Investing

A couple of days ago, the Bombay Stock Exchange (BSE) celebrated its 150th birthday.

We even covered a detailed analysis showing BSE’s journey from under a Banyan tree to a powerhouse today.

While most investors focused on BSE’s 150th anniversary, one thing that went unnoticed was the sheer growth of BSE’s underlying index BSE Sensex

The Bombay Stock Exchange created BSE Sensex on April 1, 1979. Starting from a base of 100 points back then, it touched a record level of 86,000 in 2024 and currently trades around 82,000 levels.

BSE Sensex’s Growth Trajectory

AD 4nXetD5mLBq5J3AztsoShCDtgzh7wT0SRt5rzotDKpGA9KZvbeEVViFEnUw1XPAJsHHE7KNmXSA6bSjhtLd5oeHGxTTR2vkK55508oqfB9Nllp5ki3

That’s an eye-popping rise of approximately 800 times. If you’d invested Rs 1 lakh in the index when it was created, it would have turned into the princely sum of over Rs 8 crore today.

The question then arises – with such amazing returns, wouldn’t it be a good idea to simply invest in the passive index?

Why try to pick individual stocks? Why bother with doing anything else at all?

Because currently, there are multiple ways one can invest in the Sensex –

Sensex Mutual Funds: These are mutual fund schemes that passively track the BSE Sensex. They invest in the exact same 30 stocks, in the same proportion as the index.

Sensex ETFs: These are traded on stock exchanges just like individual stocks. They mirror the performance of the Sensex and offer intraday liquidity.

DIY Portfolio Creation: If you’re a hands-on investor, you can even manually buy all 30 Sensex stocks in the same weights as the index. While it’s more effort, it gives full control over your holdings and dividend income. Platforms like MultiplyRR make this possible. 

So, the obvious question is – with such massive returns, why not just invest in the index itself?

It’s not that simple… Here’s why.

The Two Ways to Business-like Investing

Father of value investing Benjamin Graham would say – “Investment is most intelligent when it is most businesslike.”

Yes, stocks are not mere pieces of paper. Rather, they represent underlying businesses and you have to invest in stocks like you’re buying a stake in the business.

And broadly, there’s two ways to do such business-like investing:

One, you buy a stake in the business to profit from the rise in its fair value over time. As the company increases the business it does every year, its revenues go higher. As its revenues move higher – so do its profits. And as this process continues over the years, the value of the company too increases as with greater profit making capacity comes a greater market value.

The rise in the Sensex you saw over the last 45 years is a result of this process. As the value of the companies that make up the index increased, over this period, so did its value. In this case, the rise from 100 to 86,000 over 45 years means it rose at a compounded annual rate of 16% over this time.

Which brings us to the second way in which one can go about businesslike investing. You see, while the above process takes place over the long term, it is not a smooth one way street up. In the shorter term, stock prices see massive gyrations depending on how excited or disinterested the public gets about stocks.

Due to this, stock prices sometimes go much above the underlying fair value of the company, and at times much lower.

As a result, it often becomes possible to buy a company when its stock becomes undervalued in the market, and sell it when it reaches fair value.

In this case, you are trying to profit from the market’s undervaluation of the business rather than a rise in its fair value on account of growth in revenues and profits.

This second form of businesslike investing is what most investors seek and perform. That is, to profit from undervaluation rather than increases in fair value of a business.

As to ‘Why bother?’, it’s this second way that gives one an opportunity to get returns even higher than what one could get by simply trying to ride the growth in fair values of companies over time.

In other words, if one wants to beat that 16% return that the market gave over the long term, this is the way to go!

But There’s a Catch: Most Don’t Follow Either Approach Seriously

While both these methods sound simple on paper, the real-world investor often follows neither.

Most people don’t stay invested long enough to enjoy the 16% CAGR of the index.

And most who try to find undervalued stocks lack either the research depth or the patience to hold on till value emerges.

That’s why despite 800x growth in the Sensex, equity participation in India remains shockingly low.

This is where research-backed advisory firms come in.

In a market where most investors either exit too early or enter too late, the role of a trusted advisory becomes invaluable.

Identifying fundamentally strong companies trading below fair value isn’t easy. It requires time, experience, and an unemotional lens.

And that’s exactly what a good equity research advisory helps you with — filtering noise, and bringing serious business-like investing to your portfolio.

The Final Takeaway

So yeah — you can ride the Sensex and do well over time.

Or, if you have the temperament and tools, you can do even better by identifying mispriced businesses.

The key is to pick the approach that fits your personality and stick to it with discipline.

Either way, businesslike investing — not tips, trends, or Twitter — is the real path to wealth creation.

Happy Investing.

The drone industry in India once soared on optimism. Touted as a promising sector with applications in defense, agriculture, logistics, and infrastructure, the momentum behind unmanned aerial vehicles (UAVs) was hard to ignore. 

As regulatory reforms kicked in and indigenous tech gained traction, startups like ideaForge Technology quickly rose to prominence as symbols of India’s deep-tech ambitions.

However, the shine seems to have dulled in July 2025. On July 23, ideaForge Technology’s stock price fell sharply, slipping 8.25% to an intraday low of ₹500 on the NSE compared to its previous closing of ₹544.95. 

This drop followed a disappointing Q1 FY26 earnings report, with the company reporting an 85% decline in year-on-year revenue and a net loss of ₹25.9 crore. 

The sudden reversal in fortunes has triggered a reality check for ideaForge and India’s drone sector as a whole.

AD 4nXd

Source: NSE

Revenue and Profit Take a Hit in Q1

ideaForge’s Q1 FY26 numbers paint a grim picture. Revenue dropped to ₹12.7 crore, compared to ₹86.1 crore in Q1 FY25, a staggering 85.2% year-on-year decline. The company also slipped into the red, posting a net loss of ₹25.9 crore, versus a ₹1.1 crore profit a year ago. On the operating front, the company reported an EBITDA loss of ₹15.14 crore.

The company saw a 9.3% quarter-on-quarter decline in net profit and faced significant margin pressure. Operating margins fell to 19%, down from 27% the previous year. A key factor behind this was the sharp rise in expenses, notably employee benefit costs, which doubled year-on-year.

While some might see these numbers as part of a post-IPO course correction, the extent of the revenue collapse and cost escalation has raised eyebrows.

Source: Business Today

What Went Wrong?

The lacklustre Q1 performance seems to be the result of a combination of internal and external factors.

