Angel One Ltd shares fell as much as 13% in Tuesday morning after the broking firm stated its earnings decreased 14% sequentially due to increased growth in cash segment orders, a change in cash intraday tariff structure, and higher opex due to client acquisition.

Profit for the quarter was Rs 260.30 crore, compared to Rs 304.50 crore in the previous quarter. In a quarter that saw markets reach new highs, sales increased by 1% to Rs 1,060.80 crore. On the BSE, the Angel One shares plunged 12.76 percent to Rs 3,380.

Angel One's earnings after tax increased 14 percent year on year, but it was still 17 percent lower than Motilal Oswal's forecasts. Expenses for the quarter were 13% more than Motilal's predictions, with administrative and other expenses coming in 17% higher than expected.

Angel One's board of directors issued a third interim dividend of Rs 12.70 per share for FY24 and authorized the issuing of non-convertible debentures worth up to Rs 500 crore in one or more tranches via private placement.

Angel One's F&O market share increased to 26.8 percent in Q2FY24, up from 26.2 percent in Q2FY24. F&O average daily turnover increased by 22% QoQ and 151% year on year. According to Motilal Oswal, the number of orders remained constant, but revenue per order fell to Rs 22.70.

"Angel One is a brilliant take on the financialization of savings and the digitization of the economy. It had a fantastic performance in 3QFY24, with markets reaching all-time highs. To improve its position, management continues to invest in technology. However, its client acquisition and activation rates have stagnated. "We intend to review our estimates and set a target after the call on January 16," Motilal Oswal said.