Zerodha FY26 profit rises to ₹4,283 crore as revenue stays flat

Zerodha’s net profit rose 1.2% to ₹4,283 crore in FY26, while revenue remained largely flat at ₹8,847 crore amid slower market activity and changes in transaction charges. MTF income partly offset pressure on its core business.

Zerodha’s net profit rose 1.2% to ₹4,283 crore in FY26, even as revenue remained largely flat at ₹8,847 crore, as a slowdown in market activity and changes in transaction charges weighed on the stockbroker’s core business.

The company’s FY26 performance comes against a backdrop of subdued equity market activity after Indian equities peaked in September 2024. Zerodha founder and CEO Nithin Kamath, in the company’s 16th anniversary update, said the pace of new account additions and overall trading activity had “slowed down significantly”.

Kamath said Zerodha’s revenue had remained steady but had not grown in real terms, with the removal of the rebate on transaction charges and the end of the bull market affecting its business. The impact, however, has been partly offset by income from its margin trading facility (MTF), which now contributes around 10% of revenue.

MTF growth raises concerns over leverage

Zerodha launched its MTF business in December 2024, giving the company a more predictable interest-income stream. However, the rapid growth of the business has also emerged as a concern for Kamath.

The brokerage’s MTF book has reached ₹9,000 crore, of which customers have borrowed around ₹6,000 crore. This is equivalent to about 25% of Zerodha’s net worth as of March 31, 2026, Kamath said.

“MTF is one area where the business growth is scaring me,” Kamath said, warning that leverage could amplify risks if Indian markets were to fall sharply.

Zerodha shifts focus towards AUM

Despite slower account additions, Zerodha said its assets under management (AUM) continued to strengthen. Kamath said the company is now the largest broker in India by total AUM, with its AUM comprising retail and high-net-worth individual holdings. While its share of active NSE customers and total demat accounts has declined, its share of retail AUM has continued to grow.

Zerodha’s account additions have moderated since the market peak in September 2024, with some rivals continuing to add customers, particularly in north and east India. The company, however, is focusing more closely on AUM, which Kamath said is a more meaningful measure because assets tend to remain with a broker for longer.

Brokerage looks beyond traditional broking

The company is also looking to diversify beyond its traditional broking business as regulatory scrutiny of derivatives trading and higher securities transaction taxes could continue to pressure the sector. Zerodha is increasing its investments through Rainmatter and public markets, while its core investment portfolio includes Zerodha Capital, Zerodha AMC and insurance platform Ditto.

Zerodha is also preparing to launch US investing and mutual fund transactions on its Kite platform. Kamath acknowledged that mutual funds have been an area where the company has “slipped up a little”, but expects integration within Kite to improve discovery and user experience.

The company continues to operate with a lean workforce, with fewer than 100 employees across technology, product, business and operations. Kamath said AI is helping the team build and iterate faster while maintaining its focus on product quality.

Published on August 27, 2026