In the financial year 2024-25, Zerodha’s filings show that both Nithin Kamath and Nikhil Kamath withdrew remuneration of approximately ₹96 crore each. This news is stirring scrutiny over executive pay, governance and the broking company’s performance. Entrackr
What the filings show
- According to filings referenced by Entrackr, Zerodha’s salary cost for its directors in FY25: the Kamath brothers each received ~₹96 crore in remuneration.
- Along with them, another director (whole-time) received ~₹36 crore, taking the total “directors’ remuneration” to ~₹228 crore.
- The disclosure comes in a year when Zerodha reported revenue of ~₹8,847 crore (down from ~₹9,993 crore in FY24) and a profit of ~₹4,237 crore (a ~22.9% decline).
Why this matters
1. Executive pay vs business performance
With the company’s revenue and profit both down in FY25, the large pay packets for founders raise questions about alignment of remuneration and business results.
2. Governance & board oversight
Such large salaries for promoters attract scrutiny around whether compensation is performance-linked, transparency of board decisions, and conformity with best practices.
3. Benchmark for the industry
In India’s start-up and fintech ecosystem, such remunerations become reference points — both for peers and regulators scrutinising executive pay.
4. Investor and stakeholder perception
Even though Zerodha is privately held and highly profitable, large payouts may influence how investors, stakeholders and the media view management discipline, reinvestment strategy and long-term priorities.
5. Public/employee perception
In a business where many employees, users and wider ecosystem participants watch compensation trends, large founder remuneration can spark debate about pay equity, reinvestment of profits, and growth priorities.
Context: Zerodha’s Financial Snapshot
- Revenue from operations in FY25: ~₹8,847 crore (down from ~₹9,993 crore in FY24).
- Net profit for FY25: ~₹4,237 crore, representing a drop of about 23% year-on-year
- Directors’ remuneration: ~₹228 crore (including ~₹96 crore each for the Kamath brothers).
Looking Ahead: Implications & What to Watch
- Will Zerodha adjust its pay-structure in coming years to more clearly tie remuneration to performance (growth, profitability, new-business metrics)?
- How will stakeholders view such high compensation in a year of declining revenues? Will this influence employee morale, user trust and stakeholder conversations?
- Will regulators or industry bodies raise scrutiny around highest-paid startup founders / promoters, especially in private but large fintechs/brokerages?
- With large pay-outs, what is Zerodha’s reinvestment strategy (product innovation, expansion, diversification) looking like?
- How transparent will Zerodha be in future about pay approvals, board decisions and rationale behind founder compensation levels?
Conclusion
In summary, the disclosure that the Kamath brothers each drew ₹96 crore in FY25 stands out in India’s brokerage space. While Zerodha remains strong in cash reserves and profitability, the combination of large founder pay and a year of revenue decline raises questions around compensation, governance and future strategy.
