Zerodha Capital Reports INR 12.5 Cr Profit in FY25 Operating with a lean team, Zerodha Capital leverages the scale and infrastructure of Zerodha's core broking business, which has 8.1 million active clients on the National Stock Exchange—accounting for nearly 16 per cent of the market
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Zerodha Capital, the lending arm of brokerage major Zerodha, posted a net profit of INR 12.5 crore in the financial year ended March 2025, up from INR 7.2 crore the previous year, according to a report by The Economic Times. The profit surge comes as the company doubled its income year-on-year to INR 36 crore, driven largely by a sharp expansion in its loan book and operational leverage from its parent firm.
Credit rating agency ICRA attributed the improved financial performance to a 3.2x increase in Zerodha Capital's loan portfolio, which touched INR 381 crore in the first nine months of FY25. The company lends against shares and mutual funds held by retail investors, offering up to INR 1 crore in loans with a lending value capped at 45 per cent of the securities pledged.
Operating with a lean team, Zerodha Capital leverages the scale and infrastructure of Zerodha's core broking business, which has 8.1 million active clients on the National Stock Exchange—accounting for nearly 16 per cent of the market. The lending process is largely digital, allowing efficient disbursements and minimal overheads.
ICRA maintained its credit rating for Zerodha Capital at AA- (Stable)/A1+, reaffirming confidence in the company's risk controls, despite noting its current small size and dependence on a limited group of lenders. The agency also assigned the same rating to the firm's new INR 100 crore short-term borrowing program.
Zerodha Capital's net worth stood at INR 170 crore as of December 2024, with a gearing ratio of 1.4x—indicating moderate leverage. To fuel further growth, the promoter group has committed an additional INR 125 crore through compulsorily convertible preference shares.
Importantly, the company has reported zero non-performing assets (NPAs) since its inception in 2021, underlining its conservative lending model. However, its future trajectory remains tied to broader market sentiment and evolving regulations. With increasing regulatory scrutiny over retail derivatives trading—one of Zerodha's core revenue drivers—Zerodha Capital's growth path could be tested.
Zerodha Broking Ltd, the flagship business, posted a net profit of INR 5,496 crore in FY24 and delivered an impressive 56 per cent return on net worth. With these fundamentals in place, Zerodha Capital appears poised to scale its lending footprint cautiously but steadily within India's growing retail investing ecosystem.
