Zerodha has significantly diversified its revenue mix, with broking contributing 44% of its total revenue in the financial year ended March 2026, compared with 70% in FY2021. The Bengaluru-based discount broker has increasingly relied on interest income from customer funds and other financial services as regulatory changes and slower trading activity reshape India’s brokerage industry. According to Moneycontrol’s October 27, 2026 report, Zerodha generated approximately ₹8,500 crore in revenue and ₹4,300 crore in net profit in FY2026.
The shift distinguishes Zerodha from listed competitors Groww and Angel One, which continue to derive a larger share of their revenue from broking. However, diversification has not eliminated the company’s exposure to market cycles: futures and options (F&O) trading still accounted for 85% of Zerodha’s broking revenue in FY2026. The company’s strategy highlights a broader industry transition in which brokers are building additional income streams to offset regulatory pressure and fluctuations in retail trading volumes.
Key Takeaways
- Broking dependence falls: Brokerage-related activities accounted for 44% of Zerodha’s revenue in FY2026, down from 70% in FY2021.
- Interest income grows in importance: Interest earned on customer funds contributed 32% of FY2026 revenue.
- Rivals remain more dependent on broking: More than 70% of Groww’s revenue came from broking, while the share for Angel One was slightly below 60%.
- F&O remains critical: Derivatives trading generated 85% of Zerodha’s broking revenue.
- New businesses expand: Margin trading funding, asset management and merchant banking are among the areas Zerodha is developing.
- Market risk persists: Diversification reduces dependence on brokerage fees but does not remove exposure to trading activity, market movements and interest income.
Zerodha’s Revenue Mix Has Changed Significantly
Zerodha built its business around low-cost stockbroking, particularly intraday trading and derivatives. Over time, however, regulatory changes and fluctuations in trading activity have encouraged the company to develop additional revenue sources.
Moneycontrol reported the following change in the share of revenue generated by broking:
| Financial year | Broking’s share of total revenue |
|---|---|
| FY2021 | 70% |
| FY2026 | 44% |
| Change | Down 26 percentage points |
The decline indicates that Zerodha is generating a greater proportion of its income outside its core broking activity. It does not necessarily mean every alternative business has grown at the same rate; the percentage can also change when broking revenue falls or grows more slowly than other income streams.
According to Moneycontrol, Zerodha reported approximately ₹8,500 crore in FY2026 revenue and ₹4,300 crore in net profit. These are rounded figures reported by the publication.
The broader financial picture shows that the company has faced a slowdown after the exceptional growth of India’s retail-trading boom. The Economic Times reported that Zerodha’s net profit rose approximately 1.2% to ₹4,283 crore in FY2026, while revenue remained broadly unchanged from the previous year.
Interest Income From Customer Funds Becomes a Major Contributor
One of the most important parts of Zerodha’s revenue mix is interest income. Moneycontrol reported that interest earned on customer funds accounted for 32% of total revenue in FY2026.
Brokers can earn interest on eligible customer-related balances and other interest-generating assets, subject to applicable regulations and accounting treatment. This income can be less directly dependent on the number of trades executed than brokerage fees, although it remains sensitive to balances, interest rates and regulatory requirements.
Moneycontrol said Zerodha’s interest-income contribution was more than four times Groww’s share. Angel One also generated around 31% of its revenue from interest income in FY2026, although that category included interest from loans, margin trading funding and customer float.
This comparison matters because brokers increasingly earn money through more than one mechanism. A company with substantial interest income may be less exposed to a decline in brokerage fees, but it can become more exposed to changes in interest rates, customer balances and lending activity.
How Zerodha Compares With Groww and Angel One
Zerodha’s revenue composition differs from that of its listed competitors. According to Moneycontrol, Groww generated more than 70% of its FY2026 revenue from broking, while broking accounted for slightly less than 60% of Angel One’s revenue.
| Metric | Zerodha | Groww | Angel One |
|---|---|---|---|
| Broking share of FY2026 revenue | 44% | More than 70% | Slightly below 60% |
| Interest-income share | 32% | Less than one-quarter of Zerodha’s share | Around 31% |
| F&O share of broking revenue | 85% | Not specified in the cited report | Not specified in the cited report |
Source: Moneycontrol’s October 27, 2026 report. The figures are reported at different levels of detail; the interest-income comparison for Groww is expressed relative to Zerodha rather than as a precise percentage.
The comparison suggests that Zerodha has built a more diversified revenue mix than Groww, while Angel One also has a significant contribution from interest-related income. However, the proportions alone do not establish which broker is financially stronger. Profitability, capital adequacy, customer assets, operating costs and risk exposure must also be considered.
