Ladies and gentlemen, good day, and welcome to Q1 FY 'twenty six 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 of the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines are in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded.
I now hand the conference over to Mr. Hittal Kutkar from Angel One Limited. Thank you and over to you, Mr. Kutkar.
Good morning and welcome everyone.
Thank you for joining us today to discuss AngelOne's Q1 FY 'twenty six 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 One is represented by Dinesh Takkar, Chairman and Managing Director Amrit Kengve, Group CEO Deniz Agarwal, Group CFO Saurab Agarwal, CEO, New Business Shogit Mathur, Co Founder, IONIQ Wealth Heman Bhatia, CEO, AMG. We also have the senior leadership team of AngelOne along with SGAR, 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. Dinesh Sakhar for his opening remarks.
Thank you, Rasul.
Good morning, everyone, and thank you all for taking time to join us on the call today. We have also been 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 services sector. Over the past decade, digital has redefined how Indians manage their money.
But let me put this in perspective. Only about 115,000,000 unique bank holders have a Demet account today. Mutual fund AUM is still below 20% of GDP, and insurance penetration lags are behind global norms. This income, credit protection products remain concentrated in top cities. Nearly, of the India underserved.
Clearly, the runaway for growth is vast, and it cuts across every corner of financial services. At AngelOne, we have always believed technology is a bridge between expiration and excess. That belief has shaped our journey so far, and it depends on ambition today, which is to build a truly digital platform that can solve every financial need across our clients' life cycle. Whether we are investing, borrowing, protecting, or planning, our vision is to deliver it all from the three to one trusted international platform. During period of heightened uncertainty, whether given the market size 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 relevance, especially when a 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 the areas. Nine out of 10 clients we onboard today comes from Beyond PR one, which clearly shows the power of technology to take quality of financial services to the place that they were probably unavailable. An important reason for the proliferation of our business over the years is that we have never regarded ourselves just as difficult. Mutual funds are already becoming a habit for many Indians.
And with such, I think, inflows at an industry high of over rupees $270,000,000,000 a month. This is almost a possibility to extend over years. 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 SIT registration in the country. So it is another expanding transformative for Frontier.
The high demand for this ticket loads and personal credit in non net to serve our digital partnerships with banks and NBFC. And we are scaling this business strategy. This philosophy of reimagining financial services through technology extends into a front segment as well. But traditional wealth management models are being challenged by the digital revolution. Here too, 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'm 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 every scale, the data managed with advanced technologies will enable us to keep cost low and get in touch and check even in the smallest of towns. Because that is not subject.
The real India lives in and beyond, which is where the next wave of investors and sales 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 humanly resilient. We also recognize that some businesses take time to stay, and we are entirely comfortable with that. Our approach is to grow them and give them the time they need to mature and integrate them thoughtfully into our broader platform, whether this process involves product innovation, artificial alignment, or a redesign into digital experience. It will not be less.
All the initiative on which we embark will be deeply considered because of NorthStar is to empower billion lives learning the power of big and technology. We will not hesitate to take this course when we believe they are in the service of our clients and our long term purpose. Looking ahead, I believe the payments are all in place. India's new population and they're increasing wealth combined with digital openness and a more consistent predictive availability vision. We have delivered the delivery and use of financial services.
The angel one is perfectly positioned to lead this next sector of India fintech story. We are no longer just a broking company. We are building Angel One as a fintech platform, one that is called product agnostic, client centric, and technology led. Crucially, this platform will solve every financial needs and grow with every client's ambition. The opportunity has been immense, and as always, we will pursue it with same discipline, innovation, and customer focus that brought us here.
Thank you for your interest and confidence in us. I now hand over the proceedings to Ambrish.
Thank you, Diti. Good morning, everyone. Thank you for joining us on the call today.
With the macro opportunity clearly laid out by Diti, 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 insights, predictive engagement, and smarter protection.
These are not just buzzwords. These are the building blocks of our platform architecture. Real capabilities embedded across the client's life cycle. For example, AI powered nudges are helping clients make better financial decisions. Predictive models are strengthening our risk and fraud detection framework.
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 troughs, 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 two 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 Demat account market share stands at $16.16.3 percent, and we continue to be a leader in incremental acquisition with a 21.7% share. We added over 1,500,000 clients in q one FY twenty six with 88% coming from tier two, three and beyond.
Our market share in active clients and overall retail equity turnover has stable at 15.319.7% respectively, and our clients executed 343,000,000 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 48,000,000,000 this quarter, further validating client confidence and platform stickiness. Our assisted business too is scaling steadily, fueled by the same AI plus philosophy that drives our platform. We are embedding intelligence into every layer of the ecosystem, enhancing partner efficiency, engagement, and effectiveness.
