Zerodha Capital, the non-banking financial company (NBFC) arm of India’s leading stock brokerage firm Zerodha, has reported a significant 78% increase in net profit for the fiscal year 2024-25 (FY25), totaling ₹12.5 crore. This growth reflects the company’s strategic focus on secured lending against capital market assets.
Key Highlights:
- Revenue Growth: Total revenue more than doubled to ₹36 crore in FY25, up from ₹17 crore in FY24.
- Loan Book Expansion: The loan book expanded 3.2 times, reaching ₹381 crore in the first nine months of FY25.
- Lending Model: Zerodha Capital offers loans exclusively against securities such as stocks, mutual funds, and exchange-traded funds (ETFs), with loan amounts ranging from ₹25,000 to ₹10 crore and a loan-to-value ratio of 45%.
- Operational Efficiency: Operating with a lean team, the company leverages Zerodha’s extensive client base of over 8 million active users on the NSE, accounting for approximately 16% of the market.
- Risk Management: Maintaining a conservative approach, Zerodha Capital has reported zero non-performing assets (NPAs) since its inception in 2021.
- Funding and Credit Rating: The company has raised around ₹250 crore from banks and other NBFCs, with a gearing ratio of 1.4x. Credit rating agency ICRA has assigned it a rating of AA- (Stable)/A1+, reflecting confidence in its risk controls.
- Future Plans: Zerodha’s promoters plan to infuse an additional ₹125 crore through compulsorily convertible preference shares to support growth. The company is also exploring the introduction of term loans while maintaining its focus on secured lending.
Zerodha Capital’s performance in FY25 underscores its strategic execution and conservative lending approach, positioning it as a growing player in the financial services sector.
