Zerodha, India's largest broking firm by revenue, posted broadly flat financials in FY26, with revenue at approximately ₹8,500 crore and net profit at around ₹4,300 crore — nearly unchanged from FY25 levels. Regulatory headwinds in the futures and options (F&O) segment, combined with a moderation in market activity, weighed on growth throughout the year.

What the Numbers Show

The figures were disclosed by Nithin Kamath, co-founder and CEO of Zerodha, in a blog post. Kamath noted that the company does not publicly report absolute financial data and instead presents indicative figures through a bar graph. Both revenue and profit remained at levels broadly similar to the previous financial year.

'The last couple of years have been mixed for brokers. We had to take revenue hits because of regulatory changes, and then the Indian market peaked in September 2024. Volumes steadily declined after that, and growth has been muted,' Kamath said.

Regulatory Changes Behind the Pressure

Zerodha's stagnant growth is largely attributable to a series of regulatory changes that have reshaped the discount broking landscape. An increase in the securities transaction tax (STT) on options, along with a reduction in the number of weekly options expiries, cut into a key revenue stream for the firm. Kamath had flagged these risks as early as last year, warning that FY26 could underperform FY25. The Indian equity market peaking in September 2024 added further pressure, as trading volumes declined steadily in the months that followed.

Lean Structure and AI as Competitive Levers

Despite the difficult operating environment, Kamath pointed to Zerodha's deliberately lean organisational model as a structural advantage. He said keeping the company small over the past decade — even as it scaled rapidly — has allowed it to adapt quickly to product and service changes. Artificial intelligence, he added, has accelerated that ability further, enabling faster iteration on new ideas. Kamath also highlighted meaningful improvements in services for non-resident Indian (NRI) customers and said substantial work is underway to expand Zerodha's US investing offering.

How Rivals Compare

Zerodha's flat performance stands in contrast to stronger growth reported by publicly listed competitors such as Groww and Angel One, both of which recorded significant increases in revenue and earnings in recent periods. However, their overall financial scale remains smaller than Zerodha's, which continues to lead the industry by revenue. This comes amid a broader shift in the discount broking industry, where regulatory tightening has disproportionately affected high-volume F&O platforms.

What to Watch

With the F&O regulatory environment unlikely to ease in the near term, Zerodha's ability to diversify revenue — through NRI services, US investing, and AI-driven product development — will be closely watched. The next financial year will test whether lean operations and technology investment can offset continued pressure on trading-fee income.