards launching commodity based products.
This aligns with our long term roadmap of offering a comprehensive suite of passive solutions across asset classes tailored to different investor goals. At the heart of all this is our belief in simplicity, transparency and scalability. Passive investing is an idea whose time has come and angel on amc Positioned to be at the forefront of this evolution. Whether it is through removing human bias, reducing costs or delivering long term market returns with minimal friction, passive products deliver outcomes that investors increasingly value. Our vision remains unwavering to become a category leader in the passive investing space in India.
We are building for the long term with a relentless focus on client trust and long term value creation creation for all stakeholders. With this I will take a pause and invite Vineet to take you through the financial performance.
Vineet Agrawal — Chief Financial Officer
Thank you Amin Good morning everyone. I’m pleased to share that quarter one of financial year 2026 was an encouraging quarter for us, marked by operational strength, continued client engagement and gradual growth across our diversified revenue streams. Despite this being the first full quarter after the implementation of the index derivative regulations of 2024, during the quarter we saw modest market dynamics translating into high retail participation. Total orders rose by 4.8% sequentially, crossing 343 million, a clear sign of healthy client engagement. Our financial performance reflected this momentum. Gross revenues increased by 8.1%, quarter on quarter to rupees 11.4 billion.
Net revenues grew by 7.3% quarter on quarter to rupees 8.9 billion. Our total revenue mix continues to be well diversified. Over 45% came from broking commissions in the sno segment, around 10% from the cash segment, 6% from the commodity derivatives segment, 31% from interest income across client funding and deposits placed with the clearing corporations and the balance from depository operations, distribution wealth and asset management businesses. Our total gross broking income increased by 9.1% sequentially to rupees 6.9 billion. After accounting for the sharing of the company commissions to authorized persons, Net broking income rose by 7.3% quarter on quarter to rupees 5.3 billion.
Notably, the share of the direct business in net broking revenue held steady at about 76%, underscoring the strength and scalability of our digital LED model. Our client funding book reached a new high averaging 42 billion rupees in the quarter up by 4.3% quarter on quarter. This along with higher placements of deposits drove a 5.5% quarter on quarter rise in total interest income to Rs. 3.6 billion. Interest income from plan funding rose by 3.6% while income from deposits grew by 7.2% quarter on quarter. Other income lines also saw healthy sequential growth. Income from depository operations increased by 14.3% reflecting higher delivery based volumes.
Income from distribution business grew by 11% to rupees 349 million supported by strong performance in distribution of credit and insurance products and IPOs. During the quarter we continued to invest in brand building, most notably through our partnership as an IPL associate sponsor. This led to IPL and associated media spends of Rupees 1.1 billion in quarter one compared to 344 million in the previous quarter. Excluding these IPL costs, our underlying operating expenses actually declined by 9.9% quarter on quarter to Rs 3.1 billion reflecting cost discipline amidst softness in client acquisition numbers. On the talent front, we made fresh grants of stock options under the LTI Plan 2021 for Angel One and the LTI Plan 2024 of the wealth management business.
This along with the full quarter impact of the earlier grants resulted in cost of grants increasing by 38.1% quarter on quarter to rupees 465 million. These investments are deliberate and consistent with our strategy to attract, reward and retain top talent supporting our long term growth ambitions. We estimated full year cost of the grants made to be made in FY 2026 along with the carrying cost of earlier grants is estimated to be rupees 2.1 billion for the current fiscal year. Reported operating margin was 21.8% lower sequentially due to the IPL cost and a prior quarter variable pay reversal.
However, on a normalized basis adjusting for these items, the operating margin increased by 30.5% quarter on quarter to around rupees 3.1 billion translating into a healthier margin of 34.3%. This normalized margin also absorbs a 2.6% impact from our continued incubation of the newer businesses of asset management and wealth management. Reported PAT for The quarter was rupees 1.1 billion lower by 34% quarter on quarter but normalized PAT after adjusting for the IPL and variable pay effects actually grew by 26% quarter on quarter to approximately Rupees 1.9 billion. On the balance sheet side, our period ending client funding book stood at Rupees 48 billion supported by incremental borrowings which increased by 1.9 billion sequentially.
Consolidated net worth was at 55.7 billion as of June 30, 2025. Cash and cash equivalents remained healthy driven by higher client balances and internal accruals, partly offset by dividend payouts and deployment into the funding book. In summary, quarter one FY 2026 was a quarter of healthy operational performance. While we remain focused on the long term growth, continuing to invest in brand and technology to deepen client Engagement. Diversifying our product suite to cover the entire financial life cycle from booking to distribution of third party products, wealth management and asset management. And maintaining a disciplined, sustainable approach to cost and risk management.
