Zerodha's Broking Revenue Falls to 44% in FY26 from 70% in FY21
Zerodha's reliance on broking revenue has significantly decreased, highlighting a shift in its business model.
Zerodha's broking revenue dropped to 44% in FY26.
The firm reported Rs 8,500 crore in revenue and Rs 4,300 crore in net profit.
Interest income from customer funds contributed 32% to its revenue.
Zerodha, India's largest brokerage firm by revenue, has reported a notable decline in its reliance on broking revenue, which constituted only 44% of its total revenue in the fiscal year 2026, down from 70% in fiscal year 2021. This shift comes amidst ongoing regulatory changes affecting derivatives trading, which have historically been a significant revenue source for brokerage firms.
In FY26, Zerodha achieved a revenue of Rs 8,500 crore and a net profit of Rs 4,300 crore. This performance contrasts sharply with its competitors, Groww and Angel One, which continue to derive a substantial portion of their income from broking activities. For instance, over 70% of Groww's revenue and nearly 60% of Angel One's revenue still stem from broking.
According to a report by credit rating agency ICRA, Zerodha's revenue model is increasingly diversified, yet it remains vulnerable to the fluctuations of the capital market. The agency noted that while Zerodha has made strides in diversifying its revenue streams through margin trade funding (MTF), asset management, and merchant banking, it still heavily relies on broking and float income. Notably, interest income from customer funds was a significant contributor, accounting for 32% of the firm's total revenue in FY26, which is more than four times that of Groww.
Despite the reduced dependence on traditional broking, Zerodha's business is still heavily reliant on derivatives trading, with Futures and Options (F&O) making up 85% of its broking revenue. In contrast, Groww and Angel One have a more varied revenue mix that includes equity delivery and commodities. The MTF segment has gained importance as a growth driver for brokers, especially in light of regulatory constraints on derivatives trading. Zerodha's revenue from MTF accounted for 8%, while Groww reported 10% during the September quarter.
Looking ahead, Zerodha's net MTF loan book has surged to Rs 5,368 crore as of June 30, 2026, a significant increase from Rs 852 crore in March 2025. This rapid growth reflects the expansion of its lending operations. ICRA emphasized that while Zerodha maintains a robust capital base with a standalone net worth of Rs 19,659 crore and no borrowings, the diversification into MTF also exposes the firm to credit and market risks associated with capital market lending.
