How has the conflict in West Asia impacted trading patterns?
The recent West Asia conflict has increased investor engagement across platforms, as users track markets more actively, rebalance portfolios, and hedge positions amid uncertainty. Such periods (of uncertainty) typically drive sharper activity spikes. Volatility is an inherent part of markets, and Indian investors are gradually becoming more mature in how they navigate it.
Growth in demat additions moderated in 2025-26. Also, the active client base has shrunk. Why?
Financial year 2025-26 (FY26) reflects a normalisation after an extraordinary post-pandemic retail investing boom. Regulatory tightening in derivatives, along with broader market corrections, has moderated both new account additions and active participation across the industry. This is less about structural weakness and more about a transition from hyper-growth to sustainable engagement. The larger opportunity remains immense, given India’s relatively low retail participation in equity markets.
The number of contracts traded on derivatives has shrunk. How does it impact discount brokers like Upstox, and what is your strategy?
Derivatives remain a meaningful revenue contributor for the industry, so lower volumes do create near-term pressure. However, our strategy is focused on diversification. Our commodities business has grown nearly 5x in monthly revenue, our margin trading facility (MTF) book has more than doubled year-on-year… and we are expanding into insurance, lending, and asset management. We are building Upstox as a broader financial platform rather than relying on a single business line.
Have you seen a shift in derivative traders’ behaviour since the downturn in September 2024 and the regulatory tightening?
Yes, there is a clear behavioural shift. Retail traders have become more selective and risk-aware. The euphoria-driven, momentum-led strategies of earlier years are giving way to more disciplined and informed participation.
How are the true-to-label norms playing out? Should the Securities and Exchange Board of India rethink the move?
Investor trust and transparency are foundational to long-term market growth. True-to-label norms improve clarity and align products with investor expectations. While implementation may require operational adaptation, these measures ultimately strengthen ecosystem credibility.
Thoughts on Sebi introducing algorithmic trading for retail investors?
Retail investors are increasingly seeking sophisticated tools and automation capabilities. We welcome innovation in this space, provided risk management and investor safeguards remain central. Algorithmic access can deepen retail participation meaningfully if implemented responsibly.
Upstox saw a steep decline in active clients in FY26. What was the reason behind it and discontinuation of IPL ads?
Our focus has shifted from aggressive, volume-led acquisition to higher-quality, retention-led growth. Active client trends largely reflect broader market normalisation and regulatory changes. On marketing, reducing high-cost campaigns such as Indian Premier League (IPL) was a conscious efficiency decision aimed at improving unit economics rather than slowing ambition.
How will Upstox end FY26? What is the outlook for FY27?
We remain profitable, with Ebitda (earnings before interest, taxation, depreciation and amortisation) growth nearing 120 per cent year-on-year (Y-o-Y) and PAT (profit after tax) tracking at more than double last year’s levels. Our average revenue per user has also grown over 40 per cent, and retention among high-value traders is close to 90 per cent. FY27 will focus on strengthening this resilience further through diversification, stronger engagement, and broader financial offerings.
MTF is growing rapidly. Can this be a stable revenue source?
Yes, MTF is emerging as an important and scalable business vertical, particularly among informed investors. For us, the MTF book has already doubled Y-o-Y, indicating meaningful long-term potential if managed prudently.
Are there any new growth areas? Can commodities contribute meaningfully?
Absolutely. Commodities have already become a major growth driver, and we also see significant opportunities across insurance, lending, and asset management. The goal is to build a full-spectrum financial services platform.
Any plans of taking the company public?
We are not in a rush to go public. With a strong balance sheet, healthy profitability, and robust cash flows, our priority is to build enduring value. We will go public when timing and market conditions are optimal.
 "Ravi Kumar, co-founder and CEO of Upstox")