  1. Order Book Lull: Drone procurement, especially from government clients, often follows irregular cycles. Despite long-term demand prospects, quarterly revenue can fluctuate significantly depending on contract timing. This appears to be the case for ideaForge in Q1 FY26.
  2. High Fixed Costs: ideaForge’s employee benefit expenses doubling year-on-year signals a growing cost base, possibly driven by scale-up efforts post-listing. However, when revenues don’t match the rise in costs, profitability takes a hit.
  3. Operational Challenges: The shift from small-scale R&D to large-scale production and delivery often comes with teething issues. Delays in deployment, logistics, or regulatory approvals could have compounded execution risk in the quarter.

Long-Term Vision Over Short-Term Pain

Despite the weak numbers, ideaForge remains optimistic. The company maintains that Q1FY2026 marked a positive start and reinforced its resilience in technology and business. ideaForge emphasizes the ₹137 crore order secured under the Government’s 5th cycle of Emergency Procurement after rigorous technical evaluations and country-of-origin checks. 

The company also points out its involvement in Operation Sindoor, where ideaForge drones were deployed in active battlefield scenarios, demonstrating the utility of indigenous UAVs in high-risk operations. It underscores this as a validation of ideaForge’s product strength and strategic value to the Indian armed forces.

Looking ahead, multiple tailwinds were highlighted:

  • ₹40,000 crore allocation for the 6th cycle of Emergency Procurement.
  • A ₹1 lakh crore Research, Development and Innovation (RDI) Fund, aimed at boosting innovation.
  • The next phase of the Production-Linked Incentive (PLI) scheme for drone manufacturers.

These policy-level developments suggest that ideaForge could see a rebound in revenue in the coming quarters, especially if defense-related orders materialize at scale.

Source: Business Standard

Industry Outlook: Tailwinds Remain, But the Skies Are Cloudy

ideaForge’s story is closely tied to the larger trajectory of India’s drone industry. Initially bolstered by reforms like the liberalised Drone Rules (2021) and the Drone Shakti initiative, the sector witnessed a spurt in startups, investments, and media buzz. Government tenders and pilot projects made headlines, especially in defence and agriculture.

But in reality, the sector still faces multiple headwinds:

  • Slow commercial adoption: Despite hype, mainstream industries like mining, construction, and delivery have been slow in deploying UAVs at scale.
  • Procurement delays: Large government orders are critical but often subject to delays and compliance hurdles.
  • Dependence on subsidies: Many firms, including ideaForge, remain vulnerable to shifts in government policy support or PLI disbursements.
  • Cost management: Scaling deep-tech manufacturing in India while maintaining profitability is a fine balancing act.

The weak Q1 numbers serve as a reminder that the sector’s growth will not be linear. Strategic wins must be matched with consistent execution, cost control, and diversified demand.

ideaForge at a Glance

Despite current headwinds, ideaForge remains a formidable player in the Indian UAV ecosystem. The company is:

  • India’s leading indigenous drone manufacturer, with the largest deployment of unmanned aerial systems across the country.
  • Backed by marquee investors including Qualcomm Ventures, Infosys, and Florintree Advisors.
  • Ranked 3rd globally among dual-use drone makers by Drone Industry Insights in 2024.
  • Operates across both civil and defence sectors, with drones taking off once every three minutes in India.
  • Completed over 700,000 successful flights across customer applications.

Source: Business Standard

Investor Sentiment: Short-Term Pain, But Is the Long Game Intact?

The market reaction to ideaForge’s Q1 numbers has been swift and sharp. But it also raises a question: how should investors approach new-age defence-tech firms in India?

Unlike software or consumer tech, deep-tech hardware businesses, especially those working in regulated or government-linked sectors, move slowly. Cash flows and results can fluctuate. But the long-term payoff, especially in an import-substitution-driven ecosystem, can be significant.

For now, ideaForge’s stock price correction reflects investor concerns over revenue visibility and margin stability. But its strong order pipeline, government alignment, and operational track record offer some confidence for those with a long-term view.

Conclusion

ideaForge’s Q1 results may have let the market down, but they show the early struggles of an industry still growing. As India seeks to build a self-reliant drone ecosystem, the burden of execution will lie heavily on companies like ideaForge. While it navigates this period of correction, the broader drone sector must also evolve beyond subsidy dependence, towards scalable, diversified, and commercially viable use cases.

In a world increasingly powered by tech, sometimes the smartest bet isn’t on the final product — but on the builders behind it.

India’s electronics manufacturing space is riding a powerful wave:

  • Global outsourcing is on the rise
  • The government is offering strong incentives through the PLI scheme
  • And homegrown players are rapidly scaling up their capabilities

Right at the heart of this transformation is Dixon Technologies.

A true wealth creator for early investors, Dixon’s share price surged again today, following its latest earnings announcement — reaffirming market confidence.

Dixon Share Price Since Listing

AD 4nXfvdXn1Xh8LJI6ZqZlXqy2p5JVKEDV7ylCFUkG9r3SZvviDCMhCL2jsHf4 R7IU92lMF67W8bIz2QLPkpu5vfvEb CLFuVLA6A1Ql2W9QbJGmLcrltWBqUcUEM2zlWIBTgQg ByZQ

So what’s driving this recent rally?

Let’s break down what worked for Dixon in Q1, what didn’t, and what lies ahead for this electronics giant.

Dixon Technologies Q1 Result Analysis

Following the announcement of its Q1FY26 results, Dixon Technologies’ stock rose nearly 3% this morning.

The rally was largely driven by exceptional growth in the company’s mobile manufacturing business, even as some other segments showed signs of weakness.

Dixon Technologies is India’s largest electronics manufacturer, producing products for several global brands.

The company designs and manufactures:

  • Consumer electronics
  • Lighting products
  • Home appliances
  • Mobile phones
  • Security cameras

It operates across multiple manufacturing verticals, with mobile phones now emerging as the company’s largest revenue driver.

A pie chart with text and a blue circle

AI-generated content may be incorrect.

Q1FY26 Performance Overview

Dixon delivered a strong performance in Q1:

  • Revenue: Up 95% YoY
  • Operating Profit: Up 95% YoY
  • Net Profit: Up 107% YoY
A table with numbers and a green and blue box

AI-generated content may be incorrect.

The company’s Mobile & EMS division led the performance, with revenue growing 125% YoY. This segment now contributes 91% to total revenue, up from 79% in Q1 last year — clearly establishing itself as Dixon’s primary growth engine.

However, revenue from the Consumer Electronics and Lighting Products segments declined, indicating some pressure in those areas.

Positively, despite an increase in raw material costs (as a % of sales), the company maintained stable operating margins — driven by strict control over employee and operational costs.

A table with numbers and percentages

AI-generated content may be incorrect.

Dixon Tech Outlook After Q1 Results

Dixon’s Q1 performance signals that its Electronics Manufacturing Services (EMS) business is now entering a scalable and predictable growth phase.

