Zerodha is witnessing a sharp decline in earnings, with brokerage revenues plummeting nearly 40% year-on-year in June 2025 (Q1 FY26).

The leading stockbroker's co-founder Nithin Kamath, in a blogpost, shared a graph showcasing the revenue and profits of the company. However, the actual number for FY25 has not been disclosed by Zerodha yet.

Kamath said the decline reflects the crystallisation of risks -- which include the increase in STT on options, the reduction in weekly expiries, the increase in the BSDA (Basic Services Demat Account) limit, the removal of the exchange transaction charges rebate, and a general drop in market activity.

"The impact of all these changes started hitting us from October 2024, so the numbers don't fully reflect in the financial year FY25. This year, we are seeing a substantial hit of about 40% in brokerage revenues in the latest quarter (June 2025) compared to the same quarter last year," he added.

During FY24, Zerodha posted Rs 8,370 crore in revenue as compared to Rs 6,875 crore reported in FY23. The profit for FY24 stood at Rs 4,700 crore against Rs 2,907 crore during FY23.

One area Zerodha claims it has done "phenomenally well" is its total market share in terms of client assets. "Assets held by Zerodha customers now account for about 10% of all retail and HNI AUM in the country," Kamath stated.

Its nine-month-old product Margin Trading Facility (MTF), where customers can buy shares for more than the money in their account now, has a Rs 5,000 crore book with 5% market share.

Zerodha Capital, which offers loan against securities, has grown "steadily", and the loan book is at Rs 430 crore. 

Zerodha's networth stood at over Rs 13,000 crore with zero debt, and more than half of client funds were matched by net worth.

In the competitive landscape, IPO-found Groww holds the top position with 12.07 million active clients as of August, while Zerodha ranks second with 7.26 million clients and a 15.8% market share.