According to a blog post by co-founder and CEO Nithin Kamath, Zerodha has reported revenue of over ₹8,370 crore and a profit of ₹4,700 crore.
This is an improvement over the ₹6,875 crore in sales and ₹2,907 crore in profit recorded in the previous fiscal, FY23.
Zerodha reports profit of over ₹4,700 crore
Unrealised gains of about ₹1,000 crore have not been included in the profit figures; these will be recognised and reported in the financial statements.
Zerodha is highly profitable, turning more than half of its revenue into profit.
According to Kamath, Zerodha is one of the safest brokers as its net worth is around 40% of the client funds it handles.
Although Zerodha has been profitable recently, Kamath believes that Company earnings It will eventually stabilise, with revenues declining significantly this year.
The anticipated reduction is a result of imminent SEBI regulations, which will impact Zerodha and other brokers by eliminating the volume-based transaction fee model for free equity delivery trades.
Zerodha's revenue expected to decline by 10%
Zerodha's revenue is estimated to decline by 10% from October 1, as a result of SEBI's “true-to-label” circular.
According to Kamath, changes in index derivatives regulations, a major source of revenue for the company, are expected to result in a loss of 30% to 50% of revenue.
Zerodha's annual maintenance charges (AMC) will be impacted by the new BSDA (Basic Services Demat Account) norms. Currently, the company can charge full AMC only from clients who have demat assets of ₹10 lakh or more, which is more than ₹4 lakh.
Since there will be no account opening charges now, Zerodha's revenue will also decline.
Zerodha's 1,200-person workforce, conservative spending and strong financial position put it well-positioned to withstand a revenue shortfall.
Groww now has more active users than Zerodha, though Zerodha's business strategy continues to generate higher profits.
Unlike its competitors, whose growth forecasts are more optimistic, Kamath has expressed doubts about the industry's future growth and profitability prospects.
