Zerodha, the pioneering discount brokerage firm that revolutionized India’s stock market access with its zero-brokerage model for equity delivery trades, is now contemplating an end to this flagship offering. In a candid September 30, 2025, blog post marking the company’s 15th anniversary, cofounder and CEO Nithin Kamath revealed that regulatory restrictions on derivatives trading—Zerodha’s revenue mainstay—have slashed brokerage income by 40% year-over-year in the June 2025 quarter (Q1 FY26), forcing a reevaluation of the free equity delivery policy introduced in August 2015. For long-term investors, retail traders, and fintech observers searching Zerodha zero brokerage end, Nithin Kamath brokerage fees 2025, or SEBI derivatives impact Zerodha, this potential shift could increase costs for buy-and-hold strategies, eroding Zerodha’s key differentiator that has saved clients an estimated Rs 2,000-20,000 crore over a decade. Kamath warned that further curbs, like a complete ban on weekly options, would make the business “untenable” without charging for delivery trades, where competitors like Groww and Upstox already impose fees of 0.1% or Rs 20 per order.
Zerodha’s net worth exceeds Rs 13,000 crore with zero debt, but the derivatives revenue cliff—exacerbated by STT hikes and exchange transaction charge changes since October 2024—has crystallized long-feared risks.
The Revenue Crunch: 40% Drop in Q1 FY26 Brokerage Income
Zerodha’s brokerage revenues, primarily from high-volume derivatives trading, plummeted 40% YoY in Q1 FY26 (April-June 2025), with the full impact of SEBI’s measures (STT increase on options, removal of exchange transaction charge exemptions) hitting from October 2024. Equity delivery, offered free since 2015, subsidizes the model but generates minimal revenue, making the firm vulnerable to F&O curbs that account for 90% of income.
- SEBI Measures: Weekly options restrictions and STT hikes reduced trading volumes by 30-40%.
- Client Impact: Retail participation dipped, with Zerodha losing some users to fee-based rivals.
- Financial Buffer: Rs 13,000 crore net worth covers short-term hits, but long-term sustainability is at risk.
Kamath reflected: “The risks I was tweeting about since 2021 have crystallized.”
| Revenue Source | Pre-Curbs Share | Q1 FY26 Impact |
|---|---|---|
| Derivatives (F&O) | 90% | -40% YoY |
| Equity Delivery | <5% | Free; Potential Fee |
| Mutual Funds/Other | 5-10% | Stable |
Potential Shift: Charging for Delivery Trades
Zerodha’s zero-brokerage USP for equity delivery—waived since 2015—saved clients Rs 2,000-20,000 crore over a decade but subsidized by F&O volumes. Kamath indicated fees of 0.1% or Rs 20 per order if weekly options end, aligning with rivals like Groww.
- Investor Reaction: Mixed; some fear higher costs, others see sustainability.
- Competitive Landscape: Groww/Upstox charge for delivery; Zerodha’s pivot could retain users via trust.
- Future Safeguards: Kamath hinted at diversified revenue like advisory services.
Conclusion: Zerodha’s Zero-Brokerage Era May End
Zerodha’s potential end to zero-brokerage delivery amid 40% revenue drop is a seismic shift after 10 years, driven by SEBI curbs. As Kamath navigates, it could redefine affordability—or alienate loyalists. For retail investors, monitor updates: Will fees fly, or F&O rebound? The trades continue. yourstory
