Dhan’s parent company, Raise Securities, has reported a 20.1% decline in its net profit for the 2026 fiscal year (FY26), falling to ₹325.8 crore (roughly rounded to ₹326 crore).

The drop stands in contrast to the roaring bull run that characterized the preceding year, where Dhan recorded a massive ₹408.1 crore profit in FY25. However, credit rating agency ICRA notes that the discount broker still maintains a remarkably healthy and resilient profitability baseline compared to the wider retail fintech space.

The Financial Breakdown: FY25 vs. FY26

While bottom-line profitability moderated, Dhan’s top-line numbers continued to tick upward, highlighting strong underlying user acquisition.

Why Did Profits Dip Despite Rising Revenue?

The compression in Dhan’s net margins boils down to a combination of rising structural overheads and strict regulatory shifts in the Indian capital markets:

• The F&O Concentration Risk: A massive 70% of Dhan’s net operating income is derived strictly from the futures and options (F&O) segment. Because the business is heavily anchored to active day traders, it faced a clear headwinds from recent regulatory constraints clamped down on index derivatives trading by SEBI, alongside a broader volume normalization in equity markets over the last few quarters.
• Aggressive Growth Expenditures: To keep pace with heavily funded rivals, Raise Securities significantly expanded its operational cost structure during the fiscal year. The firm deployed heavier outlays toward targeted marketing campaigns, team expansion across tier-1 and tier-2 cities, and technology infrastructure.
• The Margin Trading Buildout: The company aggressively scaled its Margin Trading Facility (MTF) book, which swelled to ~₹505 crore by the close of March 2026. While the MTF expansion secures a highly lucrative recurring interest income stream for the future, building and clearing these massive funding pipelines carries near-term cost-of-carry expenses.

Operational Scale and Market Position

Despite the profit dip, Dhan’s growth trajectory remains highly notable for a startup launched just over four years ago (founded in November 2021 by former Paytm Money CEO Pravin Jadhav, Jay Prakash Gupta, and Alok Pandey).

The platform has officially cemented its position as India’s 9th-largest stock broker by active NSE clients, capturing a steady 2.33% market share. Its net worth buffer was further reinforced by a massive ₹580 crore primary funding injection secured by the broader Raise Fintech Group.

Acknowledging its robust liquidity runway (which includes unencumbered cash balances of ₹86 crore and ₹35 crore in highly liquid corporate investments), ICRA assigned a stable long-term credit rating of [ICRA]A+ to Dhan’s bank lines, while reaffirming its premium [ICRA]A1+ rating on its commercial paper layout—signaling strong institutional trust in the startup’s financial cushion despite the minor cooling period.