The company plans to manufacture 40–42 million phones in FY26, with a target of 60–65 million by FY27. This growth will be supported by strong export orders from key clients like Motorola, which is expected to offset delays in the Vivo JV (now pushed to FY27).

While the end of the mobile PLI scheme in FY26 may pressure margins, Dixon’s backward integration strategy — manufacturing more components in-house — is expected to improve profitability.

Additionally, the Q-tech acquisition and joint venture with Inventec will strengthen integration efforts, expand the product portfolio, and boost margins.

Dixon has firmly positioned itself as a key player in the ‘Make in India’ theme. If the company executes its deeper manufacturing strategy successfully, the long-term growth story remains intact.

Strong Long Term Prospects

The electronics industry is one of the fastest-growing sectors in India, drawing strong investor interest. Over the past two decades, it has attracted over US$ 4.4 billion in foreign direct investment (FDI) — a clear reflection of its rising global relevance.

Looking ahead, India’s ambition of becoming a US$ 5 trillion economy by FY27 will rely heavily on the growth of electronics manufacturing. The government has set a bold goal — to export 40% of total electronics production to global markets.

Dixon is well placed to ride the tailwinds as it has undertaken significant capex in recent years to expand capacities across various verticals and enter new product categories.

Conclusion

Dixon has set its sights high — aiming to break into the list of the world’s top 10 EMS (Electronics Manufacturing Services) companies over the next five years.

Over time, it has steadily expanded its presence across all key segments of electronics manufacturing, earning the trust of several top-tier global clients.

Now, the company is moving up the value chain — entering high-margin verticals like precision components, mechanical parts, camera modules, and battery packs. These segments not only offer better profitability with double-digit margins, but also lay the foundation for Dixon’s next phase of growth.

That said, expectations are already sky-high — and so is the valuation. At current levels, the stock commands a premium multiple, reflecting the market’s confidence in its future.

But in the world of growth stocks, expectations are everything. If Dixon stumbles or fails to deliver on projected growth, the stock could face sharp corrections — the market rarely spares high-flyers that miss the mark.

Still, if the company executes well — especially on backward integration, export growth, and deeper manufacturing — Dixon could continue to be one of India’s most compelling Make-in-India success stories.

Picture this: It’s late. You’re hungry. The fridge is empty.

But fear not, your hero doesn’t wear a cape. It buzzes from your phone.

Enter: Zomato, Swiggy, and their lightning-fast sidekicks Blinkit, Zepto, and Instamart.

These aren’t just apps anymore. They’re your go-to rescue squad for food, groceries, and last-minute essentials.

From midnight cravings to missed meals, they’ve got your back, faster than you can say “extra cheese.”

And now, the spotlight is back on their leader: Zomato.

Fresh off a blockbuster Q1, the stock has surged over 20% in just two sessions.

Zomato Share Price

But the big question remains – is this a flash-in-the-pan rally? Or are we looking at a full-course comeback?

Let’s dig in.

Eternal Q1FY26 Results: Quick Commerce Takes the Lead

Following Eternal’s Q1FY26 results, the stock surged over 13% intraday today, hitting a fresh all-time high.

The primary driver of this rally? Stellar growth in the company’s quick commerce segment, which for the first time surpassed food delivery in order value.

Adding fuel to the rally, management stated that margins have bottomed out in both food delivery and quick commerce segments, and are expected to improve from here on — a statement that significantly boosted investor sentiment.

About Eternal

Eternal is a leading name in India’s internet economy with four core business verticals:

  • Food Delivery: Run under the Zomato brand, enabling customers to order food from restaurants online.
  • Going-Out: Powered by the District app, helping users discover restaurants and book event tickets.
  • Hyperpure: Eternal’s B2B vertical supplying fresh ingredients to restaurants.

As of Q1FY26, Food Delivery and Blinkit together contribute the largest share to Eternal’s B2C Net Order Value (NOV).

Eternal Q1FY26 Performance Highlights

Eternal posted a strong Q1FY26, largely led by Blinkit’s robust performance.

Operating profits improved quarter-on-quarter, with the company reiterating that profit margins have bottomed out at the segment level.

Q1FY26 marked a major turning point for Eternal as quick commerce outpaced food delivery in Net Order Value for the first time.

Adjusted revenue from quick commerce jumped nearly 155% YoY, driven by growth in MTUs and order values.

Despite adding 243 new dark stores and facing intense competition, adjusted EBITDA losses narrowed, and margins improved.

Management believes margins have bottomed out and expects further improvement as newer stores mature — assuming competitive pressures remain manageable.

Food Delivery Stable Despite Seasonal Headwinds

Food delivery saw ~18% YoY adjusted revenue growth, led by a steady rise in monthly transacting users (MTUs).

Operating profits improved sequentially, though margins declined slightly — impacted by seasonal challenges affecting delivery partner availability.

Management remains confident that demand will pick up going forward.

Outlook for Eternal

Eternal’s Q1FY26 results make one thing clear — Blinkit has emerged as the company’s primary growth engine.

The management has ambitious plans to scale Blinkit to 2,000 stores by December 2025, taking the total store count to over 3,500. This expansion is expected to significantly boost both reach and operational scale.

In the coming quarters, the company plans to transition Blinkit from a marketplace to an inventory-led model, which is likely to improve margins by approximately 1%, while also offering better control over inventory.

Importantly, Blinkit is already profitable in several cities. Over the long term, the company is aiming to achieve 5–6% adjusted EBITDA margins in the segment.

Meanwhile, in the food delivery business, the demand slowdown appears to have bottomed out. Management highlighted early signs of recovery — a trend that could support both growth and margin revival in the quarters ahead.

Tata group company Titan is acquiring a 67% stake in UAE-based Damas Jewellery for nearly ₹2,438 crore aiming to expand its presence in the Gulf Cooperation Council (GCC) region through a well-established luxury jewellery retailer.

Reacting to the same, Titan share price gained over 1% in early trade.

Titan Share Price

AD 4nXdMCUWuYqrr1TEtZFj

So, what does this move mean for the company and how will it play out for existing shareholders? Let’s decode.

Overview Of Titan Company

Titan Company was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO). It has grown into one of India’s leading lifestyle companies. The company’s portfolio spans watches, jewellery, eyewear, wearables, fragrances, fashion accessories, and ethnic dress wear. Plus, its flagship brands, Tanishq, Titan, Fastrack, Mia, CaratLane, and Titan Eye+, serve a broad consumer base through a retail network of over 2,000 stores.

Jewellery remains the company’s largest business, contributing approximately 85% of revenue in FY25, led by brands such as Tanishq, Mia, Zoya, and CaratLane. The watches and wearables division accounted for 8%, with Titan holding a significant share of India’s analog watch market. The eyewear business contributed around 1%, with Titan Eye+ being the largest optical retail chain in the country. Emerging businesses, including fragrances, Indian dress wear (Taneria), and fashion accessories, made up the remaining 2% of revenue.

