Zerodha Capital Reports 78% Surge in Net Profit for FY25
Zerodha Capital, the non-banking finance arm of India’s largest stock brokerage firm Zerodha, has announced a remarkable 78% increase in its net profit for the financial year 2024–25, reaching ₹12.5 crore. This growth underscores the company’s strategic expansion into the lending sector and its ability to capitalize on the burgeoning demand for credit products linked to capital market assets.
Financial Highlights of FY25
- Net Profit: ₹12.5 crore (up 78% from ₹7.2 crore in FY24)
- Total Revenue: ₹36 crore (up from ₹17 crore in FY24)
- Loan Book Size: ₹381 crore (3.2x growth from ₹112 crore in FY24)
The substantial increase in revenue and profit is attributed to a significant expansion of Zerodha Capital’s loan book, which has more than tripled over the past year. This growth reflects a growing appetite for credit products that are secured against capital market assets, such as stocks and mutual funds.
Strategic Focus on Capital Market-Linked Lending
Zerodha Capital specializes in providing loans against securities, catering to investors who require liquidity without liquidating their investments. This approach aligns with the company’s broader strategy to diversify its revenue streams and leverage its deep integration with the capital markets.
The company’s lending operations have seen a significant uptick, with the loan book expanding to ₹381 crore in the first nine months of FY25. This growth is indicative of the increasing demand for flexible credit solutions among retail investors and traders.
Expansion Plans and Future Outlook
Looking ahead, Zerodha Capital aims to further scale its lending operations by introducing a wider range of credit products tailored to the needs of capital market participants. The company is also exploring opportunities to enhance its technological infrastructure to streamline loan processing and improve customer experience.
The strong financial performance and strategic initiatives position Zerodha Capital as a key player in the Indian fintech landscape, with the potential to significantly impact the way retail investors access credit.
Zerodha Capital’s impressive financial results for FY25 highlight the company’s successful foray into the lending sector and its ability to capitalize on the synergies between capital markets and credit products. As the company continues to innovate and expand its offerings, it is well-positioned to meet the evolving needs of India’s growing investor base.