AI generated podcast in four regional languages now empower partners to educate and connect with clients more meaningfully while curated advisory reports like techno funda, option strategy, and daily equity and commodity updates helps 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 1,900,000 new ships in the quarter and distributed $22,300,000,000.0 rupees in credit.
With this, our cumulative distribution of credit now stands at over rupees 9,300,000,000.0 with a year within a year of launching the offer. Here too, we have leveraged AIML models to develop proprietary scorecard to predict propensity and improve precision and scale for the top of the world. What excites me most is the direction in which we are moving ahead, a future where AngelOne 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.
IONIQ Wealth continues to expand client base and now serves over a thousand clients as of June 2025. Here too, we are bringing our digital and data capabilities to serve the next generation of wealth creators. Like, D. C. Rightly said, we are here to challenge the orthodox and redefine the rules of the bold thinking, fresh idea, and relentless execution.
Recently introduced products like specialized investment funds and an accelerated 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 a core engine driving every aspect of our platform. With over 32,000,000 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?
Thank you, EK. Good morning, everyone. It's great to have you with us. As EK 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 tip 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 underpenetrated 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 Q1 FY 'twenty six, we facilitated disbursals of 2,300,000,000.0 across six partners, taking our cumulative disbursals to INR 9,300,000,000.0 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 AIML driven scorecard for creditworthiness, propensity and partner mapping, deep integration that allow for seamless journeys and stronger approval funnels and intent based models that make 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 trade 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 serve users beyond our core base, and we are actively working on tracking 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 a dent in this business. Coming to mutual funds. Mutual funds are the cornerstone of our engagement and habit forming strategy.
As of June 2025, over 3,000,000 customers have engaged with our mutual fund offering, up from nearly 1,200,000 a year ago. Our step engine continues to perform well with 1,900,000 new sales added in Q1 FY 'twenty six. This is not just about scale, it's about deepening relationships. Magic lies in the behavioral depth and not just in raw count. Repeat TIPs are growing, wallet share is growing, cross product adoption is increasing, client stickiness is clearly rising.
Clients are starting to think of Angel One 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 fund 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 sales, 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 through our top profile, and we are layering in technology to improve both customer and intermediate experience. From partner dashboards to smoother 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 calling 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 market, creating lasting impact at scale. We focus on the user and let his trust on us to 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 Sobhit to walk you through the wealth business. Thank you.
Thank you, Saurabh. Good morning, everyone. Let me begin with a brief overview of the macroeconomic environment 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 rep separate steady at 5.5%. Given this backdrop, 2025 is shaping up as a year of asset allocators and present 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 three to four x 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 two and tier three 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 team and timely tactical allocation to capture market opportunities for our clients. Our domain experts blend deep in their conviction with global diversification, offering portfolios that go beyond the conventional. The US and I growth is powered by strong reference and word-of-mouth. HNI, we are seeing early green shoots.
We're 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 engagement. Our app experience is built around what we call the four a'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. They've 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, etcetera. Business update. We've crossed 5,000 crores in AUM with over thousand clients across nine cities.
This includes both active mandate 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 contract 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 Himin to give you an update about the AMC business.
Thank you, Shobit. Good morning, everyone. I'm excited to share that our asset management business continues to gain meaningful traction and momentum. As you would recall, in Q3 FY 'twenty five, 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've launched five products across equity and fixed income. In Q4 FY 'twenty five, we debut with three passive products, the Angel One Nifty Total Market Index Fund, Angel One Nifty Total Market ETF and our first debt product, Angel One Nifty One Day Rate Liquid ETF. I'm proud to share that in this quarter, we have continued that momentum with the addition of two new offerings, Angel Nifty fifty Index Fund and Angel One Nifty fifty ETF. These additions represent our continued commitment to building a broad based, low cost and efficient passive product suite that caters to India's growing investor base.
With the inclusion of this team, 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 INR 3,400,000,000.0 as of June 30. 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 cohort, 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 changing scale with spend, we have stayed focused on building organic traction through meaningful investor education and product awareness campaign. We have been active on social media, shared information creative and bite sized content, and this content for 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 expansion. We plan to continue adding to our equity book and are now working towards launching commodity based products. It 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 of a star must come and angel on AMC's position 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 for all stakeholders. With this, I will take a pause and invite Vineet to take you through the financial performance.
Thank you, Emme.
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 $343,000,000, a clear sign of healthy client engagement. Our financial performance reflected this momentum.
