'The risks I was...': Zerodha CEO Nithin Kamath reports 40% drop in broking revenues
Kamath outlined the key issues that contributed to the decline, including the increase in STT on options, the removal of exchange transaction charge rebates, and the reduction in weekly expiries
- Sep 30, 2025,
- Updated Sep 30, 2025 4:57 PM IST
Zerodha CEO Nithin Kamath revealed on Tuesday that the company has experienced a significant 40% decline in broking revenues this year, driven by several factors affecting the broader market environment.
"From 2021, I had been tweeting about the risks to the broking business, but somehow I kept getting surprised on the upside. But starting around October last year, all the risks I was thinking about crystallised," he wrote in a post on X.
Kamath outlined the key issues that contributed to the decline, including the increase in Securities Transaction Tax (STT) on options, the removal of exchange transaction charge rebates, and the reduction in weekly expiries. He also cited a significant decline in market activity as a major factor.
"Due to all these factors, our revenues and profits suffered a decline. This year, we are seeing a drop in broking revenues of about ~40%," Kamath added.
Despite the financial challenges, Kamath expressed confidence in Zerodha's long-term vision, noting that the company continues to focus on the long term rather than quarterly or annual growth. "Zerodha is perhaps the only broker in the world with the luxury of thinking long-term and continuing to do what's right for our customers despite short-term business volatility," he said, stressing that the company's independence from external investors allows for this long-term focus.
Kamath also highlighted some of the positive developments in the company over the past year, particularly in terms of product launches and behind-the-scenes efforts. "More importantly, there's also a lot of work in the background that's not visible on the front end," he said. "We've become more ambitious at @rainmatterin and we've increased our investments to support Indian founders building things for India."
Additionally, Kamath mentioned the launch of a new Rs 100 crore rewilding fund under the @RainmatterOrg initiative, which aims to support environmental causes. The fund has already embarked on its first project in Maharashtra.
Earlier in February, Kamath had noted the ongoing challenges in the market. "The markets are finally correcting. Given that markets swing between extremes, they can fall more just like they rose to the peak," he had written. He also pointed out a significant drop in trading volumes, with a more than 30% reduction in activity across brokers, which he said showed how shallow the Indian markets still are.
Zerodha CEO Nithin Kamath revealed on Tuesday that the company has experienced a significant 40% decline in broking revenues this year, driven by several factors affecting the broader market environment.
"From 2021, I had been tweeting about the risks to the broking business, but somehow I kept getting surprised on the upside. But starting around October last year, all the risks I was thinking about crystallised," he wrote in a post on X.
Kamath outlined the key issues that contributed to the decline, including the increase in Securities Transaction Tax (STT) on options, the removal of exchange transaction charge rebates, and the reduction in weekly expiries. He also cited a significant decline in market activity as a major factor.
"Due to all these factors, our revenues and profits suffered a decline. This year, we are seeing a drop in broking revenues of about ~40%," Kamath added.
Despite the financial challenges, Kamath expressed confidence in Zerodha's long-term vision, noting that the company continues to focus on the long term rather than quarterly or annual growth. "Zerodha is perhaps the only broker in the world with the luxury of thinking long-term and continuing to do what's right for our customers despite short-term business volatility," he said, stressing that the company's independence from external investors allows for this long-term focus.
Kamath also highlighted some of the positive developments in the company over the past year, particularly in terms of product launches and behind-the-scenes efforts. "More importantly, there's also a lot of work in the background that's not visible on the front end," he said. "We've become more ambitious at @rainmatterin and we've increased our investments to support Indian founders building things for India."
Additionally, Kamath mentioned the launch of a new Rs 100 crore rewilding fund under the @RainmatterOrg initiative, which aims to support environmental causes. The fund has already embarked on its first project in Maharashtra.
Earlier in February, Kamath had noted the ongoing challenges in the market. "The markets are finally correcting. Given that markets swing between extremes, they can fall more just like they rose to the peak," he had written. He also pointed out a significant drop in trading volumes, with a more than 30% reduction in activity across brokers, which he said showed how shallow the Indian markets still are.