Revenue Stays Around ₹8,500–8,850 Crore; Margin Trading Income Offsets F&O Regulatory Hit and Lower Volumes After 2024 Market Peak
Zerodha, India’s largest brokerage by revenue, reported largely unchanged financials for FY26. Net profit rose a modest 1.2 per cent to ₹4,283 crore from ₹4,231 crore a year earlier, while revenue remained broadly flat at around ₹8,500–8,847 crore. Co-founder and CEO Nithin Kamath attributed the pause to regulatory changes in the futures and options segment and a decline in market volumes after equities peaked in September 2024.
The Numbers
Zerodha does not publish full statutory accounts in the same format as listed companies, but Kamath’s annual update and subsequent reports give a clear picture. Brokerage income fell 10.7 per cent to ₹2,738 crore. Net transaction-charge income, which contributed ₹400 crore in FY25, dropped to zero after exchanges ended rebates to brokers. Interest income slipped about 4 per cent to ₹2,269 crore, while annual maintenance charges rose slightly to ₹180 crore.
The decline in core broking was partly offset by income from delayed payments and the margin trading facility (MTF). Combined income from these lines jumped to ₹448 crore from ₹22 crore. MTF, launched in December 2024, now accounts for about 10 per cent of revenue. The MTF book has reached ₹9,000 crore, with customers having borrowed around ₹6,000 crore.
Why Growth Stalled
Kamath said the past two years have been mixed for brokers. “We had to take revenue hits because of regulatory changes, and then the Indian market peaked in September 2024. Volumes steadily declined after that, and growth has been muted,” he wrote.
Higher securities transaction tax on options and a reduction in weekly expiries had already been flagged by Kamath as likely to make FY26 tougher than FY25. Those changes, combined with cooler market activity, reduced high-frequency options trading that had been a major revenue driver for discount brokers.
Comparison with Peers and Peak Years
The flat year follows a sharper correction in FY25, when revenue fell 11.5 per cent and profit dropped 23 per cent. At the height of the post-pandemic retail boom in FY24, Zerodha had reported revenue of ₹9,994 crore and net profit of ₹5,493 crore.
Rival Groww reported stronger momentum in FY26, with revenue of about ₹4,645 crore and net profit of over ₹2,083 crore, representing roughly 14 per cent growth. Even so, Zerodha remains substantially larger on both revenue and profit.
Kamath noted that Zerodha is now India’s largest broker by total assets under management. Around ₹1 lakh crore of AUM came from customers acquired from IL&FS. While its share of active NSE clients and demat accounts has declined, its share of retail AUM continues to rise.
Management Caution on MTF
Kamath expressed unease about the rapid growth of margin funding. Customers have borrowed a sum equivalent to a meaningful portion of the firm’s net worth, and he has said the business “scares” him even as it makes a part of revenue more predictable. The comment reflects a broader industry debate on whether leveraged retail products add stability or new risk.
Outlook
Zerodha’s FY26 results show a business in transition. Transaction-heavy options income has been squeezed by regulation and lower volumes, while MTF and other interest-related lines are filling the gap. The firm remains highly profitable, with net profit still above ₹4,200 crore and operating discipline intact.
The coming year will test whether equity volumes recover and whether newer products — including the recently approved corporate bond offering can diversify revenue further. For now, India’s best-known discount broker has demonstrated that it can protect profitability even when its original growth engine slows.
