Zerodha’s Financial Performance in FY25

The stockbroking industry experienced a slowdown in FY25, characterised by reduced trading volumes, fewer new investors, and the implementation of stricter SEBI regulations. Most brokerages felt the impact, with revenue struggling to maintain previous levels. Zerodha, a key player, reported a decline of 11.5% in revenue for the fiscal year ending March 2025.

Zerodha’s operational revenue decreased to Rs 8,847 crore in FY25, down from Rs 9,993 crore in FY24, as indicated by its consolidated financial statements obtained from the Registrar of Companies. As of the latest data from the National Stock Exchange, Zerodha boasts 7.26 million users and commands a market share of 15.8%. Brokerage income remains its principal revenue source, supplemented by investment management fees, software services, and interest income.

Cost Structure of Zerodha in FY25

On the expenditure side, Zerodha incurred Rs 539 crore in salary expenses during FY25, marking a 31% increase from Rs 410 crore in FY24. Noteworthy is the remuneration withdrawn by directors Nithin Kamath, Nikhil Kamath, and Seema Patil, collectively totalling Rs 228 crore. Nithin and Nikhil each received Rs 96 crore, while Seema was paid Rs 36 crore.

Other significant costs included Rs 2,328 crore in fees and commissions, Rs 96 crore for professional and technical services, and Rs 47 crore in advertising expenses. In total, the company’s costs grew to Rs 3,238 crore in FY25, compared to Rs 3,119 crore in FY24.

Zerodha’s Profit and Margins

Amid a decline in scale of 11%, Zerodha’s profits fell by 22.9%, landing at Rs 4,237 crore in FY25, down from Rs 5,496 crore in FY24. Despite the decrease, the company maintained its tax payments, contributing Rs 1,395 crore during this period. The firm’s ROCE and EBITDA margins also faced pressure, recorded at 32% and 63.78% respectively.

Balance Sheet Strength of Zerodha

Significantly, Zerodha continues to uphold an exceptionally solid balance sheet. It holds cash and bank balances amounting to Rs 22,769 crore ($2.5 billion) as of FY25. Total current assets reached Rs 35,719 crore ($4.2 billion), reflecting the company’s prudent, debt-free strategy and robust liquidity, even in a challenging year.

Despite lower scales and profits, Zerodha’s financial figures reinforce the resilience of its bootstrapped, cash-rich business model. The firm remains one of the most profitable entities within the broking sector, providing a substantial buffer against regulatory changes and subdued market sentiments. As the industry transitions into a more moderate phase, Zerodha’s financial robustness and operational efficiency position it ahead of its competitors.