Revenue growth of brokerages likely to moderate in next fiscal: Crisil

Broking industry revenue growth to moderate in FY22, rise in volatility and regulatory changes could weigh on volumes

The revenue growth of the domestic broking  industry is likely to moderate in 2021-22, says Crisil. The rating agency says market volatility and phased implementation of new margin regulations could be a drag on incremental volume growth next fiscal.

"After record-high active client additions and average daily turnover (ADTO) in a pandemic-marred fiscal, brokerages will continue to see positive revenue growth in fiscal 2022. Nevertheless, the growth will be muted," Crisil said in a release.

In FY21, the industry revenues are pegged to have grown between 65-70 per cent over FY20. The strong growth was underpinned by robust addition in