Zerodha hits $1 billion revenue mark in FY24; reports profit surge
Zerodha saw its net profit and its revenues increase in the financial year ended March 2024, and also managed to trim its expenses.
In FY24, net profit was up 89 per cent to ₹5,496 crore from ₹2,908 crore last fiscal year. Revenue from operations rose by 37.16 per cent to ₹9,372 crore or a little over $1.1 billion in FY24, compared to ₹6,832 crore in FY23.
Total income, which includes other gains, stood at ₹9,994 crore from ₹6,877 crore in the previous fiscal year.
The company saw a significant 24 per cent drop in employee benefit expenses to ₹473.96 crore. Meanwhile, other expenses rose by 11 per cent to ₹2,619 crore, driven by an increase in information technology expenses to ₹492 crore. Exchange and depository charges, a key operational cost, surged 42 per cent to ₹14,756 crore as trading volumes climbed.
Founded in 2010 by the brother duo of Nithin and Nikhil Kamath, ZerodhaZerodha Datalabs_in-article-icon allows users to trade in stocks and invest in mutual funds.
Earlier this year, Zerodha cofounder and CEO Nithin Kamath shared in a blog post that the company’s total assets under management had grown significantly, reaching ₹5.66 Lakh Cr.
Despite this impressive milestone, Kamath cautioned that Zerodha’s revenue and profit are likely to stabilize in the near future, as the Securities and Exchange Board of India (SEBI) implements several regulatory changes.
SEBI has introduced a series of measures aimed at enhancing transparency and safeguarding retail investors, particularly in the highly active and speculative futures and options (F&O) segment.
SEBI’s new regulations for the F&O segment, which include limiting each exchange to one weekly index expiry and increasing contract sizes, were implemented last month. Shortly after the announcement, Zerodha cofounder Nithin Kamath predicted a 30 per cent drop in trades on the platform due to these changes.
In the same month, SEBI also proposed a consultation paper outlining potential revisions to the listing framework for small and medium enterprises (SMEs).
