Zerodha Posts 40% Jump In Revenue, Profit Plateaus: FY23 Results

Zerodha's FY23 results: 40% yearly jump in revenues at Rs 6,500 crore, profits stay flat

Stock brokerage firm, Zerodha stated that it has posted overall revenue of around Rs 6500 crore in FY22-23 and a profit after tax (PAT) of around Rs 2,500 crore. 

In a LinkedIn post, Nithin Kamath, Founder of Zerodha, said, "The business has plateaued in terms of revenue and profitability this financial year, until now."

He added that Zerodha will now introduce educational content on Youtube, by the channel name of ‘Zingi’. The channel will aim to bring content that is a bit more informal and fun, specifically for those interested in trading and investments. 

On the matter of free broker account opening, he asserted that Zerodha is the only institution in the country to charge a fee of Rs 200. He stated that the processes of documentation, eSign and human verification are the reason to incur such costs. Justifying it, he mentioned that if there was no account opening to recover the cost, the business could implicity be pressured to get a customer to transact to recover that cost.

The bootstrapped company said it gets a majority of its revenues from future and options (F&O) traders. Sharing statistics, Kamath wrote that 45 lakh or 15 per cent of the 3 crore active traders on stock exchanges engage in F&O trades. And it is the subset of users who are a catalyst in the bulk revenue earned by brokerages. 

The National Stock Exchange (NSE) data shows that as of August, Zerodha had an active client base of 6.3 million. The company claims that around 20 per cent of the country’s overall trading customers work with Zerodha, and it is gaining around 2,50,000 customers every month.  

Addressing the risks, he said, concentration of revenue from F&O can reduce retail trading activity in F&O at Zerodha. 

Futhermore, announcing a new feature, Bengaluru-headquartered firm said that customers could buy stocks by UPI through the mechanism of Application Supported By Blocked Ammount (ASBA) from January 2024.

Kamath highlighted that Sensibull- a platform for optional traders, is now absolutely free to use. In addition to that, Zerodha fund house, an asset management company in partnership with Smallcase has received final approval from SEBI.

Tags assigned to this article:
startup Zerodha Yearly Results

Around The World