Zerodha, one of India's largest brokerage firm, has reported a 40% drop in broking revenues as sweeping regulatory changes, particularly in the Futures and Options (F&O) segment, begin to reshape the trading landscape.
According to Zerodha co-founder and CEO Nithin Kamath, the full impact of these changes began to take effect from October 2024, meaning the FY25 numbers only partially reflect the regulatory disruption.
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“The real hit is visible in the latest quarter,” Kamath noted, referring to Q1 FY26 (April–June 2025), where brokerage revenues plunged nearly 40% compared to the same period last year.
The company is blog post shared a chart showing revenue declined from Rs 10,000 crore from previous year to nearly Rs 8,000-8,500 crore in FY25. And, profit after tax was near Rs 4,200 crore in FY25, compared with around Rs 5,500 crore in the preceding fiscal.
One of the most significant concerns for the brokerage industry is the potential discontinuation of weekly options trading, currently under review by regulators. Kamath warned that if weekly options are scrapped, Zerodha may be compelled to introduce brokerage charges on equity delivery trades, a segment it has traditionally offered for free. “Most of our competitors already charge for delivery trades,” he added.
The slowdown in market activity has also led to a dip in new account openings, and Zerodha's share of the NSE's active client base has seen a downward trend, Kamath said.
Despite these challenges, Zerodha has made notable gains in client asset holdings. The firm now manages approximately 10% of all retail and high-net-worth individual (HNI) assets under management (AUM) in India
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