Zerodha founder and CEO Nithin Kamath has cautioned that continued stock market challenges could push the brokerage to start charging fees, ending its long-standing zero-brokerage model. In a recent blog marking Zerodha’s 15th anniversary, Kamath revealed that the firm experienced a 40% decline in brokerage revenue during the June quarter of FY26, primarily due to regulatory changes affecting active options trading.
He noted that the future of weekly options is uncertain, with regulators considering a possible ban. If that happens, Zerodha may be forced to charge brokerage on equity delivery trades to sustain operations — something many competitors already do.
Kamath admitted that such shifts are beyond the company’s control, as revenue is influenced by market conditions, regulations, and policy changes. He added that the risk of regulatory scrutiny around options turnover has now materialised, especially with the hike in STT, reduction in weekly expiries, removal of exchange fee rebates, and higher BSDA limits. These changes began affecting Zerodha’s earnings in October 2024, with the full impact visible in Q1 FY26, where revenue dropped sharply.
