Kamath brothers-led stock broking giant Zerodha has once again reported a significant surge in both revenue and profit for the fiscal year 2024 (FY24).
The company's revenue saw a 21% increase, rising to Rs 8,320 crore. Likewise, Zerodha posted an impressive 62% jump in profits, growing to Rs 4,700 crore.
A look at Zerodha's FY23 numbers
In September last year, Zerodha reported its financial results for the fiscal year ending March 2023 (FY23). The Bengaluru-based company recorded an operational income of Rs 6,875 crore, with profits rising by 38.8% to Rs 2,907 crore.
However, the growth in FY23 was slower compared to the previous fiscal year. In FY22, Zerodha saw profits soar by 86% over FY21, making the 38.8% increase in FY23 a significant decline in the company's growth rate.
Losing position as India’s top stock broker
While Zerodha has lost its position as India’s top stock broker to VC-funded Groww, which now boasts a user base of over 10 million active investors according to NSE data, it remains the largest discount broker by both revenue and profit.
Currently, Zerodha has approximately 7.9 million users, representing a 16.86% share of the total active clients on the National Stock Exchange (NSE). As of June, Zerodha's share of active clients on BSE stood at 16%.
“While our market share of active accounts (clients who traded at least once in the year) is good, it has decreased over the last two years. We think this is due to the fact that we were the only ones to charge account opening fees, which we have now
Kamath brothers-led stock broking giant Zerodha has once again reported a significant surge in both revenue and profit for the fiscal year 2024 (FY24).
The company's revenue saw a 21% increase, rising to Rs 8,320 crore. Likewise, Zerodha posted an impressive 62% jump in profits, growing to Rs 4,700 crore.
A look at Zerodha's FY23 numbers
In September last year, Zerodha reported its financial results for the fiscal year ending March 2023 (FY23). The Bengaluru-based company recorded an operational income of Rs 6,875 crore, with profits rising by 38.8% to Rs 2,907 crore.
However, the growth in FY23 was slower compared to the previous fiscal year. In FY22, Zerodha saw profits soar by 86% over FY21, making the 38.8% increase in FY23 a significant decline in the company's growth rate.
Losing position as India’s top stock broker
While Zerodha has lost its position as India’s top stock broker to VC-funded Groww, which now boasts a user base of over 10 million active investors according to NSE data, it remains the largest discount broker by both revenue and profit.
Currently, Zerodha has approximately 7.9 million users, representing a 16.86% share of the total active clients on the National Stock Exchange (NSE). As of June, Zerodha's share of active clients on BSE stood at 16%.
“While our market share of active accounts (clients who traded at least once in the year) is good, it has decreased over the last two years. We think this is due to the fact that we were the only ones to charge account opening fees, which we have now made free,” Zerodha CEO Nithin Kamath said.
While Groww is yet to release its FY24 numbers, the VC-funded stockbroker experienced a significant financial turnaround. In FY23, the company reported a revenue of Rs 1,277 crore, marking a 266% increase.
Interestingly, The growth is even more noteworthy when considering that the company posted a net profit of Rs 448.7 crore in FY23, in stark contrast to its Rs 239 crore net loss in the previous fiscal year.
What did Nithin Kamath say?
"We continued our tremendous financial track record, and FY 23/24 was a fabulous year in terms of both revenues and profitability. The profits don’t consider the ~Rs 1,000 crore of unrealised gain, which will show in our financials," Nithin Kamath wrote in a blog post.
"Given the profitability of the last three years, our networth is almost ~40% of the customer funds that we manage. It makes us one of the safest brokers to trade with," he said.
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