Zerodha FY26 Profit Rises 1.2% To ₹4,283 Crore, Brokerage Income Falls 10.7%

Zerodha’s growth remained largely flat in FY26, with the stockbroking platform reporting a 1.2% year-on-year increase in net profit to ₹4,283 crore, compared with ₹4,231 crore in FY25. The company’s operating revenue also remained broadly at the previous year’s level, highlighting the pressure on its core broking business after a slowdown in market activity and regulatory changes affecting transaction-charge income.

The numbers mark a sharp moderation from Zerodha’s earlier growth trajectory. Operating revenue had already fallen to ₹8,847 crore in FY25 from ₹9,993 crore in FY24, while net profit had dropped from about ₹5,496 crore to ₹4,237 crore during the same period. In FY26, Zerodha managed to stabilize profitability as higher margin trading facility (MTF) earnings offset some of the decline in brokerage and transaction-related income.

Zerodha FY26 Profit Rises Just 1.2%

Zerodha’s net profit increased by only ₹52 crore during FY26, from ₹4,231 crore to ₹4,283 crore, according to the company’s financial disclosures cited by Inc42 and The Economic Times.

The modest increase follows a difficult FY25, when the brokerage’s profit declined by roughly 23% from FY24.

Zerodha Financial Performance

Financial Metric	FY24	FY25	FY26
Operating revenue	₹9,993 Cr	₹8,847 Cr	Broadly flat vs FY25
Net profit	₹5,496 Cr	₹4,231 Cr	₹4,283 Cr
Net profit growth	—	-23%	+1.2%
Brokerage income	—	—	₹2,738 Cr
Net transaction charges	—	₹400 Cr	Nil
AMC income	—	—	₹180 Cr
Interest income	—	—	₹2,269 Cr

FY26 operating revenue was not disclosed as an exact figure in Zerodha’s blog post; the company said it was similar to FY25’s level.

Revenue Stays At FY25 Levels

Zerodha did not disclose an exact FY26 operating-revenue figure in the blog post discussed by Inc42.

Instead, the company said revenue remained broadly similar to FY25.

That means Zerodha’s top line effectively stabilized after falling from ₹9,993 crore in FY24 to ₹8,847 crore in FY25.

The stabilization is important because the business faced two major headwinds: the end of the earlier bull-market environment and the elimination of rebates on transaction charges received by brokers.

Zerodha said the loss of transaction-fee revenue is now being offset by its MTF earnings.

Brokerage Income Falls 10.7%

The pressure on broking revenue has been building for a while: Zerodha founder Nithin Kamath had earlier warned that new market closing rules could dent Zerodha revenue.

Zerodha’s core brokerage income declined 10.7% year over year to ₹2,738 crore in FY26.

The decline indicates that the company’s traditional broking revenue remained under pressure even though overall revenue was stable.

The weakness reflects a broader change in India’s retail trading environment, where lower trading activity and regulatory measures have affected the economics of online broking.

Zerodha FY26 Revenue Components

Revenue Component	FY26	YoY Trend
Brokerage income	₹2,738 Cr	-10.7%
Interest income	₹2,269 Cr	~-4%
AMC charges	₹180 Cr	Marginal increase
Net transaction charges	Nil	Down from ₹400 Cr
MTF earnings	Increased	Offset pressure

The figures show that Zerodha is increasingly relying on revenue streams beyond traditional brokerage.

Transaction-Charge Income Falls To Zero

One of the biggest changes in Zerodha’s FY26 financial profile was the disappearance of net transaction-charge income.

The company earned ₹400 crore from this source in FY25, but the figure fell to zero in FY26 after a regulatory change ended the rebates brokers received from stock exchanges.

This created a significant hole in Zerodha’s revenue structure.

FY25
Transaction-Charge Income
₹400 Cr
      ↓
Regulatory Change
      ↓
Exchange Rebates End
      ↓
FY26
Transaction-Charge Income
₹0
      ↓
MTF Earnings Offset Part Of The Gap

The development demonstrates how regulatory changes can have a direct impact on the revenue model of India’s discount-broking platforms.

