Zerodha profit surges 86% to Rs 2,094 crore in FY22; revenue up 82%

Zerodha, India’s largest brokerage firm in terms of number of clients, reported a jump of 86 per cent in profit, to Rs 2,094 crore, in the 2021-22 financial year (FY22) on a yearly basis. For the same period, the firm’s operating revenue surged 82 per cent to Rs 4,964 crore, according to a report by Entrackr.

Data shows that if Zerodha was listed on the bourses, it would stand to be the 89th most profitable company in terms of profits for FY22.

In a blog post in the last month, Zerodha chief executive officer Nithin Kamath had shared that the company might have temporarily hit a plateau in terms of target market, customers who have sufficient savings to invest in the markets and the ability to generate revenue.

“This year, while we are on track to do as much revenue and profits as last 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 had written in a post shared on December 14.

Zerodha also witnessed a nearly 50 per cent decline in monthly new account openings as against January 2022.

The company majorly depends on revenues from intraday equity and derivative traders, though a substantial portion of the revenue also comes from interests. As of December, the company’s clients accounted for nearly 18 per cent of the total active clients on NSE.

“In our revenues, nearly 25 per cent are pass-through exchange transaction charges, which we collect from customers and pass on to the exchanges. Technically, this isn’t our revenue; if we excluded it, our margins (PBT or profit before tax /revenue) would be nearly 70 per cent,” he had written.

Kamath also added that the firm has paid over Rs 1800 crore as corporate tax since March 2019.