Zerodha, India’s largest stockbroker by revenue, has steadily reduced its reliance on broking income, with brokerage accounting for 44 per cent of its total revenue in FY26, down from about 70 per cent in FY21. The shift comes as tighter regulation of equity derivatives continues to reshape the economics of the country’s retail broking industry.
The Bengaluru-based firm reported revenue of about Rs 8,500 crore and net profit of about Rs 4,300 crore in FY26, according to figures reported by Moneycontrol.
Float income emerges as a second pillar
Interest earned on customer funds, or float income, contributed 32 per cent of Zerodha’s FY26 revenue. That share is more than four times what Groww earns from the same source, highlighting how differently India’s leading discount brokers make money.
Listed peers remain far more tied to brokerage fees. More than 70 per cent of Groww’s FY26 revenue came from broking, while Angel One derived a little under 60 per cent from the business. Angel One also earned roughly 31 per cent of its revenue from interest income, though that figure includes interest on loans and margin trade funding (MTF) along with customer float.
Derivatives still dominate the broking book
Despite the broader revenue mix, Zerodha’s broking business remains heavily concentrated in futures and options (F&O), which made up 85 per cent of its broking revenue. Groww and Angel One, by contrast, draw a more meaningful share of broking income from equity delivery and commodities.
Rating agency ICRA, in a recent credit note on the company, said Zerodha’s strengths are partly offset by its high exposure to the volatile and cyclical capital market, with earnings still driven largely by broking and float income despite diversification into allied businesses such as MTF, asset management and merchant banking.
ICRA also cautioned that while margin trade funding helps diversify revenue, it brings credit and market risks linked to lending against capital market assets.
Why it matters
With SEBI’s curbs on F&O trading compressing transaction volumes across the industry, India’s wealthtech and broking platforms are racing to build steadier income streams, from lending and asset management to US stock investing and fixed-income products. Zerodha’s evolving revenue mix offers a clear view of how the sector’s most profitable player is preparing for a lower-derivatives future, even as its dependence on market cycles remains.