We are confident that these steps will make our platform even more integral to our clients financial journeys and create enduring value for all stakeholders. Due to a bereavement in Umbrish’s family, we will have to excuse him for. The rest of the call today. Other members of the management will respond to your questions. With this, I conclude the presentation and open the floor for further discussion. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Swarna Mukherjee with BNK Securities. Please go ahead.
Swarnabha Mukherjee
I said good morning. Thank you for the opportunity. Three questions from my side. So first of all, sir, just wanted to understand in terms of the current. Trend that we have seen in the. Orders run rate, the daily average orders. That we have, so June was lower than me. And if you know the number, I think the number of contracts that are trading in exchanges could be any indicator. I think. You know, it continues to remain slightly separate. So just wanted to understand that if. You know whether your timelines that you. Had earlier, you know, kind of envisaged. That you will be able to recoup. The number of orders back to the. Early 11s considering the current trends, is. There any extension in the timelines? What would be your thoughts regarding that? And similarly on the client acquisition and. Acquisition rate, what would be your thoughts. In the current scenario? Particularly, you know, last quarter in the. Presentation you had, I think disclosed that. The payback period post acquisition is at. Around 10 months for FY25. So has it seen, has it improved. Or has it gotten extended? Would like to hear your thoughts on that. So that’s on the broking part also in terms of the new businesses. So I think from the mix point. Of view it is now around 3%. So I just wanted to have some. Color from you that, you know, where do you see this in couple of years? Where can the contribution go? And also when do we expect to see the cost absorption playing out? Because I think compared to last quarter. The impact of the new business incubations on the margin has increased slightly. So just Your thoughts on that would be very helpful. And lastly, one question on the cash broking realization. I see that the realization per order has increased on a QOQ basis. So anything to read into that? Is it more. More because of say higher MDF being done in the ticket sizes are larger. Any. Any view would be very helpful. Yeah, that’s. That’s it for.
Dinesh D. Thakkar
So in terms of current trend on order and revenue, you can see in this quarter already we have seen growth of around. In terms of revenue around 7 to 8%. So what we saw that okay, when like you see that F were for like last year third quarter and fourth quarter and this first quarter, the first two months they were positive and they had a positive improve. And we can clearly see an impact of paraffin like momentum in the market And FIS has strong correlation between retail activity and their orders.
So we believe as this macro will improve and fires and retail will come back, we’ll see some kind of like good earning momentum and all that. We are very hopeful that we will be able to exit quarter four with additional visibility on OPM that we were speaking about. We are confident that OPM is going to return back to normal by exit of quarter four. Looking at the trend of customer acquisition and looking at activity of customer which is increasing on our platform on client acquisition trend, again payback period depends on market conditions and engagement of prepaid in that particular six, eight months and all that.
But we are confident we focus more on cost to revenue if at all revenue justifies cost and we are able to see that okay, that will result in OEM of 1455%. You would not like to leave any growth on the table and on new businesses. Vineet, if you can take that on new businesses contribution and impact of this thing on our margins and all that.
Vineet Agrawal
So Sarnab, as we have been maintaining in the past that the new businesses will take some time to break even. We expect the wealth business to break even faster than the AMC business business which is a long gestation period business. Given that we are into passives and we’ve always guided that the margin impact of these new businesses in the short term till they become profitable will be around 2%. It could vary between 2.2.5% depending on how the quarter’s performance goes. So I mean there’s no major change in what we’ve already been communicating.
Dinesh D. Thakkar
And on fourth point cash broking, yes it will be. Impact of your margin trading book is really picking up. For people who invest through margin trading, their ticket size is a bit higher. So Realization per order will be higher.
Swarnabha Mukherjee
Right sir, very helpful. Just to follow up on the last. Point, we are seeing that this on. The margin trading side I think the competitive intensity has also increased over the last few months. So from the profit pool point of view is there any further risk on the lending and basically the rate that we offer to the customers for borrowing or any competitive pressures you see there?
Dinesh D. Thakkar
Currently we don’t see any competitive pressure because what we still have been doing since so this margin trading fund books depends on market momentum and volatility. If at all we are hopeful about momentum will be positive. Come again? I don’t see any pressure. In fact that would be tailwinds right now. I don’t see any competition in terms of margin funding in terms of that we are getting and plus people who are opting for margin trading currently as I’m speaking, I don’t see any competitive pressure in that.
Swarnabha Mukherjee
Okay, so very clear. Thank you so much and all the best.
Dinesh D. Thakkar
Thank you.
operator
Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question comes from the line of Praise Jain with Motilal OSWAL Financial Services Ltd. Please go ahead.
Prayesh Jain
Yeah. Hi, good morning. Just questions. Firstly on the you know, the businesses. Of wealth, AMC and you know, mutual. Fund, what would be the revenue of. Each of these businesses today and are. They kind of sitting in the distribution part of the reporting? You know every part is every of these Excel. So where are they sitting in the P and L. And secondly on the tax rate again on the higher side. In this quarter how do you see the tax rate going ahead? And lastly on the cash segment realizations. Should this sustain at current level given and do you think the margin trade. Funding book will continue to grow?