Gross revenues increased by 8.1% quarter on quarter to INR 11,400,000,000.0. Net revenues grew by 7.3% quarter on quarter to INR 8,900,000,000.0. Our total revenue mix continues to be well diversified. Over 45% came from broking commissions in the F and O 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 corporation and the balance from depository operations, distribution, wealth and asset management businesses. Our total gross broking income increased by 9.1% sequentially to INR 6,900,000,000.0 after accounting for the sharing of the commission to authorized persons, net broking income rose by 7.3% quarter on quarter to INR 5,300,000,000.0.
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 INR 42,000,000,000 since the quarter, up by 4.3% quarter on quarter. This, along with higher placements of deposits, grew a 5.5% quarter on quarter rise in total interest income to INR 3,600,000,000.0. Interest income from client 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 volume. Income from distribution business grew by 11% to INR $349,000,000, supported by strong performance in distribution of credit and insurance products and IPO. 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 spend of INR 1,100,000,000.0 in quarter one compared to INR $344,000,000 in the previous quarter. Excluding these IPO costs, our underlying operating expenses actually declined by 9.9% quarter on quarter to INR 3,100,000,000.0, reflecting cost discipline amidst softness in client acquisition numbers.
On the talent front, we made fresh plans 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 INR $465,000,000. These investments are deliberate and consistent with our strategy to attract, reward and retain top talent, supporting our long term growth ambition. The 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 INR 2,100,000,000.0 for the current fiscal. Our reported operating margin was 21.8%, lower sequentially due to the IPL costs and the 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 INR 3,100,000,000.0, translating into a healthier margin of 34.3%. This normalized margin also absorbed a 2.6% impact from our continued incubation of the newer businesses of Asset Management and Wealth Management. Reported PAT for the quarter was INR 1,100,000,000.0, lower by 34% quarter on quarter. But normalized PAT after adjusting for the IPL and variable pay effect actually grew by 26% quarter on quarter to approximately INR 1,900,000,000.0. On the balance sheet side, our period ending client funding book stood at INR 48,000,000,000, supported by incremental borrowings, which increased by INR 1,900,000,000.0 sequentially.
Consolidated net worth was at $55,700,000,000 as of 06/30/2025. 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 twenty twenty six 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 Ambrishu 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.
Thank you.
We will now begin the question and answer session. The first question comes from the line of Swanov Mukherjee with BNK Securities. Please go ahead.
Hi, sir. 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 that in the average orders that we have. So June was lower than May. And if, you know, the number of I think the number of contracts that are trading in exchanges will be an indicator, I think, it continues to remain slightly separate.
So just wanted to understand that if whether your time lines that you had earlier kind of in regards that you will be able to recoup the number of orders back to the earlier level. Considering the current trends, is there any extension in the timeline, what would be your thoughts regarding that? And similarly, on the client acquisition and activation 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 for acquisition is at around ten months for FY 'twenty five. So has it changed?
Does it improved? Or has it gotten extended? Would like to hear your thoughts on that. So that's on the booking part. Also, in terms of the new businesses, so I think from the mix point of view, it is now at around 3%.
So I just wanted to add 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 intuition on the margin has increased slightly. So just your thoughts on that would be very helpful.
And lastly, one question on the cash booking realization. I see that realization per order has increased on a Q o Q basis. So anything to read into that? Is it more because of, the higher NPS being done in the ticket size and larger? Any any view would be very helpful. Yeah. That's that's it from my side.
Okay. So in terms of current trend on orders and revenue, you can see in this quarter, already we have seen growth of around in terms of revenue around seven to 8%. So what we saw that, okay, when, like, 50 that are five to seven for, like, last year, third quarter and fourth quarter.
And this first quarter, the first two months, they they were positive and they had a positive inflow. And we can clearly see an impact also for our customers, like, momentum in the market and our clients has strong correlation between retail activity and their orders. So we believe as this micro will improve and the fire and retail will come back in some kind of, like, with a minimum and all that. We are very hopeful that we will be able to exit quarter four with a different 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 repair 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 a PM of 45%. We would not like to leave any growth on the table.
And on new businesses, Vinit, if you can take that on new businesses contribution and impact of the same on our margins and all that?
So Sournabh, as we have been maintaining in the past that the new businesses will take some time to breakeven. We expect the wealth business to breakeven faster than the E and C business, which is a long gestation period business given that we are into passage. 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. And on fourth point, cash blocking, yes, it would be impact of the margin trading book is really picking up. The people who invest through margin trading, their ticket size will be higher. So realization for auto will be higher.
