- Zerodha's revenue for FY24 reached ₹8,320 crore, with a profit of ₹4,700 crore, up from ₹6,875 crore and ₹2,907 crore in FY23.
- SEBI’s true-to-label circular, effective October 1, 2024, is expected to reduce Zerodha's revenue by 10%.
Zerodha, India’s largest stock broking platform, has reported a revenue of ₹8,320 crore and a profit of ₹4,700 crore for FY24, according to CEO and co-founder Nithin Kamath.
This marks a substantial leap from FY23, where the company posted ₹6,875 crore in revenue and ₹2,907 crore in profit. In FY23, Zerodha’s net profit surged 39%, while its revenue increased by 35.5% from FY22’s ₹4,694 crore.
Kamath noted that the current profits don’t account for approximately ₹1,000 crore in unrealised gains.
He stated, “Given the profitability of the last three years, our net worth is almost 40% of the customer funds we manage, making us one of the safest brokers to trade with.”
Despite the strong results, Kamath warned of challenges ahead, expecting a revenue dip. SEBI’s true-to-label circular, going live on October 1, 2024, could result in a 10% revenue reduction.
Additionally, a SEBI consultation paper on index derivatives, which could become regulation next quarter, may lead to a 30-50% revenue drop. Increased Securities Transaction Tax (STT) and changes to AMC collection rules are also expected to impact revenue.
Zerodha has also halted payouts in its partner and referral program due to new exchange guidelines. Kamath further highlighted the risk of a potential end to the bull market, stating this could bring “significant drawdown.” However, he reassured that Zerodha is “well covered” to manage such a lull with its lean operations, efficient infrastructure, and strong net worth.
Edited by Harshajit Sarmah
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