MTF Becomes More Important For Zerodha

Diversification beyond broking is the wider theme. Zerodha has been widening its product shelf, and recently received SEBI approval alongside Angel One to offer corporate bonds.

Zerodha’s margin trading facility has emerged as an important source of revenue as transaction-related income has weakened.

MTF allows eligible investors to purchase securities by paying only part of the transaction value upfront, with the broker effectively financing the remaining amount subject to applicable rules and charges.

Zerodha said MTF earnings are now offsetting the loss of transaction-fee revenues.

Changing Zerodha Revenue Mix

Earlier Revenue Model
        ↓
Brokerage
+
Transaction Rebates
+
Interest Income
        ↓
Regulatory & Market Changes
        ↓
Current Model
        ↓
Brokerage
+
MTF Earnings
+
Interest Income
+
Other Charges

The shift could make MTF increasingly important to Zerodha’s financial performance, although it also changes the company’s exposure to market and credit conditions.

Interest Income Declines 4%

Zerodha’s interest income declined approximately 4% to ₹2,269 crore during FY26.

Despite the decline, interest income remains one of the company’s largest revenue contributors.

The combination of interest income and MTF earnings has become increasingly important as traditional brokerage revenue faces pressure.

This also means Zerodha’s earnings profile is becoming more diversified within financial services rather than being driven overwhelmingly by trading commissions.

AMC Charges Rise Marginally

Annual maintenance charges, or AMC income, increased slightly to ₹180 crore in FY26.

The revenue stream remains relatively small compared with brokerage and interest income, but it reflects the company’s broader ecosystem of investment services.

Zerodha has expanded beyond stock trading into mutual funds, government securities and other investment products.

The company is also entering additional financial-services categories as it seeks to reduce its dependence on trading activity.

FY25 Was A Major Reset For Zerodha

The FY26 numbers become more meaningful when viewed against Zerodha’s FY24 performance.

In FY24, operating revenue stood at approximately ₹9,993 crore, while net profit reached about ₹5,496 crore.

The following year brought a substantial decline.

Zerodha’s Three-Year Financial Trend

Metric	FY24	FY25	FY26
Revenue	₹9,993 Cr	₹8,847 Cr	~₹8,847 Cr
Net profit	₹5,496 Cr	₹4,231 Cr	₹4,283 Cr
Revenue growth	+45.3%	-11.5%	~Flat
Profit growth	Strong growth	-23%	+1.2%

FY26 therefore appears more like a stabilization year than a return to Zerodha’s earlier high-growth phase.

End Of Bull Market Hits Brokerage Growth

Zerodha itself attributed the lack of real revenue growth to two factors: the end of the bull market and the disappearance of transaction-charge rebates.

A brokerage business is naturally sensitive to market conditions.

When markets are strong, retail participation, trading activity and derivatives volumes can increase.

When market activity slows, brokers can experience pressure even if their customer base continues growing.

Strong Markets
     ↓
Higher Trading Activity
     ↓
Higher Brokerage Revenue

Market Slowdown
     ↓
Lower Trading Activity
     ↓
Brokerage Pressure

This dependence has encouraged Zerodha to diversify its revenue streams.

Zerodha Is Diversifying Beyond Broking

The financial slowdown has reinforced the company’s strategy of building businesses outside its core brokerage operation.

Zerodha has expanded into areas including mutual funds, investment products and wealth-management services. It is also pursuing a merchant-banking business, which could provide a new revenue opportunity as India’s startup ecosystem increasingly moves toward public markets.

The objective is to make the company less dependent on market cycles.

Zerodha’s Diversification Strategy

Business Area	Strategic Purpose
Equity broking	Core business
Derivatives	Trading revenue
Mutual funds	Long-term investment
Government securities	Fixed-income exposure
MTF	Interest-based revenue
Merchant banking	IPO and capital-markets opportunity
Investment technology	Broader financial ecosystem

The strategy reflects the changing economics of India’s online brokerage industry.

Zerodha Faces A More Competitive Broking Market

Zerodha is also operating in an increasingly competitive market.

Platforms such as Groww, Angel One and Upstox have expanded their customer bases and product offerings, while some competitors have begun changing their brokerage models.

