NEW DELHI: Stock-broking platform Zerodha on Monday reported an 86% year-on-year (YoY) growth in net profit to Rs 2,094 crore for the financial year 2021-22. The stock broker’s revenue grew 82% to Rs 4,964 crore. The Bengaluru-based company had reported net profit of Rs 1,112 crore in FY21.
Like profit and revenue, the company also saw a jump of 72% in its operating expenses in FY22 to Rs 2,164 crore. Zerodha, which competes with the likes of Groww and Upstox, has a user base of 9 million. At present, 6.2 million users are classified as active.
Started in 2010 by Nikhil and Nithin Kamath, Zerodha is one of the rarest tech-run companies that made it big without raising a single penny from investors. The firm earns its revenue by collecting brokerage fees and commissions. Zerodha’s fees and commission income nearly doubled in FY22 to 4,128 crore from Rs 2,252 crore a year earlier.
Nithin Kamath, in a blogpost last month, had said that the company’s profit had surged five times since March 2022. He, however, had also raised growth concerns. “While we are on track to do as much revenue and profits as last year, even this year, we think we will be unable to match the current revenues and profitability from the next financial year for a few more years.”
He added, “This is not just because we see a dip in new account openings and a drop in the bull market momentum, but also because we think we have temporarily hit a plateau in terms of the target market, customers who have sufficient savings to invest in the markets and an ability to generate revenue for the brokerage firm.”