Zerodha Reports 1% Net Profit Growth for Fiscal Year 2026

Indian stockbroking firm Zerodha has reported a modest increase in net profit for the fiscal year 2026, which ended in March. The company's net profit grew by 1.2% to ₹4,283 crore (approximately $515 million USD) from ₹4,231 crore in the prior fiscal year. Zerodha's operating revenue remained largely unchanged, standing at approximately ₹8,847 crore (around $1.07 billion USD).

The stagnant revenue was attributed to two primary factors: the removal of transaction charge rebates and the end of a bull market phase. While brokerage income saw a 10.7% year-on-year decline and net transaction charges fell to zero, increased interest income (₹2,269 crore) and slight growth in AMC charges helped offset the overall impact.

Zerodha has also seen significant growth in its margin trading facility (MTF) book, reaching approximately ₹9,000 crore. Founder Nithin Kamath stated that earnings from MTF are now compensating for the loss of revenue from transaction fee rebates. However, he expressed concern over the rapid expansion of the MTF business and its associated risks, particularly in the event of a sharp market downturn.

Assets Under Management (AUM) increased to ₹9.05 lakh crore (approximately $110 billion USD). Despite this, Zerodha's market share of active clients decreased to 15.2%. The company emphasized that AUM growth is a more significant metric for them than active client share and is actively expanding its platform's offerings, including plans to introduce trading in US stocks and mutual funds.