Titan Revenue Break-up – FY25 Revenue Rs 60,456 Cr.

AD 4nXfQhnpAZj r0siKtsgvPSAmZ3

In addition to its domestic presence, Titan is expanding internationally with jewellery and eyewear stores across the Gulf, North America, and Southeast Asia. Its global ambitions are also supported by strategic moves such as the recent deal with the Damas Jewellery in the UAE, aimed at strengthening its Middle East footprint and scaling international growth.

Details Of Damas Jewellery’s 67% Acquisition

Titan Company, through its wholly owned subsidiary Titan Holdings International FZCO, has announced the acquisition of a 67% stake in Dubai-based Damas Jewellery LLC, marking its largest global acquisition to date. 

The all-cash deal is valued at an enterprise value of AED 1,038 million (approximately ₹2,438 crore or $283 million), inclusive of debt. The seller in this transaction is Mannai Corporation QPSC, a Qatar-based firm that has owned Damas since 2012.

The acquisition specifically excludes Damas’s franchise business with Graff, the British luxury jeweller. By acquiring this stake, Titan gains a significant foothold in the Gulf Cooperation Council (GCC) market through a brand with deep regional roots and recognition.

To finance the deal, Titan will use a combination of internal accruals, existing cash reserves, and debt, indicating both strong liquidity and a strategic capital deployment plan. The transaction is expected to close by January 31, 2026, pending regulatory and antitrust approvals across relevant jurisdictions.

Under the agreement, Mannai Corporation will retain the remaining 33% stake for a minimum of four years, after which Titan will hold the option to acquire full ownership as of December 31, 2029. 

Strategic Rationale Behind The Deal

  • The deal gives Titan direct access to a large, high-value market through a well-established jewellery brand with a strong retail footprint.
  • It strengthens Titan’s presence in the GCC region, where luxury jewellery demand is steadily increasing.
  • It aligns with Titan’s plan to expand its reach beyond the Indian diaspora and connect with a broader international customer base.
  • Damas’s wide store network offers Titan an immediate platform for growth in a new geography, reducing the need for ground-up expansion.
  • Titan plans to leverage its experience from previous acquisitions, like CaratLane, to integrate Damas, focusing on digital tools and a blended retail model.
  • The company expects to benefit from combined strengths in supply chain, talent, and product development while preserving Damas’s brand identity.
  • This acquisition supports Titan’s broader strategy of entering high-growth, premium segments with long-term potential.

Implications Of The Deal

The acquisition of Damas Jewellery by Titan Company Limited brings several important implications for the company’s financials, strategy, and shareholders—both in the short term and over the long haul.

  1. Short-Term Financial and Operational Impact
  • Titan is funding the ₹2,440 crore acquisition through a combination of internal accruals, existing cash reserves, and debt. This involves a significant outflow and will impact Titan’s immediate liquidity position.
  • The completion of the deal is subject to regulatory and antitrust approvals across relevant jurisdictions. The agreement also includes the exclusion of Damas’s franchise operations with Graff, which are to be carved out before the transaction is closed.
  • Initial integration will involve aligning operations, teams, and systems. These activities are expected to incur costs during the transition phase.
  1. Long-Term Strategic Impact
  • The acquisition adds a new international business segment to Titan’s structure through its subsidiary Titan Holdings International FZCO. Damas’s retail network and brand portfolio will operate alongside Titan’s existing jewellery businesses.
  • Damas’s operations will be integrated into Titan’s broader ecosystem, which includes jewellery brands such as Tanishq, Mia, Zoya, and CaratLane. The addition increases the company’s scale in terms of retail presence and product offerings across multiple geographies.
  1. Implications for Shareholders and Investment Outlook

For investors, the acquisition offers potential long-term value through market expansion, increased revenue, and broader diversification. Titan will gain a direct foothold in a high-growth luxury market, supported by rising disposable incomes, tourism growth, and cultural demand for premium jewellery in the GCC. However, despite the growth prospects, the shareholders should also watch for:

  • Delays in approvals or execution
  • Economic sensitivity of the GCC region to oil prices and geopolitical issues
  • Challenges in blending two brands with different operating models and customer bases

Conclusion

As a shareholder or market participant, you now have clarity on Titan’s latest international acquisition and its planned execution. The transaction introduces a new business segment, expands Titan’s retail footprint in the GCC, and brings operational changes over the coming quarters. 

You can refer to regulatory filings and official disclosures to stay informed on how the deal progresses across timelines, approvals, and integration milestones. Staying updated on these developments can help you understand how such strategic moves shape the company’s evolving business structure and financials

Picture this: you have been tracking a stock that has stayed right at the level of ₹1,000 for the last few weeks. Each time the stock seems to be able to break through, it pulls back. 

There is no major news coming up, no strong momentum, and the stock has clearly settled into a trading range. You are confident that the stock is likely to remain below ₹1,000 for the foreseeable future. 

Now imagine that there is a way to monetise that confidence.

Some traders do just this. Rather than hoping for a big rally or crash they are getting paid for betting the market is going to stay just where it is. The idea is simple. If you believe that a stock is not going to go above a certain price, you can benefit by taking money upfront by way of premium. If you are correct the premium is yours to keep.

Of course, a short call trade does come with risk. If the market takes off above the price you were counting on, your losses can be substantial. Thus, experienced traders who are comfortable putting a short call trade on, can manage the risk and have a solid view of market behaviour. 

What is a Short Call Strategy?

Before we can get into the mechanics of the short call strategy, it is necessary to understand the concept of “shorting” as it relates to trading.

Short selling is the process of selling an asset that one does not own with the intent of repurchasing it later at a lower price. An investor will employ short selling when they expect the price of an asset to drop. In other words, the larger the decline in price, the more profit the short seller stands to gain when they repurchase the asset.

With regards to options, the person selling an option is called the option writer. When the writer is selling a call option, they are creating a new contract between themselves and the buyer. A purchased options contract gives the buyer the right (but not the obligation) to buy/sell an underlying asset at a specified strike price, during a specified period.

So, when someone is taking a short position on a call option, they are fundamentally expressing a bet that the price of the underlying asset will not rise but ideally fall or remain flat. Conversely, the option buyer is hoping for the opposite—an upward movement in price of the asset.

If the price of the underlying asset increases over the strike price, the value of the call option increases, and potential risk of loss occurs to the seller. If the asset price remains flat or below the strike price, the call option should expire worthless. In this case, the seller gets to keep the entire premium at the time of selling the option and that is the maximum profit the seller can obtain.

