Zerodha’s FY26 revenue, profit stay flat at Rs 8,500 crore and Rs 4,300 crore

Mumbai , Aug 26 (SocialNews.XYZ) Zerodha, India's largest broking firm by revenue, reported broadly flat revenue and net profit in FY26 as regulatory changes affecting the futures and options (F&O) segment weighed on trading volumes and growth.

According to a blog post by Zerodha co-founder and CEO Nithin Kamath, the company generated around Rs 8,500 crore in revenue in FY26, while net profit stood at approximately Rs 4,300 crore. Both figures were broadly similar to the levels reported in FY25.

Zerodha does not disclose its absolute financial numbers publicly and instead presents indicative figures through a bar graph. Kamath said the past two years had been challenging for the brokerage industry as regulatory changes reduced revenue opportunities, while market activity also moderated after the Indian equity market peaked in September 2024.

"The last couple of 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," Kamath said.

Zerodha's performance comes against the backdrop of several regulatory changes affecting options trading, which remains a key source of revenue for discount brokers. Kamath had warned last year that FY26 could be weaker than FY25 following an increase in the securities transaction tax (STT) on options and the reduction in the number of weekly options expiries.

Despite the challenging operating environment, Kamath said Zerodha's relatively lean structure has continued to be an advantage for the company. He noted that keeping the organisation small over the past decade, despite its rapid growth, has enabled the brokerage to move quickly and make changes to its products and services.

Artificial intelligence has further strengthened that ability, Kamath said, allowing Zerodha to iterate more rapidly on products and ideas. He added that the company's services for non-resident Indian (NRI) customers have improved significantly, while substantial work is also underway to expand its US investing offering.

Zerodha's flat financial performance contrasts with the stronger growth reported by publicly listed rivals such as Groww and Angel One, which recorded significant increases in revenue and earnings. However, their overall financial scale remains smaller compared with Zerodha.

Source: IANS