Zerodha reports sharp revenue dip; Nithin Kamath cites impact of F&O regulations

Mumbai: India’s largest retail brokerage Zerodha has reported a sharp 40% decline in broking revenues, with CEO Nithin Kamath attributing the downturn to sweeping changes in Futures and Options (F&O) regulations.

Kamath said that while FY25 revenues were only partially impacted, the “real hit” became visible in Q1 FY26 (April–June 2025), when income from broking activity fell nearly 40% year-on-year. Zerodha’s revenues slipped from around ₹10,000 crore in the previous year to about ₹8,000–8,500 crore in FY25. Profit after tax also fell to ₹4,200 crore from ₹5,500 crore in FY24.

The slowdown has also led to fewer new account openings and a dip in Zerodha’s share of the NSE’s active client base, Kamath acknowledged.

A major industry concern remains the potential discontinuation of weekly options trading, currently under regulatory review. Kamath warned that if the move goes through, Zerodha may be forced to introduce brokerage charges on equity delivery trades, which are currently free.

Despite these setbacks, Zerodha has strengthened its position in client asset holdings. The firm now manages close to 10% of all retail and high-net-worth individual (HNI) assets under management in India.