NEW DELHI: At a time when most new-age companies are struggling to turn profitable, stock broking platform Zerodha again stunned the market as it reported a staggering 62% rise in annual profit for the financial year 2023-24.
Zerodha’s profit came in at 4,700 crore in the financial year 2023-24 as against Rs 2,907 crore profit in FY23. The profits don’t include the Rs 1,000 crore of unrealised gain. The country’s leading stock broker’s revenue grew 21% to Rs 8,320 crore as against Rs 6,875 crore revenue in FY23.
“We continued our tremendous financial track record, and FY23/24 was a fabulous year in terms of both revenues and profitability. The profits don’t consider the Rs 1,000 crore of unrealised gain, which will show in our financials,” said founder and CEO Nithin Kamath in a blog post.
The limited data highlights that Zerodha’s operating margin, excluding the unrealised gain, may have come at about 57%. Kamath said Zerodha’s customers hold over Rs 5.66 lakh crore with them (in their demats) and are sitting on over Rs 1 lakh crore of unrealised gains.
The founder wrote about the risks the stock broking industry is facing. “…Many of the regulatory changes we were anticipating have come to pass. The True to Label circular, SEBI paper on index derivatives, STT going up, annual maintenance charges impacted due to increased BSDA limits, and hit to our partner/referral business.”