Dinesh D. Thakkar
Okay Vinit, can you take these questions?
Vineet Agrawal
Yes. So on the split of the revenue it is the distribution part of the business which is about 3% of the total revenue that is primarily driven by the distribution of insurance and trade products and IPO for the other businesses, the asset management and the wealth management they are spread across commissions and interest income because some part of the revenue that we get from the wealth business is the capital that we have put in treasury operations etc. So it’s spread there. Primarily it’s the distribution part of the business which is 3% for credit, insurance and IPOs.
On the. Yeah, on the tax rate. Yes, the effective tax rate for this quarter is higher and this is primarily because a couple of our businesses are loss making and therefore the effective tax rate has gone up by about 3% because of those businesses and the CSR contribution that we do quarter on quarter, that doesn’t qualify for any tax deduction. So that’s also about a 1% impact of the CSR contribution. So the effective tax rate for this quarter is about 30%.
Dinesh D. Thakkar
And on this cash segment realization, if Aris and Nishan can broadly what we are seeing is that it depends on this market condition and if at all like we are able to maintain and increase this book size realization would not change much. I would like Arif and Sean to comment on this.
Arief Mohamad
Yeah, good morning everyone. Arif here. So the cash segment has been very strong for us. Our market share has been growing mtf. We are confident that the book will. Keep growing at a healthy pace. We’re also working on figuring out a more smoother experience in mtf. So that should not be a concern. In short to midterm we should be. Good on cash segment.
Nishant Jain
Hi, this is Nishant this side and I would like to echo what Arif just mentioned. We are seeing a secular growth in the last three odd quarters and pretty much expect the momentum to continue. There are a host of initiatives that we are bringing about as far as the in app experience is concerned. Also trying to augment our advisory around MTF stocks in particular and therefore with the interventions which are basically built around client experience and trying to augment the understanding there, we believe that the momentum should continue and should not be contingent on any kind of interest rate fluctuations.
Prayesh Jain
Just a follow up on the on. The first question, what would be the quant? What would the quantum of wealth management revenues AMC revenues wealth management in particular we have about 5000 crore kind of an AUM. How much of the. What would be the revenue size of. Of this segment and even for the AMC.
Dinesh D. Thakkar
On wealth. So that you can take this or should we give it to.
Shobhit Mathur
So yeah, I’ll just add more on a qualitative basis. So largely wealth management AUM is a trail bearing kind of a business and. The revenue is back ended in nature. So to that extent you will see the AUM growth happen and then the revenue follows for that. But on specific details and that we need to take that.
Vineet Agrawal
I think as we mentioned that let these businesses grow and then we’ll start disclosing more detailed information about these businesses. Today as we said these businesses are in the incubation stage and we will. Leave it at that.
Prayesh Jain
Thank you.
operator
Thank you. Next question comes from the line of Vikram Raghavan with Moon Capital. Please go ahead.
Vikram Raghavan
My questions have been answered. Thank you. Thank you.
operator
Thank you. Next Question comes from the line of Nitesh Jain with investech. Please go ahead.
Nidhesh Jain
Thanks for the opportunity. So first question is on economics of. The new customer that we are acquiring. In terms of cac. Last quarter you mentioned that the customer. Acquisition cost has increased. How are the trends in this quarter. And any comment on LTV to CAC. For these new customers? Second is if you can share what. Is the approximate retention on wealth AUM. And what is the share of fee. Earning AUM in mutual fund distribution? And the third question is on esop, how much ESOP expense we should budget on a quarterly basis going forward. These are the three questions.
Dinesh D. Thakkar
Okay. On cost of acquisition it remains same as what it was last quarter. It does not change significantly or even like marginally. Also small fluctuation here and there is there. But overall we are seeing 10 in terms of customer acquisition also we are able to maintain this trajectory. Market share of around 21% on a new acquisition that we do so that way, that side it is very much in control. Your second question was.
Nidhesh Jain
Any comment on LTV to CAC? Earlier we have disclosed 8.8x and then I think recently we’ve been talking about around 6x LTV2CAC.
Dinesh D. Thakkar
So yeah, so we would like to refresh that NP2CAC maybe once we see this cycle completely panning out. But just this quarter we saw impact of fno. As I said it takes time for customer to really bounce back and search instruments they would like to participate. So too early to really refresh that chart. I would say let us wait for one or two quarters, let retail again get active the way they are active in the market and then it would be a better time to refresh that chart.
Nidhesh Jain
Sure. Next question is on retention on wealth aum. What is the yield or retention that we earn on wealth AUM roughly And what is the share of fee earning AUM within mutual fund distribution?
