Zerodha posts Rs 4,283 crore FY26 profit, readies Kite for US investing
Zerodha said net profit rose about 1.2% year on year to Rs 4,283 crore for the year ended March 2026. The Bengaluru brokerage is planning US-investing and integrated mutual-fund transactions on Kite while monitoring margin-trading leverage and capital needs.
What happened
Zerodha reported FY2026 net profit of Rs 4,283 crore, up 1.2% year on year, amid flat revenue and slower trading activity. The broker plans US investing and
Key facts
- FY ended March 31, 2026 net profit: Rs 4,283 crore
- Previous fiscal net profit: Rs 4,231 crore
- Net profit growth: around 1.2% YoY
- FY25 revenue from operations: Rs 8,847 crore
- 16 years of Zerodha
- MTF book: Rs 9,000 crore
- Client borrowings: Rs 6,000 crore
- Client borrowings equal 25% of net worth
- Required operating capital: Rs 11,000 crore
- Account maintenance charges: 2% of revenue
- MTF: 10% of revenue
- Referral commission resumed at 10%
- Team size: fewer than 100
Why this matters
Zerodha’s expansion agenda increases the strategic value of partnerships in US-market access, cross-border compliance, mutual-fund infrastructure and margin-risk technology.
What to watch
- Formal launch date, pricing, eligible instruments, and remittance/custody partner for US investing.
- Disclosures on US-investing customer adoption, assets transferred, transaction frequency, and contribution to revenue.
- Growth in mutual-fund AUM, SIP mandates, and share of users holding both direct equities and funds on Kite.
- Any increase in margin-trading book, changes to leverage eligibility, or commentary on capital allocation and credit risk.
- SEBI rules affecting derivatives, margin funding, broker capital requirements, or retail investor protection.
- Changes in FY27 revenue growth, operating costs, and profit growth that indicate whether new products are offsetting mature brokerage economics.
- Competitive launches or fee cuts from Indian brokerages and global-investing platforms.
- Phase rollout of US stocks/ETFs on Kite, likely beginning with a limited customer cohort and partner-led custody/remittance infrastructure.
- Deepen in-app mutual-fund discovery, SIP execution, portfolio views, and consolidated reporting to shift Kite from a trading terminal toward a primary investment account.
- Maintain conservative margin funding limits or revise pricing/eligibility criteria as leverage demand and market volatility evolve.
- Use education, tax tools, and long-term-investing features to convert derivatives-heavy users into multi-product investors.
- Prioritize product-led growth over aggressive customer-acquisition spending, preserving industry-leading profitability despite slower earnings growth.
Also reported by
- YourStory · Capital — Same time