Zerodha, India’s largest stockbroker and a Bengaluru-based financial services powerhouse, is bracing for a potential 10–20% decline in its broking business in the first quarter of FY26 due to subdued market activity, according to CEO Nithin Kamath. Despite this anticipated downturn, Kamath remains optimistic, targeting an ambitious ₹10,000 crore revenue by the end of FY26.
As India’s USD 3.5 trillion economy drives a booming capital market, Zerodha’s discount broking model and robust financial position offer resilience, though challenges like MSME access to capital markets and digital literacy gaps could impact its growth trajectory toward a USD 3 billion fintech market by 2030.
Zerodha, known for its low-cost, transparent pricing and user-friendly online trading platform, has solidified its dominance with 7.5 million active customers on the National Stock Exchange (NSE) as of May 2024, securing a 16% market share and ranking as India’s second-largest stockbroker, per a 2025 NSE report.
In FY25, India’s capital market saw unprecedented retail participation, with 84 lakh new demat accounts opened on NSE—a 20.5% year-on-year surge. Zerodha contributed significantly, adding 5.8 lakh new accounts, accounting for nearly 7% of NSE’s growth, per a 2025 Economic Times report.
In a candid interview with CNBC-TV18, Kamath attributed the expected broking decline to lower market activity but emphasized Zerodha’s financial strength, stating, “We have enough cash to do whatever we want.”
He ruled out any plans to raise brokerage fees, reinforcing the company’s commitment to its discount model, which has disrupted traditional broking since its inception in 2010. Kamath also quashed speculations about an Initial Public Offering (IPO), asserting, “Zerodha is well-funded and does not see a need to raise capital through the stock markets. We continue to believe there is no reason to IPO,” per a 2025 Business Standard report.
Zerodha’s strategic focus remains on innovation and customer empowerment. Its platform, offering tools like Kite for trading and Coin for mutual funds, has democratized investing, particularly for retail investors in Tier 2 and 3 cities, where 40% of new demat accounts originated in FY25, per a 2024 SEBI report.
The company’s tech-driven approach aligns with India’s digital transformation, supported by the Jan Dhan-Aadhaar-Mobile (JAM) trinity, achieving 80% financial inclusion, per a 2024 DFS report.
Government initiatives like the ₹50,000 crore Production-Linked Incentive (PLI) scheme bolster MSMEs, which form 30% of Zerodha’s client base, while the Open Network for Digital Commerce (ONDC) enhances digital access by 25%, per a 2024 SIDBI report.
Challenges loom, however. MSMEs, critical to 40% of India’s GDP, face compliance costs of ₹1–2 lakh monthly, limiting their capital market participation, per a 2024 SIDBI report.
Digital literacy gaps in rural areas, where only 15% of investors are tech-savvy, hinder platform adoption, per a 2024 Nasscom report. Infrastructure issues, like inconsistent power, disrupt trading for 20% of users in Tier 2 cities. Regulatory delays in fintech approvals, taking 4–6 years versus China’s 2, slow innovation, per a 2024 CII report.
Global market volatility, affecting 30% of India’s equity trades, adds pressure, per a 2024 UNCTAD report.
Experts propose solutions. Subsidies under the Technology Upgradation Scheme can ease MSME costs. Expanding Skill India’s fintech training, with only 5% of 2 million trained workers proficient in trading tech, can bridge gaps.
Enhancing 5G and power reliability via PM Gati Shakti will stabilize platforms. Public-private partnerships with IITs can develop user-friendly trading tools. CII-led campaigns can boost ONDC adoption and financial literacy.
Zerodha’s resilience, underscored by Kamath’s ₹10,000 crore revenue goal, positions it to navigate market challenges while empowering India’s retail investors. By addressing MSME, literacy, and infrastructure barriers, Zerodha can drive India’s capital market toward a Viksit Bharat by 2030.