Making a Short Call

Imagine we are tracking a stock that is priced at ₹200. After evaluating market conditions and technical analysis, the trader makes a prediction that the stock will have a hard time making it past ₹220 anytime soon. From there, the trader could sell a call option with a ₹220 strike for a premium of ₹12, since they are somewhat bearish or neutral on the stock.

By selling the option to the option trader, the trader is paid ₹12 per share upfront. On the total option contract, depending on the lot size of 100 shares, the trader is credited ₹1,200 immediately to their trading account.

At expiry, the option will have two possible outcomes:

  • If the stock is under ₹220: The call will expire worthless since the buyer will NOT exercise their right to purchase at a premium above market price. The seller keeps the premium in its entirety as profit.
  • If the stock is over ₹220: The buyer will likely exercise their option, and the trader must now deliver their stock at the price of ₹220, while buying their stock at a premium market price (say ₹240), resulting in a loss of ₹20 per share (₹240-₹220), minus what was paid for the premium. Their net loss will be: ₹2,000 (₹20 x 100) – ₹1,200 premium = ₹800 loss.

In examples like these, profits are limited to what you collect in premium; but the risk is open-ended if the market price of the underlying assets rises—which is why you should approach a short call strategy with extreme caution.

Analysing the Short Call and Long Put

When traders have a market or a specific stock that they expect to go down, they might consider two popular options strategies: the Short Call and Long Put. While both options strategies would happen in a bearish market, they differ in terms of how they are structured, how profits and losses are defined, and finally the type of risk involved.

Before you decide which strategy is best for your market outlook, risk tolerances and experience, it is a good idea to learn how they differ.

Short Calls: Speculating Against Price Increases

When traders want to short a stock and sell a call option, they will typically use a short call. A short call is the sale of a call option before posting any shares of the underlying security. A typical option seller collects a premium from the buyer and hopes the underlying stock or security does not increase above the agreed upon price or strike price until the expiry date of the option. If the underlying stock price at expiry date is below the strike price, the short call will expire worthless, and the trader keeps the entire premium as profit.

When using this approach, the trader assumes the underlying stock price will not exceed the strike price. Therefore, if the stock price increases above the strike price, the trader could be obligated to sell the stock at the strike price. If the stock price continues to rise, the trader could have theoretically unlimited losses. For this reason, a short call is a high risk strategy that should be avoided by beginning traders.

Example:

You sell a call option for XYZ stock at a strike price of ₹500 for a ₹20 premium. If the price at expiration is at ₹500 or below you keep the ₹20 premium as profit. If the price has increased to ₹550 at expiration you will have lost ₹30 (i.e., price of ₹550 – strike price of ₹500 – premium of ₹20) times lot size.

This type of trading works best if you have a neutral or slightly bearish market posture and you have reasonable assurance the underlying stock will remain below the agreed upon price or strike price.

Long Put: Profit When Price Moves Down

The long-put approach involves buying a put option giving the trader the right (but not the obligation) to sell the underlying security at a pre-established price before expiry. The trader pays a premium to purchase the right. The justification is to have the stock price decrease below the strike price.

The value of the put option increases as the underlying price drops. The trader may either sell the put for a profit or exercise the put option to sell the underlying and realize a profit on the underlying price based on the value of the strike price minus the new price of the stock (as they will receive the exercise price of the put option). The maximum risk for this option will be the premium paid, which is a relatively conservative option for many traders.

Example:

You have a put option on stock ABC with a strike price of ₹600 and the option premium for that option was ₹25.

If the stock price drops to ₹550, that option would be worth ₹50, thereby realizing a net profit of ₹25 (₹50 – ₹25).

If the stock price stays above ₹600, you will have realized a loss of the premium only (₹25).

Long puts have good opportunity in very strong bearish markets where there is a clear expectation the stock price will sharply drop.

Key Differences at a Glance:

FeatureShort CallLong Put
Market ViewUsed when the trader expects the price to stay flat or fall.Used when the trader expects the price to fall sharply.
Position TypeYou sell a call option and receive a premium.You buy a put option by paying a premium.
Entry CostBrings in a credit (you receive money upfront).Requires upfront payment (debit to your account).
Maximum ProfitLimited to the premium received.Potentially high if the asset price falls significantly.
Maximum LossUnlimited if the asset price rises sharply.Limited to the premium paid for the option
Risk Exposure


High, due to open-ended loss potential.
Lower, as the maximum loss is predefined.
Margin RequirementHigh, because brokers demand extra capital for risk coverage.Low, as no margin is typically required.

Understanding Theta in Short Call Strategies 

Theta is a measure of time decay. Specifically, it is the rate of decay of an option premium. This occurs when an option’s expiration date approaches (and the other market conditions remain the same).

Theta is favourable when you are on the seller side of a short call position. That is, the passage of time (particularly when close to the option expiration date) will slowly erode the premium value of the option. If the underlying asset stays below the strike price, the premium erosion will provide the seller a better opportunity to exit the position at breakeven or profit if they hold the position until expiration or liquidate the position before expiration.

Time decay is highest for at-the-money options, and it accelerates when you approach expiration. This is why sellers of short-term options can take advantage of the Theta effect when they anticipate little or no price movement. Although the Theta in the short call option strategies is positive, it cannot offset any short or sudden upward price movements in the underlying asset.

In summary, Theta is advantageous for short call option sellers; however, even though Theta is positive for these sellers, they must consider Theta against the effects of all of the other influences with which sellers must deal if they are going to manage risk, especially volatility and market direction.

Key Points to Know Before Selling Call Options

Before you sell a call option, there are a few very important things you need to consider.

Use in Neutral or Bearish Markets: You will only want to use this strategy if you are reasonably confident that the asset will not significantly exceed the strike price.

Limited Profit and Unlimited Risk: You get to keep the premium, but if the price rises dramatically over the strike price it could be an infinite loss.

Low margin: Some brokers will have a high margin because there is open-ended risk.

Risk Management: Take steps to protect your capital such as a stop-loss order or hedging.

Avoid in Volatile Events: Earnings events or news releases can create massive price movement and be unpredictable, it is best to avoid selling calls altogether.

Time Variables: In general, time can help you with your position given options usually decay in value with the passage of time. If you have a rapid price point, time does little for your options position.

This strategy is much better suited for more disciplined traders that understand their risk.

Conclusion

The short call strategy can perform well in neutral to mildly bearish environments and can provide consistent income through thoroughly researching premium collection opportunities. 

That said, as there is limited profit with unlimited risk, this strategy “short call” is only advisable if you have a strong conviction for the trade and a firm understanding of risk management.

This strategy may be employed best by traders who understand options pricing and have indirect and direct opportunities to monitor their position. When used judiciously, this strategy can be a useful addition to broader trading strategy.

