The founder of Zerodha, Nithin Kamath, declared that the brokerage made an astounding ₹4,700 crore profit in FY24—a 62% rise over the previous year. The revenue increased significantly as well, by 21% to ₹8,320 crore. The platform’s traders currently possess unrealized profits of nearly ₹1 lakh crore between them.
Kamath recently announced on his blog that Zerodha now has ₹5.66 lakh crore in total assets under custody, which is almost ten crore rows of holdings. This remarkable number can be ascribed to a flourishing bull market, an upsurge in retail involvement, a bustling IPO market, and the faith that customers have in Zerodha. He said, “The exciting thing is that all of our customers are sitting on unrealized profits that exceed ₹1 lakh crore.”
Additionally, Kamath stated that Zerodha is now among the safest brokers in the industry because to its net worth, which is about 40% of the client funds it oversees.
He did, however, issue a warning that later this year, regulatory changes might result in a large drop in income. We presently rely heavily on index derivatives for our revenue, so any changes will have an impact on us. We anticipate a 30% to 50% decline in revenue,” he said.
The regulatory amendments permit Zerodha to charge full Annual Maintenance Charges (AMC) from customers with demat assets of ₹10 lakhs and above, instead of ₹4 lakhs as previously, under the Basic Services Demat Account (BSDA). When combined with the elimination of account opening fees, this can lead to a significant drop in revenue.
Kamath expressed confidence in Zerodha’s readiness despite these difficulties. “With a lean team, effective cost control, and a healthy net worth, we are well-positioned to weather this downturn. We currently have 1,200 people on our team overall, of which a tiny portion work on daily operations as part of the core team.
Zerodha has demonstrated its resilience in the changing financial landscape with its remarkable success and quick response to impending regulatory changes.
