Zerodha FY26 revenue flat as core brokerage business slows

The Bengaluru-based stockbroking platform said market activity has cooled since peaking in September 2024, leading to slower customer additions and lower trading volumes. However, the company noted that it has become India's largest broker by assets under management (AUM), with retail and HNI holdings driving growth.

Zerodha's margin trading funding (MTF) book has grown to around Rs 9,000 crore with customers borrowing around Rs 6,000 crore. The customer borrowings are equivalent to roughly 25% of Zerodha’s net worth as of March 31, 2026. However, the rapid expansion of the business has also become a source of concern for the company a leverage amplifies risks.

"MTF is one area where the business growth is scaring me," said Nithin Kamath, founder, Zerodha, during the company's annual update marking the company's 16th anniversary.

Zerodha launched its MTF business in December 2024, adding a more predictable stream of interest income. 

Despite challenging market conditions, Zerodha said internal enthusiasm remains strong, supported by a lean team of fewer than 100 employees across technology, product, business and operations. The company is leveraging AI to accelerate product development and improve operational efficiency.

The firm also highlighted progress across its content initiatives, including Varsity, Markets and Zero1, while continuing to back startups and social-impact projects through Rainmatter and the Rainmatter Foundation.

Founded by Nithin Kamath and Nikhil Kamath in 2010, Zerodha is preparing to launch US investing and mutual fund transactions on Kite. The company has also resumed its referral programme following regulatory clarity and continues to diversify through businesses such as Zerodha Capital, Zerodha AMC and Ditto.