‘The time has finally come...’: Nithin Kamath hints Zerodha may end zero-brokerage model

Zerodha may soon start charging for equity delivery trades for the first time since its launch, as a steep 40% drop in brokerage revenues forces the discount brokerage to consider a major pivot, founder Nithin Kamath revealed Monday.

In a blog post marking Zerodha’s 15th anniversary, Kamath said regulatory actions targeting derivatives trading—its primary revenue stream—have triggered a significant earnings decline. “The time has finally come for business to pivot,” he wrote, confirming that charging for delivery trades is now on the table.

The revenue hit stems from multiple regulatory changes, including higher securities transaction tax (STT) on options, a cutback on weekly contract expiries, the elimination of exchange fee rebates, and broader market fatigue. “This risk has now crystallised,” Kamath noted, adding that the full impact began from October 2024 but is already evident in a 40% year-over-year fall in brokerage revenue for the June 2025 quarter.

Zerodha’s no-fee delivery model has long been its USP. Most rivals already charge for delivery trades, making Zerodha’s potential shift a watershed moment in India’s online broking industry.

The company’s future revenues face further risk as regulators consider banning weekly options entirely. Kamath, who has historically warned about the fragility of a business reliant on active traders, said the changes highlight the dangers of over-optimizing for short-term growth. “Chasing MoM, QoQ, or YoY metrics can be misleading. We focus on long-term, five-year trends,” he wrote.

Despite the headwinds, Zerodha remains financially strong. As per exchange calculations, its net worth stands above ₹13,000 crore—over 50% of total client funds, with zero debt. The firm also boasts a 10% share of India’s retail and HNI AUM and a ₹5,000 crore margin trading book just nine months after launch.

Customer trust and platform resilience continue to be Zerodha’s key moats. It remains the only major broker in India that doesn’t seek invasive app permissions or use user-tracking tools. Kamath attributed this to Zerodha’s philosophy: “Don’t do unto others what you don’t want done unto you.”