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Is Zerodha Set To End Free Equity Delivery? Nikhil Kamath Flags Revenue Pressure
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Nithin Kamath hints Zerodha may start charging brokerage for equity delivery trades amid regulatory changes and revenue decline.
Weekly Options Ban Could Hit Revenues, Zerodha Mulls Charging Delivery Brokerage
Zerodha co-founder Nithin Kamath in his latest blog has hinted that the online brokerage platform may implement brokerage charges for equity delivery trades from customers, which are currently non-chargeable, to ensure the sustainability of the business. “We would be forced to start charging brokerage for equity delivery trades to make the business tenable,” Kamath said in the blog upon the regulator’s evaluation on whether to stop weekly options completely.
Zerodha will see another revenue hit if the regulator stops weekly options completely. Kamath said that the options business might be at further risk, with the regulators evaluation whether to stop weekly options.
On the question of what would we do if weekly options were removed, I suppose we’ll see another hit to our revenues in the short-term, Kamath explained the rationale behind the move.
The Securities and Exchange Board of India (Sebi) in the past few years has taken several measures to restrict the galloping futures and options trading business across the country, leading to major losses to traders. According to a previous Sebi study, 93% F&O traders are in loss, marking a substantial trap for small investors to lose their hard-earned money in the pretext of speculative trading.
Kamath had earlier stated that the platform’s broking revenue fell 40% in 2025 due to combined factors, including the STT increase on options, then the removal of exchange transaction charge rebates, and a reduction in weekly expiries. In addition to this, there was a significant decline in market activity, he said, adding that our (Zerodha) revenues and profits suffered a decline.
Moreover, Kamath said, new account openings were lower due to the overall market activity.
“Our overall share of NSE’s active client list has trended down. A person trading once a year is considered active by NSE. I don’t pay much attention to this data because brokers are constantly gaming this by pestering customers to trade via notifications and dark patterns. By triggering people to trade, you not only generate turnover but also move up the list,” Kamath added in the post.
On the question of what would we do if weekly options were removed, I suppose we’ll see another hit to our revenues in the short-term.Having said that, when you’re building a business for the long term, focusing on quarterly or even annual growth is a poor metric. The more you… pic.twitter.com/ZAx2ih7sxg
— Nithin Kamath (@Nithin0dha) October 1, 2025
To allay the fear of customers, Kamath ensured that Zerodha is financially stable with a net worth of Rs 13,000 crore, substantially higher than its competitors.
“Our net worth as a percentage of client funds we handle is unprecedented—more than 50% on any given day. We have zero debt on the books, and as we are fully privately held, we have more skin in the game than any other broker in India,” Kamath added in the post.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 04, 2025, 15:00 IST
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