Zerodha FY24 profit rose 61.5%, flagged regulatory hit to trading revenue (resurfacing a September 2024 report)
Zerodha reported FY24 profit of Rs 4,700 crore on revenue of Rs 8,320 crore, while CEO Nithin Kamath said proposed derivatives rules could reduce revenue by 30%-50%, according to a report resurfacing from September 2024. The broker is diversifying into lending, insurance and fund management as trading regulations tighten.
What happened
Zerodha reported FY24 profit of Rs 4,700 crore, up 61.5%, on revenue of Rs 8,320 crore. CEO Nithin Kamath warned SEBI derivatives reforms, higher STT and
Key facts
- FY24 profit: Rs 4,700 crore, up 61.5% YoY
- FY24 revenue: Rs 8,320 crore, up 21% YoY
- Expected revenue decline from index-derivatives rules: 30%-50%
- Expected revenue decline from true-to-label circular: 10%
- Assets under custody: Rs 5.66 trillion
- BSE active-client market share: 16%
- True-to-label rules effective: October 1
Why this matters
Regulatory pressure on derivatives revenue strengthens the strategic case for acquisitions or partnerships in lending, insurance and fund management to build less trading-dependent fee pools.
What to watch
- Final SEBI derivatives regulations, implementation dates and any phased exemptions.
- Monthly exchange data for retail options turnover, active clients, premium turnover and expiry-day volumes.
- Zerodha's customer mix between derivatives traders, equity investors, mutual-fund investors and funded borrowers.
- Growth in Coin assets, insurance distribution, lending book size and non-brokerage revenue contribution.
- Changes in discount-broker pricing, platform fees or premium subscription launches.
- Evidence of customer migration to other instruments, offshore platforms or unregulated trading products.
- Industry-wide earnings commentary from brokers, exchanges, market makers and asset managers.
- Prioritize mutual-fund, fixed-income, insurance and advisory product adoption among existing active traders.
- Expand collateralized lending and margin-adjacent credit only within tighter risk controls and regulatory guardrails.
- Reprice brokerage, platform and premium analytics offerings to recover revenue from high-engagement customers without relying solely on derivatives turnover.
- Reduce customer-acquisition spending tied to speculative options trading and redirect education toward long-term investing products.
- Build compliance, surveillance and customer-risk tooling ahead of final derivatives-rule implementation.
- Use strong cash generation to selectively invest in fund-management distribution, insurance partnerships and product-led wealth infrastructure.