Right, sir.
Very helpful. Just a follow-up on the last point. So 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 I mean, any any any competitive pressure seems to be there?
Currently, we don't see any competitive pressure because what we see that we are doing now in trading since.
So this margin savings fund will depend on market momentum and volatility. If it's all we are hopeful about moment will be positive, I mean, growth, the price inflows will come again. I don't see any pressure in fact. Is that this would that would be payments. Right now, I don't see any competition in terms of margin funding.
It isn't exactly as a thing, and plus people who are opting for margin trading. Currently, as I'm speaking, I don't see any competitive pressure in that statement.
Okay, sir. Very clear. Thank you so much, and all the best.
Thank you.
Thank you. A reminder to all the participants, please restrict yourself to two questions. The next question comes from the line of Prajesh Chen with Motilal Oswal Financial Services Limited. Please go Yeah.
Hi, good morning. Just couple of 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 recruiting or, you know, every part is every of these excess so where are they sitting in the p and l? And secondly, on the tax rate, again, was on the higher side in this quarter.
How do you see the tax rate going ahead? And and lastly, on the cash check cash segment realizations, should this sustain at current level given do you think the margin rate funding book will continue to grow?
Okay. Puneet, can you take question?
Yes.
So Praish, 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, etcetera. So it's spread there. Primarily, it's the distribution part of the business, which is 3% for credit, insurance and IPOs.
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%.
And on the second, if Harish and Nishant can broadly, what we are seeing is that it depends on this market condition and if it's all, like, we are able to maintain and increase the book size, realizing would not change much. But still, would like Arif and Nishant to comment on this.
Yeah. Good morning, you know, everyone. Arif here.
Right. So the cash segment, you know, has been very strong for us. Our market share, you know, has been growing. MTF, we are, you know, confident that the book will keep going at a healthy pace. We're also working on figuring out a more smoother experience than MTF.
So that should not be a concern in the short to, you know, midterm, you know, we should be good on our cashing.
This is Nishant Desai, and I would like to echo what Aarish 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 MTS 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.
Okay. Just a follow-up on the first question. What would be the quantum of wealth management revenues, AMC revenues, wealth management in particular, we have about 5,000 crores kind of an AUM. How much of the what would be the revenue size of of this segment and even for the AMC?
On this, so that is it.
We'll take this or should we give it to Sovi?
I'll just add more on a qualitative basis. So, lastly, 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, I'll let Vinit take that.
Yes. 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.
Next question comes from the line of Vikram Raghavan with Moon Capital. Next question comes from the line of with Investec. Please go ahead.
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 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 how much expense we should budget on a quarterly basis going forward? These are the three questions.
Okay. On cost of acquisition, it remains same as what it was last quarter. It does not change significantly or even like marginally also. More execution here and there. But overall, we are seeing trend in terms of customer acquisition also.
We are able to maintain this trajectory on 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, like, can you just elaborate on that? You and Yeah.
Any comment on LTV to CAC? Earlier, we have disclosed eight eight x, and then I think, recently, we've been talking about around six x LTV to CAC.
So Yeah. So we would like to discuss that until to CAC maybe once we see this cycle to completely I mean, of But this this quarter, we saw impact of f and o. As I said, it takes time for customer to really bounce back and search which 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 it there again get to the way they are active in the market, and then it will be a better time to refresh that chart.
Sure, sir. Sir, 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?
Vinit, do we disclose anything on this?
No. Right now, we're not giving those granular details. So yeah.
So we are almost in line with the market, but we'll come out with more details as this business is scaled up.
And on the budget?
Yes. On the stock cost, as I mentioned in my opening statement that the estimated total cost of the stock grants for this year and the previous year put together is about 2,100,000,000.0, INR $2.10 crores, of which we spent about INR 45 crores in this quarter. So it will be in the range of about INR 55 odd crores for the next three quarters.
Next question comes from the line of Prathyamna Chaudhry with GM Financial Family Office. Please go ahead.
Yeah. Hi. Thanks for the opportunity.
First question on is on the f and o market share. So the broader understanding was post March, post the last phase of regulations, we were doing start seeing the gains online with increase in seasonal activity month on month. So that clearly 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 really see this going forward?
Market share again, it's time to really, like, like, I can't see retail activity in f and o is less to maintain market share also, like, it's something that we are working on. And if you look at this whole segment, there are, like, lots of brokers who come as an individual. So there, consumption, like, volume has not decreased. But for us, to maintain the key 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. Adi, do you like to comment on this?
Yeah. Thanks. Thanks, Aditi.
