Zerodha now controls Rs 1 out of every Rs 10 in retail equity holdings in India

Brokerage firm Zerodha has significantly expanded its presence in India’s financial markets, now holding approximately 11% of all retail and high-net-worth individual (HNI) equity holdings. This data underscores the company’s strong market penetration. “~11% of all retail and HNI holdings are in @zerodhaonline demat accounts. Grateful for the incredible trust our customers place in us,” Zerodha co-founder and CEO Nithin Kamath posted on microblogging platform X (formerly Twitter) on Friday, alongside a chart showing Zerodha’s sharp rise in market share since 2018. 

Kamath’s shared data indicates that Zerodha demat accounts now hold 1 out of every 10 rupees of India’s retail and HNI equity wealth. This illustrates the extensive reach of the broker among investors. The increase aligns with the overall rise in direct equity involvement by Indian households, a trend that has benefited firms like Zerodha due to the increased popularity of low-cost trading platforms.

The rise in Zerodha’s market position coincides with a broader trend of increasing direct equity participation among Indian households. This shift has been advantageous for the firm, which has capitalised on the popularity of low-cost, digital-first trading platforms. Despite this growth, Zerodha’s core business may face short-term challenges. 

Kamath has projected a 10–20% slowdown in activity due to “slower market activity in Q1 FY26.” Nevertheless, the company remains optimistic about reaching a revenue target of Rs 10,000 crore by the fiscal year’s end without increasing brokerage fees. 

The financial performance of the company continues to be strong. Zerodha recorded a 62% increase in profit to Rs 4,700 crore for the fiscal year 2024, with revenues seeing a 21% growth to Rs 8,320 crore. Additionally, the company has Rs 1,000 crore in unrealised gains.

Kamath has reiterated the firm’s stance on remaining privately held, despite its substantial growth and profitability. “We continue to believe there’s no reason to IPO. Being listed on exchanges is tough for a company like us,” he said in an interview with CNBC-TV18. The company maintains a strong financial position, with its net worth nearly 40% of the customer funds managed, marking it as a secure option for investors. “Given the profitability of the last three years, our net worth is almost 40% of the customer funds that we manage. It makes us one of the safest brokers to trade with,” Kamath had said earlier. 

Looking forward, Zerodha plans to diversify beyond brokerage services into a broader financial services group. Kamath has indicated that the firm’s long-term strategy includes transforming into a diversified financial conglomerate, with future plans to enter the banking sector subject to regulatory approvals. This expansion plan showcases Zerodha’s ambition to solidify its position within India’s financial landscape and adapt to evolving market demands.

In another post on X, Kamath mentioned that Zerodha Asset Management Company (AMC) crossed Rs 6,400 crore in assets under management (AUM) just 18 months after launch.

A major contributor to this growth is the LIQUIDCASE ETF, which has amassed Rs 4,700 crore in AUM within just 15 months, making it one of India’s most successful retail ETF rollouts. Kamath called the LIQUIDCASE ETF their “Hero Fund,” highlighting its sharp rise from Rs 843 crore in April 2024 to Rs 4,700 crore. The fund’s rapid growth reflects its strong traction among retail investors and solidifies Zerodha AMC’s presence in the ETF market.

Zerodha, which began as a bootstrapped startup, has carved out a substantial niche in the Indian brokerage industry. Its innovative low-cost trading model and emphasis on digital solutions have propelled it to become the country’s second-largest broker by active client base. As Zerodha continues its growth trajectory, it faces competition from other major brokers aiming to capture market share in this dynamic sector.