Zerodha’s Bland FY26: Net Profit Up A Mere 1% At ₹4,238 Cr, Top Line At FY25 Level

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Stock broking major Zerodha’s business growth continued to remain strained in the fiscal year FY26 after taking a hit in the previous fiscal year. Zerodha’s net profit for the fiscal grew by 1.2% YoY to ₹4,283 Cr from ₹4,231 Cr in the same fiscal last year. Without disclosing exact numbers, Zerodha, in a blog post, showed that its operating revenue for FY26 was similar to the top line it recorded in FY25. Last year, the company’s operating revenue stood ₹8,847 Cr, down 11.5% from ₹9,993 Cr in FY24. "Despite our revenue holding steady, it hasn’t really grown in real terms. This is because of two reasons: the rebate on transaction charges going away and the end of the bull market. The good news is that the loss of transaction fee revenues is now being offset by our MTF earnings," Zerodha said in a blog post. The company's brokerage income dipped 10.7% YoY to ₹2,738 Cr, while net transaction charges plunged to zero from ₹400 Cr in the previous fiscal year. AMC charges increased slightly to ₹180 Cr, while interest income dipped about 4% YoY to ₹2,269 Cr. Zerodha founder Nithin Kamath said that while the AMC fees charged to customers increased in line with client base growth, it still contributes only around 2% to the company’s overall revenue. A Detailed Look At Zerodha’s FY26 Business Citing a slowdown in the broader market, the investment tech company believes new entrants in the investment market may slow down. However, amid this downturn, Zerodha maintained a healthy growth in the assets under its management (AUM). The company’s AUM in the fiscal year stood at ₹9.05 Lakh Cr, with HNIs and retail holdings accounting for most of the assets. Despite this, its market share of active clients declined to 15.2% during the fiscal under review. The graph has been going down consistently since 2023. As per NSE data for the month of July 2026, Zerodha commanded a 14.88% market share in the stockbroking market, serving 67.62 Lakh active clients. While Zerodha lost about 38K clients in the month, market leader Groww increased its lead with 1.31 Cr active clients. Zerodha termed these metrics as a mere “distraction”. "Market share of active customers tends to be volatile, can be gamed, and is often a distraction. As you can see, while our share of active customers on NSE and total demat accounts has reduced, our share of retail AUM continues to grow," the company's blog post read. While AUM grows, the stockbroking platform acknowledged a stagnation in its revenue growth. This, Zerodha attributed to two key reasons. A large part of Zerodha’s revenue is linked to customer trading activity, which has been on a decline since its peak in September 2024. With fewer new investors entering the market and existing customers trading less actively, transaction-linked revenue came under pressure. Meanwhile, Zerodha’s margin trading facility (MTF) book grew to around ₹9,000 Cr in FY26, with customers borrowing around ₹6,000 Cr. Kamath said earnings from this business are now offsetting the zero revenue from transaction charges rebate. The MTF product currently makes up 10% of our revenue. However, Kamath reiterated his discomfort with the pace of MTF growth due to the nature of the product for consumers. “MTF is one area where the business growth is scaring me. Our MTF book now stands at ₹9,000 Cr, and the risk here is that the Indian markets could fall sharply. Leverage always looks great when markets are doing well, and the risks become obvious only when things go wrong. So this is one area we are keeping a close eye on,” he added. What Is On The Plate For Zerodha? Besides MTF, Kamath is also looking beyond the core broking business. Zerodha is also expanding the capabilities of Kite, its flagship trading and investment platform, with the company set to launch US investing and mutual fund transactions on the platform. The move comes as the company looks to broaden its product offering beyond its traditional stock broking business. Mutual funds is one area where Zerodha “may have slipped up a little”, as per Kamath. The company is looking to integrate mutual funds within Kite, a move that could improve discoverability and the overall customer experience. One thing that is on the positive side for Zerodha is the NRI vertical. The company currently has ₹44.6 Lakh holdings per active account with ₹18,557 Cr in AUM under the NRI business. Meanwhile, Zerodha’s VC arm Rainmatter is another important part of its diversification strategy. Kamath said the company has been diversifying its bets via startup investments as the broking industry faces increasing regulatory scrutiny, particularly around F&O trading. To note, Zerodha Fund House, the AMC arm of the stock boring company, also unveiled its FY26 financial numbers yesterday. Its operating revenue zoomed 78.7% to ₹16.8 Cr in the fiscal year 2025-26 (FY26) as against ₹9.4 Cr in the year ago period. Meanwhile, the company managed to narrow its losses by 37.8% to ₹5.1 Cr in the fiscal under review compared to ₹8.2 Cr in FY25.

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