Zerodha Results: Company Logs Rs 1,122 Cr Profit In FY21, Revenue At Rs 2,700 Cr, Says Report

Zerodha’s active clients grew from 14.14 lakh in FY20 to around 34 lakh in FY21

New Delhi: India’s largest stock brokerage firm Zerodha has clocked a sharp rise in profit and revenue in FY21, as the number of active clients on share broking platform ballooned 2.4X to 33.91 lakh, according to NSE data.

For the Bengaluru-based Zerodha, founded by the Kamath brothers, 2021 was the biggest year ever in terms of acquiring customers and business volumes.

According to a report by Entrackr, the company has logged a profit of Rs 1,122 crore, a rise of over 164 per cent from Rs 424 crore in FY20. The revenues from operations has also risen by 190 per cent to Rs 2,729 crore in FY21 from Rs 938 crore, a year-ago period.

Zerodha has booked around 82.5 per cent of its operating revenue under ‘sale of service’ which includes brokerage fees, sale of its premium tech products such as Kite Connect API, user onboarding collections, and exchange transaction charges collected from clients on behalf of various securities exchanges. This collection grew over 3.1X to Rs 2,252 crore during FY21 from Rs 718 crore collected during FY20.

The remaining 17.5 per cent of the operating revenue is booked under ‘miscellaneous other operating revenues’ which is primarily the interest on financial securities and margin interest charged by the company from its clients. This revenue vertical grew around 2.2X from Rs 220 crore in FY20 to Rs 476 crore during FY21.

Zerodha’s active subscribers grew from 14.14 lakh in FY20 to around 34 lakh in FY21. About 82.5 per cent of the company’s operating revenue comes from brokerage fees and sale of tech products and this vertical saw a rise of over three times from Rs 718 crore in FY20 to Rs 2,252 crore in FY21, the report said.

The brokerage firm had also introduced a new ESOP pool worth Rs 100 crore at the beginning of Q3FY22 after executing the buyback during FY21, Entrackr said.

Meanwhile, Zerodha has also spent Rs 12 crore on various CSR projects, such as provision of special education, livelihood enhancement projects, animal welfare, health care, environmental sustainability, and Covid relief funds for the government. The start-up also runs the Rainmatter Foundation, focused on fellowships and investments for individuals and organisations in the environment space.

The overall annual expenditure of Zerodha grew 2.4X to Rs 1,260 crore in FY21 from Rs 517 crore.