Zerodha Net Profit Stalls at ₹4,283 Crore as Regulatory Shifts Squeeze Revenue
India’s largest retail broker Zerodha reported marginal profit growth in fiscal 2026, highlighting how regulatory changes eliminating exchange rebates are reshaping the economics of the country’s discount brokerage sector.
Zerodha reported a marginal 1.2 percent increase in net profit to ₹4,283 crore for fiscal 2026. This flat performance underscores a prolonged revenue slowdown for India’s largest retail stockbroker.
Brokerage income contracted by nearly 11 percent to ₹2,738 crore over the same period. Additionally, net transaction-charge income fell to zero from ₹400 crore after a regulatory change eliminated the rebates brokers previously received from stock exchanges.
Interest income also dipped by approximately 4 percent to ₹2,269 crore. Conversely, annual maintenance charges increased to ₹180 crore as the firm adjusted its fee structure.
This stagnation follows a difficult fiscal 2025, during which Zerodha saw revenue decline by 11.5 percent and profit drop by 23 percent. Those earlier declines marked the initial financial impact of weaker trading activity and the new regulatory environment.
The current figures remain well below the company’s pandemic-era peak. In fiscal 2024, fueled by a surge in retail trading, the brokerage generated ₹9,994 crore in revenue and ₹5,493 crore in net profit.
The shifting landscape has created an opening for smaller rivals to gain ground. Groww expanded both its revenue and profit by approximately 14 percent in fiscal 2026, posting ₹4,644 crore in revenue and ₹2,083 crore in net profit.
Despite Groww’s momentum, Zerodha remains nearly twice as large by both revenue and profit metrics. However, Groww has successfully widened its lead in user acquisition, reporting 13.12 million users as of July.
Structural Shift in Brokerage Economics
For market professionals, these results signal a structural shift in India’s discount brokerage model. The removal of exchange rebates means firms can no longer rely on passive transaction-charge income, forcing a greater dependence on core brokerage fees and alternative revenue streams.
Investors will be watching closely to see if Zerodha can innovate its product offerings to offset these regulatory headwinds. The ability to monetize its massive existing user base will determine whether the broker can return to its previous growth trajectory.
