In the financial year 2024–25 (FY25), Zerodha Capital has made headlines by reporting a net profit of ₹12.5 crore, marking a remarkable 78% year-on-year (YoY) growth. This development showcases not only the company’s strength in the rapidly growing fintech lending sector but also underlines the maturity of Zerodha’s business model as it expands beyond traditional stockbroking into full-fledged financial services. The company’s revenue doubled to ₹36 crore, reflecting its growing footprint in India’s NBFC (non-banking financial company) ecosystem.
Zerodha Capital, a subsidiary of India’s largest retail broker Zerodha, has gained traction by offering Loans Against Securities (LAS)—a model that allows investors to borrow money by pledging their existing stock holdings instead of selling them. This kind of product is increasingly popular among modern retail investors who want instant liquidity without breaking their investment journey. In just the first nine months of FY25, the company’s loan book expanded to ₹381 crore, representing more than three times growth compared to the previous year.
What makes this profit even more significant is the way Zerodha Capital has built its business—lean, tech-driven, and digitally enabled. Unlike traditional NBFCs that require large teams and physical branches, Zerodha Capital relies on automation and digital onboarding. It operates with a minimal workforce, leveraging Zerodha’s existing customer base of over 8 million NSE clients, who form a natural pool for offering lending products. With such a digital-first approach, the company is not only cutting down costs but also increasing scalability and reach.
Another major highlight is that since its inception, Zerodha Capital has recorded zero NPAs (Non-Performing Assets). This achievement is incredibly rare in India’s NBFC sector, especially when lending is growing at such a fast pace. It shows the company’s high-quality underwriting standards and conservative approach to risk. Rather than pushing loans aggressively, Zerodha Capital focuses on customers who understand market risks—typically experienced retail investors and traders—thus keeping loan defaults to a minimum.
This rise in profits and scale has put Zerodha Capital in the spotlight as a role model in India’s fintech space. At a time when many digital lenders are struggling with regulatory challenges, high customer acquisition costs, and volatile asset quality, Zerodha Capital has quietly built a clean, profitable, and scalable NBFC. Its model is also an example of how fintech companies can find sustainable revenue streams beyond just app downloads or digital wallets.
What differentiates Zerodha Capital further is its ability to tap into an already trust-rich ecosystem. Zerodha, being one of India’s most trusted brokers, provides a massive trust advantage. Customers who already use Zerodha for trading and investing are far more likely to trust it for financial products like loans. This built-in credibility gives the company a serious edge over startups or banks trying to attract new clients from scratch.
As the company looks to the future, sources suggest that Zerodha Capital is planning to diversify its loan offerings. It may soon enter segments like ESOP financing, margin trading loans, and short-term working capital credit for small digital entrepreneurs. These moves indicate that the company is not just content with serving investors—it wants to become a broader financial enabler in India’s digital economy. As the fintech and investment space in India evolves, Zerodha Capital is positioning itself as a key player, capable of offering custom credit products that fit the new-age investor.
It’s also worth noting that the regulatory climate in India is becoming stricter for NBFCs. The Reserve Bank of India (RBI) has been issuing new guidelines on digital lending, fair practices, and capital requirements. In such a scenario, Zerodha Capital’s compliance track record and its transparent operating structure offer it long-term advantages. The firm’s conservative lending strategy also means it’s better positioned to absorb macroeconomic shocks compared to more aggressive players in the market.
Still, challenges lie ahead. The competition in fintech lending is heating up, with players like Groww, Paytm Money, and Upstox also eyeing similar opportunities. Traditional banks, too, are upgrading their digital platforms and launching instant loan features. But where Zerodha Capital stands apart is in its ability to integrate lending within the investment journey. This kind of contextual lending—where credit is given based on real-time portfolio value—is far more relevant to today’s informed retail investor.
Moreover, the future of lending in India will depend heavily on data-driven risk assessment, machine learning, and API-based integrations. Zerodha Capital’s tech DNA and access to investor data puts it in a good position to lead this wave. It can personalize loan offers, ensure real-time approvals, and even integrate loans with trading decisions. For example, a user who sees a market opportunity but lacks funds could instantly get a short-term margin loan from Zerodha Capital, thus bridging the gap between insight and action.
The FY25 numbers prove that Zerodha Capital is no longer a side project—it is a core business pillar in the Zerodha universe. Its ₹12.5 crore profit shows that well-run NBFCs, when backed by tech and trust, can scale profitably. And the ₹381 crore loan book speaks volumes about India’s growing comfort with borrowing against capital market assets.
Zerodha Capital’s performance in FY25 is a milestone not just for the company but for India’s fintech lending sector. It shows that with the right mix of technology, trust, and timing, even a conservative lending model can thrive and lead the next chapter of India’s financial inclusion story. As retail investing in India continues to explode, and more users look for flexible credit options, Zerodha Capital is poised to ride this wave with confidence and capability.