FAQs

Is there risk associated with selling a call option?

Yes, selling a call option (particularly if not owning the underlying (naked call)) carries an unlimited amount of risk on the upside if the price exceeds the strike price. Risk should be managed for this type of trade.

Is the short call strategy for beginners?

The short call strategy isn’t discussed more broadly because of the potential risks, especially in terms of margin. Also, if you are considering using this strategy, you should be familiar with options and have solid risk management methods in place.

When should a short call strategy be assessed?

A short call strategy is best used in a directional market that is moving sideways or slightly bearish and the trader believes the underlying will remain below a certain price level (the strike price) before expiration.

India’s two largest private sector banks — HDFC Bank and ICICI Bank — grabbed headlines today as they released their financial results for the quarter ended June 2025.

Shares of both the companies surged 2%, pushing the Bank Nifty index to record levels.

Bank Nifty Hits Record High

While both lenders delivered strong numbers, the drivers of growth were notably different.

From HDFC Bank’s margin recovery and bonus share buzz to ICICI Bank’s steady asset quality and loan book expansion, the June quarter results offer a closer look at how each bank is navigating the current macro environment — and what it could mean for investors going forward.

Let’s take a detailed look to find out which is better: HDFC Bank or ICICI Bank?

HDFC Bank Q1 Result Analysis

Steady Quarter; Growth Set to Accelerate

HDFC Bank delivered a stable performance in the first quarter of FY26, with investor sentiment getting a boost from the bank’s announcement of its first-ever bonus issue and a special dividend. 

The stock price rose 2% in early trade today.

HDFC Bank Share Price

As India’s largest private sector bank by lending, HDFC Bank holds a ~15% market share in total credit. It is primarily a retail-focused lender, with nearly 50% of its loan book contributed by retail segments.

The bank is part of the larger HDFC Group, which also has significant presence in mutual funds, insurance, broking, and other financial services.

In Q1, the bank reported a healthy and steady performance, while also signaling optimism for the coming quarters—particularly on the loan growth front.

Net interest income (NII)—the income earned from lending—rose 5% year-on-year to ₹31,438 crore. This growth came despite a dip in net interest margin (NIM), which declined to 3.35% from 3.46% in the previous quarter. The softness in margins was largely expected due to recent interest rate cuts by the RBI.

HDFC Bank’s total loan book grew 7% quarter-on-quarter to ₹26.53 lakh crore.

Retail loans (including personal and home loans) saw a strong 8.1% growth. Meanwhile, SME loans grew by an impressive 17.1%. Corporate loan growth was modest at just 2%.

On the deposit side, growth remained strong. Deposits rose 16.4% YoY to ₹27.64 lakh crore. The bank’s management expects this momentum to continue and aims to increase its market share further.

Provisions rose sharply this quarter, primarily due to the creation of floating and contingent provisions. 

Using proceeds from its subsidiary HDB Financial Services’ IPO, the bank prudently created ₹9,000 crore in floating provisions—meant as a buffer for future uncertainties—and an additional ₹1,700 crore in contingent provisions. These steps further strengthen the bank’s balance sheet.

Overall, HDFC Bank’s net profit rose 12% YoY to ₹18,160 crore, surpassing market expectations.

In a major milestone, HDFC Bank announced a 1:1 bonus issue—its first ever. It also declared a special interim dividend of ₹5 per share.

Looking ahead, HDFC Bank expects loan growth in FY26 to be in line with the industry, but plans to outperform the system from FY27 onward. This growth will be led by the retail and SME segments, which offer better returns.

The bank also noted that its time deposits haven’t been fully repriced yet. As these start getting reset to lower interest rates, margins are expected to improve. A higher mix of retail and SME loans and replacing high-cost borrowings with deposits will further support margin and profitability expansion.

The bank aims to reach a return on assets (RoA) of 1.9–2% by FY27–28—indicating strong profitability potential.

Overall, HDFC Bank’s medium- to long-term outlook remains positive and well-structured.

Now, let’s look at ICICI’s numbers.

ICICI Bank Q1 Result Analysis

Resilient Performance Despite a Challenging Environment

ICICI Bank delivered a strong set of numbers for the April–June quarter, even as market conditions remained uncertain. 

The stock opened with a gap-up today and ended near its 52-week high.

ICICI Bank Share Price

As India’s second-largest private lender by outstanding loans, ICICI Bank is part of the diversified ICICI Group—a full-service financial powerhouse with presence across lending, insurance (life and general), asset management, broking, and more.

In Q1FY26, the bank posted a 15.5% year-on-year jump in net profit, which came in at ₹12,760 crore—beating analyst estimates. The growth was supported by strong margins, lower operating expenses, and healthy returns from its investment book. 

The bank also maintained solid control over asset quality.

Net interest income (NII) rose 11% YoY and 2% QoQ to ₹21,630 crore. While net interest margin (NIM) slipped slightly by 7 basis points to 4.34%, it remains at a healthy level.

Loan growth stayed robust, with total advances up 11.5% YoY and 1.7% sequentially—led primarily by strong momentum in the business banking segment. 

On the liabilities side, deposits grew 12.8% YoY and remained flat QoQ. The CASA ratio stood at a stable 41.2%.

Fresh slippages stood at ₹6,250 crore, marginally higher than the ₹5,920 crore in the previous quarter. However, gross NPAs remained flat at 1.67%, while net NPAs rose slightly by 2 basis points to 0.41%—indicating continued strength in asset quality.

ICICI Bank’s treasury income and lending growth helped offset mild pressure on margins this quarter. The business banking segment remained a key contributor to loan growth, and deposits showed resilience.

While margins may face some pressure in the near term due to the RBI’s recent rate cuts, the bank expects improvement from Q3 onwards as volatility reduces and the high-yield loan book expands. The bank also continues to focus on high-quality lending and disciplined credit practices.

On the operational side, sustained investments in technology are enhancing productivity and cost efficiency. With a strong provisioning buffer in place and a tight grip on asset quality, the bank remains well-positioned for steady growth.

Overall, ICICI Bank has delivered yet another solid quarter—demonstrating resilience, consistency, and focus in an uncertain macro environment.

HDFC Bank vs ICICI Bank: Which is Better?

Both the banks have posted upbeat earnings in a challenging environment. While HDFC Bank is better placed, ICICI Bank’s management expects growth to pick up from the third quarter of this fiscal.

Despite rapid progress, a large part of India still remains credit-averse. For many, taking a loan is seen as a last resort — not a financial tool. This mindset has kept India’s credit penetration well below global levels.

But that’s exactly where the opportunity lies for ICICI Bank and HDFC Bank.

As the economy matures, this gap offers significant headroom for Indian banks to grow.

