According to reports from Moneycontrol and credit rating agency ICRA, Zerodha earned 32% of its FY26 revenue from interest income on customer funds, marking a structural shift in how India's largest discount brokerage generates earnings. The share was more than four times that of listed rival Groww, while Angel One earned around 31% of its revenue from interest income during the year. Zerodha reported revenue of ₹8,500 crore and net profit of ₹4,300 crore in FY26, as it successfully reduced its dependence on broking revenue amid regulatory curbs on derivatives trading. As regulatory tightening cools down high-flying derivatives volumes, interest earnings—comprising client float and lending activities—have emerged as a vital pillar supporting the top line.
As reported by Moneycontrol and ICRA, broking accounted for 44% of Zerodha's total revenue in FY26, down from 70% in FY21. In comparison, more than 70% of Groww's revenue came from broking, while the share for Angel One was a little under 60%. Despite reducing overall dependence on broking, Zerodha remained intensely exposed to Futures and Options (F&O) within its brokerage segment, with derivatives trading accounting for a staggering 85% of its total broking revenue. Groww and Angel One had a more diversified broking revenue mix, with equity delivery and commodities also contributing significantly, cushioned by healthier contributions from these segments.
According to Moneycontrol and ICRA, margin trading funding has emerged as an important growth driver for brokers amid regulatory curbs on derivatives trading. Zerodha derived 8% of its revenue from MTF, while Groww reported that the business contributed 10% of its revenue during the September quarter. Angel One includes MTF revenue under interest income. Zerodha's net MTF loan book expanded explosively, multiplying more than sixfold to ₹5,368 crore as on 30 June 2026, from ₹852 crore as on 31 March 2025**, reflecting the rapid expansion of its lending business. While MTF serves as a lucrative growth engine, ratings agencies have flashed warning signals about the inherent credit and market risks associated with capital market-related lending businesses.
Credit rating agency ICRA said Zerodha's strengths were partly offset by its "high dependence on the inherently volatile and cyclical capital market, with revenue largely driven by broking and float income, despite its diversification initiatives in allied businesses including margin trade funding (MTF), asset management and merchant banking." As reported by Moneycontrol, ICRA cautioned that while the MTF business improves revenue diversification, it exposes the company to the credit and market risks associated with capital market-related lending businesses, given the nature of the underlying assets. ICRA added that Zerodha's capital base remained among the strongest in the domestic broking industry, with a standalone net worth of ₹19,659 crore and zero borrowings, securing one of the strongest financial cushions in the domestic financial services landscape.
