Zerodha's defining feature, which is zero charges on equity delivery trades, may soon be scrapped. In a blog post to mark the brokerage's 15th anniversary, co-founder and CEO Nithin Kamath said that a steep decline in revenues could force the company to rework its business model.
Kamath said that the company had taken a hit as regulatory changes squeezed its primary source of earnings from derivatives trading. He wrote, “The time has finally come for business to pivot,” adding that charging for delivery trades, free since Zerodha's inception, was now under serious consideration.
From 2021, I had been tweeting about the risks to the broking business, but somehow I kept getting surprised on the upside. But starting around October last year, all the risks I was thinking about crystallised. First came the STT increase on options, then the removal of exchange… pic.twitter.com/Q9k615kBZk
September 30, 2025Zerodha has long relied on active traders in the derivatives segment, particularly options, to generate most of its income, but recent policy changes have altered the landscape. Highlighting the challenges, Kamath wrote, “This risk has now crystallised with the increase in STT on options and the reduction of expiries to two weekly contracts on options."
"Along with these changes, the increase in the BSDA limit, the removal of the exchange transaction charges rebate, and a general drop in market activity, our revenues and profits took a hit last year, as we had expected," he said in a post on 'X'.
According to Kamath, the impact of these measures began in October 2024, with the effect becoming clear in the June 2025 quarter. Brokerage revenues were down about 40% compared with the same period last year.
Kamath cautioned that the options business “might be at further risk, with the regulators evaluating whether to stop weekly options completely.” He added, “If this were to happen, we would be forced to start charging brokerage for equity delivery trades to make the business tenable. Most of our competitors already charge for delivery trades.”
Such a shift would mark the end of Zerodha's most recognisable differentiator. While rival brokers have long levied fees for delivery trades, Zerodha's zero-cost offering has set it apart and helped it capture a large share of India's retail investor base.
Kamath has frequently sounded warnings about the fragility of models overly dependent on speculative trading. “If you look at all my updates from the last few years, I have generally been pessimistic about the industry's future,” he wrote.
Despite the earnings slide, Kamath highlighted that Zerodha remained on firm financial ground. “Our net worth is a little over Rs 13,000 crores,” he said, pointing out that this represents more than 50% of client funds handled on any given day. He added that the company remains debt-free and that customer assets on its platform now make up roughly 10% of all retail and high-net-worth assets under management in India.
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