Zerodha has historically differentiated itself through its low-cost model and technology-focused platform.

But as competition intensifies, customer acquisition and retention may become more expensive.

Regulation Is Reshaping The Broking Industry

The financial performance also needs to be viewed against tighter regulation of retail derivatives trading.

Regulatory measures aimed at reducing excessive retail participation in futures and options have contributed to lower activity across the industry.

Zerodha’s earlier high-margin growth was closely associated with strong retail trading activity, particularly in derivatives.

The industry’s economics have consequently changed.

Regulatory And Market Pressures

Factor	Impact On Zerodha
Lower trading activity	Brokerage pressure
F&O regulatory tightening	Reduced derivatives activity
End of exchange rebates	Transaction income eliminated
Higher trading costs	Potentially lower retail participation
Market volatility	Revenue variability
Competition	Pressure on pricing

These factors make revenue diversification increasingly important.

Profitability Remains A Major Strength

Despite the slowdown, Zerodha remains highly profitable.

A net profit of ₹4,283 crore means the company continues to generate substantial earnings even after the sharp correction from FY24.

Its ability to maintain profitability while revenue remained broadly flat also demonstrates the strength of its operating model.

However, the 1.2% profit growth rate shows that the company is no longer experiencing the rapid earnings expansion seen during the earlier market boom.

What Zerodha’s FY26 Numbers Mean

The FY26 results point to three broad trends.

First, Zerodha’s traditional brokerage business is slowing.

Second, regulatory changes have permanently removed an important source of transaction-related income.

Third, the company is finding alternative sources of revenue, particularly MTF earnings.

Three Key Takeaways

1. Core Broking
Brokerage Income ↓ 10.7%

2. Regulation
Transaction Income
₹400 Cr → ₹0

3. Diversification
MTF Earnings ↑
        ↓
Revenue Stabilizes
        ↓
Profit Holds Near FY25 Level

This is a transition phase for India’s largest discount broker.

The Bigger Picture

Zerodha’s FY26 performance shows a company moving from rapid growth toward stabilization. Net profit increased only 1.2% to ₹4,283 crore, while operating revenue remained broadly at FY25 levels. The result follows a much sharper decline in FY25, when revenue fell 11.5% to ₹8,847 crore and profit declined roughly 23% to ₹4,231 crore.

The key change is occurring within Zerodha’s revenue mix. Brokerage income fell 10.7% to ₹2,738 crore, while net transaction-charge income disappeared entirely after regulatory changes ended exchange rebates. Interest income also declined around 4% to ₹2,269 crore. Zerodha said higher MTF earnings are now helping offset the lost transaction revenue, suggesting that the company’s future growth will increasingly depend on diversified financial products rather than traditional brokerage alone.

Looking Ahead

Zerodha’s immediate challenge will be to return to meaningful revenue growth without relying excessively on a revival in trading activity. The company has already identified MTF as an important offset to lost transaction income and is expanding into other areas of financial services. Its merchant-banking plans and broader investment ecosystem could provide additional sources of growth as the traditional broking business matures.

For the wider Indian fintech sector, Zerodha’s FY26 numbers illustrate how quickly the economics of online broking can change when market cycles and regulations shift. The company remains highly profitable, but the near-flat revenue trajectory suggests that its next phase will be less about capturing the trading boom and more about building recurring and diversified financial-services income. Whether that strategy can restore double-digit growth will be a key question for Zerodha in FY27 and beyond

Frequently Asked Questions

How much profit did Zerodha make in FY26?

Zerodha reported a net profit of ₹4,283 crore in FY26, a 1.2% increase over the ₹4,231 crore it posted in FY25.

Why did Zerodha brokerage income fall in FY26?

Brokerage income fell 10.7% to ₹2,738 crore because of lower trading activity and tighter F&O regulation, which reduced derivatives volumes.

Is Zerodha growing outside broking?

Yes. Interest income, MTF and AMC charges now matter more to the business, and its asset management arm is scaling quickly — Zerodha Fund House FY26 revenue rose 79% to ₹17 crore.