India’s leading stockbroking platform Zerodha is seeing strong growth from its lending business as regulatory changes continue to affect its core broking operations. Zerodha Capital Private Limited (ZCPL), the company’s NBFC arm, reported a 20.5% increase in net profit to ₹14.7 crore in FY26, showing that its focus on secured lending is paying off.
The growth comes at a time when Zerodha’s main broking business is facing pressure due to new rules introduced in the futures and options (F&O) market. While trading activity has slowed, the company’s lending business has continued to expand steadily.
Zerodha Capital Reports Strong Growth in FY26
Zerodha Capital posted a total income of ₹53.5 crore in FY26, up 44.2% from the previous financial year. The company’s net profit increased to ₹14.7 crore, compared to ₹12.2 crore a year ago.
Its loan book also grew strongly, rising to ₹580 crore as of March 31, 2026, from ₹381 crore in FY25. The NBFC mainly offers loans against shares and mutual funds, allowing investors to borrow money without selling their investments.
A key highlight of Zerodha Capital’s business is its focus on secured lending. The company has maintained zero gross non-performing assets (NPAs), thanks to its strict risk management policies and collateral-backed loans.
Customers can borrow anywhere between ₹25,000 and ₹10 crore. Interest rates range from 10% to 11%, depending on the loan amount. The company also follows a conservative lending approach by keeping its maximum loan-to-value (LTV) ratio at 45%, lower than the 50% limit allowed by the Reserve Bank of India (RBI). This helps reduce risks during market volatility.
Rating agency ICRA reaffirmed Zerodha Capital’s long-term rating at AA- with a stable outlook and maintained its short-term rating at A1+. It also increased the rated amount of the company’s bank facilities, reflecting confidence in its financial strength and future growth.
Regulatory Changes Continue to Affect Broking Business
While Zerodha Capital has delivered strong results, Zerodha’s core broking business has faced challenges due to major regulatory changes in the derivatives market.
The Securities and Exchange Board of India (SEBI) introduced several measures to reduce excessive retail participation in futures and options trading. These included higher transaction taxes, larger contract sizes, and restrictions on weekly expiry contracts.
Since a large part of Zerodha’s revenue came from F&O trading, these changes have affected the company’s earnings. The company reported lower revenue and profit in FY25, while brokerage revenue in the first quarter of FY26 reportedly fell sharply compared to the same period last year.
Another challenge came from the removal of transaction charge rebates by stock exchanges. This increased operating costs for brokers and is expected to have a significant impact on earnings.
The effect has also been seen in customer activity. Zerodha’s active client base on the National Stock Exchange (NSE) has declined from its peak, while rival Groww has continued to gain users by focusing on long-term investing and SIPs.
Even with these challenges, Zerodha remains one of India’s most profitable financial services companies. Founder Nithin Kamath has said that the broking business may continue to face pressure in the near future.
Diversification Becomes a Key Growth Strategy
As the market environment changes, Zerodha is focusing on building new revenue streams beyond stockbroking. The strong performance of Zerodha Capital highlights the company’s efforts to reduce its dependence on trading-related income.
Apart from lending, Zerodha is also expanding its presence in asset management. Its fund house has launched lifecycle mutual funds designed to help investors plan for retirement through passive investing.
The company is also preparing to offer access to US stocks through the GIFT City framework, giving Indian investors more opportunities to invest in global markets.
At the same time, Zerodha has made it clear that it does not plan to enter the unsecured lending space. The company has ruled out personal loans and credit cards, saying that the risks involved do not match its long-term business philosophy.
With a growing lending business, strong financial position, and efforts to diversify its offerings, Zerodha is working to adapt to the changing financial landscape. While regulatory changes have created challenges for its broking business, the company’s expanding financial services portfolio could support its future growth.