So we you know, as I mentioned, right, our market shares and equity NPS have been, you know, going, you know, going up sequentially and quite strongly. On the f and o, it's bit of a, you know, a month story that you're talking about, but we'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 bills, you know, month to month, but that's okay. You will see that debit is quite strong.
Now, do you Mister Chaudhry, are you done with the questions?
Mister Chaudhry, are you done with the questions? Since there's no reply from Mister Chaudhry, you done with the questions?
Yeah. Can you hear me?
Yes. Yes. Please go ahead.
Yep. Alright. So just a follow-up.
So how do we see this market f and o market share will be for us over the coming months? Are we expecting to make gains here? Are we expecting to just maintain? And in case we are looking at gaining shares, then what would they will be the drivers for this?
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 f and o side is going to expand. That is going to help in terms of us any company like like normal European budget report report.
Understood. And anything you've heard from SEBI in recent times, there's been news articles on fortnightly index of values and all those things. So anything we are hearing from SEBI in addition to whatever is being in the news?
No. We haven't heard anything like new which is going to come around. They are all ideal conditions, media and all that. But overall, no compensation or any changes or I can send it.
Alright. Alright. Thank you, and all the best, sir.
Thank you. Next question comes from the line of Abhijit Sarkari with Quotek Securities.
Please go Hey.
Hi. Good morning, everyone. So my first question, you know, refers to the exit quarter 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 emptier book or, you know, the broad cost ratios as we get into the fourth quarter. Because as of now, if I just look at the, 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.
Okay. So first of all, like, expenses in this quarter, we're all about increment, appraisal patterns, plus the actual cost. So if you look at top line, that is going at the rate of 8%. If it continue going top end at the rate of 8% and keep cost and, like, uncontrolled, so what you will see is that the existing will see here, yeah, 40 plus OPM.
That is what we are guiding. If you look at this quarter also, if you remove that one time concern, like, benefit that we got from quarter four and our expenses, you can clearly see that although, like, growth in top line is around eight to 9%. But if you look at normalized EBITDA, there's a growth of 30%. So clearly that is it all we are able to see that okay, quarter on quarter revenue is going to grow at rate of 78% which we are very confident. But as I said that macros and corporate results and all that I expect it to be better than what you are seeing right now.
And we will see as the investment entity participate more active in coming quarters. So, today, make sure that you are able to maintain the strategy of revenue at the rate of 78% quarter end quarter and keep our cost under control, we definitely there is no reason for us to believe to increase the cost right now. But already platform has been built and cost of recurring customer has been in corporate every quarter. So clearly, are seeing an exit of quarter four and this transaction would be visible to all of you.
Thank you so much, sir.
That was useful. And just to follow-up, is is fourth quarter really the critical quarter where you kind of take the call on 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, you know, 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?
See, what is important is that is that basically in terms of gaining revenue or activity of the customer, which is increasing, expanding our margin. If I'm saying here, we cannot predict market, like, to say, give this forty four months here to take some some information like this.
What we are looking at when customer activity is increasing and more customers are acquiring, are we seeing expansion in margin? If you are seeing it, waiting for one to vote in the document. What is important in business? Don't try to create a pricing model which becomes so self indicative, it affects more competition. So we believe what we have to look at is that as our cost of order increase more.
We have built the platform. So already they have taken a cost. And if you get increase customer order flow in the quarter four or one quarter later, should we change the price just because for 02/04, we did not see that OPM. I would say, answer is that okay. What is your call on participation of Indian debate in this market for next two, four years?
Is it going to increase? What we are seeing is ten days. Is it a four quarter or start of first quarter expansion year? It does not make a difference.
Got it. Sorry.
That we are not looking at price increase in the time we are seeing expansion in marketing.
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, you know, sort of slightly better impact in terms of, you know, flow through to the bottom line.
Yeah. So we are working on lots of parameter where quality of acquisition improves. That's the reason we have been visible right here and all that. That's the long term payment strategy.
And we are working on lots of things. I will basically take this question and explain what to to as an activity, what we are doing to improve quality of customer and yeah.
Yes, JD. You know, and thanks a lot for this question. So our acquisition strategy is fundamentally centered on three pillars.
One is, if there's an opportunity, we'd want to keep, you know, 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 fastest growing channel in last eight, nine months, twelve months. So that is a, you know, key focus area for us. Third part that we, you focus on is how do we, you know, gain premium or high value clients. These three will be the key, you know, pillars of strategy for us in our acquisition strategy. Thank you.
Got it. Thanks a lot.
Okay. Thank you.
Next question comes from the line of Sanket Koda with. Please go ahead.