Why Regulatory Changes Are Pressuring Broking Revenue
India’s brokerage industry has been affected by changes to the derivatives market and by a slowdown in trading activity following the market’s peak in September 2024.
Regulatory changes, including higher securities transaction tax on options and restrictions on the number of weekly derivatives expiries, have affected the economics of high-frequency retail trading. Meanwhile, lower trading volumes can reduce transaction-linked income even when a broker retains a large customer base.
Zerodha’s own business updates have acknowledged the difficulty of growing a broking business consistently. CEO and co-founder Nithin Kamath has argued that brokers must continually attract or retain trading activity because customer balances and future trading volumes are not guaranteed.
This is one reason brokers are looking for additional revenue sources. Interest income, asset management and lending-related products can help offset weaker brokerage activity, although each introduces its own operational or financial risks.
Margin Trading and Other Businesses Support Diversification
Zerodha has expanded into margin trading funding (MTF), asset management and merchant banking, among other adjacent financial services.
MTF allows eligible customers to borrow money to purchase securities, using the financed investments and other permitted collateral within the applicable framework. The broker earns interest or related charges on the funding it provides.
Moneycontrol reported that Zerodha derived 8% of its revenue from MTF in FY2026. In a separate company update, Zerodha described MTF as contributing approximately 10% of revenue. The difference may reflect the reporting period or revenue calculation used, so the figures should not be treated as directly interchangeable.
The growth of MTF also creates risks. If markets fall sharply, customers who have borrowed to invest can face losses, margin calls or forced sales. The broker must manage credit exposure and ensure that collateral and risk controls remain adequate.
Zerodha has also been developing asset management and merchant banking activities. These businesses could diversify its income over time, but they are at different stages of development and should not be assumed to replace broking revenue immediately.
What the Shift Means for Zerodha’s Future
Lower dependence on broking income can make Zerodha’s revenue mix more resilient when trading volumes decline. Interest income and other financial services offer additional ways to earn revenue without relying entirely on customers placing more trades.
Nevertheless, the company’s continued dependence on F&O activity within its broking business is important. If derivatives trading weakens further, Zerodha could still face pressure, even with a larger share of non-broking income.
Its strategy will also be tested by competition. Groww and Angel One have their own lending, wealth and investment-service businesses, and all three firms must balance growth with customer protection, regulatory compliance and sustainable profitability.
The Bigger Picture
Zerodha’s changing revenue mix reflects a structural shift in Indian financial technology. Discount brokers initially grew by making trading cheaper and easier for retail investors. As regulatory changes and market cycles challenge transaction-based income, the next stage of competition increasingly involves lending, interest income, asset management and broader financial services.
The company’s progress shows that diversification can reduce reliance on a single source of revenue, but it does not automatically eliminate risk. A sustainable business model must also manage leverage, protect customer interests and avoid becoming overly dependent on another cyclical activity. For Zerodha and its competitors, the key question is whether new revenue streams can support durable growth without introducing excessive financial risk.
FAQs
1. What percentage of Zerodha’s revenue came from broking in FY2026?
According to Moneycontrol, broking accounted for 44% of Zerodha’s total revenue in FY2026, down from 70% in FY2021.
2. What is Zerodha’s biggest source of non-broking revenue?
Interest income on customer funds was a major contributor, accounting for 32% of total revenue in FY2026, according to Moneycontrol.
3. How does Zerodha compare with Groww and Angel One?
Moneycontrol reported that more than 70% of Groww’s FY2026 revenue came from broking, compared with slightly less than 60% for Angel One and 44% for Zerodha.
4. Why is Zerodha diversifying its revenue?
Regulatory changes affecting derivatives trading and weaker trading activity have put pressure on brokerage income. Additional sources such as interest income, MTF and asset management can help offset that pressure.
5. Does lower broking dependence mean Zerodha has less market risk?
Not necessarily. F&O trading still accounted for 85% of Zerodha’s broking revenue in FY2026. The company also remains exposed to changes in customer balances, interest rates, lending risks and broader market conditions.
Looking Ahead
Zerodha’s ability to maintain profitability while broadening its revenue base will depend on how effectively its newer businesses develop and how trading activity evolves. Interest income and MTF have become important contributors, but the company will need to manage their risks carefully while building additional sources of recurring revenue.
The wider brokerage industry is likely to continue moving beyond transaction fees alone. Zerodha’s falling broking-revenue share places it ahead of some listed rivals on this particular measure of diversification, but long-term performance will depend on profitability, customer trust, capital strength and the quality of its new businesses.
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