Did India’s Capital Market Infrastructure Generate Over Rs 700 Billion Revenue in FY25?
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Synopsis
India's capital market infrastructure has achieved remarkable growth, generating over Rs 700 billion in revenue in FY25. This growth is driven by increased market participation and diversification into new business segments, setting the stage for an exciting future.
Key Takeaways
- India's capital market infrastructure generated over Rs 700 billion in FY25.
- Mutual fund AUM projected to reach Rs 103 trillion by FY28.
- Demat accounts expected to grow to 304 million by FY28.
- Brokers contributed nearly Rs 500 billion to FY25 revenues.
- Younger investors under 30 years made up about 40% of the investor base.
New Delhi, Dec 22 (NationPress) The infrastructure of India's capital market, which includes brokers, stock exchanges, depositories, and registry and transfer agents (RTAs), has reported revenues exceeding Rs 700 billion for FY25, according to a recent report.
According to global brokerage Jefferies, this revenue growth is attributed to an increase in market volumes and heightened investor engagement. The sector's future prospects will be influenced by rapid expansion in specific segments, diversification into related businesses, and its ability to adapt to regulatory changes.
Furthermore, the brokerage anticipates that the total mutual fund assets under management will grow at a compound annual rate of 16 percent between FY26 and FY28, with mutual fund AUM expected to rise from Rs 67 trillion in FY25 to Rs 103 trillion by FY28.
The average daily turnover in the cash market (ADTO) is projected to increase by 15 percent, while the ADTO for futures and options (F&O) is expected to grow by 12 percent, indicating a moderation in derivatives activity following recent regulatory updates.
Additionally, the number of demat accounts is predicted to grow from 192 million in FY25 to 304 million by FY28, and mutual fund folios are expected to rise from 235 million to 377 million.
Brokers contributed nearly Rs 500 billion to FY25 revenues, while stock exchanges accounted for about Rs 200 billion, with the remainder contributed by depositories and RTAs.
The report indicates that brokers and exchanges are likely to experience faster growth than other segments within the capital market infrastructure.
The growth of stock exchanges is projected to arise from increasing interest in index options, which are expected to capture around 35 percent of the options market by FY28.
Brokers are expected to expand their offerings across various products, including margin trading, commodities, bonds, and wealth management.
Younger investors are becoming a significant part of the market, with those under 30 years old representing approximately 40 percent of the investor base in FY25.
Analysts believe that the market is on the verge of a year-end rally. The recent sharp recovery of the rupee, alongside foreign institutional investors' cash market purchases, may expedite this rally, leading to short covering and pushing benchmark indices higher.
Point of View
We recognize the importance of India's capital market infrastructure in driving economic growth. The significant revenue generation and increasing participation from younger investors indicate a robust and evolving market landscape that requires ongoing attention and analysis.
NationPress
22/12/2025
Frequently Asked Questions
What does the capital market infrastructure include?
The capital market infrastructure includes brokers, stock exchanges, depositories, and registry and transfer agents (RTAs).
How much revenue did India's capital market infrastructure generate in FY25?
India's capital market infrastructure generated over Rs 700 billion in revenue in FY25.
What is the projected growth rate for mutual fund assets?
Mutual fund assets under management are projected to grow at a compound annual rate of 16 percent from FY26 to FY28.
How many demat accounts are expected by FY28?
The number of demat accounts is expected to increase from 192 million in FY25 to 304 million by FY28.
What factors are driving growth in the capital market?
Growth is driven by increased market volumes, investor participation, and diversification into adjacent businesses.
