Zerodha Posts Profit Of Rs 2,907 Crore In FY23; Revenue Up 38%

Zerodha Broking Pvt.'s profit and revenue for FY23 jumped over the previous fiscal, as it remained India's largest brokerage by revenue and profitability numbers.

The Bengaluru-based brokerage platform, led by brothers Nikhil and Nithin Kamath, posted a revenue of Rs 6,875 crore in FY23, up 38.5% from Rs 4,963.7 crore in FY22. A Zerodha spokesperson confirmed the numbers to BQ Prime.

The company's profit also rose to Rs 2,907 crore from Rs 2,094 crore over the previous financial year.

"New account openings had dropped off a cliff along with the market drop. They are now bouncing back again, in sync with markets at all-time highs," the company said in a blog post.

It is still seeing "phenomenal interest in the markets, especially in futures and options", Zerodha said.

"This has been the primary reason for the increase in revenue and profitability over the last three years. We continued to see phenomenal growth even in FY22/23. That said, the business has plateaued in terms of revenue and profitability this financial year until now."

Further, total assets stand at approximately Rs 3 lakh crore, which puts it ahead of other retail-only brokers as well, the company said.

"Our net worth (our own capital), which comes up to ~30% of customer funds, in addition to the zero debt that we have as a business, would make us one of the safest brokerage firms to deal within India and maybe even globally," Zerodha said.

Earlier this year, the firm also entered a joint venture with Smallcase, which offers a basket of stocks and ETFs for investment, for a mutual fund foray.

The two are looking at offering "simple, low-cost passive mutual fund products for India," as part of the new asset management company.