The March 2025 quarter brought a wave of turbulence for India’s top discount brokerage firms, as the ongoing market correction triggered a sharp decline in their active client base. The pressure of falling markets led many investors to step back, resulting in a collective loss of over 9.62 lakh active clients across the industry.
According to the National Stock Exchange (NSE), the total number of active clients across all brokerage firms dropped to 4.92 crore, down from 5.02 crore in the December 2024 quarter. What’s more striking is that over 80% of this client loss was concentrated among just four major players—Groww, Zerodha, Angel One, and Upstox.
Groww Faces the Sharpest Fall
Among all brokerages, Groww, which has rapidly risen to become India’s largest brokerage firm, experienced the most significant drop in active clients. As of March 2025, Groww’s active client count stood at 1.29 crore, down from 1.32 crore in the previous quarter. This represents a steep decline of 2.37 lakh investors, a notable reversal for a firm that had seen rapid growth over the past few years.
Zerodha and Angel One Also See Significant Drop
Zerodha, the pioneering discount brokerage firm founded by Nithin and Nikhil Kamath, also witnessed a major fall. Its active clients decreased by 2.31 lakh, bringing the total to 78.89 lakh in Q4, compared to 81.2 lakh in the December quarter. While Zerodha remains a strong player in the market, the client drop reflects the broader impact of bearish sentiment among retail investors.
Similarly, Angel One, another key player in the retail trading space, saw its active client base shrink by 1.76 lakh. The firm ended the March quarter with 75.78 lakh active users, down from 77.54 lakh previously.
Upstox Registers Notable Client Loss
Upstox, which has been aggressively competing in the discount brokerage segment, wasn’t spared either. The firm saw a drop of 1.39 lakh active clients, taking its total down to 27.47 lakh in the March quarter from 28.87 lakh in December.
Widespread Client Attrition Across the Industry
The client exodus wasn’t limited to the top four. Several other discount brokerages also experienced similar challenges. Firms such as 5Paisa Capital, Paytm Money, Sharekhan, Mirae Asset Capital Markets, Kotak Securities, Alice Blue, Motilal Oswal Financial Services, IIFL Securities, SMC Global Securities, Samco Securities, Fyers Securities, Finvasia Securities, Nuvama Wealth, and Axis Securities reported declines in their active client numbers during this period.
This widespread attrition suggests that the recent market correction has led many retail investors to exit the markets or reduce their trading activity. It also signals a temporary pause in the rapid growth that discount brokerages had been enjoying over the past few years.
What’s Behind the Drop?
The drop in active clients can largely be attributed to a combination of factors—profit booking, increased volatility, and a shift in investor sentiment amid falling markets. Many retail investors, particularly those new to the stock market, may have chosen to exit as uncertainty and losses mounted.
Looking Ahead
Despite the recent setbacks, the long-term potential of discount brokerages in India remains strong. With the increasing digitization of financial services and growing financial literacy, firms like Groww, Zerodha, Angel One, and Upstox are likely to bounce back once market conditions stabilize.
However, the current trend serves as a reminder that client retention is just as critical as acquisition, especially in volatile market environments.
In summary, the March 2025 quarter has been a challenging period for India’s top discount brokers. With over 9.62 lakh active clients exiting the platforms, led by declines in Groww, Zerodha, Angel One, and Upstox, the industry is experiencing a temporary reset. Whether this is a short-term correction or a longer trend remains to be seen—but it has certainly put the spotlight back on market sentiment and investor behavior.