Take manufacturing, for example. With the global “China plus one” shift gaining momentum, India is emerging as a serious alternative. The government’s push to turn India into a global manufacturing hub is only accelerating this trend.

And at the heart of this transformation? Small and medium enterprises (SMEs). Financing these businesses could unlock a major new growth engine for banks.

Another structural shift is underway in rural India. As manufacturing expands, millions currently employed in agriculture could transition to industrial jobs — creating new demand for credit and banking services in semi-urban and rural areas.

Of course, challenges remain. Digital and financial literacy in these regions is still low. For banks, this is both a hurdle and an opportunity. Cracking the rural code will require innovation and education — but the payoff could be massive.

That said, growth without caution is risky. Banks that maintain strong underwriting standards and manage credit risk effectively will stand out.

To sum up, as credit penetration deepens and the economy shifts gears, fundamentally strong banks like HDFC Bank and ICICI Bank are well-positioned to ride this wave of transformation — and create long-term value in the process.

Today’s trading session saw major action from three index heavyweight stocks following the release of their Q1 earnings – HDFC Bank, ICICI Bank and Reliance Industries.

While HDFC Bank and ICICI Bank shares surged over 2% in trade, taking the Bank Nifty index to record levels, Reliance slipped over 3%.

This, despite the diversified conglomerate posting the highest ever quarterly net profit for the June 2025 quarter.

Reliance Industries Share Price

About Reliance Industries

Reliance Industries is one of India’s most influential conglomerates, with a strong footprint across sectors — from energy and petrochemicals to retail, telecom, entertainment, and textiles.

Its core operations include oil and gas exploration, refining, petrochemicals, and the marketing of petroleum products.

But Reliance isn’t just about energy.

It’s also India’s largest retailer, with a nationwide presence across grocery, electronics, and fashion formats.

Through Jio, it reshaped India’s telecom landscape — bringing affordable internet to millions and accelerating the country’s digital journey.

Looking ahead, Reliance is betting big on green energy, investing heavily in solar, hydrogen, and advanced materials to build India’s most integrated new-energy ecosystem — aligned with the country’s sustainable future.

With its scale, innovation, and reach, Reliance plays a vital role in powering India’s economy and ranks among the country’s top employers.

Reliance FY25 Segmental Mix by Revenue (FY25 Revenue Rs 11,93,053 Cr)

Source: Company Reports

Reliance Industries Q1 Results

For the quarter ended June 2025, Reliance Industries’ quarterly profit beat estimates as the billionaire Mukesh Ambani-led conglomerate benefited from a massive one-time gain after divesting its stake in India’s biggest paints maker Asian Paints.

India’s largest company by market value reported a 5.5% increase in revenue while its net profit shot up by 77%.

This is largely attributed to a spike in other income which surged almost 280% to Rs 15,120 crore, with more than half coming from an “investment sale,” according to Reliance’s filing. 

Reliance Industries Q1FY26 Financial Snapshot

Source: Company

Segmental Performance

The financial boost from the sale of Asian Paints’s stake helped Reliance overcome the slight weakness in the oil-to-chemicals business where revenue slipped 2%. 

The company had partially shut units at the 663,000 barrels-a-day Jamnagar refinery in April 2025 for maintenance work.

Meanwhile, its retail and telecommunications businesses posted robust growth in revenue.

Retail business revenue came in 11% higher compared to the year ago period while Jio’s subscriber base grew 2% to 498.1 million subscribers. The average revenue per user climbed 15% YoY.

Reliance Segmental Performance

Source: Investor Presentation, Systematix Research

Management Commentary and Outlook

Reliance plans to operationalize its entire new energy ecosystem in the next four to six quarters as the company’s strategic diversification in 2021 beyond fossil fuel-linked businesses begins to fructify.

Meanwhile, the company is consolidating all its consumer goods brands into a new unit as it readies for an initial public offering of its retail business. Reliance Retail last week announced a big deal to acquire home appliances maker Kelvinator, in the latest sign of aggressive expansion in the consumer segment.

The company has guided for doubling EBITDA across the group by the end of FY30. Investor attention has now shifted to the upcoming AGM for updates on Jio’s listing.

Nevertheless, the company, which is India’s top buyer of Russian crude, may face challenges going ahead after the European Union tightening sanctions on Russia.

Conclusion

Reliance Industries has evolved into a multi-sector powerhouse, with strongholds in energy, telecom, retail, and digital services. This diversified model has significantly reduced its reliance on any one revenue stream.

Its telecom arm, Jio, has been a game-changer, revolutionising India’s digital ecosystem by making data and digital access affordable, leading to unprecedented user growth.

What sets Reliance apart is its bold, forward-looking investments, particularly in renewable energy and cutting-edge technology. 

Strategic partnerships with global giants like Facebook, Google, and BP have brought not just capital, but also global expertise and visibility.

In every move, RIL is building for the long term by scaling not just business verticals, but entire industries.

Once touted as the next big disruptor in India’s financial services space, Jio Financial Services hasn’t exactly lived up to the hype, at least not on the stock market.

In the last one year alone, the stock is down 7%.

AD 4nXfhKYXNHEv6SCuWxLuDSUb2xIxwRxY2uLyIEpWoIlIoBm562JgQ8OFzQQWLpC91oxR qggCNzbVRJrEXbsnVD7ASdOCp7L7jJ6F

This, despite all the buzz around:

  • Its Reliance pedigree
  • The massive financial opportunity in India
  • And a series of headline-grabbing announcements last year

But now, the company has just dropped its Q1 results.

So… is this the turning point?

Is a comeback rally around the corner?

Or is the stock still running more on speculation than substance?

Let’s dig in and find out.

Jio Financial Declares Q1 Results

Jio Financial Services post market hours on Thursday reported a 3.8% growth in its Q1FY26 consolidated net profit at Rs 325 crore. 

The company’s revenue from operations surged 47% at Rs 612 crore.

The Mukesh Ambani company drew revenue of Rs 363 crore as interest income. 

Jio Financial Services Q1 Highlights

AD 4nXfBcPcZPSin0dVCCet2tBAwhNIOwYAIA0BpGs4ffKEfSfLshyYCvQvC6dMJNri mxdo0QZQzgNJv8zwa0qXfYW P

Source: Company Reports

Recent Developments

In the last few weeks, Jio Financial Services has fired on all cylinders, unleashing a series of bold moves that have the Street buzzing.

Jio BlackRock is now officially a broker!

SEBI has recently granted Jio BlackRock Broking the green light to kick off stock broking and clearing operations in India.

A JV between Jio Financial and global investing giant BlackRock, this move alone sent the stock flying.

100% control of Jio Payments Bank

Jio Financial has also acquired SBI’s stake in Jio Payments Bank for ₹1.04 billion, making it a wholly owned subsidiary.

