India's brokerage industry extended its earnings recovery in the June quarter, with most major firms reporting double-digit profit growth as higher cash market activity, expanding margin funding books and diversification into wealth, commodities and distribution offset the lingering impact of derivatives regulations introduced in late 2024. According to reports from The Hindu BusinessLine, the quarter saw a widening gap in business models, with expanding beyond transaction-based broking into lending, distribution and other fee-based businesses helping brokers deliver stronger earnings, while traditional brokers posted relatively steady growth. Despite average daily turnover remaining below earlier levels for some firms, stronger cash market participation and better monetisation of existing customers helped cushion the impact of changes in derivatives regulations.
Groww led the pack with parent Billionbrains Garage Ventures reporting a 94.4% year-on-year jump in consolidated net profit to ₹735 crore. Revenue from operations rose 66% to ₹1,501 crore, supported by higher operating leverage and increasing contributions from newer businesses such as margin trading facility (MTF) and commodity derivatives. Angel One also delivered strong results with profit more than doubling to ₹231.4 crore on a 25.4% increase in total income to ₹1,434 crore, aided by a record average client funding book of ₹6,140 crore, up 46% year-on-year. The company's client base rose 19% year-on-year to 3.86 crore and EBITDA more than doubled to ₹971 crore during the quarter.
HDFC Securities, India's largest full-service retail brokerage, reported a 28% increase in profit to ₹300 crore alongside 30% revenue growth to ₹950 crore. Nearly 96% of its 8 million customers transacted through digital platforms as the firm continued its shift towards lower-cost digital distribution. Kotak Securities reported a net profit rise of 14.6% to ₹533 crore, up from ₹465 crore a year earlier and ₹400 crore in the preceding quarter. ICICI Securities posted relatively stable earnings with net profit rising 7% to ₹417.96 crore from ₹389.51 crore a year ago, while revenue increased nearly 10% to ₹1,546.9 crore.
5paisa reported a 10% growth in its average client funding book to ₹421.6 crore despite a 12% sequential decline in trading turnover. It saw profit after tax rise sequentially by 8% to ₹11.6 crore and a 14% increase in revenue to ₹88.4 crore. Anand Rathi credited higher revenue of ₹246.1 crore, up 22%, to margin funding and distribution businesses for its strong operating performance. Its profit before exceptional items rose 71% year-on-year to ₹39.1 crore, while profit after tax stood at ₹23.4 crore, up about 2% from a year ago. While the speculative trading has moderated over the past year, brokers with meaningful exposure to margin funding, wealth management, distribution, commodities and other adjacent businesses have been better placed to sustain profitability.
