Zerodha CEO Expects 10–20% Decline in Broking Business, Rules Out IPO Plans

Zerodha, one of India’s leading discount brokerages, is preparing for a 10 to 20 percent decline in its broking business amid slowing market activity. CEO Nithin Kamath shared this outlook in an interview with CNBC-TV18 on June 4, citing weaker investor participation during the first quarter of FY26.

“There’s a slowdown in the market currently, and we expect that to reflect in our broking numbers,” Kamath stated.

Revenue Target Unchanged Despite Slowdown

Despite the anticipated dip in trading volumes, Zerodha remains focused on hitting its revenue goal of ₹10,000 crore by the end of FY26. Kamath made it clear that the company will not alter its brokerage charges to meet this target, sticking to its low-cost trading model.

“We are not planning to change our brokerage rates,” Kamath said, highlighting the company’s confidence in its current pricing strategy.

No IPO Plans: “Being Listed is Tough for a Company Like Us”

Addressing speculation about a potential Initial Public Offering (IPO), Kamath reiterated that Zerodha has no plans to go public. He explained that the company is well-funded and does not see a need to raise capital through the stock markets.

“We continue to believe there’s no reason to IPO. Being listed on exchanges is tough for a company like us,” he explained.

Kamath added that Zerodha prefers to stay private, as its business model and internal operations do not align with the quarterly scrutiny and rigid norms associated with public markets.

Vision to Become a Full-Fledged Financial Services Conglomerate

Looking ahead, Kamath shared Zerodha’s long-term vision: to transform into a comprehensive financial services firm over the next decade. This includes plans to enter the banking sector, which would be enabled by acquiring a banking license.

“We’re working toward building a full-fledged financial services conglomerate in the next 10 years,” Kamath affirmed.

Staying Agile in a Shifting Market Landscape

As India’s capital markets evolve, Zerodha continues to navigate industry changes without compromising its core philosophy of transparency and cost-efficiency. The company’s leadership remains confident in its strategy and future roadmap, even as short-term headwinds impact the broking segment.