Dinesh D. Thakkar
Do we disturb anything of this?
Vineet Agrawal
No, right now we’re not giving those granular details. So yeah, so we are almost in. Line with the market. But we will come out with more details as this business is scale up.
Dinesh D. Thakkar
And on ESOP budget.
Vineet Agrawal
Yeah, on the ESOP cost as I mentioned in my opening statement that the estimated total cost of the stock grants for this year and the previous years put together is about 2.1 billion rupees, 210 crores of which we spent about 4045 crores in this quarter. So it will be in the range of about 55 odd crores for the next three quarters.
Nidhesh Jain
Sure. That’s it. From my side. Thank you.
Dinesh D. Thakkar
Thank you.
operator
Thank you. Next question comes from the line of Pratyumna Chowdhury with GM Financial Family office. Please go ahead.
Pradyumna Choudhary
Yeah, hi, thanks for the opportunity. First question is on the economic share. So the broader understanding was post March, post the last phase of regulations, we again start seeing the gains in line with increase in retail activity month on month. So that really hasn’t happened, right. Like there was some market share gains in the month of May and then again June was a lower month, a blue month for us. So how do we, I know it’s just one month but like how do we maybe see this going forward?
Dinesh D. Thakkar
Market share again it’s time to really like maintain market shares.
Also like is something that we are working on and if you look at this whole segment there are lots of blog desk who come as an individual so their chem funding volume has not decreased. But for us to maintain retail market share and that I think is a big achievement and I don’t think we have lost any market share anywhere across any equity segment or even commodity. Arit, you would like to comment on this?
Arief Mohamad
Yeah, thanks. Thanks Jiti. So as I mentioned, right our market. Shares and equity NTF have been going up sequentially and quite strongly on the fno. It’s bit of a, you know, a month story that you’re talking about. But you’re fairly confident that we’ll recover back. I don’t think we lost any market share per se, but you know there’s a little bit of, you know, up and down of you know, a few. Weeks, you know, month to month. But that’s okay.
Dinesh D. Thakkar
You will see that credit is quite strong.
operator
Mrs. Chaudhary, are you done with the questions? Mr. Chaudhary, are YOU done with the questions? Since there is no reply from Chaudhary, are you done with the questions?
Pradyumna Choudhary
Yeah. Can you hear me?
operator
Yes, yes, please go ahead.
Pradyumna Choudhary
Yeah. So just to follow up, so how do we see this market FNO market share evolving for us over the coming months? Are we expecting to make games here? Are we expecting to just maintain and in case we are looking at gaming shares then what would really be the drivers for this?
Dinesh D. Thakkar
What we are seeing that because we are acquiring more customers so market share improvement will be gradual. But what we are seeing is that this whole pie of like volume on SNO side is going to expand. That is going to help in terms of US gaming normal SOPM by date of quarter four.
Pradyumna Choudhary
Understood. And anything you’ve heard from Sebi in recent times, there’s been news articles on fortnightly index expiries and all those things. So anything we are hearing from Sebi in addition to whatever is being in the news?
Dinesh D. Thakkar
No, we haven’t heard anything like new which is going to come around. These are all articles, publishing media and all that. But overall.
Pradyumna Choudhary
All right, all right, thank you and all the best.
operator
Thank you. Next question comes from the line of Avijit Sakare with Kotak Securities. Please go ahead.
Abhijeet Sakhare
Good morning everyone. So my first question, you know refers to the exit water operating margins that you are guiding towards. It would be useful if you could also sort of, you know, give us what this would imply in terms of, you know, the order run rate or let’s say the MTF book or you know, the broad cost ratios as we get into the fourth quarter. Because as of now if I just look at, you know, what we’ve done in the last fourth quarter as a base of the expense line, it seems like the ask rate on the, on the top line seems to be slightly stiff.
So just trying to kind of get better clarity into the input variables into the operating margin assumptions there.
Dinesh D. Thakkar
Okay, so first of all like expenses in this quarter is all about increment which happens plus cost. So if we look at top line that is going at the rate of 8%. If you continue growing top end at the rate of 8% and keep cost transact. So what you will see is that everything will see your 40 plus OPM. That is what we are guiding. If you look at this quarter also if you remove that one time content like benefit that you got from quarter four and expenses you can clearly see that although like growth in top line is around 8 to 9% but if you look at normalized EBITDA there’s a growth of 30%.
So clearly that if at all we are able to see that okay, quarter on quarter revenue is going to grow at the rate of 7, 8% which we are very confident. But as I said that macros and corporate results and all that are expected to be better than what we are seeing right now. And you will see the investment and detail participate more activity in coming quarters. So clearly it shows if you are able to maintain the revenue at the rate of 78% quarter and quarter and keep our cost under control, definitely there is no reason for us to be to increase the cost right now because already platform has been built and cost of acquiring customer has been incorporated every quarter.
