Most listed brokers experienced earnings pressure during the June quarter, with trading activity in equity derivatives slowing and the rally in gold and silver that boosted Q4 performance reversing. According to reports from The Economic Times, IIFL Capital Services posted a 3% rise in standalone revenue from the January-March period, while Billionbrains Garage Ventures (Groww), Angel One and Anand Rathi Share & Stock Brokers saw revenue declines of 1-4%. In contrast, Motilal Oswal Financial Services delivered exceptional performance with revenue surging 88% during this period.
Net profit performance varied significantly across brokerages, with Motilal Oswal Financial Services reporting a profit of ₹665 crore after posting a loss of ₹49 crore in the March quarter. As reported by The Economic Times, IIFL Capital Services saw standalone net profit rise 14% quarter-on-quarter, while Groww's profit increased 2.5%. However, Angel One and Anand Rathi Share & Stock Brokers reported profit declines of 23% and 44%, respectively. The mixed results reflect the uneven impact of market conditions on different brokerage models.
According to The Economic Times, Shripal Shah, MD & CEO of Kotak Securities, identified two key factors affecting broker earnings. The first was the easing momentum from the sharp Q4 rally in gold and silver that had boosted trading activity. The second factor was derivatives options premium turnover declining by 4-5% while retail cash market turnover rose 18-19%, particularly impacting brokers with higher F&O exposure. Suresh Shukla, Chief Business Officer at Motilal Oswal Financial Services, noted that while investor participation remained healthy, trading volumes were volatile due to geopolitical issues.
Stock performance has been mixed in 2026, with discount brokers Angel One and Groww gaining 29% and 28% respectively, while Motilal Oswal Financial Services was up 3%. As reported by The Economic Times, IIFL Capital Services and Anand Rathi Share and Stock Brokers declined 11% and 19% respectively. The Nifty 50 is down 8.2% while the Nifty 500 has declined 3.2% in 2026. Looking ahead, traditional brokers with stronger cash market exposure are better positioned despite softer derivatives volumes, with continued growth of margin trading funding books expected to support earnings through higher interest income.