Thank you for the opportunity. Sir, if I understood you're right, you are saying that if if due to any reason, if you fail to achieve 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.
Yeah. Right. So what is important is when we are acquiring new customers and old customers getting active, are we seeing expansion in margin that is important?
Got it. Got it.
Got it, sir. And and the second question which I had was that if you if you want to achieve 45% EBITDA margin by end of the quarter, you you said revenue growth of seven, eight percentage per quarter sequential growth will will help it. Which means that you you expect the x IPL overall operating cost should grow at just two to 3% every quarter to deliver that 45% EBITDA margin by by end of the fourth quarter?
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 more or more, we believe Indian stock markets are going to give a CAGR of 15%. If one year does not give, it is going to give the It is very difficult to predict in which concern, like, quarter or market will be here. And because that's what I didn't know, that's average of the entire employee, but the member is not there. And so then the other issue comes to India.
If they decide for quarter, then we make it forever. So then we make business model we are making for three years, five years. We don't take a call on one quarter, two quarter. But based on the brand, what we are saying, we give destination that it appears to be by the end 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 been like a build a platform with certain capacity and which will cost will not increase, the opportunity to increase in revenue. So proof of concept is this quarter and because strong belief based on position that we make that further revenue increase that we'll see, we'll not see proportionate cost increase. So answer your question. Maybe 3% or something like that would be in that region that is what we did.
Got it.
Got it. Perfect, sir. And and lastly, maybe last two. Maybe see, are we able to call up rate cut? Just just whether whether you will take a decision on reducing your lending rate on margin rate funding compared to what 15 odd percentage what you charge?
Or or or and if you don't do, then your incremental borrowing cost coming down because of the rate cut, will will it expand your NIM or or overall profitability on the margin rate spending book? I just wanted to understand whether you'll pass on the rate cut benefit to the customer or you will take better NIMs.
The margin spending book the way it functions in terms of prices, it is not sensitive to RBS, record rate cuts and all that. Of course, the year, you will see, we are seeing different different inter cycle. Lending paid almost in that year as we didn't say.
And just the time we take some contribution that we have to bring it down. That is what we did to go to the back. But overall, I don't feel that this is sensitive to what RBI does. And in terms of margin increment, Vinit, if you can take this question in terms of cost of borrowing out in fact.
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, 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.
Got it. Perfect. And last one on philosophical side, See, if if I look at the overall market share across the product, it has broadly stabilized, whether it is cash or or or even if you know and even to the text and commodities.
So is it fair to say that now your incremental growth of 70% in general is a function of more market doing well or recovering from from lows what we saw in fourth quarter? Or or you think there is further more scope to to gain market share?
So, Duncan, what happens was the activity of an customer depends on his wallet share and size of the wallet. And what we see is that all wallet is expected to go at the rate of 12%. We are going to see activity of an customer increasing.
I think it's in the data 12%. But now, if you look back and see that what pension, like, what is shared they were giving for trading in market or listing in market, that got churned because of this regulatory changes. That has not come back to normal. So what we believe is that existing people who are in this market, actually, they will dedicate that amount what they're getting to, the trading investment activity. So you will see that base effect that get a central level, which is going to a central level.
So when this is normal, you will see all of you will go back to normal. Then we'll look at what can come, like, new clients, I think, in that thing. And that we can correlate with something like what expansion they are seeing in terms of trading volume and what is increment we are seeing in our market share. In this three, four quarters, what happened? We are aiming to gain market, sir.
As I said, it is not trading in cash. So it is mostly when we look at s and o, our content teams are option side. But we'll begin customer activity will go back to normal. That will help us to do this growth of 78% per quarter. But overall market share, I believe, it is increment proportion to infusion of our customers in this market.
In that also, a new customer base, we have a market share of around 21, 22%. For them to become active and all that, there will be a value pay. So we're also answering your question. One, that the base effect, which will help us to bounce back and grow the revenue growth of 78% for few quarters. Second would be because of under penetration and we're gaining incremental market share.
Even the market share is twenty one twenty two. So we'll see small increments every quarter in market share.
Got it, sir. This is perfect. Thank you for your answers.
Thank you. 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 Vias with TM Investment Technologies Private Limited. Please provide.
Sir, thanks for the opportunity. As mentioned in the opening remarks, we also believe that India's good should be remains in that. And the capital market will play a significant role because currently out of the total population, we only have 37% of the account. So the penetration level is quite low compared to developing. And in this, Angelman, as it focuses more towards the two zero two and tier three customers, it will definitely play a crucial role in a good trajectory going forward. However, over the years or in the quarters that we have seen promoter shareholding coming down as well. So my question to mister Takar is that why does the reason behind promoter shareholding declining? And any plans for succession planning and what the future looks like?