Backed by RBI’s approval, this step signals deeper integration and greater control over its digital banking ambitions.

But wait, there’s more…

Investors Expectations

Jio isn’t just making headlines, it’s building an empire.

It pumped ₹13.5 billion into group companies in FY25 to scale operations.

Further, it plans to unleash AI-driven analytics to deliver hyper-personalized financial products in FY26.

The company even infused ₹1.9 billion into Jio Payments Bank for aggressive expansion.

During the quarter, it even received a nod for its Asset Management Company business via Jio BlackRock AMC.

All of this in a financial services sector that’s heating up thanks to digitisation, inclusion, and government tailwinds.

On the valuations front, however, the stock is still trading at a premium valuation.

So the real question is: Are we witnessing the birth of a true fintech powerhouse? Or is this just a hype cycle waiting to fade?

Taking Advantage of a Structural Opportunity

India’s financial sector is in the middle of a major transformation.

With rising financial inclusion, rapid digitisation, and policy support from the government, the foundation is being laid for an ambitious leap—a financial ecosystem capable of supporting a US$30 trillion economy by 2047. That’s nearly 20x growth from current levels.

This wave of structural change isn’t just exciting—it’s inevitable.

And for a company like Jio Financial Services, which is aggressively building out its presence across broking, payments, and asset management

…it’s a rare moment of alignment between timing, technology, and ambition.

The stage is set.

Angel One has built a compelling growth story in India’s broking space.

With a strong growth in new demat accounts and a solid rise in its net profit and revenue, the numbers speak for themselves. The company has also maintained return ratios of over 40% for consecutive years – an impressive feat in a highly competitive industry.

Few players in India’s broking landscape can match this blend of scale, profitability, and consistency.

By staying focused on client-centric innovation and technology-first solutions, Angel One has carved out a leading position in India’s fast-evolving financial ecosystem.

Today, shares of Angel One were in focus following the release of its quarterly earnings for June 2025.

Let’s look at the company’s profile, latest results, and examine whether the company will be able to continue its growth trajectory.

About Angel One

Angel One has a diversified business profile that spans across multiple segments of financial services. Currently, the brokerage business makes up for most of its revenue, followed by interest income.

Angel One Revenue Mix

To diversify its income, the company has ventured into other businesses. The company has nine businesses.

Business UnitFunction
Angel SecuritiesBroking
Angel CrestBroking
Angel Financial AdvisorsDistribution of Insurance Products
Angel AMCAsset Management Company
Angel One TrusteeTrustee company for AMC business
Angel One Wealth ManagementWealth Management Services
Angel FincapNon-Banking Financial Company (NBFC)
Mimansa Software SystemsSoftware and technology-related services
Angel DigitechBusiness support services

Angel One Q1 Results

In the June 2025 quarter, Angel One’s revenue declined by 19%. This drop was driven by multiple factors—new F&O regulations, weak market sentiment which impacted trading volumes, and new compliance norms that affected the company’s other income streams. 

Broking revenue alone saw a sharp 23% fall.

The company’s operating performance was also under pressure. Operating costs rose by 23%, with ₹1.1 billion spent solely on IPL-related expenses.

Overall, it was a tough quarter for Angel One. However, the company’s new initiatives showed strong traction.

Its wealth management business performed well, with the client base crossing 1,000.

Credit disbursements saw a massive 123% jump, and with new lending partners like KreditBee, further growth is expected.

Even the mutual fund distribution business expanded, with AUM rising from ₹111 billion in March 2025 to ₹138 billion now.

A table with numbers and a red and blue box

AI-generated content may be incorrect.

Angel One Market Share

Angel One retained healthy market share across segments with 19.7% in option premium-based equity, 21.0% in F&O, 18.0% in cash, and 57.0% in commodities.

Angel One Market Share Trends

AD 4nXfvgnMV5Pob0pTJKLzisnAQ5YdpUJ 94 8yqLam9v Xpf4jkFXkyTh L brlPq5WRAnMIus T3jVzq4VgMp492suOROB07wBP IGkZd0Nwnaz3QbjO4wdnSaW8X9DyRPpGXuT

Source: Investor Presentation

The company also has some very impressive numbers when it comes to share in India’s incremental demat accounts, average daily turnover and active client base.

Overall, as of FY25, Angel One had a 16.1% market share in demat accounts.

A screenshot of a graph

AI-generated content may be incorrect.

What Next?

Angel One’s business has grown dramatically over the last three years on the back of an increase in retail investor participation in the stock market.

Consistent Net Revenue From Every Cohort

AD 4nXdS Igy5 nLtdCy EWLISc6XJsJHK6lENdxo3Sf

Source: Investor Presentation

Angel One’s blitz marketing campaigns have allowed the company to grow exponentially over the past 5 years. 

Given that Angel One’s primary target market belongs to the young demographic profile from smaller cities, with a keen interest in investing in the share markets, the company does have a long runway of growth. 

Angel One Client Demography

AD 4nXerOCAIxFheREJy4u1sS5GV8E9889TWEFNWIRI8KyGhUTXZQ5EyYJQXO9B fD1NZH2 v3dTaA6QbZCuwz66u0RNZ uBuZKZ

Source: Investor Presentation

However, the strong potential of significant losses in the F&O market in the event of a market crash exposes the business of Angel One to significant risk.

Moreover, Angel One is exposed to regulatory risk as capital markets are highly regulated. The market regulator keeps changing or introducing regulations with the objective of further enhancing the transparency levels and limiting the misuse of funds.

It also faces intense competition in the brokerage industry, especially with the rise of 100% digital and zero brokerage firms, leading to competitive brokerage rates across the sector. It faces competition from Zerodha, Groww, Upstox and ICICI Securities.

Conclusion

Angel One continues to be a dominant force in India’s stockbroking space and a growing foothold in wealth management and mutual fund distribution.

Despite a challenging quarter marked by revenue pressure and rising costs, the company’s underlying growth engines remain intact and are gaining traction.

However, headwinds like rising competition, regulatory uncertainty, and reliance on F&O volumes are key risks to watch.

Going forward, Angel One’s ability to balance growth with compliance, innovation with cost control, and scale with customer trust will determine how strongly it navigates this evolving landscape.

Frequently asked questions

Get answers to the most pertinent questions on your mind now.

[faq_listing]
What is an Investment Advisory Firm?

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.

An investment advisory firm is a company that helps investors make decisions about buying and selling securities (like stocks) in exchange for a fee. They can advise clients directly or provide advisory reports and other publications about specific securities, such as high growth stock recommendations. Some firms use both methods, like Research & Ranking, India’s leading stock advisory company, specializing in smart investments and long-term stocks since 2015.