Stock Broker Zerodha Announces FY24 Results, Revenue Climbs Near INR 10,000 Cr Mark

Zerodha’s consolidated revenue increased 37.16% to INR 9,372.1 crore in the fiscal year ending March 2024 (FY24), up from INR 6,832.8 crore in the previous fiscal.

Zerodha was founded in 2010 by Nithin and Nikhil Kamath, brothers. It allows users to trade equities and invest in mutual funds. The Bengaluru-based investment tech business makes money through brokerage sales, user onboarding collections, and the selling of its tech tools, such as the Kite Connect API.

Including additional income of INR 622.3 Cr, the Zerodha’s total income increased to INR 9,994.5 Cr during the fiscal year under review.

Zerodha was able to keep spending under control in comparison to its top line growth, resulting in improved profits. As a result, its net profit increased by 88.95% to INR 5,496.3 crore in the fiscal year under review, up from INR 2,908.9 crore in FY23.

Earlier this year, Zerodha cofounder and CEO Nithin Kamath reported in a blog post that the company’s total assets under control had increased to INR 5.66 lakh crore.

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However, Kamath stated that he anticipates the startup’s sales and profit to plateau once the many adjustments proposed by the Securities and Exchange Board of India (SEBI) take effect.

The markets regulator has recently taken a number of efforts to promote transparency and protect ordinary investors’ interests, particularly in the overheated futures and options (F&O) market.

SEBI’s new rules for the F&O industry, which include a requirement for one weekly index expiry per exchange and increased contract sizes, went into force last month. Nithin Kamath predicted that trades on Zerodha would drop by 30% in the days following the regulator’s announcement of the new framework.

Last month, SEBI also issued a consultation proposing modifications to the small and medium company (SME) listing framework.

Zerodha’s overall expenses increased by only 4.23% to INR 3,119.2 crore in FY24, up from INR 2,992.7 crore the previous year. Below is a thorough overview of its expenditure categories:

Zerodha’s employee benefit expenses declined by 23.96% to INR 473.9 Cr in FY24, from INR 623.2 Cr in FY23. The startup currently employs approximately 1,200 people.

• IT Expenses under the head increased by 28.30% to INR 492.3 crore from INR 383.7 crore in FY23.
• Expenses in the fees and commissions category grew by 8.53% to INR 2,413 Cr in FY24 from INR 2,223.4 Cr in FY23.
• Expenses in commission and Other Advisory Fees fell slightly to INR 342.3 Cr from INR 356.3 Cr in FY23.
• Exchange and Depository Charges increased by 6.43% to INR 1,570.5 crore in FY24 from INR 1,475.6 crore in FY23.
• Technology Fees & Related Expenses segment increased by 28.30% to INR 492.3 Cr, up from INR 383.7 Cr in FY23.