Yeah. So we are very bullish on things that growth story, I believe. And this account EBITDA income, what we have seen in past twenty years is nothing what we're going to see when we reach for the dividend of $10,000 and all that. The story is yet to unfold, and there is a big opportunity in my head of people who want to try to market. So capital market is going to play a big role because if you look at retail or then there is an opportunity can come only when they start the
And today, they are not investing because of awareness, because of possession of risk and all that. That is going to get addressed through proper content, proper campaign, giving access to right information. So overall, we are very bullish in terms of participation which is coming from existing customer. At this level, they are just satisfied that basically a small amount is coming in. Okay?
So when you see India had a level of $10,000 per student, most of these flows will come into saving and something like beyond necessarily, they are going to put in the spend in increasing their lifestyle amount. Overall, as you see, tier two, tier three 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 professionals are taking over as of this company. And we have to see that they are able to and they are creating well for all stakeholders.
They are able create well for them to resolve. So because of this problem, you'll see from what we're doing, we'll see declining. It is not from what they're selling. It is because of that new allocation to install plans and all that. It appears to be plus one or two promoters have they classify them as a promoter, and we will see that change. No nobody has sold the shares in the market.
But to the the shareholding or coming down. Right? Because I just last three, four years, if we see the trajectory from 45%, though it has come down to 35%. So basically, the as what you have said is that the e shops have been increased, and that's the reason the employee shareholding might have increased. Right? That is my basic understanding.
So there are two combinations. E shop plus one group of promoter, the declassified as an ordinary shareholder.
And just to add to that, Raj, if you recollect in March 2024, we did a qualified institution placement of about INR 15,000,000,000. By law, the promoters are not required And therefore, there was a dilution there as well because of the additional fundraise that we've done.
Okay. Understood. So yes, that's it from my side. I wanted to clarify on it, and I'm pretty much clear right now. So thank you for answering my questions.
Thank you.
Thank you. Next question comes from the line of Raman Kebi with Sequium Investment. Please go ahead. Mister Kebi, can you hear me? Hello?
Can you hear me? Please go ahead with your question.
Sir, I just want to understand with respect to James Street, Tata. What was the volume before the James Street, and what's the volume after the James Street, Nava? Game state is a very different form, ma'am.
It is a matter of day one. Very difficult to get the impact on that. But I have a view on that. Sorry, ma'am.
So so are we, like, the the volumes back to where it was before the same speed the entire the same speed that will happen?
We don't hear volume day to day. As I said, the same speed are up in just a week or so before we because of our volume on a month end. Okay? And this is too early to get any kind of, like, as this or this has happened and settle it back on that day or in two, three days. That does not tell you any story of where this equity market is moving towards.
So my point is that the gains people are opposites people who put money in the hot and just to gain concern, like, arbitrage opportunity. Long term is decided by retail and the size who put their money for short and long term. And they are present. People like GameStreet would be replaced in some other space. We are not seeing there'll be any big impact on capital market because of GameStreet.
Sir, and another follow-up, I'll go in the same line note, sir. So with respect to how much was the company's booking revenue was impacted because of the entire thing shift everything?
Was there any I'm repeating. Is when it happened last week. We don't give numbers on weekly or daily basis.
Okay. Thank you.
And just to add to that, I mean, I mean, it doesn't we we are not institutional brokers. So, directly, there was no impact on us because of that.
Next question comes from the line of Sanjay Singh with 10x Capital.
Just wanted to know that what is the incremental variable cost for, you know, not for client acquisition, but let's say, you know, when you when your revenue goes by, let's say, 5%, what is the incremental margin on that revenue? Maybe if you can take this and explain that. Based on this quarterly number also, you can actually.
Yeah. So it all depends on various factors.
So if the revenue grows by five percent, then the margins will expand, and we've seen that in the last quarter. So 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, the increase in revenues.
Introduction order will be 30 rupees, you know.
So on that, there is no variable cost like any fees to savings because that is over and above. Right? So the 30 rupees is is purely for you to see, or is there anything which you need to pass on to somebody in that sense?
No. So the broking commission that we earned, 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 charges, the transaction charges, GST, all above that. Yes.
Good. Correct.
Just on the thing that, you know, Mr. Hatra was saying that is very growth should be five, six, 4%, 8% every quarter. But, you know, in July, at least the index level, 27% drop in option volumes. Option premium and almost a 45% drop in future volumes in NFE.
