Zerodha, the prominent stockbroking platform, witnessed a robust financial performance in the fiscal year 2022-23 (FY23), reporting a notable 37% surge in net profit to Rs 2,909 crore compared to the previous year’s Rs 2,120.3 crore. The company’s operating revenue for FY23 reached Rs 6,833 crore, marking a substantial 37% increase from Rs 4,977.3 crore in the previous fiscal year.
Fees and commission charges played a pivotal role in contributing to the total operating revenue, accounting for 84% and amounting to Rs 5,727.2 crore, a notable increase from Rs 4,129 crore in FY22. Zerodha’s overall income for FY23 exhibited a robust growth of 38%, reaching Rs 6,877 crore compared to Rs 4,994 crore in FY22. Concurrently, total expenses for FY23 grew to Rs 2,993 crore, up from Rs 2,165.1 crore in the preceding fiscal year.
Notably, a significant portion of the expenses was attributed to fees and commission, totaling Rs 2,223.4 crore in FY23, a notable increase from Rs 1,581.1 crore in FY22. Additionally, employee benefit expenses witnessed growth, reaching Rs 623.2 crore in FY23 from Rs 459 crore in FY22. Zerodha also allocated Rs 236 crore for Employee Stock Ownership Plan (ESOP) expenses during FY23, a considerable increase from Rs 77.5 crore in FY22.
In September, Zerodha’s Founder and CEO, Nithin Kamath, clarified the company’s valuation, stating that it stands at approximately Rs 30,000 crore. He addressed speculations, noting that assumptions about the company’s valuation were higher than reality. Kamath emphasized that the Rs 30,000 crore valuation was consistent with how they assessed themselves for buybacks over time.
Established in 2010 by Nithin and Nikhil Kamath, Zerodha, headquartered in Bengaluru, has made a mark in the financial services sector by providing brokerage-free equity investments, retail and institutional broking, and trading in currencies and commodities. Operating in nine cities across India, Zerodha is also an official member of the National Stock Exchange’s consultative committee, contributing significantly to the expansion of its business.