So clearly we are seeing an exit of quarter four and this syntactic would be visible to all of you.
Abhijeet Sakhare
Thank you so much, sir. That was useful. And just to follow up, is fourth. Quarter really the critical quarter where you. Kind of take the call on pricing as well? If by then, let’s say if numbers don’t stack up well, or do you. Kind of then move on to the. Next year assuming that recovery gets delayed by a few quarters and as a result pricing action may not be required by the end of the fourth quarter itself?
Dinesh D. Thakkar
See, what is important is that is trajectory in terms of gaining revenue or activity of customer which is increasing, expanding our margin. If answer is yes, we cannot predict market like say this quarter four March. You have to take some kind of decision what we are looking at when customer activity is increasing and more customers we are acquiring. Are you seeing expansion in margin? If you are seeing it waiting for one to what it does not matter what is important in business. Don’t try to create a pricing model which becomes so calculative it affects more competition.
So we believe what we have to look at is that as our cost of order increase. No, we have built the platforms already, we have taken a cost. And if we get increased kind of an order flow in maybe quarter four or one quarter later, should we change the price just because quarter four exit we did not see that. Opm, I would say answer lies that. Okay, what is your call on participation of Indian detail in this market for next three, four years? Is it going to increase what we are seeing? It can be full quarter or start of for the next financial year does.
Not make a difference. Increase from the time we are seeing expansion in margin.
Abhijeet Sakhare
Got it, got it. And so second one is that like in terms of customer inflow or acquisition that has been happening. Any broad thoughts, even if qualitative in terms of if we can bring down the dependence on let’s say having to acquire, having to pay for acquiring new customers versus organic growth. Because that tends to have a, you know, sort of slightly better impact in terms of, you know, flow through to the bottom line.
Dinesh D. Thakkar
Yeah. So we are working on lots of parameters where quality of acquisition improves. And that the reason we have been visible and all that. That’s the long term rental strategy. And we are working on lots of things. Are we busy? Can take this question and explain what through activity what we are doing to improve. Yes. Customer care.
Arief Mohamad
Yes. Ad. And thanks a lot for that question. So our acquisition strategy is fundamentally pegged around three pillars. One is if there’s an opportunity, we. Want to keep gaining the market share there. Second is as you rightly said, organic. Market share has to keep growing. And that for us has been the process grow channel in last 8, 9 months, 12 months. So that is a key focus area for us. Third part that we focus on is. How do we gain premium or high value clients. These three would be the key pillars. Of strategy for us in our acquisition strategy. Thank you.
Abhijeet Sakhare
Got it. Thanks a lot.
Dinesh D. Thakkar
Thank you.
operator
Thank you. Next question comes on the line of Sanket Koda with Evan Desmart. Please go ahead.
Sanketh Godha
Thank you for the opportunity. Sir, if I understood you right, you. Are saying that if due to any. Reason, if you fail to achieve 40, 45% OPM margin by end of the fourth quarter, that will not trigger a price hike in your decision. That’s, that’s. That’s a fair understanding, sir.
Dinesh D. Thakkar
Yeah. Right. So what is important when we are acquiring new customer and old customers getting active, Are we seeing expansion in margin? That is important.
Sanketh Godha
Got it. Got it. Got it, sir. And second question which I had was that if you want to achieve 40. 45% EBITDA margin by end of the quarter, you said revenue growth of 7, 8% is per quarter. Sequential growth will help it. Which means that you expect XIPL overall. Operating cost should grow at just 2. To 3% every quarter to deliver that 40, 45% EBITDA margin. EBITDA margin by end of the fourth quarter.
Dinesh D. Thakkar
Yes. So it is like when we project something, it is based on that market will support. And what we believe is that when we make mobile snow, we believe Indian stock markets are going to give a K of 15%. So if one year does not give, it is going to give the next year. It is very difficult to predict in which country might cause or how market will behave. And if you look at f inflow, there’s an average of F inflows happen in emerging market. And certain navigation comes to India. If they defer it for quarter, they defer forever.
When we make business model, we are meeting for three years, five years. We don’t take a fall on one quarter, two quarters. But based on trend, what we are seeing, we give the estimation that it appears to be by exit of quarter four, we would be in this position. But what is important, most important is if we are seeing more activity of customer and revenue growth is higher than increasing cost which we have seen in this quarter. That gives us confidence that we have built a platform with certain capacity and which will cost will not increase proportionately increase in revenue.
So proof of concept is this quarter, and this is a strong belief based on projection that we make that further revenue increase that you will see you will not see proportionate cost increase to answer your question maybe 2 3% or something like that. That is what we need.