So assuming you would see a similar drop in July or is it something very different?
Okay. But that fee is around almost 27, 28%. So is it fair to understand something something to be similar or is it It's currently what I can this is a leader relation to Genesee.
And it takes time for players to get we adjust to, you know, cancel next year. We have seen, like, you know, a market, like, if something happens like this, there's an impact for ten to fifteen days, and things go back to normal.
We should not read anything from this number, what we have seen in seven, eight, or eight days. Although it has been volatile, it's not that every day it was low.
Okay. Okay. And and I think more probably from an industry perspective, you know, I mean, we keep doing that, you know, India is 60% of option volume of the world, etcetera.
And, you know, we have seen in the past China, Korea, double digit collections, volume volume coming down 90%. So what is your take? I mean, I understand that you you are, you know, invested in this business, but looking at global examples, I I would, you know, we have been high volumes. Do you see any risk of, you know, more regulatory action which can plan down on this on this fee exceptional volume that India has seen?
See, what happens, as I was answering previous, same question.
There is a concern like wallet of one customer. They would put some amount in this because of nature of something like you. Yeah. People, they would like to leverage and try something in the market. So you will see, currently, they prefer paying in option.
But if you look at their journey, slowly they move to I think it's not the format. So one of I'm not speaking I'm looking for that. So I think I said 20, total a year of retail direct and indirect was around 16.7 lakh crore. And last year, AUM stood at around 70.8 lakh crore. Even if I take a carrier of around 15% of market, so they are seeing an appreciation of $11.12 lakh crore for here.
So these are the new customer who came to the market. They started their journey option. But ultimately, they have realized that, well, can be created in liquidity. So I don't think that they're trading in option is concerning till the time they're moving their long term money into liquidity. That is what we are seeing both in SEC, both in AUM and cash market.
That are very high happening because that's not common headline all the time, but we are just looking at negative. What I just know what happened to see, number of demand accounts has increased. They will come and put money in long term investments. That's the reason we are seeing AUM going from 16.7, like, grow to 17.8. Like, that's a big big amount.
And today, they're all almost 18% of the market cap. So I have to have people have earned so much and see such a direct agent now. They're going to remain in the market. But the way they will come, they will do do some leverage for the margin funding or option. That should not come then.
What is important is, we just see how market expands, how people from tier two, tier three are participating in this market. You should After calling to the serial number, sir. Speak over. That's what I want to say. You can have created a big web, and the return story could be stolen and deeper than what you think. It is not cyclical, but it is structured.
Okay. But thank you very much for your answers.
Thank you.
Thank you.
Next question comes from the line of Bhubanesh Kak with Magma Ventures. Please go ahead.
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, like, so Heroes and Grow, they are also going very aggressive on content. So in that scenario, how do you measure your the effectiveness of your content compared to peers? And and what do you think will give you an edge in this area compared to peers? Yeah.
In every industry, there will be a case of three, four players, and they'll have their own different strategy. And none of the player would be having a similar strategy because clients that we are targeting will be different. What they are targeting will be different. So the way the way have designed our contract, and before all the year, we continue with that. And because of that, we are seeing the market share in new incremental time date 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 do it now by using latest technology and all that? Are you guys even on this?
Yeah. Yeah.
Thanks, Aditi. Just to add to that, AI will play a very important role in the way for the content strategy, you know, for anyone. It will give us that kind of risk. It will give us that kind of, you know, presence to convert that risk 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.
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 cost or reaching out to clients or engagement level? Any quantitative color?
I don't think, you know, sharing those numbers would be right here.
So I would like to refrain from sharing those numbers.
Okay. No problem, sir.
Yeah. Thank you for the response.
Thank you.
Thank you. The last question will be from the line of Pranath Gupta with Ioneos Alpha Investment Manager. Please go ahead.
Hello.
Hello. I can hear you.
Yeah. Yeah. I heard. Hello. Good afternoon.
The voice is same.
Thank you. Come closer to your mic. Is it better now?
Yeah. Still, can hear you. You can just continue. Mister Gupta, please unmute yourself and go ahead with the question.
Mister Gupta, please go ahead with your question. Since there's no reply from the line of mister Gupta Okay. What we'll do is we will hand over to the management for closing comments. That is mister Tinesh Tucker. Please go ahead.
Thank you for joining us on call today. I hope you have answered me on behalf of the minister relation or SDA, our investor relation adviser. Have a good day.
Thank you. On behalf of Angel Fund Limited, that concludes this conference.
Thank you for joining us. You may now disconnect your lines.