Zerodha FY26 profit up 1% to Rs 4,283 cr in FY26 | India Business News

Bengaluru: Online stockbroker Zerodha’s net profit rose 1.2% to Rs 4,283 crore in FY26 from Rs 4,231 crore a year earlier, as higher income from margin funding helped offset a decline in its core broking business.Revenue remained broadly unchanged, according to Zerodha’s annual business update. Brokerage income fell nearly 11% to Rs 2,738 crore from Rs 3,066 crore in FY25, while interest income declined 4% to Rs 2,269 crore. Income from annual maintenance charges rose to Rs 180 crore from Rs 160 crore.Net transaction-charge income, which stood at Rs 400 crore in FY25, fell to zero after regulatory changes ended rebates brokers received from stock exchanges. However, combined income from delayed payments and the margin trading facility (MTF) jumped to Rs 448 crore from Rs 22 crore.“The last couple of years have been mixed for brokers. We had to take revenue hits because of regulatory changes,” founder and CEO Nithin Kamath said in a post on X. He said market volumes had steadily declined after Indian equities peaked in September 2024.Zerodha began offering MTF in December 2024. The facility allows customers to borrow money from their broker to buy shares. Kamath said it now accounts for about 10% of Zerodha’s revenue and has made part of its income more predictable.But the rapid growth of the business has also raised concerns. Zerodha’s MTF book has grown to about Rs 9,000 crore.“One area of the business continues to worry me: MTF,” Kamath said. “When things go bad, they can get bad really, really quickly.”He cautioned that liquidity could dry up during a sharp market fall. Zerodha’s exposure to futures and options trading, combined with growing leverage through MTF, could amplify the impact of a downturn, he said.Zerodha’s audited net worth stood at Rs 16,098 crore as of March 31, 2026. It said about Rs 11,480 crore of capital was deployed in the business, including Rs 6,188 crore towards MTF funding.New account additions have slowed amid weaker market activity. However, Zerodha said customer assets continued to rise and now exceed Rs 9 lakh crore across the two depositories.