Sanketh Godha
Got it, Got it. Perfect sir. And lastly maybe last two see RBI. Took a call of rate cut just whether you will take a decision on reducing your lending rate on margin trade. Funding compared to what 15 odd percentage what you charge and if you don’t. Do then your incremental borrowing cost coming down because of the rate cut will it expand your nim or overall profitability on the margin trade funding book. I just wanted to understand whether you’ll pass on the rate cut benefit to the customer or you will take better.
Dinesh D. Thakkar
Links margin funding book the way it functions in terms of prices it is not sensitive to RBI’s record cut and all that across the years you will see we have seen different inter cycle lending rate almost in MTF as remains here until the time we take some constitution that we have to bring it down. That is what we did two quarters back. But overall I don’t feel that this is sensitive to what RBI does and in terms of margin increment. Vineet, if you can take this question in terms of cost of borrowing how it impacts.
Vineet Agrawal
Yes, so Sanket, what typically happens is that today the borrowings are on linked to MCLR and therefore the rate cut on the borrowing side happens slightly with a lag. But yes, you know there would be a margin expansion as we go along as we see the rate cut happening on the borrowing side and that will help the business.
Sanketh Godha
Got it. Perfect. And last one on philosophical side sir, see if I look at the overall market share across the products it has. Broadly stabilized whether it is cash or. Even FNOS and even to the extreme commodities. So is it fair to say that now Your incremental growth of 70 percentage or in general is function of more market doing well or recovering from lows what we saw in fourth quarter or you think there is furthermore scope to. Gain market share.
Dinesh D. Thakkar
What happens our activity of a customer depends on his wallet share and size of the wallet and what we see if at all wallet is expected to go at the rate of 11 12% we are going to see activity of one customer increasing at least at the rate of 11 12%. But now if you look back and see that what kind like wallet share they were giving for trading in market or investing in market that got shunned because of these regulatory changes that has not come back to normal. So what we believe is that existing people who are active in this market at least they will dedicate that Amount what they will dedicating to the trading investment activity.
So you will see that base effect, that data center level which is going to expand to normal. When it gets to normal, you will see our OTO will go back to normal. Then we look at what can like times additionally happening and that we can correlate with something like what expansion we are seeing in terms of trading volume and what increment we are seeing in our market share in this three, four quarters. What will happen? We are aiming to gain markets. As I said, it is not trading in S so it is mostly when you look at smo our content is on option side. But we believe customer activity will go back to normal. That will help us to give a score of 7 to 8% per quarter. But overall market share I believe it is increment proportional to inclusion of new customers in this market. In that also a new customer base we have a market share of around 2122%. For them to become active and all that there will be a magic.
So we’re all to answer your question one, that the basic act which will help us through bond slide and give us a revenue growth of 78% for few quarters. Second would be because of penetration and we’re gaining incremental market share. Incremental market share is 2122 but overall equity market share 60% something. So we will see small increment every quarter in market share.
Sanketh Godha
Got it sir. This is perfect. Thank you for your answers.
Dinesh D. Thakkar
Thank you.
operator
Thank you. A reminder to all the participants that you may press Star and one to ask a question. Next question comes from the line of Raj Vyas with TM Investment Technologies Private Limited. Please go ahead.
Raj Vyas
Thanks for the opportunity. As mentioned in the opening remarks, we also believe that India’s goods remains intact and the capital market will play a significant role because currently out of the table population we only have to add to 13% of demand accounts. So the penetration level is quite low compared to developed countries. And in this Angel Win as it. Focuses more towards the tier 2 and. Tier 3 customer it will definitely play a crucial role in a growth trajectory going forward. However, over the years and the quarters we have seen promoter shareholdings coming down as well. So My question to Mr. Thakkar is that providers the reason behind promoter sharing declining and any plan for succession planning and what the future looks like.
Dinesh D. Thakkar
Yeah, so we are very bullish on I believe at this per capita income what we have seen in the past 20 years is nothing. What we’re going to see when we reach per capita income of $10,000 and all that.
This story is yet to unfold and there’s a big opportunity line. I know people want to capital market. Capital market is going to play a big role because if you look at retail for them, wealth creation opportunity can come only when they start investing in equity. And today they are not investing because of awareness, because of position of risk and all that that is going to get addressed through proper content. Proper content giving access to right information. So overall we are very bullish in terms of participation which is coming from existing customers. At this level they are just satisfying their basic need.
A small amount is coming in capital market. So when we will see India at the level of $10,000 per capita income, most of these flows will come into saving. And beyond necessity, they are going to put investment in improving their lifestyle and all that. So overall as you see, tier 2, tier 3 has not yet participated in a big way. We are seeing a big opportunity. And coming to your point, why promoter holding is decreasing, it is because proficient are taking over this company and we have to see that they are able to. When they are creating well for all stakeholders, they are able to create wealth for them to resource.
