Zerodha Capital Posts ₹14.7 Crore Profit in FY26

Zerodha Capital, the wholly owned lending arm of the Zerodha Group, has reported a 20.5% year-on-year growth in net profit, touching ₹14.7 crore for the fiscal year ended March 31, 2026 (FY26). The result underlines how India’s largest discount broker is steadily building income streams beyond its core stockbroking business.

The profit increase marks a steady continuation from the ₹12.5 crore net profit recorded in FY25, highlighting the group’s successful efforts to build diversification hedges outside its core retail stockbroking engine.

The core financial metrics highlight rapid operational scaling:

• Top-Line Surge: The Non-Banking Financial Company (NBFC) recorded a 44.2% jump in total income, rising to ₹53.5 crore in FY26, up from the previous fiscal cycle.
• The Collateral Moat: Legally registered as an NBFC, Zerodha Capital operates strictly within the Loan Against Securities (LAS) segment. The platform allows users to instantly pledge their existing stock portfolios and mutual fund units inside their Zerodha Demat accounts to secure liquidity lines up to ₹1 crore, lending up to 45% of the total asset valuation.
• Zero Asset Stress: Backed by real-time automated risk mitigation engines that track daily market fluctuations and can trigger immediate margin liquidations, Zerodha Capital has maintained zero Non-Performing Assets (NPAs) since its operational launch.

The acceleration in lending operations forms part of a deliberate strategy outlined by the Kamath brothers to expand capital allocations toward Margin Trading Facilities (MTF) and credit lines. This pivot shields the group’s broader balance sheet from ongoing regulatory pressures on retail derivatives (F&O) transaction volumes, which historically underwrite Zerodha’s core brokerage earnings.

Why the Lending Push Matters

For years, the bulk of Zerodha’s revenue has come from active traders, particularly in the futures and options segment. As the Securities and Exchange Board of India (SEBI) has tightened rules around retail derivatives, broking income has faced pressure across the industry. Loan Against Securities offers Zerodha a way to monetise the same customer base differently: instead of charging for trades, it earns interest on loans backed by the shares and mutual funds those customers already hold.

The model is conservative by design. Because every loan is secured against liquid, exchange-traded assets and the system can auto-liquidate collateral when values fall, the risk of bad loans stays low, which is reflected in the zero-NPA record. This positions Zerodha Capital as a low-risk, steadily compounding profit centre for the wider group, complementing developments elsewhere in India’s markets such as the eagerly awaited Reliance Jio IPO and renewed retail interest after results like the strong gains seen around the NSE IPO.

Frequently Asked Questions

What is Zerodha Capital?

Zerodha Capital is the wholly owned lending arm of the Zerodha Group, registered as a Non-Banking Financial Company (NBFC). It operates in the Loan Against Securities space, letting customers pledge shares and mutual fund units held in their Zerodha Demat accounts to borrow money, rather than selling their investments.

How much profit did Zerodha Capital make in FY26?

Zerodha Capital reported a net profit of ₹14.7 crore for FY26, a 20.5% year-on-year rise from ₹12.5 crore in FY25. Total income jumped 44.2% to ₹53.5 crore over the same period, and the company maintained zero non-performing assets.

How does a loan against securities work at Zerodha?

Customers pledge eligible shares or mutual fund units from their Demat account as collateral. Zerodha Capital then extends a credit line, lending up to about 45% of the pledged assets’ value, up to ₹1 crore. The borrower keeps ownership of the investments, and automated risk systems can liquidate the collateral if its value falls sharply.