03 October 2025
"The time has finally come for business to pivot."
Nithin Kamath, Zerodha founder and CEO, in a post on Tuesday, hinted at a business pivot as the company's revenues and profitability were hit due to recent regulatory changes.
"... the regulatory actions, be it the drop in transaction charges revenue, the increase in STT on F&O, the proposal to make futures and options trading tougher, ASBA for trading, the increase in BSDA limit, etc., will have a significant impact on our revenues and profitability…," he wrote in the post celebrating 15th anniversary of Zerodha.
Founded in August 2010 by brothers Nithin and Nikhil Kamath, Zerodha is one of the largest Indian brokerage and financial services companies. A rare bootstrapped firm, the company claims to have more than 1.6 crore customers with nearly INR 6 lakh crore of equity investments and claims to contribute to 15% of daily retail exchange volumes in India.
According to an Entrackr report, Zerodha has nearly 16% of market share just behind Groww (26.27%), another brokering and financial services startup. Zerodha is followed by the likes of AngelOne and Upstox, and even conventional players such as ICICIdirect and HDFC Securities.
Kamath in his post disclosed that this year the company has seen a substantial hit of about 40% in brokerage revenues in the quarter ending June 2025 compared to the same quarter last year.
"The impact of all these changes started hitting us from October 2024, so the numbers don't fully reflect in the financial year 2024/25. 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 disclosed.
Zerodha financials: An overview
Even as the company has not released full FY25 financials, the graph shared by Kamath shows that the revenue and profits were down by up to 15% in the said fiscal year.
In FY24, however, Zerodha generated a revenue of INR 8,370 crore along with INR 4,700 crore in profit. Compared to the previous fiscal year, revenues and profits were almost double. In FY23, the company posted INR 6,875 crore and profit of INR 2,907 crore, according to Entrackr.
To put things in perspective, its nearest rival Groww posted INR 3,145 in revenue from operations in FY24, up from INR 1,435 crore in the previous fiscal year. The company had posted a net loss of INR 805 crore in FY24 as it paid a one-time tax of INR 1,40 crore for changing its domicile back to India. Other than this, the company was operationally profitable, with profits of INR 535 crore in FY24 compared to INR 458 crore in the previous fiscal year.
"The time has finally come for business to pivot."
Nithin Kamath, Zerodha founder and CEO, in a post on Tuesday, hinted at a business pivot as the company's revenues and profitability were hit due to recent regulatory changes.
"... the regulatory actions, be it the drop in transaction charges revenue, the increase in STT on F&O, the proposal to make futures and options trading tougher, ASBA for trading, the increase in BSDA limit, etc., will have a significant impact on our revenues and profitability…," he wrote in the post celebrating 15th anniversary of Zerodha.
Founded in August 2010 by brothers Nithin and Nikhil Kamath, Zerodha is one of the largest Indian brokerage and financial services companies. A rare bootstrapped firm, the company claims to have more than 1.6 crore customers with nearly INR 6 lakh crore of equity investments and claims to contribute to 15% of daily retail exchange volumes in India.
According to an Entrackr report, Zerodha has nearly 16% of market share just behind Groww (26.27%), another brokering and financial services startup. Zerodha is followed by the likes of AngelOne and Upstox, and even conventional players such as ICICIdirect and HDFC Securities.
Kamath in his post disclosed that this year the company has seen a substantial hit of about 40% in brokerage revenues in the quarter ending June 2025 compared to the same quarter last year.
"The impact of all these changes started hitting us from October 2024, so the numbers don't fully reflect in the financial year 2024/25. 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 disclosed.
Zerodha financials: An overview
Even as the company has not released full FY25 financials, the graph shared by Kamath shows that the revenue and profits were down by up to 15% in the said fiscal year.
In FY24, however, Zerodha generated a revenue of INR 8,370 crore along with INR 4,700 crore in profit. Compared to the previous fiscal year, revenues and profits were almost double. In FY23, the company posted INR 6,875 crore and profit of INR 2,907 crore, according to Entrackr.
To put things in perspective, its nearest rival Groww posted INR 3,145 in revenue from operations in FY24, up from INR 1,435 crore in the previous fiscal year. The company had posted a net loss of INR 805 crore in FY24 as it paid a one-time tax of INR 1,40 crore for changing its domicile back to India. Other than this, the company was operationally profitable, with profits of INR 535 crore in FY24 compared to INR 458 crore in the previous fiscal year.
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