So because of ESOP you will see promoter holding will see declining. It is not promoted selling, it is because of that new allocation to ESOP plants and all that. It appears to be at least one or two promoters as declasses have done as a promoter and you will see that change. Nobody has sold the shares in the market
Raj Vyas
to be the shareholding or coming down. Right. Because I last three, four years. If you see the trajectory from 45% though it has come down to 25%. So basically the as said is that the ESOPs have been increased and that’s the reason the employee shareholding might have increased.
Right? That is my basic understanding.
Dinesh D. Thakkar
So there are two combinations, ESOP plus one group of promoters they declassified as an ordinary shareholders.
Vineet Agrawal
And just to add to that, Raj, if you recollect, In March 2024 we did a qualified institution placement of about 15 billion rupees. By law the promoters are not required to participate in that and therefore there was a dilution there as well because of the additional fundraise that we’ve done.
Raj Vyas
Yeah, understood. So yeah, that’s it from my side. I wanted the clarity on it and I’m pretty much clear right now. So thank you for answering my questions. Thank you.
operator
Thank you. Next question comes from the line of Raman KB with Sequence Investments. Please.
Raman KV
Hello, can you hear me?
operator
Hello. Please go ahead with the question sir.
Raman KV
I just want to understand with respect to James street saga, what was the volume before the James street and what’s the volume after the James street saga?
Dinesh D. Thakkar
It is just a matter of way that it’s very difficult to get impact on that. But I have a view on that. Sorry.
Raman KV
So are we like the. Are the volumes back to where it. Was before the Jane Street? The entire the Jane street episode happened?
Dinesh D. Thakkar
We don’t give volume day to day. As I said that James are often just a week or so before we disclose volume and month end. Okay. And this is too early to gain any kind of like episode which has happened and salon impact on that day or in two, three days. That does not tell you any story of where this capital market is moving towards. So my point is that James street people are the opportunist people who put money into hot money just in terms of arbitrary opportunity. Long term is decided by retail and fis who put that money for short and long term if they are present even against Sheet will be replaced some other player we are not seeing.
There will be very big impact on capital market because of change Sheet.
Raman KV
Sir. And another follow up in the same line of this. So with respect to how much was the company’s broking revenue was impacted because of the entire chain Street. Was there
Dinesh D. Thakkar
anything I’m repeating when did happen last week? We don’t give number on weekly or daily basis.
Raman KV
Okay sir,
Dinesh D. Thakkar
thank you.
Vineet Agrawal
And just to add to that Raman, I mean it doesn’t. We are not institutional brokers. So directly there was no impact on. Us because of that.
Raman KV
Okay sir, thank you.
operator
Thank you. Next question comes on the line of Sanjay Singh 10x capital. Please go ahead.
Sanjay Singh
Yeah, hi. What is their incremental variable cost for you know, not for client acquisition but let’s say, you know when you revenue growth BY let’s say 5%, what is the incremental margin on that revenue?
Dinesh D. Thakkar
Vineet You can take this and explain that based on this quarterly number also you can explain.
Vineet Agrawal
So it all depends on various factors. So if the revenue grows by 5% then the number margins will expand. And we’ve seen that in the last quarter. So you know the expansion is more than 5%. Given the cost, more or less remains stable. Again, it depends on what kind of acquisitions we do in a month and what revenue that we generate from those acquisitions. So there are multiple factors which play around this increase in the margin basis. Is the increase in revenues?
Sanjay Singh
No. So what I’m trying to say is. Let’S say the exp order gives you 30 rupees, you know, so on that there is no variable cost like any. Fees to saving over and above. Right. So the 20 rupees is, is purely. For you to keep or is there. Anything which you need to pass on through somebody in that sense?
Vineet Agrawal
No. So the broking commission that we earn 20 rupees is our income. There is no sharing other than the fact that if it comes through the assisted business then there is a revenue sharing arrangement. Otherwise the SEBI charges, the transaction charges. All above that. Yes,
Sanjay Singh
correct And just, just on the thing that. You know, Mr. Kara was saying that you know, growth should be 5, 6, 7%, 8% every quarter. But you know, in July at least the index level, the index level and NC and BSC combined together has seen almost a 47% drop in options which is July 4, 15 days over the Q1 average. April 19 quarter average. July, July 115 days over the quarter average is around 27% drop in option volumes, option premium and almost a 45% drop in future volumes in MSC. So I’m assuming you would see a similar drop in July or is it something very different.
Dinesh D. Thakkar
Now Already we had disclose of a number. July was a bit flattish and April may be some June, June.
Sanjay Singh
Okay. But industry is down almost 27, 28%. So is it fair to understand it. Could be something very similar or a bit.
