Broker earnings stay under pressure in Q1 as derivatives trading slows

Q1 earnings for listed Indian brokers showed mixed results, with Motilal Oswal Financial Services surging 88% QoQ to a 665 crore profit, while Angel One and Anand Rathi saw net profit declines of 23% and 44% respectively. The softer sequential performance was driven by a high Q4 base, a 4-5% decline in derivatives options premium turnover, and SEBI derivatives reforms including expiry rationalisation and tighter position limits. Despite the quarterly dip, analysts noted healthy year-on-year retail participation and a shift toward healthier revenue mix from MTF, wealth management and distribution businesses.