Zerodha Reports FY26 Net Profit of Rs 4,283 Crore as Margin Funding Offsets Broking Drop

Online discount brokerage Zerodha posted a 1.2 percent increase in net profit to Rs 4,283 crore for the financial year 2025–26 (FY26), rising from Rs 4,231 crore recorded in the preceding year. According to the firm’s annual business update, overall revenue remained largely flat as increased earnings from margin trading helped compensate for lower income across core broking operations.

What Happened

Zerodha experienced a contraction in its traditional revenue streams during FY26. Brokerage income declined nearly 11 percent to Rs 2,738 crore compared to Rs 3,066 crore in FY25, while interest income dropped 4 percent to Rs 2,269 crore. Additionally, net transaction-charge income fell from Rs 400 crore in FY25 to zero, following regulatory decisions that discontinued rebate payments made by stock exchanges to stockbrokers.

These reductions were balanced by significant expansion in margin funding and delayed payment charges. Revenue from delayed payments combined with Zerodha’s margin trading facility (MTF) surged to Rs 448 crore from Rs 22 crore in FY25. Meanwhile, earnings from annual maintenance charges moved up to Rs 180 crore from Rs 160 crore.

Key Highlights

• Net Profit: Increased 1.2 percent year-on-year to Rs 4,283 crore from Rs 4,231 crore.
• Brokerage Income: Dropped around 11 percent to Rs 2,738 crore against Rs 3,066 crore in FY25.
• Transaction Charges: Fell to zero from Rs 400 crore following regulatory shifts on exchange rebates.
• Margin Trading Growth: Combined earnings from MTF and delayed payments reached Rs 448 crore, up from Rs 22 crore.
• MTF Book Size: Reached approximately Rs 9,000 crore, contributing roughly 10 percent of Zerodha’s total revenue.
• Balance Sheet Strength: Audited net worth stood at Rs 16,098 crore as of March 31, 2026, with Rs 11,480 crore deployed in operations, including Rs 6,188 crore allocated to MTF financing.
• Customer Assets: Exceeded Rs 9 lakh crore across the two depositories, despite a deceleration in new account openings.

Why This Matters

The performance reflects changing dynamics within India’s retail trading ecosystem following regulatory adjustments and lower trading activity. In a post on social media platform X, founder and CEO Nithin Kamath noted that the last two years brought mixed conditions for stockbrokers due to regulatory revenue hits alongside declining market volumes after Indian equities peaked in September 2024.

Zerodha initiated its margin trading facility in December 2024 to enable clients to borrow capital to purchase shares. While the product has provided more predictable revenue and now makes up about a tenth of the firm’s top line, Kamath highlighted underlying risks associated with the rapid growth of the Rs 9,000 crore MTF book. He stated that market liquidity can contract abruptly during sharp downturns, warning that high leverage through MTF paired with retail participation in futures and options trading could compound losses if market conditions deteriorate.

What to Watch Next

Monitoring the performance and risk management of the margin trading portfolio remains a focus, particularly given managerial caution regarding rapid market corrections and liquidity strains. Observers will also track whether new client acquisition stabilizes following the recent slowdown in market activity.

Frequently Asked Questions

What was Zerodha’s net profit for FY26?

Zerodha reported a net profit of Rs 4,283 crore for FY26, representing a 1.2 percent growth from Rs 4,231 crore in FY25.

Why did Zerodha’s transaction-charge income fall to zero?

Income from net transaction charges dropped to zero from Rs 400 crore in the prior fiscal year due to regulatory changes that put an end to rebates paid by stock exchanges to brokers.

What is Zerodha’s current net worth and asset base?

As of March 31, 2026, Zerodha reported an audited net worth of Rs 16,098 crore. Total customer assets managed across both depositories exceeded Rs 9 lakh crore.

Source: Times of India report based on Zerodha’s annual business update and public statements by Nithin Kamath.