Dinesh D. Thakkar
Currently what happens is the leader reaction to Game street and it takes time for players to get readjust to new conference scenario. So we have seen like you know, a market like if something happens like this, there’s an impact for 10, 15 days and things go back to normal. We should not read anything from this number. What we are seeing in seven, eight to eight days, although it has been volatile, it is not that every day it was low.
Sanjay Singh
Okay, okay. And I think more probably from an. Industry perspective we keep reading that you know, India is 60% of option volume of the world etc. And you know we have seen in the past China, Korea with reactions on volumes coming down maybe 90%. So what is your take? I mean I understand that you are invested in this business but looking at. Global examples. And with India being such high volumes, do you see any risk of more regulatory action which can clamp down on this pretty exceptional volume that India has seen.
Dinesh D. Thakkar
What happens? As I was answering previous the same question. If there is a concern like wallet of one customer, they would put some amount in this because of nature of company like youth, young people, they would like to leverage and try something in the market. So you see currently they prefer trading in option. But if you look at their journey slowly they move to. So one of my little post actually in FY20 total direct and indirect was around 16.7 lakh. And last year AUM stood at around 70.8 lakh crore. Even if I take a casual of around 14, 15% of market, they are seeing an appreciation of 1112 lakh per year.
These are the new customer who came to the market. They started their journey option. Ultimately they have realized that wealth can. Be created in equity. So I don’t think that they’re trading in option is concerning till the time they’re moving their long term money into equity. That is what we have seen both in sip, both in AUM and cash market that are very heartening. Figure does not come on headline all the time because we are just looking at negative. What positive has happened. If you see number of denied accounts has increased, they have come and put money in long term investments. That’s the reason we are seeing AUM going from 16.7 lakh crore to 17.8. Like that’s a big, big amount.
And today they hold almost 18% of a market cap. So I think when people have earned so much and see such a great activation now they’re going to remain in the market. But the way they will come, they will do some leverage for margin funding or option. That should not concern us. What is important is we need to see how market expands, how people from Tier 2, Tier 3 are participating in this market.
operator
Please go ahead.
Dinesh D. Thakkar
That’s what I want to say. He can have created a big wealth and this return story is broader and deeper than what you think. It is not cyclical, it is structural.
Sanjay Singh
Okay, thank you very much for your answer. Thank you.
Ambarish Kenghe
Thank you.
operator
Thank you. Next question comes from the line of BHU Mesh Kirk with Magma benches. Please go ahead.
Bhuvnesh Garg
Yeah, thank you for the opportunity. Sir. My question is on content strategy. You mentioned the importance of content in customer engagement and acquisition. So we see other large players, the likes of European growth, they are also. Going very aggressive on content. So in that scenario how do you measure the effectiveness of your content compared to peers? And what do you think will give. You an edge in this area compared to peers?
Dinesh D. Thakkar
Yeah. In every industry there will be a place of three, four players and they will have their own different strategy. None of the players will be having a similar study because time that we are targeting will be different. What they are targeting will be different. So the way we have designed our content strategy for all this year, we continue with that. And because of that we are seeing a market sharing we incremental candidates at the rate of around 21, 22%. And it clearly shows whatever we are doing till now is really working well. And how do we improvise now by using latest technology and all that you can cover on this.
Arief Mohamad
Yeah, yeah. Thanks. Just to add to that, AI will. Play a very important role in the way forward of content strategy. You know, for Angel 1, it will give us that kind of width, it will give us that kind of, you know, presence to convert that width at even for vernacular languages and you know, different geographies and all that. So especially for tier two, tier three towns, you know, the penetration of our content will, you know, increase. So we see that as a, you know, meaningful lever going forward in terms of acquisition strategy.
Bhuvnesh Garg
Understood. Would it be possible to share any. Quantitative color on this in terms of. How is it benefiting in your client acquisition of client acquisition costs or reaching out to clients or engagement levels? Any quantitative color,
Arief Mohamad
I don’t think, you. Know, sharing the numbers would be right here. So I would refrain from sharing those numbers.
Bhuvnesh Garg
Okay. No, yeah. Thank you for the response. Thank you.
operator
Thank you. The last question will be from the line of Pranav Gupta with Ionios Alpha Investment Manager. Please go ahead.
Dinesh D. Thakkar
Come closer to the mic.
Pranav Gupta
Is it better now?
Dinesh D. Thakkar
Yeah, still I can hear. You can just send it.
operator
Mr. Gupta, please unmute yourself and go ahead with the question. Mr. Gupta, please go ahead with the questions. Since there is no reply from the line officer Gupta. What we’ll do is. We will hand over to the management for closing comments. That is Mr. Dinesh Thakar. Please go back.
Dinesh D. Thakkar
Thank you for joining us on our today. Hope we had answered your head of industry relation or sga, our investor relation advisor.
operator
Thank you. On behalf of Angel One limited. That concludes this conference. Thank you for joining us. You may now disconnect your lines.